as the s&p bank up more than 1%. on the eve of yell enen's testimony. >> tesla is the best stock. thanks for watching "power lunch". >> closing bell starts now. hi, everybody welcome to the closing bell. i'm kelly evans. >> i'm scott wapner. another record breaker for stocks. apple on track for a record close as well. the dow on pace for its fifth record close just since the inauguration. it's 20 seconds since the election. we'll look at whether it's time to get cautious or not. >> the question everybody keeps asking as the rally keeps going. the latest shot in the wireless wars. verizon is bringing back ice unlimited plan. what do these price cuts mean.

>> growing role of gary cohn in the trump administration as we await tonight's confirmiation for mnuchin. >> that was a gentle justin trudeau. if you expected fireworks here between the cohnian side and u.s. side that's not what we saw. trudeau's moment where he came close to criticism of the u.s. is when he quoted winston churchill talking about the very peaceful and low key of the northern border of the u.s. as a model for all of the world. trudeau also saying here that ultimately canadians didn't expect him to come down here wagging his finger. here's what he had to say. >> there have been times where we have differed in our approaches. and that's always been done

firmly and respectfully. the last thing canadians expect is for me to come down and lecture another country on how they choose to govern themselves. >> now for his part president trump was asked about the state of nafta and whether he envisions any changes to the canadian piece of the nafta treaty and he said ultimately de. here's how the president put it. >> we have a very outstanding trade relationship with canada. we'll be tweaking it. we'll be doing certain things that are going to benefit both of our countries. it's a much less severe situation. >> reporter: so, obviously, for those observers watching the key there is what certain things the president is talking about in terms of the change of nafta in the northern hemisphere. we'll be watching to see what those are. of course the president will likely be talking to leaders on capitol hill as well as folks in the administration before they roll out any specific new plans.

>> i'm wondering aside from what we've heard what was discussed in the sound bites you played did the issue of the nsa michael flynn come up during the news conference today? >> no. you could tell there were a lot of reporters in the room who were chomping at the bit to ask about the national security adviser general michael flynn who has been rumored to be on thin ice here with this administration, maybe on the verge of losing his job because he may or may not have lied to the vice president of the united states about his contact and communication with the russians. that is one of the topics that's hanging over this white house today. they did not get any questions about it at the end of the press conference reporters were literally jumping out of their says to ask that question, shouting after the president as he threat room but no answer to that question from the white house today, scott. >> too bad. thank you. canada's finance minister will be speaking with us firstly. that's coming up in just a couple of minutes. now to the markets hitting

record highs. bertha coombs is in the middle of the action at the nasdaq. one of those markets hit agnew high. >> actually had small caps russell 2000 hit a new high. year-to-date it's the nasdaq 100, by far the year's best performing major index and it's been driven by five mega cap stocks. amazon is the best performer. in terms of point impact year-to-date these four stocks and facebook are responsible for about 3 puerto rico of the s&p's gains year-to-date. s&p today hit a record 20 trillion dollar market cap, i don't know if we can fit it on with all those zeros, when you include facebook the top five mega cap stocks add up to 2.5 trillion of that or about 12% of the s&p 500's valuation. as apple here is once again above $700 billion in market valuation and on pace, guys,

right now for historic close, anything above 133 even makes it historic close for apple. >> we'll be watching that on the bell. thank you. let's get your closing bell exchange. withous r us is renee norris, peter costa and our own rick santelli at the cme in chicago. peter, we're up 149 points on the dow today. what gives? >> stop with this. i mean, you know, it's the financials. i'm not in this market. >> no wonder you're ornery. costa is on the sidelines. >> the market is getting to a point where it is severely overvalued. there's a lot of people out there that don't believe that. they think there's a lot of room on the upside. the pes of these companies, some of these stocks are trading in

mia multiples that they will never reach. >> are those the same stocks, for example like netflix or biotech's. >> no. >> or talking about the typical stock. >> the typical stocks, the proctor and gamble, johnson & johnson. they are trading at all time high and all time high pes. there's going to be a rejiggering of that again, bringing it back a little bit. you get that, there will be small sell off. i don't think it will be anything major. that's when i'll get back into the market. i can't say when but i do think the market will be selling off because of that. just specifically for that. >> renee, is it too late to get in? if costa wanted to get in now, has he missed his chance? >> he's a very smart guy. i wouldn't say that. but, you know, i do look at this market through three lenses. there's the trump bump, the trump dump and the trump mess. so in the trump bump bucket i

like the financials, especially now since we are going to have some relaxation of a lot of the regulatory oversight and now we've had the announcement that daniel tirilo is resigning. this gives administration clear oversight and we'll have good opportunity. interest rates are going up. i still like the small and mid cap stocks and mainly because they are not in the cross-hairs of all this conversation about border taxes or any of these issues related to being overseas. so i think that there's still some nice sectors to be in and some sectors to be looking for and opportunity to get in too. >> we'll come back to that. rick, do you see red lights, yellow lights or green lights flashing out there? >> i don't see anything other than maybe a little bit of yellow but mostly green. i think -- consider this any market could potentially see

reversals. i understand that. this market since november and i'm talking equities, it rallied, it digested and it's in rally mode again. some of the biggest and brightest. today one of the headlines, calpers under 900 million on their bogey because they have less allocated for stocks because they didn't trust the move. there will be a lot of large institutions that may ultimately end up feeding the beast when they decide that they can't fall too much further behind their bogies. in terms of interest rates to me that's the wild card. you know, you have all this talk, a, that the fed will quit reinvesting of the balance budget that could make rates go up. there's talk about japan after the election. that could put rates up. new york fed survey that came out today talking about inflation expectations going up. ppi own cpi in the next couple of days. that's bye too the upside. one thing, rates have been much

more tame. there's less corporate supply once repatriation is in the rear view mirror. >> what about tomorrow and the next day when the fed chair is on this. is that an opportunity for her to start to set the table for maybe march and is tomorrow a breaking point for the down side of rates and do we think they are actually going to start to rise potentially beginning tomorrow? >> well, i think the fed, of course, always has the ability to move markets. but when you say set the table, the fed at -- considering we're at 420,000 that table would look like that spidery web table in "great expectations." >> seriously, do you think that march becomes a real option and the fed is more than likely or not to do it and she starts set

the table for real. >> i don't know if she will set the table but if anybody thinks the fed is, is short sighted. >> you mentioned some of your picks for this market, renee. what are they? >> i'm a big believer in index investing. i like the financials, yif. i'm going back to that whole inflation trade. we had a pump. the cpi is at the highest level since 2011. i'm putting some hedge opportunities, investment opportunities. using treasury inflation protection securities. i like gold, ieus mainly because as an etf because their price cigarette lower. more importantly the area that a lot of people are not talking about is emerging markets and international space too.

emerging markets are up 25% year-over-year. very quietly, international and the european markets are up as well. they are showing the first levels of profitability in a number of years. so i want to go where the puck is going, not where it already is. >> just quickly, pete, is it possible people are still under estimating this trump bump, what's really possible in this economy if you get the agenda with fundamentals really turning, this thing -- >> i think you've seen that in the last couple of weeks. i also think you're seeing a lot of retail investors starting to get involved again. again, that's a signal. you have to be very careful when retail starts putting money into etfs, putting it even -- you're seeing more index funds, more money and seeing some managed, actively managed accounts are getting increases. so you have to be very careful about that part it. you are starting to see that and to me that almost is a red flag. >> almost halfway to 21,000.

>> the dow jones getting in floss, the journey pointed that out. >> it did bump some people into the market. there's no doubt about it. we had months of this, you know, 20,000 hat walking around the trading floor. and when we finally reached it you started seeing an influx of money into the market because that was, that was front page news. so it did bring some money in. that's the scary part to me. >> thank you, everybody for joining us. we appreciate it. >> thank you. little more than 45 minutes until the close. the dow is at session highs. s&p is up 13 today. the nasdaq is up 32. the russell is up to 1391. mobile telecom war heating up. up next two leading analysts weigh in on verizon, bringing back the unlimited data plan and whether lower prices for consumers will lead to lower or higher returns for shareholders not to mention the stuff that

t-mobile is already saying and we'll tell you about that. also ahead jobs trade in the keystone pipeline, canada's finance minister will join us about the economic relationship between canada and the u.s. and he was just asked about some of those meetings between the president and their prime minister. you're watching cnbc first in business worldwide. ♪ to err is human.

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welcome back to a strong day on wall street. the dow is up 150 points at the hour. four names in the dow are in the red. travel e-walmart, nike and verizon. all the declines remember less than 1% while caterpillar and goldman are leading the way. >> verizon will start selling unlimited data plans. that move comes amid intense competition. the competition was quick to respond. t-mobile has been tweeting and here's the latest from just a short time ago. you know i have more to say on this verizon offer and like only the uncarrier can do we're one

upping it in one hour. joining us to discuss. >> jonathan, while consumers love this announcement what does it mean for shareholders of verizon. clearly they are selling the stock today. >> not great news on two fronts. they have been saying for quite a while they don't think unlimited plans make a lot of sense. that the other carriers have been giving away future growth and they wouldn't do it and now they are doing it. they are doing it in response to a pretty set of weak results in the fourth quarter that got worse in the first quarter. to make matters worse they are in the least well position to do this because they have less capacity than everybody else. they have half the available capacity per subscriber of t-mobile and at&t. and about a third of the available capacity of sprint. so this is just going exacerbate their network issues relative to the other guys. >> does this move come from a

set point of strengthen or weakness and it sounds like it comes from a point of weakness. >> we would agree. at this point the other three carriers in the marketplace have unlimited offers. it was expecting on the fourth quarter call it was asked of them will you come out with an unlimited plan. at that time they said they were not interested. they didn't think that plan actually made sense. clearly this is from a point of weakness they are making this move. >> how could they not do something like this if they know t-mobile and sprint are so active in nipping at their heels or as john legere was saying, beating them. isn't this a smart move? >> from our perspective it's not necessarily smart because they are trying to respond to the competition that's out there in the marketplace. really what you want to see them be more pro active and doing something that will help them

longer term. you know, if you look at their market share the last year their market share has been going down. for the last year we saw they added just 100,000 subscribers. if you compare that to sprint and t-mobile they have been added more than that during that same time, t-mobile had 1.9 million and sprint at 800,000 subscribers. that's different than the last two or three years. clearly they are now in a position they had to do something. >> this capacity thing is interesting. we tend to think verizon having this great coverage and charging a premium because of what it offers but you say they have chassis challenges. what does that mean in practice and will offering unlimited data exacerbate that or do they have to make massive cap x investments. >> make massive cap x investments or they need to go out there and fix the capacity problem in a meaningful way. there's two set of companies that could make sense for them.

one is a company like dish that has a massive amount of unused spectrum. the other is wuchether is one o companies. it's challenging for them to get a deal like that done. >> you were saying you didn't think it was in charter's interest. >> that's right. charter would fix verizon problems in a third of the country. they would be taking equity in a company that still has problems in two-thirds of the country. that's not the greatest outcome for charter investors, in my view. dish makes a ton of sense for verizon. >> do you think verizon should dump the yahoo! deal and do a deal that has a bigger picture. >> absolutely. i never made sense of the yahoo! deal myself. i don't think it's makes a meaningful inroad for them in sort of the content, media, digital media space. they need to fix their wireless business. that's capital they should do. >> what it does do it shows they

need to go elsewhere for growth. that's the one thing. if you look at the u.s. market, it is mature. not that many new subscribers looking to the market looking for a phone for the first time. they are dealing with market share issues. as we go forward, i agree with jonathan, m and a is most likely for the company, dish could make sense. cable makes less sense for them at this point. more than anything what it shows is that when you look two to three years out from now verizon will be a different company from what it is today where they can get growth that they can't get today. >> thank you both for being here. >> we should mention the poem that legere tweeted. he said he wrote a valentine's day poem to verizon. roses are ma again tax unlimited is too. you don't know what you're doing. customers realize tight. as only as john legere can.

>> we'll send it over to dominic chu. >> we're watching popeye's up 11%. this on the heels of reuters headlines saying that restaurant brands international the owner of burger king and tim horton's has possibly or has approached popeye's louisiana kitchen about a possible takeover. according to sources familiar with narrative. that's why the shares did spike up. they were halted very briefly for a circuit breaker and they are up 10%. both them and qsr are trading on heavier than average volume. that's the reason why. we'll get more details. possible combination between burger king, tim horton's and popeye's louisiana kitchen. back to you. qsr coming off strong earnings. thank you. heading in to the close, 40 minutes to go. dow is up 143 points today.

the biggest gainer of the four major averages. s&p and nasdaq up half a percent. >> nick mcguire sounding off on a critical step at deckers. we'll give you those details next.

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>> the principle cap allocation error that this company has made has been the deployment of significant investment into physical retail stores that have really translated in to no visible return on investment of any kind. >> disclosing a 6% stake in deckers last week. that stock is down more than 11% over the last month. macy's is off session highs after mr. mcguire told me he was cutting back on his stake in the retail giant. the decker story is -- >> i think he's right. >> very new. very new. they are thinking about what they should do if this should sell ugg. >> i'm usually wearing them on set. >> everybody knows. >> you can order them online. >> 30 minutes to go before we close it up. dow a new record high. up 142 points. 20,411. up next canada's finance

minister speaks with us on a first on cnbc interview. we're talking jobs, trade and keystone pipeline. >> a closer look played by gary cohn ahead of the confirmation of treasury secretary nominee steven mnuchin. stay with us. the future of business in new york state is already in motion.

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lege welcome back. a broad rally across wall street, dow up 144 points. sears is lower. the retailer discontinuing online sales of 31 items in the trump home catalog both at its sears and k-mart units. the company says that number very small and the move is part of its standard practice to refresh it's online offerings. it continues to sell the trump brand via third-party serls. those shares which have many ongoing challenges at the moment, scott, are down 7%. 30 minutes until the close here with o'neal securities. pete costa said the market was dramatically massively overbought. due agree? >> i think it's overbought. i won't say its massively overbought. >> i'm para phrasing. >> we're in unchartered territory. it's also a bit of the pain

trade. guys who were playing it short all of a sudden not going their way so now they are forced into buying it. not a lot of volume. traded 500 million shares today which is a relatively quiet day. i would be cautious because we've had such a big move up. one day you get bad news you can see a swift correction. >> he was pointing to the fact you have retail money coming in now and another reason to be cautious. >> they always jump in at the end. they think they missed it. >> people are under estimating what's going on not just in washington but in the economy. >> that may be true but a lot of it has been jaw boning. trump has said a lot much things. this whole tax reform package he's coming out in three weeks to announce it. the tax code is 76,000 pages long. is he coming out with something in three weeks that will change it? no. but nothing voted on in three weeks. the market is a tad bit ahead of

itself. >> not dramatically or massively. thanks. time for cnbc news update with sue herrera. >> here's what's happening. the pentagon strongly condemning north korea's latest missile test adding the u.s. commitment to protect its allies like japan and south korea is iron clad. north korea said it successfully fired the missile on saturday. hamas is naming a top member of the armed wing as head of the gaza strip. he rejects any consolation or conciliation with israel. a massive powerful storm has brought much of the state of maine to a standstill. the national weather service says up to two more feet of snow could fall on that region. the storm packing some very heavy winds. looks like they are handling it pretty well. and "playboy" magazine is bringing back nude photos.

the move comes four months after cooper hefner the son of the founder was named chief creative overseas. he was an outspoken critic of the move to ban nude models in the first place. you guys are up to date. back to you. people are looking up his 1990 playboy interview referring to president trump. we know everyone is reading for the interviews. thank you. see you next hour. president donald trump meeting with canadian prime minister justin trudeau, the leaders addressing the future of nafta and trade between the u.s. and canada. >> we have a very outstanding trade relationship with canada. we'll be tweaking it. we'll do certain things that will benefit boston our countries. it's a much less severe situation than what's taking place on the southern border. >> joining us now, canadian finance minister bill morneau.

you heard president trump say we'll tweak it and change certain things. what certain things? >> well, first of all, great to be on your show. i think what we heard from the president today was a sense of the real importance of the canada-u.s. relationship and a real desire for us to even improve that relationship. so, we don't have a specific set of next steps but we do know we'll work to improve our trading relationship, including any discussion around nafta. >> can you be specific? did you discuss nafta today? >> we really in much more general terms talked about the importance of the canada-u.s. trading relationship. the importance of the 9 million americans who depend on exports to canada for their jobs and

similarly in canada our 2.5 million jobs. and the need to continue to improve that so we can continue to have good paying jobs for americans, good paying jobs for americans. it was a positive meeting with a sense of a positive outlook to come. >> we're just looking for more specifics because i know you were talking about opening that bridge to canada that connects the u.s. and canada creating more jobs but we want specifics. how are you going to be able to do that? >> well, i think what's important from our standpoint to start is to look at how positive it's been. i think what the president said today was that the relationship is one that's actually produced really positive outcomes and we talked about the need to, you know, continue to improve our effectiveness of our board sorry we can get trade back and forth between our countries effectively, and, you know, recognize that that's been something that's been very positive so far.

so while i don't have specifics to give you, what i can say is when you have a relationship as strong and important as ours between canada and the united states, it's a great place to start. >> and thank you again for joining us here. i'm looking at oil and vehicles, your two biggest exports from canada to the u.s. and both of which were pretty good making in this country now and we have a president who loves to get up and talk and remind how important it is to buy american. regardless of what happens with nafta is that a threat to canada? >> well, i don't see it as a threat at all. i see, in fact, the important m integration of economies we can build on. oil is a situation where yes we do export oil to the united states. that's positive for the united states. it means it's not importing oil from other countries in other parts of the world. in terms of you a, to what we can say is our markets are so

intertwined. we see a finished product that might come from a canadian factory that might have a transmission built in the united states and might have some early components from canada. products do go back and forth across our border creating great jobs on both sides of the border and we believe that's a place to start from in terms of how to think we can do better. >> did the prime minister directly tell president trump that he was against a border tax? >> we didn't talk specifically about that particular issue. our view is that the way that we currently have our relationship is one that works. our sense is that a border adjustment tax wouldn't necessarily enhance our trading relationship, so that's our sense of it. but it wasn't something that was specifically discussed. >> you're saying that the issue of border taxes between the

united states and canada didn't come up? kevin o'leary, the television show "shark tank" fame and also running for the conservative party in canada calls that a disaster. would it be a disaster? that issue really didn't come up today? >> well, what we've talked about today is the foundation of a great relationship. we talked about how the two countries worked together today. and we talked about how we can expand upon that relationship. we didn't go into the details of our respective tax regimes. we do know that what's working today is the interrelationship of our economies for producing really strong benefits for both countries. >> you talked about investment and energy infrastructure and this comes down the keystone pipeline. how confident your that we'll get that built? >> well, we, as you know, we're

supportive of that pipeline being built. the fact that president trump has come out in support is a positive thing for, we believe, both our economies, certainly for the economy in alberta. our sense is that approval from him will enable us to move forward. we know there's still things we need to do to get that done. but we're positive and look forward to that enhancing our trade relationship. >> okay. thank you so much. that's canadian finance minister bill morneau. >> we have less than 30 minutes, about 20 to go. dow jones industrials average right now at 20,419. that's good for a gain of 150 points. all three of the major averages hitting record highs today. the russell 2000 as well. up next we'll highlight a couple of stocks making big moves in today's record setting market. >> we'll go live to washington for a special report on the

rising role played by national economic counsel director gary cohn in the trump white house. stay with us.

welcome back. scott just mentioned dow is over

20,400 with this gain of nearly .75 of a percent. the nasdaq and the russell, the latter of which is the weakest performer but still edging higher into record territory. >> new records all the way around. >> we only have about 18 minutes to go until the close here. let's check out some individual movers too. natural food supplier hanes celestial hitting a two week low. the securities and exchange commission has opened a formal investigation of its accounting process. they gaefs the sec a heads up last year it was delaying financial statements due an internal probe. in november the company said an ongoing independent review of its procedures found no evidence of intentional wrongdoing. the shares down nearly 10% today. teva pharmaceutical is rising. sale getting a boost from its acquisition of the generic drug unit. teva reaforeign ministering its full year outlook.

those shares up 5.5%. >> national economic counsel gary cohn has been playing a key role in the trump administration ahead of the confirmation of steven mnuchin. that's expected tonight. john harwood has the story for us. >> reporter: the controversies that swirled around the trump white house so far have been about his security team, his legal team, his national security and foreign policy team but not his economic team so far and a lot of credit for that goes to gary cohn the former goldman sachs executive who chairs the national economic council. we've seen some results from that. you saw president trump in that press conference with the canadian prime minister talking about tweaking nafta not ripping it up. you saw when president trump acknowledged the one china policy in his phone call with

xi jinping. he may get some help with that from steve mnuchin. there's only one democrat voting for steve mnuchin and that's joe mansion of west virginia. steve mnuchin will be confirmed tonight. the question is how quickly can the administration get up to speed on the tax plan which president trump told us last week he was going to roll out in the next couple of weeks. and also on the plan to replace obamacare. that's key to the economic strategy and the early legislative strategy important the trump white house, both of those are blank sheets of paper so far, guys. >> john, now that gary cohn has been table amass so much power and influence inside the white house what happens once steve mnuchin is confirmed? >> reporter: well, it's interesting on that first point,

kelly, it is notable, i have even heard speculation that if reince priebus who has gotten some criticism for his performance in the first couple of weeks is ousted as chief of staff that gary cohn might be the attorney replace him as chief of staff. don't know if either of those things will happen for sure but that's an indication how people are feeling about how gary cohn has done so far. look, i think he welcomes the help right now. there's no chair of the council of economiced a v advisers. gary cohn needs some things moving. steve mnuchin can help him do that especially on the tax bill. >> thank you, john. john harwood in washington as we await mnuchin's confirmation. 15 minutes until the close. we could be looking at some record levels here. >> our next guest says investors should dive back into the small cap pool but proceed with caution. we'll state his case next.

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welcome back. as promised t-mobile ceo john

legere announcing new additions to the wireless provider unlimited data plan in response to verizon's plan. legere tweeting starting friday t-mobile one price includes hd video and 10 gigabytes high-speed hot spot data all at no extra charge. verizon's new plan is $180 plus taxes and fees. you can see there the shares down the session today. minutes to the close. let's take a look at top stories. financials leading the way. that sector rallying over 1%. telecom sector only sector in the red falling 1%. verizon contributing to that. we're on record close watch for apple. if it closes above $133 even per share that's a new record for apple. joining us now sam.

too late to get into this market? >> i don't think it's too late. when you look at where else would investors go, going back to 1953 whenever we had the dividend yield on the s&p 500, less than a point away from the yield on the ten year note the market was up 11% on average and rose 80% of the time. so good likelihood that because of lack of alternatives that investors will stick with stocks. >> you like small caps? >> small caps is what everyone is piling into. >> look at the rally. that doesn't cause you any sort of caution? >> it does. >> if you look on a relative basis versus the s&p 500 it's trading at 26% premium right now versus its normal 20% premium. but based on the 18.3% growth in earnings expected for 2017 that actually brings it down to a 2% discount. so if we get the growth and earnings for small caps versus the 10 plus percent estimate for large caps, small caps are ahead

of game and back in attractive territory. >> chris, you brought some picks including ibm. who else do you like here? >> you know, i like ibm, i like microsoft. we talked about that a few weeks ago after they came out with earnings. i like international paper and mosaic. the thing they all have in common either they are industrial stocks that will benefit from the economy that we're looking to in 2017, they also give a dividend in many cases. i can't disagree with sam. we got yields going up right now, makes stocks a bit more attractive. one thing i point out russell 2000 that's been lagging the s&p 500. it makes me nervous because it tells me risk on trade is coming off a little bit so investors really are now speculating and in terms of a wild bull market we need to see that. i think the middle of the fairway is the place to go. growth and income. a stock that will give you a good strong dividend at the same time with all the stocks i just mentioned have great growth

potential. >> you want to rebut that at all? >> no. actually i would tend to agree. i like to say when the seas get rough sailors prefer a better made boat. so dividend aristocrats those that raised their cash pay out is an area you want to be should things get choppy. >> do you feel more positive on the market that we continue to notch these gains and continue to test new highs >> more confident? probably not. i think i'm human and therefore i believe that there does need to be some resetting of the dials. but should we be up in the move february? there have been 27 times since world war ii we were up one january and february. we were up the full year 27 of 27 time. >> january and february effect. good to see you. thanks. we're back next with the close countdown. >> after the bell the former heads of wells fargo and fdic

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russell 2000 as well. let's talk about some individual stocks today speaking of all time high, apple looks like it will get an all time closing high anything north of $133 will be at that level. dow stocks are the story. boeing got downgrade and verizon announcing unlimited data. that stock was the biggest drag. i'm here with bob pisani. "sports illustrated" swimsuit models were here. pay attention to the questions. >> i'm sorry what was that? say that again. here's what important. what's important is we're seeing a global break out now and while this has been moving in this direction all year it's noticeable today. japan has out performed the u.s. so far this year. europe has outperformed the u.s. so far. emerging markets have outperformed. today we're getting new highs in countries that nobody has paid attention to in a long time.

peru. some of the other countries like australia. commodities have been rallying and this has helped me. the point is that even if you look in europe, europe has been doing better. earn fa, the big european etf, that's been moving up. not a new high but moving in that direction. so my point here is that it's not just the trump rally. there has been slowly improving economic conditions in general around the world, slow. it's been very slow. that's really noticeable. now the whole world starting to move in the right direction. the question is what could derail this whole game. i think number one, rallies end when we get too much bullishness. when we get too much optimism on earnings growth. >> some i've talked to on the floor already today suggest the market is way, way overbought. >> what ends rallies too much optimism. too much expectations for earnings growth unrealistically and the fed raising rates.

>> you have yellen on the hill starting tomorrow for two days. >> march is not dead. brexit couldn't happen. trump can't win the presidency. be careful making these comments. we know march won't happen. i'm not sure march isn't going to happen. that could be a real problem for the markets. i think the markets are expecting nothing to happen in march and that's why the risk very high that something could go wrong. i think that they want to move and i think yellen is the most dovish of all fed presidents want to keep those expectations down. i think there are people who would argue the economy is strong enough to handle it. >> a lot of talk -- >> what would derail this optimism, a fed rate hike in march definitely would be a problem. >> at some point retail money coming in, new retail money finally coming in as another sign at least to help insurance the question of whether people think it's too late to get in or if we've reached a momentary peak here. people say this retail money

pours in when it's too late. >> certainly been very good so far for the retail money. i think the market has more to run. this summer will be the real test about whether we can get over that. >> good stuff. thanks so much. closing bell second hour continues with kelly evans in less than five seconds. exciting day here on wall street not just because of "sports illustrated" swimsuit models ringing the closing bell. i'm kelly evans. we have new records across all four major indexes today. the dow gaining nearly three quarters of a percent today. 142 points to close at 20,411. we've now closed not only above 20,000 but 20,400. the s&p 500 and nasdaq both up exactly 0.52% today. s&p gaining about 12 points

closing at 2328. the nasdaq 5763 and russell 2000 small caps transparent laggard, 1392 is good enough for a new high. lots of milestones we're hitting. lot of stuff to get to. while markets are hitting new highs many americans have not been able to reap the benefits. for helpiirst joining the p michael santoli and james bianco and mark harris to kick things off. welcome to you guys. mike, we have $20 trillion in market cap, 25 trillion on the russell. all of these round numbers. it's a remarkable day. that either gets you excited or nervous. >> it seems as if the market doesn't want to leave much in the tank. it's stretching up the earned of

this trend that a lot of people thought might be a little too steep. clearly another turn of the dial for this reflation trade. even though treasury yields are not up that much i do think, it's a little bit more subtle underneath the surface. you probably had breadth on the new york stock exchange was 17 stocks up for every 11 down. nasdaq wasn't that strong. it seems as if maybe it's tiring below the surface. so far that stuff hasn't matter. >> leading the way was caterpillar. copper has been doing well. it all seems to be on the same page. >> on the other hand, very large cap, nasdaq 100 stocks also doing well. it's not as if it's one sector. there's some selectivity in this market. that's why you see people saying it's not the broadest market in the world because you have some sectors not fully participating. there's not a clear edge.

but i do think the risk-reward has turned more mixed. >> the dow transports hit a record high. transports and industrials are up there. among the all time highs in corporate america that we had today included hasbro, home depot, netflix, costco, jpmorgan and pnc, prudential, u.s. bank, deere, honeywell, southwest airlines, adobe and e-bay and apple closed at a new high, finally as it continues posting big gains in 2017, market cap crossing $700 billion. bertha coombs has more from the nasdaq. >> reporter: it's been like watching paint dry with apple flirting that $133 record close. finally getting there. between leader twin nasdaq 100 and among the mega caps. what's interesting is take a look at this two year battle to get back to this record high

close for apple. one of the thing that's really different is its market cap. even if it does surpass its inter day high of $134.50 a share, it will not be a record market cap. two years ago it was valued about $775 billion. but apple has been among the busiest of the s&p 500 firms when it comes to buy back, reduced its shares now by about 10% over the last couple of years and for the last two years it has been the top spender when it comes to buy back, spending more nearly $34 billion last year and a total of more than $37 billion the year before according to s&p dow jonas indices. each year that's more than twice what the next nearest s&p 500 member has spent, kelly. but it doesn't make at any time biggest spender in terms of the impact on its shares. it's about, in the top 25% in

terms of reducing the percentage of its share count within the s&p. >> thank you. apple again crossing that barrier today. i want to bring in jim bianco to ask whether we've had so many record closes since the election and this rally continues, is it plain and simple the trump rally that they are witnessing continue to play out here? >> i think the trump rally plays out if you want to put a nuance on it. what kind of trump rally will we get going forward. real growth in earnings which is bullish for the market which is what it's hoping for or will it go more towards inflation. bond traders have been positioning themselves for the inflation part of it more to the point where they overdone the shorgt of the bond market why yields haven't gone up now in two months. what kind of a trump rally will we get? i tend to think we'll see more inflation by the time 2017

finishes off the year and that might be negative for bonds. but, everybody is so short the bond market right now i wouldn't be surprised if we trade down to 210 or 2% by mid-year before we start moving up. >> mark you were saying you think there's more going on here than just trump's election. >> look, i certainly want to give the president credit where credit is due for setting us up. he inherited a great economy. he in hearted one where we're in the process of reflation. looking at the global pmis he hasn't said a lot of positive things about other countries. every country is in expansionary mode. that's a backdrop for a lot of great global growth going on. our forecast for the s&p is based on that as much as it is on donald. >> one viewer pointed out this is the great america great

rally. as aimee boucher said the s&p top stores google and amend of amazon. these are the big cap names lagging earlier after trump was elected. were more of a threat under his administration. >> those are top market caps i'm guessing. facebook may be fifth. wouldn't be in that order. not to kwquibble. folks at strategic had a democrats win versus republicans win basket of wins. the beneficiary of a hillary clinton victory that of course massively underperformed after the election but outperforming in the last several weeks. in other words, this is not -- this latest stage of this rally is really not about policy or hope. it's what we've been talking about people chasing a rally that got going because of these global growth and earnings tail

winds. >> one of the more worrisome issues north korea's test ballistic missile. this behavior in a different kind of market could sauce a chemicaloff. instead we saw a sharp rally. was it something the president or japanese prime minister was able to assuage the market about? >> i think there's a signal of the noise ratio. if you look at the statistics like consumer confidence, business confidence those numbers are through the roof right now. if you look at the smairkts at an all time high. if you turn on msnbc or fox or cnn they are reading through a paper bag worrying about politics. that's not what you would have expected with a consumer confidence high. some of that is noise when it comes to investment markets. the signal this belief that the markets are going to keep going higher. >> when you look at your dashboard about the health of these markets do you see things

that don't flash health? do you see signs we're getting frothy or overvalued. how would you describe the situation? >> frankly i think there's still a lot of compelling things out there to buy. good example is it's all a service sector. had a great run. we still thing it's in little league, in the first inning. things like patterson and others in the space. we think even in the technology sector great run with some of these names like shopify. lot they are investing in. small business growth is one of the drivers of a company like that. they are in the center of it with new products and new add on services in a market that they just started to tap in. >> mike, you've been pointing out signs of culmination. my favorite is steve short's 70th birthday party. >> seemed like it was a pretty festive affair. in palm beach.

when he turned 60 it was eight or ten months before markets topped. it was a much more public suspectcle. these are the kind of things that in retrospect you see signs of over confidence. you put it into the whole mill and grind it up and say what's the overall mood out there. i don't think you can sort of generalize and say, yes, everyone feels like mix accomplished. i think the ingredients are starting to filter in. a little bit of speculative activity in the options market. >> let's get to our kayla tausche. thank you for joining us this afternoon anthony record setting day. the president hosting canada's prime minister at the white house for what date of birth start of some tough trade talks between the two nation. kayla has the latest on that big meeting. >> reporter: this was the third foreign leader and close ally that the president has hosted here at the white house and this meeting between the president and canada's justin trudeau is

closely watched on the economic front because of the president's floej rewrite the northern american free trade agreement that was set in motion more than two decades ago. the administration approach towards canada versus mexico is noticeably softer. the language in both the press conference and joint statement talked about cooperation. a commitment towards creating wealth and jobs on both sides of their shared border. president trump even saying there would be cross border things that would make trade between canada and u.s. faster and better so clearly not trying to stymie trade between two countries and saying they will work to build bridges. not working to build a wall. when asked about the difference between the approaches, the president said that at the end of the day when this deal gets renegotiated trade between all three parties will be fair. >> our relationship with canada is outstanding. and we're going to work together to make it even better. and as far as the southern border is concerned, we're going

to get that worked out. we'll make it fair. >> reporter: what exactly that means, those remains to be seen. the president has long touted this america first policy and his commitment to hiring and buying american made products but a ceo that participated in the meeting with female business leaders this morning said fortunate and prime minister both committed to keeping manufacturing jobs in both countries. so, kelly, if you're a manufacturing company or if you're an automaker or run a business on both sides of the canada-u.s. border i'm not sure how much clarity you got, all sthiet positive sign to see that this framework has been laid for what will obviously be a very protracted negotiation of a very complex trade agreement. >> to say the least. thank you, kayla. kayla tausche at the white house. another record close for stocks today but how will americans feel the market works for them. our next guests say companies can fix that by giving stock

options to all employees and not just executives. up next wells fargo ceo dick kovacevich and fdic former chair william isaac make their case. you're watching cnbc first in business worldwide.

welcome back. in 2006 the financial accounting standards found a rule to count employees stock options as a cash expense. therefore reducing that income and diluting share value for existing shareholders. over the years the high cost resulting from this rule have led many companies to eliminate stock option, especially for employees making understand $100,000 a year. our next guest pending an op-ed calling congress to overrule that rule especially employees making under 100 k have access to stock option. let's bring in dick kovacevich along with bill isaac. welcome to you both and, dick, where does this idea come from? >> well, back in the mid-1990s,

we were allowed to give stock option without the double cost and we did that at northwest corporation. it was a huge success. increased morale, teamwork and a lot of companies did it too. then went they changed the accounting, people had to give it up because it was simply too expensive. i don't think we should use arcane accounting rules so that your average worker can't gain financially from all the contributions they make for a company. this is a no brainer. we should do this. >> bill if we take this rule at face value it's incredible important rule to make sure companies were accounting for stock options and their expense and accurately reflecting their shares outstanding. can you accomplish both of these goals, keep that rule but just make it easier to provide some incentive to give these option to less making employees as well? >> well, i don't think you can do both. you got to accept change the accounting that we put in here

or you have to not give the options and i agree with dick. we really need to give employees who are earning less than 100,000 a year stock option. it's not going to solve all their problems but sure is going help them on their way to retirement. >> dick, the purpose of accounting is to properly render what the finances of a company is doing, sfliegt if it's economically the same thing to handout stock options to everybody, even if you have to account for it differently the markets should be smart enough to see-through that. do you think that's the decisive thing in preventing companies from doing this? >> no. it's actually -- i think the current accounting is double counting the cost of options. both counts dilution and income. we're not advocating we change this for executives over 100,000. that will stay the same. we're just saying let's give these guys a break. they have not had their

financial success all the rest of us had over the last eight years. this will cost the government nothing. as you say, the investors will see what's happening. they will see the dilution as they alligator have and dilution from this. they just won't see the double count of net income. this will help to grow businesses, it will help income in equality. this is something we need to do and we did it until 2006. everybody worked and worked for the investors. >> bill, i was just going to ask aside from the merits of the accounting issue for employees, you know, it's interesting. as an employee especially if you're making under $100,000 it's likely all your eggs are already in your employer's basket. why, you know, if you were to offer these stock options while it is a potential way to get a lot of extra income, it also kind of doubles down on your exposure to just your employer. so is it really in the best interest for workers?

>> i think it is. if you don't have this, they have nothing. i don't see how they get hurt by having investment, more investment in their company because if we don't do this, they are not going to have anything. it's really important. the lower and middle income people have fallen way behind and it's time we start paying attention to this. this is a really arcane accounting treatment that the accounting standard board came up with and it really is hurting -- as are so many other things in our economy -- are really hurting the lower and middle classes and we got to fix it. this is not going to solve the problem. this is not going to solve the problem, but it will help reduce the problem. >> yeah. >> look technology, you still have relatively pervasive participation with stock option. it doesn't prevent a company from doing this. it's a matter of weighing

against the impact. compensation gets so top heavy but for a handsful of large companies. if you're doing it for the top executives i don't know that it will move the needle that much on the bottom line. so maybe it wouldn't hurt to broaden out the, you know, the granting of stock options. to me it's hard to know if this is what's keeping people back. >> i want to ask about this market as well. we've just been setting records across the board. partly why we're having the discussion. what happens if now it seems like the best time for tomb make these changes and get involved and in retrospect these are high water marks? >> well, you know, hopefully issuing options every couple of years, so if you hit a high watermark, one time you might hit a low watermark, that's the way options work. i want to point out, remember this is an option. no one is going to exercise their option unless they are in the money. so this is just an extra for the company. let me say once again, we did

this up until 2006. the employees liked it. the executives liked it. the stock holders liked it. and then it was shut off. it worked. >> all right. gentlemen -- >> let's repeat history. it worked. >> there's more in the "wall street journal" op-ed they wrote today. dick kovacevich and bill isaac. wichg gears following a developing story the nation's tallest dam is threatening to unleash a massive flood. steve patterson is in oroville, california with the latest. hi, steve. >> reporter: good afternoon. that emergency spillway took some serious erosion damage on sunday. that's when engineers got in there and discovered that something was wrong. keep in mind, those that emergency spillway, it's been the first time really that it's been used since the dam's inception, generally the primary

spillway is the one that will be used to your honorer that water down when the lake level gets far too high. in this case, though, there was some significant damage on the primary spillway, about 250-foot, 40-foot deep hole in the middle of that one. here you have a situation where both spillways are damaged. it's sunday. they discovered the second one that's now in use is damaged as well. so they had to call that mandatory evacuation order, an emergency order. nearly 200,000 people evacuated from their homes. they have to move as quickly as they can because they say it may happen in about an hour this spillway may collapse. you have people taking their personal items, throwing it in plastic bags, hitting the highway, hitting traffic and then getting caught in a very dangerous, very frantic situation. here back on scene i want to show you what's happening. engineers, crews working to try to get some of these -- see the boulders. almost like a giant sand bag operation but using giant

boulders. they are putting those in the white bags lining up front. they are putting those on those black hawk helicopter and the hope is they can shore up the breaches in both spillways to try to shore that up before there's a new weather system that's to be determined to move in towards the end of the week. sometime around thursday or friday. we'll get even more rainfall. so here you have a race against time, a mandatory evacuation that still in place. you have hundreds of thousands of people who are wondering when they can come back to their homes. engineers are on scene right now checking those spillways to see where exactly they should place those bags, how exactly they should shore thunder and see if they can take that water level and pare it down just a little bit. we just went to a press conference heard some of that work has been successful today so hopefully they can get this done as quickly as possible and get people back into their homes. no word yet on when that mandatory evacuation will be lifted at this point. send it back to you. steve, thank you.

i was going tosk you about that. people who are leaving do they have any idea for how long they will be gone and how to make plans for that? >> reporter: there are no -- there's no idea on how long this is going to stay in place. we have heard there's some sort of repopulation plan at this point but no timeline on when that's going to take place, when people could, should or can start coming back to their homes. people are stranded at this point trying to learn what's happening. but in multiple shelters in this area. >> that's very difficult. steve patterson joining us there from nbc. thank you so much. in oroville, california. you next the launch of a muscular dystrophy drug success delayed because of widespread criticism of its price. we have those details straight ahead. president trump's welcoming canada's prime minister to the white house and renegotiating nafta could be a hot topic. coming up we'll discuss how important this trade relationship is and how it could impact the u.s. economy if damaged. stay with us. their leadership is instinctive.

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welcome back. we do have a news alert on marathon farm. megaterri meg terrell has more. >> reporter: marathon is the target of the latest drug price outcry. the drug was not approved in the united states and the price tag $89,000. the problem there this drug has been available for decades at about $1,000 overseas.

the community in muscular dystrophy calling this price gouging. two congressmen, senator bernie sanders and elija cummings sent a letter. the drug release will be paused. that's the news we're hearing. this launch is dpoebtd take place in march. this drug $89,000 a year will be held until the company figures out the pricing strategy. this is two weeks after pharmaceutical executives talked to president trump about drug pricesing. this company marathon isn't a publicly traded company is a member of pharma which was present there at the white house. quite a pickle for this company and lobbying group. >> we've been following this story. what happens if people need access to this drug in the meantime? >> people who have been able to access this drug where they were importing it from overseas, they can still get it that way.

i talked with some patients and patient advocates who say insurance doesn't cover it but it was about $1,000, maybe $1600 a year out of pocket. it has an expanded out of pocket program to make the drugs available to patients before it's officially on the market. so people should be able to get it. >> the latest twist in this one. time for cnbc news update. let's get back to sue herrera. the 41-year-old son of jerry a sandusky has been charged with sexually abusing two young serious. lawyers for army sergeant be bowe berghahl say he can't get a fair trial because of trump's comments on the campaign trail. trump repeatedly called bergdahl a traitor. a day without immigrants

rally was held in wisconsin. immigrants right group want to stop the sheriff from turning sheriff agents into agents. single day tickets in florida for disneyland parks will cost $107, 117 or $124 depending on the time and season. for disneyland the price is rising to 97, 110 or 14. disney put an expiration date on the tickets. they raise those tickets every single year. our sue herrera back at headquarters. president trump and canadian prime minister justin trudeau meeting at the white house earlier. could those pleasantries be in trouble if trump start renegotiating trade deals. tesla ceo say humans must merge with machines or risk becoming irrelevant.

we'll discuss what he means by that.

welcome back. another record setting day.

dow is higher by 142 to close at 20 l-412. s&p up 12 points at 2328. nasdaq up 29 to 5763. teen small cap russell moving into record territory with 3.5 half gain. president trump meeting with canadian prime minister justin trudeau to talk trade. trump has threatened to renegotiate nafta which could have impact on twrad our neighbors to the north. >> reporter: america has a giant trade deficit with canada in snacks. we import more salty snacks from canada than any other agricultural product. $3.7 billion in 2015. now obviously this is just a tiny fraction of the goods that go back and forth between our two countries. our total trade with canada is

worth $663 billion and that makes them our second largest trading partner. our snack deficit is an example of how many industries could be affected if president trump delivers on his promise to renegotiate nafta. let's be clear, most of the snacks that we either made here in america, frito lay is the biggest player. they have been going local for years. if there's new tax on goods from canada, economist worry prices for consumers could go up. so far canada's agricultural industry has been a big beneficiary of nafta. we were talking about potato chips. i had no idea. >> reporter: the government statistics show this is about salty snacks, potato chips, peanut, popcorn not about candy or cookies or oreos. >> all right. >> i will say on a per capita basis we export more to them. one to three.

like a nine to one population. >> reporter: don't mess with our doritos. >> thank you. for more on renegotiating nafta let's bing in a senior fellow at the council for foreign relations. thomas, what is this sort of snack food issue say to you about what's at stake between these two countries? >> well both for canada and u.s. we're talking about our largest respective trading partners. canada sends 75% of its exports to the united states. canada is one of our leading trading partner as well. so this is a substantial relationship. i think both sides were looking for a boring but positive meeting today and it appears they got it. >> alan, would you agree? >> i think that what president trump will be focusing on even though it might not have come up

explicitly today would be a subject that he spoke of when he went down to mexico during this last presidential campaign and that was also brought up by commerce secretary designee wilbur ross during his confirmation hearings that is renegotiating naf tax revamping nafta to make it work in a much more effective way to improve north america's manufacturing competitiveness and that could be a win-win-win for all three countries. >> what would that involve? it seems as if trade with canada does not really hit as many of the familiar buttons that the president has been citing. it's not so much a big labor story or a direct kind of out sourcing story. >> that's exactly right. that's why so much of the focus on nafta's problems since its inception back in 1994 has concerned mexico. but it's very important to recall that even though nafta's

backers back then promised that this deal would, in fact, greatly improve north america's manufacturing competitiveness, vis-a-vis, it's the opposite. whether you talk about mexico, canada or u.s. have lost global market share. u.s. manufacturers lost market share. this is especially true if you look at the north american automotive industry which was, of course, at the heart of this nafta spurred creation of regional value change. north america's share of global vehicle manufacturing since nafta went into effect has shrunk dramatically and within that north american share the u.s. share is down even more. >> so, thomas, you know, because there have been gains and loss from nafta what issues would you

expect to see in a renegotiated package? >> the big challenge for renegotiating nafta the president today emphasized that our relationship, the u.s. trading relationship with canada very outstanding. but requires some tweaks. on the other hand, he emphasized on the mexican side there would need to be substantial changes. the problem with that is right now we have a single agreement with both countries. and one of the big challenges is how do you re-open this agreement to renegotiate it and what role does congress have in that? it's not clear that you can have the differential treatment that the president is suggesting with two countries without congress being heavily involved. once congress becomes involved there's a lot of statutory timelines for negotiation of that agreement, it gets more complicated. >> my eyes are already glazing over. thank you both.

watch out hbo there could be a new premium channel on your way. which company could be moving into that space. apple hit agnew high. is there room to run on the stock. is it getting too expensive? you're watching cnbc first in business worldwide. diagnostic. ...proof that black holes collapse into one singularity. i don't know what that is. but yes. innovation runs on supercomputers... ...and supercomputers run on intel. you are super smart. and super busy. ♪ ooh! ufo! false alarm, eyelash! dearthere's no other way to say this. it's over. i've found a permanent escape from monotony. together, we are perfectly balanced, our senses awake, our hearts racing as one.

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♪ let your reign begin. evony, the mobile game. download now. we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $6.95 per trade? uhhh- and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $6.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab. apple finally closed at record highs today and a note this morning ubs said the tech company services business is under valued. can apple continue its run?

joining us now is jim from citi and kim from ford pick capital who is more cautious. jim we'll start with you. now that it's cracked 133 on the close, how much further do you think apple shares could climb? >> well, we actually think in the next 12 months apple stock could reach $140. we have the iphone 8 super cycle catching on and the company's services continues to gain traction. now, many people may be fearful about the saturation point has reached but different companies such as india are very much maim you're the and likely to follow the same ways that china did. so we still see upsides ahead. to directly answer your question we think the stock can get to $140 within the next 12 months. >> okay. kim, you're not so sure. why? >> well, i guess it's tough to be in my position today because clearly the market thinks i'm wrong, right? but that being said this is a

consumer device. consumer are notoriously fickle especially with phones. everyone is pointing to services saying this is finally the thing that's going to keep people from leaving this platform. and i hear that argument, but unlike businesses who actually put lots of time and money into developing the intellectual property that's kept in files like from microsoft office, our photos, our emails, that kind of stuff can be easily ported to another platform and services like streaming services, well they can be ported as well or changed. it's just not that hard to change off of a phone when a better one comes along. we've seen it happen time and time again. >> yeah. mike? >> jim, not to make too much of a particular target but it's only about 5 home runs upside from where the stock is trading. do you think the valuation that

investors will give apple is a little bit restrained? >> first of all, when i was on this show a little while ago the push back was i'm nuts with $140 target price. now it's the opposite. that being said, let's be real that the trump administration is talking about lowering corporate tax rates. talking about opening up the repatriation window. all of those are additional items that are not built into our financial model or target price. these are additional positives we see. again, i talked about the iphone 8 super cycle. still not planning to come out until september. so that's still a ways away. we still see some fiscal policy short term that could help out before the super cycle catches on. i went from being nuts a few months ago to now you're saying hey jim, what's left? >> let me ask you what could make you more cautious on the stock. if it hits that $140 level, if

the services aren't showing traction, what's the biggest thing to look out for if you change your mine or downgrade it? >> we're always looking at the company's margins. the profitability of how much the company makes as well as its installed base, are more users still buying and using the product or actually going away from it to other systems such as android. we're monitoring that. unfortunately for apple the reality is people are holding their cell phones longer than they ever have before and that's not a good thing. but fortunately apple is growing. it's returned to sales growth, unit growth and eps growth, those are the key metrics we're looking at. >> kim, for you same question but from the opposite perspective. i understand the concerns you have about whether their services are sticky enough. but at what point do you throw your hands up and say they are running away with this thing? >> i guess if i would see some meaningful traction in india and

maybe some more up sell to this next cycle. it has been lackluster. i think that's largely because our phones used to be subsidized here in the u.s. and now we've pretty much got a pay for them and the subscriber really understands how much they are paying for this phone. if i see strong demand for whatever they have in this next cycle, perhaps i'm in. >> all right. i was just going to say, mike, if verizon goes back we'll pay for your hand set too model -- >> you think that could accelerate it. it's i wanting to me, because when apple has gotten to a new high the last couple of times, they've done it in the last five years it's tacked on more. it's accelerated past that. it comes as the overal market that's been rallying for a while. this is a catch up move for apple and been cheap forever. the market can decide to pay

whatever it chooses based on what it sees in the next two or three quarters. >> jim and kim thank you for joining us today. appreciate it. amazon could be making a major move into the tv business. what that could mean for the retail giant's bottom line. coming up on "fast money," gene munster says it's not over yet. he'll explain how high it can go at 5:00 p.m. eastern. matters. both on the track 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. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t. what witi'm stressed,e horse? trying to figure out this complex trade so i brought in my comfort pony.

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you know hbo, showtime and stars, but according to the new york post amazon could be developing its own paid channel. with the recent success of the

golden globes as a big reason for the plan. we reached out for a statement regarding the story. we didn't receive a response. and this has happened before, with the robots in the grocery stores. they're clearly realizing their power in the content space. they've gotten out there with streaming video sthfl a logical next step? >> it is certainly logical. when we get to a critical mass of our own originally produced content, does it make sense to just be an app had and ask for a description premium. would it mean something of a change of strategy. it has been just bundled with prime. it has been one of the things they use the sweeten the prime offering. >> does it have to be a tv channel? you already to go amazon to watch streaming. if you want to watch any movie, you have to go to amazon and pay them for it. if you had to pay for a premium

show, could you do it without launching a channel? >> i think that's more likely than them trying on finds real he's state on stable systems. i think amazon prime in terms of what's included, the free movies and shows on there. everyone has had the experience of looking what's on there and saying, well, we have it for rent. if the people are-up service would be a subscription service that gives you everything to rent. >> they do have this library. turning on the tv had in the traditional sxenls seeing an amazon had channel? >> i think it is possible but it would be app. >>er be 1015 is the had amazon channel. >> they could talk about news and not just those things. >> they launched the echo the day after the kindle fire phone. whatever it was. we don't even remember.

>> they talk about that. >> elon musk had in the news again. ♪ why do so many businesses rely on the u.s. postal service? because when they ship with us, their business becomes our business. ♪ that's why we make more e-commerce deliveries to homes than anyone else in the country. ♪ here, there, everywhere. united states postal service priority : you this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests...

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elon musk known for his futuristic ideas was at a summit in dubai discussing artificial intelligence. he said i think over time we'll see a closer merger of biological intelligence that digital intelligence. not sure exactly what he means but he explained what he meant was that computers can communicate at a trill bits per second while humans can type about ten words per second. >> using some devices, that anticipate what you want to do. i guess i come away with this, being glad that elon musk is out there worrying that this for all of us. he is dialing ahead. >> here is something we might encounter in the near term. talking about the most had near term is autonomous cars.

it will happen much faster than people realize. he says it will be a real convenience but the jobs for people who need on drive. we'll need to figure out what they can do. it will be very disruptive and very quick. >> you do see the estimates of commercial truck driving fleet. how many people that does employ it is a pretty good job and there is a shortage right now. so that's the kind of thing, i feel like these adjustments locally painful but society kind of takes them in stride when they come around. maybe i'm wrong. maybe the progress will be more jagged. >> speaking of that, the trump administration have said, their focus on the jobs numbers will be u-5. a little broader handle the the. >> 3 endex. real hear from janet yellen

tomorrow. some of it is the fact she will show up there there is that relationship. i do think it will be interesting to see how she characterizes the state of the labor market. the recent jobs showed a little more slack, more people sgooming the labor force. that will be dovish and maybe the market wants to hear that. i guess i kind of hope that janelett yell yennen is not saying, the like i hood of a march move or an april move and then not do it. >> stanley fishter is saying, four rate likes. that didn't happen. we only got one. all of a sudden, we're looking at more than one. if you get on three and not doing it. maybe it will be an issue we're ready for. zm financials are among best performers.

caterpillar the best. >> i think the total return. s&p sector today reached a new high. if you held on from the peak in 2007, you're back to even. >> we'll leave it on that crazy thought. as always,er thank you. that does it for us. "fast money" starts right now. overlooking new york city's times square. tonight on "fast," an extraordinary run to all time highs for apple. about 45% from its the recent lows. one of wall street's expertser says the run is just starting and it is an unusual preen has him so bullish. he'll be here. plus the mobile wars heating up as verizon waves a white flag. is it a race to the bottom is this and we'll tell you the one beaten down