>> no, i drank it all. >> you needed to those days. mine is very boring like i said. just watch oil if oil continues to trickle up, the dow might have another leg in it. chevron is up. 15% in 90 days kind of quiet. oil could give the market a lift. >> wow, a good one. >> good one to watch. >> thanks for watching "power. "closing bell" starts right now. >> pretty boring the stock market just hit an all-time record high it broke for the first time ever 23,000 so we're very happy about that >> that's president touting the market's record highs this afternoon. and welcome to "the closing bell," everybody, i'm kelly evans at the new york stock exchange where the dow is just a hair below 23,000 right now. >> he needed a hat >> the president >> 23,000 hat. like art cashin is sporting today. i'm bill griffeth. we're going to look at this march to dow 23,000.

and we also have ibm reporting earnings after the bell tonight. could that add to the gains or derail this run? that's the big question. we'll get to that coming up. a lot of earnings this northern already contributing >> yes. >> to this move. >> very much so. >> here's netflix. yesterday we told you about the earnings in the session today, it cannot hold those gains can netflix become the next hollywood? the streaming giant says it will make, get this, over 80 original movies next year which is -- >> in one year. >> -- more than the other studios combined is this the best use for the content spending that's coming up as the stock looks to close lower on the day. >> i have a lot to say on that we're going to save it. let's start with breaking news fourth round of what we're calling the nafta negotiations but really the nafta renegotiations those are wrapping up. representatives from all three countries, the u.s., canada and mexico, are about to discuss any progress they have made. our kayla tausche has already

been reporting, though, that canada's foreign minister and mexico's economy minister are opposing the protectionist policies that have been put forward by the u.s. during this round of negotiations. sources say that despite those oppositions, though, both canada and mexico do remain committed to continuing these negotiations on nafta we're going to bring you a live update on any developments as this event gets under way. we'll monitor it for you coming up here. so let's get to the market now. that dow 23,000 mark bob pisani, we punched up above it briefly earlier, right? >> we did. here's what's important. ten weeks to go 1,000 points in the dow. it's far you i want to show you the dow is a point weighted index. we had boeing contribute 160 of the 1,000 dow points in the last ten weeks. come over here, i want to show you the stocks that really pushed us to over 23,000 caterpillar contributed 140. those two stocks are 300 of the

1,000 dow points goldman sachs down today, it, too, had 120 points added on top of that. that's another 420 points for those three. finally homedepot, 103 points. put it all together, more than 500 points of 1,000 with just those five companies o ut of 30 what's the risks everybody wants to know what's going to happen, what could possibly prevent us from getting to dow 24,000. so far, folks, b the numbers have been pretty darn good overall. hawkish fed, that's a concern out there, that's a possibility. global growth slowing down tax cuts falling down a little bit. perhaps. and a steeper yield curve. much more steeper than we're going to have right now. those are potential risks to the market overall here. as for the earnings folks, not today, united health care, great number goldman had great numbers but the decline in their trading arm i think was a little bit of a concern. that's trading down today. johnson & johnson, well, they beat, that's a historic high for johnson & johnson. morgansonly also beat, near the

highest level since 2008 maybe earnings could be an issue down the road. at least today that's not a major problem for the markets. guys, back do you. >> a 6% move 6% move for united health today. >> yeah, at least somebody's making money in the insurance business right now these days. >> they're coming off, you know, an eight-year stretch under obama of doing better and better and better everything that's been floated to come out of this presidency, they're not only at all-time highs, they're trading like a faang stock today. >> isn't that crazy? >> more on that coming up as well. let's get to our "closing bell" exchange, bob teed it up for us david ellison at post 9 today. steve grasso from stuart frankel next to him. ra rick santelli at the cme in chicago. here we sit at 23,000. are you inclined to keep pouring money into the market or are you -- does this give you reason to pause here? >> i think everybody else seems

to be putting money in the markets. you might as well follow to be -- to be frank, i think the issue is you have a good banking system, a healthy -- you've seen some of the earnings the economy is decent. people are working job openings are there earnings so far, it's early in the earnings season, have been decent so i think you stay with it until there's some reason not to be >> you said something that caught my attention. you might as well put it in everybody else's is that a healthy development? if that's, in fact, what's going on here? >> that's like the worst advice of all-time. >> right >> we couldn't have said that a year ago, too. but i think, again, to be, you know, that's tongue and cheek. i think the reality is the economy's good give any a reason not to be in the market i don't see one yet. rates are still low, the banks are healthy. the fed is talking about raising rates slowly which is good meaning you don't want to raise rates quickly. credit is decent as you said, companies are, you know, making in some cases making record profits. people are spending money. companies are spending money and if anything else comes o ut

of washington, it's going to be helpful. we don't need any of that stuff. if you don't give me a reason to sell, i'm going to stay there. >> what about united health today, steve what does that say to you? >> when you look at these health care companies, you have to look at when president obama was in autops office you had health care companies that were going to get 30 million more people under the cover. so that had to be profitable for them then if itwasn't, they got to opt out of the exchanges where they weren't profitable. they had the best of both worlds now you have a president who says we're going to pull away some of that gap deficit spending, closing the gap on what they made and what they owed, what they covered, i should say now you have a senate that says we're going to fill that stabilizing zone for companies that will operate in the affordable health care act. >> so you're referring to the news this afternoon about -- >> yes. >> okay. so basically, we saw united health was already having a pretty good day. the fact the senate came out and said we reached a deal on this funding is pushing them even higher >> i think that's pushing them

even higher. there was this headwind of will there be funding for these companies? will they have -- even if they opted eed out of areas, is it gg to be drug pricing, is it going to be headwinds from the administration and i think going into 2018, midterm elections, there's going to be lobbyists in d.c., there's not going to be a whole lot of headwinds. i think health care is still a safe zone for the market >> rick, what are you watching various moving parts and pieces. the dollar popped a bit against the peso on word there may be a zm snag in the nafta renegotiations yields continuing to march ever higher little step by little step what's catching your attention right now? >> reporter: all of the above. i think on the -- >> okay. >> reporter: -- negotiations everybody needs to be objective here donald trump wants to negotiate because he doesn't think we're getting a fair deal. that means the other two major partners, canada, mexico, need to give something. nobody likes to give anything. think about it in the form of taxes. think about it in the form of

entitlements think about it in talking about social security, medicare, medicaid nobody in h any society wants to give up anything so the fact that nobody wants to give up something doesn't mean anything to me that's the whole point of having the negotiation. as far as david ellison, i liked his assessment except for one thing. it there's a purpermutation of higher rates we should pray for, it would mean the km i is cooking in greece. we'll be at 27,000 in the dow. what i see is bund yields closing at a low that isn't a good thing and shows they don't believe mario draghi wants to take the same road as the u.s. fed and having a tug-of-war even though the gap is widening, it's keeping it down a bit the short end's paying very close attention to the fed, maybe john taylor. you asked me yesterday, i think it's getting a little more response to the marketplace. 30s to 5s is the flattest in ten

years. 10s to 2s. flattest since the summer of '16. all these things in my opinion are interesting but don't change the dynamic. higher stocks, slightly higher rates and the dollar, the dollar is still acting kind of squeamish by comparison. >> yeah, yeah. >> david, goldman's pretty squealish, t iswee ish squeamish, down 3% >> a number of factors that could push them down a bit. >> i like the banks. rates are generally going be rising that's a big positive for them already said the economy is good, credit is decent they're making close to i think this quarter they were making record profits again so there's plenty of money to play with, invest in i think the issue of rates is very important if rates move up, the stocks are going to move up it's sort of like saying apple computer can charge more for their phones if the banks can charge more for loans, they're going to make more money. >> how much is in there with the rates issue? because we just have a president that likes to take credit for the stock market moving higher. >> tell any a president --

>> doesn't like to take cred credit -- >> exactly but it's also, if you look at where the rates -- that should be a headwind for the market if they rise too fast. >> right. >> you have a president that likes low rates. that likes a higher stock market >> john taylor, according to -- let's say she brings it up to 3% right now, from 1% you know, sthis sthathat going p the banks even if the ten year -- >> they don't invest in ten years. they invest in prime-based loans. i care that the prime goes up, not that the ten year -- >> if it -- >> if rates go too high, it's going to be bad. rates got too low, it was bad. i think rates going up from here is going to -- >> if rates move up for the right reason, but to rick's point, the dollar, the equity market, and the ten year and the xlf tell me that rates are not moving higher any time soon. and they're not moving higher at any type of a rapid pace >> that means yellen wins. i mean, what other -- >> i think the --

>> until she doesn't. >> the stock market wins >> so far. >> hey, thanks, guys appreciate it. good to see you all. thanks for joining us today. >> about 50 minutes, 49 minutes to go until the close here and it's going to be a historic one even if we don't close above 23,000 got above that level on the dow helped by some of those earnings we mentioned the s&p barely higher on the session today. the nasdaq and russell are slightly lower. coming up we'll talk about netflix which has already disrupted the tv game with originals like "house of cards" and can t"the crown." now it's doubling down on movies its first business we're going to look at netflix's big bet on films and whether other hollywood studios should be scared. as we mentioned, ibm will be out with earnings after the bell tonight. we have a good old-fashioned bull/bear dede dadat datdatdedae we always love to hear from you as well. reach out to the show here on twitter, on facebook, you can end us an e-mail you're watching cnbc first in business worldwide.

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here are some of the market movers we're watching this tuesday. shares of sonic trading higher after reporting earnings after the bell last night. the restaurant chain beat estimates on the bottom line by 2 cents but missed on the top line and also saw same-store sale decline due to hurricane harvey. the stock was down more than 4% earlier today. it has since turned around wow, it's up 6% right now. raised its price target on the stock to $25 a share from $24. they're going to have to revise that again it's at 26.50 right now. meantime shares of pearson have jumped today after boosting its full-year forecast the london-based media and education company says that u.s. digital revenues were up 11% for the first nine months of this year pearson trading also up more than 6% today. >> all righty. >> crazy. president trump wrapping up a news conference with the prime minister of greece in the last hour making some comments yet again about health care reform the sector doing quite well on

the back of that eamon javers has the very latest. >> reporter: yeah, hi, kelly, we have something of a puzzle going on at the white house right now. here's why during the news conference you just mentioned a few moments ago in the rose garden, the president said insurance companies have been on quite a run since obamacare was put into effect he said it was inappropriate, he's accused the insurance companies of taking a federal payout in the form of so-called csrs the payments under obamacare to insurance companies to subsidize low-income health care plans while the president was speaking at that press conference, we had a deal announced on capitol hill between senators alexander and murray republican and a democrat. that would be a two-year deal. here's what we know about what's in that package. they're saying that it would extend those so-called cost-sharing reduction payments, those csr payments, for two years. it would also make catastrophic plans available to anyone. so the president was asked, does he support that deal or does he not support that deal here's what he said.

>> lamar has been working very, very hardwith the democratic - his colleagues on the other side, and patty murray is one of them, in particular. and they're coming up and they're fairly close to a short-term solution. the solution will be for about a year or two years. it is a short-term solution so that we don't have this very dangerous little period. >> reporter: so that would seem like the president is making favorable comments about the deal that's moving on capitol hill, but i've just been in the west wing here trying to get white house officials to explain why it is that the president has said that the csr payments are so terrible and yet is endorsing apparently a deal that includes extending them for two years i asked two white house officials that both of them declined to answer the question then ducked into an indi indian duwali new year's ceremony they're vpg at thaving white house. we'll wait until they come out from there to get further explanation of this.

the president said insurance companies are effectively taking advantage of american taxpayers. we'll see if he continue to say that about this particular deal. meanwhile, democrats up on capitol hill are embracing the deal here's what chuck schumer said on capitol hill a little while ago. >> we've also put in some very significant anti-sabotage provisions the president had been sabotaging this bill and the agreement would undo much of that sabotage. so overall, we are very pleased with this agreement. >> reporter: so the democrats like it will try to get a little bit more clarity on what exactly the white house's position here is in the next couple of minutes, guys, and bring it to you as soon as we have it. back over to you. >> all right so let's review here we've got this, quote, deal, between lamar alexander an patty murray now what i mean, this is in the senate. >> reporter: right. >> what about the house here >> reporter: got to pass the senate bill first, right they got to pass the senat first. alexander and murray have to

round up co-sponsors for their bill in order to get enough people to pass it in the senate. that was seen in the moments after the deal was announced as maybe a likely thing because the president seemed to be endorsing it we're going to get more clarity on what the president's position is on that bill, though, if he's now fine with the csr payments continuing, given that he cut those csr payments off just last week and said he did it because it was entirely inappropriate for the companies to be making that much money off obamacare. so that might -- if the p president were to waffle on that at all, that might impede the deal's progress up in the senate and let alone the house of representatives. >> so i'm -- i don't want to beleaguer this too much. i'm trying to get clarity. assuming this passes the senate, does this have to be reconciled with what the house already p passed or whole separate issue >> reporter: any bill that passes the senate has to pass the house and be conferenced both of them together. they have to agree then it has to be signed by the president. he has to agree it's a good idea so none of those pieces are in place just yet so we have an announcement of a

deal, with have endorsements come in of the deal. the democrats through chuck schumer signifying they like it. we saw presidents make positive sounds about it in the oval -- in the rose garden and that seems to be encouraging to the proponents of the deal but we'll wait and see a little bit more because i think we need an answer here as to why the president would support a deal that reinstates the csrs when he has made a very big political point of yanking those csrs and saying they're inappropriate >> indeed. >> i wanted to hear more about dvali. now i've got that on brain. >> reporter: i saw them preparing the meal as they went in, it looks fabulous. they got a great meal. >> love indian food. thank you very much, eamon. >> reporter: you bet. >> see you later. positive day for the dow as it moves -- continues to move into record territory. if you missed it at 11:10 a.m. eastern time, it crossed 23,000 for the first time spent a little time there. kind of like the little rocket

ship that went to mars then took off again. where this stuff comes from. but we're back below it again right now. coming up next, netflix pioneered binge watching television but could it do the same for motion pictures we'll tell you about the company's plan to release, get this, 80 films just next year. and how that could affect the movie biz. later a major automaker is boldly going where no driverless car has gone before. the big apple, right in this neighborhood, in fact. will self-driving vehicles be able to navigate manhattan's notoriously jammed street? stick around more "closing bell" right after this. >> who's driving tt r?haca what is the power of pacific? it's life insurance and retirement solutions to help you reach your goals. it's having the confidence to create the future that's most meaningful to you. it's protection for generations of families,

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welcome back with the dow having a strong day, merlin entertainment is going the other way. down 16% after the uk theme park operator cited bad weather and heightened concerns of terrorism in europe for a difficult summer season it expects 2017 comp revenue to be flat. remember this operates lego land, madame tussauds. reportedly looking at seaworld assets. >> right. >> really well known brand names there and big move lower for merlin entertainment today. >> yikes lot of moves today big moves. a lot of stocks. netflix shares lower today

we'll look at that any moment. there it is down 1.5%. company planning to spend $7 billion to $8 billion on original programming next year chief content officer said the company plans to produce, you ready, 80 motion pictures over that 12-month period >> we keep saying it like that because let's get some perspective, so far, this year, warner brothers released 15 films. universal, 11. and disney five. according to box office mojos. that's 31 films for the three major studios compared with the 80 netflix wants to launch. >> even at the height of movie production in the '30s and '40s, i don't know any particular studio, warner brothers was probably the busiest, mgm certain certainly. i deon't think any of them made 80 pictures a year. >> netflix wants to do it. >> that's a picture every 4 1/2 days i am told. >> can netflix take on hollywood? joining us, jeff, whose tv credits include shows like "chasing life," "d"dawson's

creek. and co-editor in chief at "variety." gentlemen, thank you both for joining us jeff, first to you, what do you think is going on with netflix's hollywood plans. >> el witwell i think it's very exciting for those of us who love story, we're going to have lots more of it from that perspective, this is pretty amazing this commitment for 80 feature films and don't forget 30 anime series as well it's exciting for any of us who love great story, love to make great story, love to watch story. >> right let's -- >> a jobs perspective -- >> i was going to say, jeff, let's tell it like it is, the folks -- you folks in georgia, you produce a lot of motion pictures and television there. you must be salivating at the talk they're going to produce this much next year, yes >> we are very excited we had 320, 320 film and television productions here in georgia last year. that's up 30% from the previous year it's remarkable. and we love working with netflix. so, yes, we are, indeed,

salivating >> andy, what about -- i mean, how successful do you think -- i -- we remember when they first started the oraniginal series, came out with "lily hammer." it was fine. it doesn't "orange is the new black," wasn't "stranger things." those have come later. how important is it they have hot films right out of the gate? >> let's be clear, netflix has been t in the original movie business the last year or so and frankly aren't doing that good a job i think you're going to start to see with new management in place, they got a real film veteran by the name of scott stuber who's overseeing this and i think you're going to see a real turnaround. i also want to be clear as we're making these comparisons to disney and paramount, you know, they're making movies that are, like, $150 million, $200 million. i don't think netflix is going to be playing in that space. i just want to be careful about -- >> why not >> -- making the comparison. >> they could make 30 of those

films next year. >> correct, but as ted serandos, himself, said, i think they're going to really run the gamut. i wouldn't be surprised in terms of budget that we would see a lot of these movies actually not cost all that much >> go ahead. >> just going to say, andy, maybe that's a good thing. i mean, i -- i'm not a big fan of a lot of these big budget blockbusters that have come to -- >> obviously make some quality independent kind of like pictures that, you know, people will want to go see. you know, i don't know it just seems like it's more quantity over quality. jeff, you started to say something about jobs can you quantify what this would mean to the jobs picture there in georgia as it pertains to netflix specifically >> sure. i'd love to. also want to add that the more content we have, the more there's something for everybody, which, again, as a storyteller is a great thing, someone who consumes content a great thing.

here in georgia, according to the npaa, motion picture association of america, we had 92,000 georgians working in the film and television industry that's remarkable. about 100,000 georgians working now. $4.6 billion in direct wages i mean, to be clear, we're up 4,000% in the last 10 years from $242 million in 2007, economic activity, to $9.5 billion last year what does this mean? it means jobs for so many people >> yeah. >> it means -- >> right. >> -- vendor support systems all kinds of economic activity here in the state which is absolutely remarkable. so now that we have -- >> i wonder -- >> -- this netflix deal, you're going to see more. >> go ahead. ha what do you think, huge decline in amc share price, company-specific issues with their chinese ownership. if you're one of these theater chains, is this good for you because netflix is distributing movies through the theater

system or are they bypassing it and potentially undermining their whole business >> well, and, again, this goes to what andy was saying earlier, it depends what kind of products they're making i mean, i believe there's a space in the relatively lower budget independent film market to make special kinds of movies. will these movies need theatrical distribution? some will. some won't but, of course, netflix is its own distribution entity. so i think it remains to be seen specifically how this will affect the theatrical box office in terms of the overall entertainment industry, again, the jobs that are created, the economic activity, i think this will be significant. and moreover, i think it's a harbinger to more kinds of deals like this that we'll see coming. it's one of america's greatest products, right? >> let's all decide to gather when the first of the 80 movies coming out next year and see what kind of -- >> gathering in your living room instead of gathering in the theater? >> i'll turn on my television. thank you for joining us today.

>> thank you very much appreciate it. >> i wouldn't want to hear that -- >> i agree. >> they're flooding the zone with this movie -- >> it's a lot of competition, lot of competition, that's for sure. >> maybe they can sell home popcorn. at a markup instead. time now for a cnbc news update, let's get over to sue herera sue? >> hi, guys, here's what's happening at this hour, everyone harvey weinstein resigned from the board of his own company the same board fired weinstein as co-chairman last week amid numerous accusations he assaulted and harassed many women. company leaders are deciding whether to sell the independent filmhouse. a missouri court has tossed out a $72 million judgment against johnson & johnson. it was the first verdict in which a jury awarded damages for claims the talc in the baby powder contributed to cancer the appeals court ruled that the lawsuit lacked jurisdiction because the plaintiff was from alabama. target is recalling some furniture that could endanger kids children can open the zippers on the room essentials leather poof

ottomons and choke on the beans inside the recalled ottomans sold nationwide and online from june through august. soon you'll be able to work out like a supreme court just e justice. there she is, ruth bader ginsburg her personal trainer is releasing a book called "the rgb workout: how she stays strong and you can too. bryant johnson has been working with the 84-year-old jus stice since 1999 the book comes out tomorrow. i bet it will be a bestseller. >> can do 20 pushups in a session. >> she's very strong. >> more than i can do. sue herera. kayla tausche just attended the briefing and has those details. >> reporter: to the extent that sparks fly at the very buttoned up and kor you graped events, they did today

leaders of mexico, canada and the united states that have been negotiating the new and improved nafta deal come out with very different statements there was a joint statement at the beginning where they said they had been working inn earnet and made progress in certain area and thanked the hard work of their staff who had been producing a lot of this text in this new trade deal. but ambassador lighth izer, u.s. trade representative, announced there are significant gaps in what the u.s. wanted in its new deal and what its trading partners were willing to agree to he did say that would lead to a protracted timeline and the three parties are now talk bing out through the first quarter of 2018 when, in fact, these talks had previously been expected to wrap up by the end of the year when the floor then turned to the leaders from canada and mexico, we saw them greatly at odds with the u.s. line of reasoning. canada foreign minister cristia

freeland said the proposals the u.s. put on the table would turn back the clock on 23 years of predictability economy secretary from mexico said the three parties need to make sure whatever positions they take don't today come back and haunt them tomorrow then ambassador lighthizer finished up the day saying maybe they should take the next month and come back to the table and really figure out what their positions no ed to be, how they can realistically make progress. he said for the u.s. trade deficits do matter and that is still their main priority in these negotiations kelly? >> all right kayla, thank you kayla tausche. all right. we're into the last half hour of trade on this, what has been an historic day with the dow briefly above 23,000 for the first time ever. joining any right now at the telestrator is mark newton of newton advisers. you look at the dollar, though, which as we all know has been just declining this year do you think we're ready to change direction or go higher

here >> there's been two big rever l reversals in in the last month hat been stocks. the two big things are european bonds started to rally again and u.s. dollar started to show signs of >> could hurt u.s. exports as things become more expensive. >> that's a key thing. >> level you're watching carefully on the index, itself

>> well, this is a dxy, 60% versus the euro and so the euro, itself, on looking at to get down right near 116.70, under that, could see a real acceleration down to 111 for the dxy, i suspect we could probably see at least a 50% retracement of everything we've done this year which will put it up right in this level right up there. so we could see a decent retracement in the dollar. if steocks peak out in the new feature the yen is going to stabilize and do better, the yen will do fine euro going lower against the dollar and the weeks and months ahead ceo mark dunkerley as the company faces new a big competitor bringing passengers

to its aloha state stay with us

welcome back with some more breaking news from the white house, eamon javers, what now >> reporter: kelly, i think we have our answer now to that confusion over whether or not president trump was endorsing that alexander murray deal

that's been floated up on capitol hill in terms of health care we have statement here from a white house official i'll read it to you, it reads very much as if the white house is tistill in negotiations and not, in fact, endorsing the deal here's what the official tell me "we are willing to work with congress to reach a legislative solution we will not provide bailouts to insurance companies until we provide the american people with relief from the obamacare disaster." so in this statement the white house official is holding up those csr payments which the white house calls bailouts to insurance companies. in exchange for an overall obamacare deal that would seem to be somewhat of a long way off, and the way this is described to me is this is very much an ongoing process. the white house is in negotiations with folks up on capitol hill on that but the president's comments in the rose garden a little while ago were read very much as an endorsement by many of the alexander/murray proposal. white house now telling me it was not meant as an endorsement. the white house has not endorsed

that proposal. they're saying they're still willing to work with congress to reach a legislative solution, however, so talks are ongoing, kelly. >> just looking to see if we can show real quickly the s&p health care sector if it's come off the highs as well, taking that -- >> all those stocks have been very strong. united health being the -- >> been on a -- >> the leader there with the 6% gain. >> being another one, if that was part of the reason for the last 1% or so. >> that's perfectly clear now. thank you. >> glad to help. >> see you later >> still about 1.4% higher on the spyder health care. all right. we have an audio delay here. we're dealing with so let's be patient, everybody southwest airlines has announced it's going to begin selling tickets to fly to hawaii starting next year the carrier still has to get faa approval of course, hawaii has seen a huge increase in tourism lately. the state had a record 8.9 million visitors just last year. >> the big question since this announcement is where does this leave hawaiian air one of theexclusive, we're joiny

hawaii air president and ceo mark dunkerley thank you for joining us. >> you're welcome. pleasure to be on the show. >> can you continue to grow and perform as well as you have in the past with southwest coming on your turf >> reporter: yeah, i think so. you know, we have the right product for this marketplace we compete against effectively everybody. i mean, southwest is the latest entrant, but today we compete against most of the u.s. major airlines most of the pacific rim national airlines and we've, you know, succeeded against all of them and we don't anticipate things being different in the new environment, either. >> but you -- i mean, you must know about this phenomenon called the southwest effect. on those routes where southwest does compete, prices are lower than they are on average about $45 per seat than they are on those routes where southwest is not competing. so, i mean, clearly, you're going to have to have a lower price. you're going to have lower

margins. going to have to price according to whatever southwest is doing when they start their routes there, right >> well, i -- i'm not sure that's entirely right in the following sense. i think a lot of places where southwest goes into there's sort of limited competition to begin with and so prices may be a little higher than they otherwise would be that isn't the situation in the marn markets that we fly. we fly against lots of competitors. i mean, coming out of a place like los angeles, we fly against already four or five different competitors. it's a very competitive marketplace. adding one more competitor into that marketplace is unlikely to have the kinds of effect of adding acompetitor when there' only, you know, when the carrier is sitting on a monopoly, for example. >> mark, you recently initiated this dividend, perhaps, could kind of entice those investors who might have been a little bit scared about the upcoming competition. what are your plans for the dividend

>> well, i think we're doing a number of things to really communicate the level of confidence we have in our business model you know, we have for the routes that we fly, for serving hawaii, bringing people from around the pacific rim and from north america to hawaii, there's no carrier that is better positioned than we are and we think that doesn't change that doesn't change when united adds capacity as they're intending to do in 2018. it won't change when southwest or any other carrier comes in. the way that we've chosen to express that confidence was firstly to buy back a lot of stock in the last quarter, and now to commence a dividend to demonstrate that we think our business model is resilient. >> but, you know, clearly you know your stock is down 30-plus percent just this year hardly a vote of confidence from wall street in that business model when other airlines have

been doing pretty darn well this year >> yeah, i mean, that's -- our stock is down 30%. it had moved up from $2 a share to $60 a share over the decade, thereabout the hawaiian airlines stock has been the belle of the ball performed better than other carriers have. once this additional capacity that is coming into the market is digested, we think, you know, we think the sort of quality of our brand, of our franchise, and of our business model, will shine through. i point out that we've had other pulses of capacity before. what we're looking at now is far from unprecedented two, three years ago, we had at that time alaska airlines moved in very aggressively into the marketplace. >> right. >> when the dust settled, our market share went up and our margins went up. >> all right mark dunkerley of hawaiian air

thank you for your time. appreciate it very much. audio delay wasn't that bad. >> you're welcome. >> better than from midtown half the time. >> you know, newscasters wear hawaii hawaiian shirts and dresses, too. >> in hawaii. >> i love that. >> do they >> yeah, they do >> all right i'm moving to hawaii. 14 minutes to go i am wearing my boots for chip and joanna gaines later on anyway, they are coming but we're focused on the dow which is up 36 points and it's just about seven or eight points awade from closing above 23,000. >> yes, we touched that mark earlier today. we will see if he can close above that mark. and after the bell, complete coverage of this record-setting rally. stay tuned [fbi agent] you're a brave man, mr. stevens.

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ibm set to report earnings after the bell up next, a bull and a bear square off over whether this stock is worth buying or not. see elvehaou won't bie wt el whave coming up

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results after the bell tonight with a stock down a quarter percent. today 12% year to date. >> joining us in this debate, get this, david dietz is our bull david, i'm going to start with you. famously ibm has seen revenue declines the last 21 quarters. >> absolutely. >> why do you like this -- why do you like this stock >> it's really threefold, bill it's the promise of their strategic imperatives which are

actually growing double digit pe percentages. actually the strength of the legacy business plus a rock bottom valuation i know people talk about the declining revenues but they got a backlog of $119 billion. and so if you're going to give me a 4% dividend, a market cap which is one-fourth of facebook, but twice the revenues, i'll take that any time i like to look forward, not back in terms of revenues. >> ian, what about you >> i mean, i don't even know where to begin the strategic initiatives actually grew 7% last quarter. and as far as relative to facebook, facebook's growing 30%, 40% whereas this company's earnings respect going to grow at all for the next two years the revenues aren't going to grow at all for the next two years. gross margin's been down seven quarters in a row year over year even the oracle of omaha is selling his stock. >> ian, you're not mindful of the movement of the cloud which is so hot right now?

>> movement to the cloud every company that wants to get a little bit of juice tries to say they're a cloud play this company is not a cloud play this company is a legacy mainframe play and nothing exciting going on here at all. >> so 45% of this business is strategic imperatives. artificial intelligence in the form of watson infrastructure as a service, platform as a service. ibm has gotten more patents than any other enterprise on the plav planet for the last 24 years in a row. you're going to make money here, i think they're ultimately going to take a page out of the hewlett-packard playbook and divide the two companies have a growth play, a legacy play that's going to be a winner for shareholders. >> ian, quick last word. >> yeah, watson has done one good thing in the last ten years, it won "jeopardy. that's about it. >> even that was close . >> we love having both of you on it's just weird having david as our bull today but thank you both for joining us today we will have the earnings from

ibm coming up a little bit later. meantime we have a news alert on boeing. phil lebeau, what's going on >> bill, this is a new comment from the generboeing regardinge announced yesterday to buy a majority stake in the bombardier plane. boeing's general counsel says the announced deal talking about the one between airbus and bombardier has no impact or effect on the pending proceedings at all, any duties finally levied against the "c" series, which do stand at about 300%, will have to be paid on any imported c-series airplane or parts or it will not be permitted into the country i think i could summarize that statement by saying boeing is not backing down, guys they plan on fighting this and fighting this aggressively both in terms of the tariffs as well as this proposed deal between airbus and bombardier. >> great story fascinating one.

phil, thank you very much. phil lebeau. >> look at the dow we're less -- >> oh, just going to kiss it. >> we're less than two points away from 23,000 can we do it will we close above it >> that is everything. >> we have the closing countdown coming up in just a moment here. [vo] quickbooks introduces rodney. he has a new business teaching lessons.

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this is history. 23,000 can we close above this number on the industrial average? up 38 points right now, 4 1/2 points away. the three stocks that have had the biggest impact today, united health by far with the $6 -- 6% gain johnson & johnson gets honorable mention, bob pisani, then goldman sachs which also had decent earnings this morning down 3% right now and year to date chart of the dow. this is just breathtaking as far as i'm concerned we started the year in 19,000 and crossed four millennial marks this year. >> 5,000 points in 18 months we were at 14,000 in april of last year. the important thing is every three months or so we move 1,000 points. >> yeah. you mentioned, it's been ten weeks between 22,000 and 23,000, quick math, that's 100 points a week >> right there johnson & johnson, by the way, historic high. we're all obsessed with ibm. want to point out, interactive

brokers. online brokers and electronic broke wrrage firms doing well. 37 in the last earnings period 47 today earnings will be -- >> all right they're crossing the ts and dotting the is let's see if we close above it maybe, maybe not we'll see. a lot to come in the ibm earnings on this second hour of "the closing bell" with kelly evans and company. see you tomorrow, kell thank you, bill, welcome to "the closing bell," everybody, i'm kelly evans. let's see if we after moving, trading above 23,000 on the dow today, can close above that level. looks like we are just less than a point shy. these things move around on the bell so we will give it a moment before it declaring it one way or the other what we can say is this close higher for the dow is a record close. it looks like 22,997 for the blue chips and by far the outperformer in terms of the major averages today thanks to

strong earnings. the s&p 500 for its part did manage to turn positive at the end of the session closie ining higher by less than two points also to a record high of 22,59 the nasdaq could not join the group. russell 2000s back to lagging the market shedding .35% today we'll have much more on what it will take to keep the rally in the dow going past the 23k mark. joining me on the panel today, cnbc senior markets commentator, michael santoli. next to him, sarah mustnhunt and jeff is also here, chairman of renaissance macro research. let's just begin with a few of today's major market moves the dow hitting 23,000 around 11:00 a.m. today before closing higher by about 40 points. by the way, call it this thousand-point move, that's just 53 trading days, guys, after it closed above 22,000. materials the best performing sector since then. telecom has been the worst performer which has been the case pretty much all year. today's big winner in the dow was united health group with a

big move, about a 6% move to the up side after earnings and some positive news on health care and the biggest loser was goldman sachs despite a big earnings beat down about 2.5% today. michael, what do you think >> you know, slow measured progress has been the story of this market this year. so that 1,000-point drip since august -- really no help of 1% up day, anything like that so it just grinds. you know, the market's been kind of gathering strength from the segments that are working like health care, like you said today, industrials and others. and the laggards are not offsetting that just yet so i think it's very much in character of the way this market's been behaving. >> sarah >> i would have to agree you look at all the things that happened and look at what we've been expecting and still don't have any of it yet the market is happy to go higher with it, anyway i think the backdrop of earnings being higher, global growth being a little bit better and low rates are really helping i think if we can get through another earnings season without big shocks and no other problems, i think we still can move to the upside. >> jeff, i know you're so excited about dow 23,000

you just can't hold it together. i mean, what does a level like that say to you or the pace of the move since 22,000? if anything? >> yeah, the pace would be more interesting to me than the level. look, i'm in the camp that this is a liquidity-driven market that continues to be the case. despite the fed raising rates. that's prompting this low volatility the market's in good shape as long as that continues that's late innings, but as long as that continues we're in good shape. >> so if we add 50 more trading days on to 24,000, 50 more trading days is 25,000, just to extrapolate, not project here obviously, but we're talking about less than, you know,ing a0 we bottomed around 7,000 during the financial crisis. >> yeah, that's about right. the dow has been the outperformer in the last year or so i think that's kind of make a quirk, also significance in terms of a mix of stocks global. very large cyclical for the most part i think if you look at the leadership since the last threshold of 1,000 points, it's

modestly encouraging it's that liquidity-driven move jeff talks about it's favoring global cyclicals, things that say good things about the economy as opposed to defensive stocks. >> let's drill down on a couple dow components that reported earnings this morning, included united health and johnson & johnson. a double beat, a raise, up 3.5% on the bell. united health up 5.5%. other health care stocks also higher after reports this afternoon that u.s. senators reached a bipartisan deal to stabilize obamacare. where does that leave you, sarah? >> well, i think that was something that was obviously health care's been very volatile this year. unlike a lot of the market which is not volatile as a whole health care has been on the back of all these different things that were going to happen or not happen i think a stabilization helps and puts things in perspective for the next couple years where they can try to fix this legislatively which i think was the original argument so we'll see where that goes. at least you don't have the floor coming out from underneath it. >> jeff, i mean, same thing. we watched the health care sector as a whole just kind of move higher, move higher, move higher today even when the president on the one hand seemed

to be saying the move was overdone, you know, the announcement that these negotiations have yielded some fruit in the senate seems to have helped that move. >> there are a lot of really good charts in health care despite what mike's talking about with cyclic caality. health care was strong more of a defensive sector or hot sector like biotech. but the charts in biotech -- the charts in health care generally are big bases coming off and not a lot of people are interested in them. we think it's one of the best cycles for '18. >> a lacey narrative would is been anything that comes out of this administration is going to take dollars out of the system, therefore avoid the health care sector. >> right. >> the complete opposite has been true in terms os of the performance. >> the market's preference in some parts of this year for growth has rotated, sort of stolen a little bit of that from tech certain parts of health care that look more like tech had done well. also global, also a very simple demographic story people seem to be able to -- if you don't have, you know, policy risks that are going to interrupt that. >> right we'll see where that goes.

in terms of those senate plans for those payments anyway a lot of these self-insurers are counting on. also new reports today that president trump will likely choose the next federal reserve chair by early 234november five candidates for the position are janet yellen, gary cohn, kevin warsh, john taylor and jay powell it follows earnings this morning from morgan stanley and goldman sachs. morgan stanley trading higher today. goldman, guys, moving loe iningy 2.5% sarah, there's a lot of different winds here kind of blowing the financials around. how important is the fed chair selection? when we look at those five candidates >> is well, i think the question is are they going to change policy to what looks like it should be a tightening policy? but we'll see. i absolutely agree with jeff, there's a lot of liquidity driving this market both from the u.s. and outside the u.s so i think it is going to be

important in terms of what people think they're going to do with rates but ultimately comes down with what they actually do and what they actually do with a balance sheet. and i think that if the growth can -- if the economic growth can pick up where central bank liquidity can hand off, i think that's the biggest question for markets going forward. >> do you agree, jeff, with what steve grasso's been saying regardless of what you think about a more hawkish candidate moving up the interest rates, movements of rates, the dollar and so forth, it's not going up? that we're talking about low for a lot longer >> i think you talking lower than what people would otherwise expe expect i do think they're going up. i think they'll go up gradually. but i think the last i looked the market has four rate hikes between now and the end of next year that looks about right remember, the pmis are running very, very hot employment is running very, very hot. inflation is not a big part of that is because of oil. there's some risk, in our view, that you can actually have more of an asset bubble which is why valuation doesn't matter because the fed is lower longer. because they're focused on

inflation but it's going in a -- >> in the meantime, we've seen them talk about that where do the results for morgan and goldman fall which seem to point to morgan's wealth management model as firing on all cylinders and gold mapn's thick trading revenue reliance is still a problem. >> the part of morgan stanley's business that looks like goldman sachs is a -- i would say the banks as a whole though did not hold a bid today i think it's because of what the bond market did. if you get three more rate hikes and the ten-year yield doesn't move at all -- >> right, which is -- >> --ing basically about a flat yield curve that's a direction you're moving and weighs on sentiment toward the banks. when it comes to goldman, had a little bit of a bounce, i think people are concerned it's been disrupted in the trading business somehow. >> yeah, no, it's fascinating to think about. we're starting to look back to the financial crisis it really has taken a lot of wind out o their sails. let's check quickly on the mexican peso, slightly lhigher

today. rejected proposals made by the u.s. during the fourth round really of nafta renegotiations it those three countries said they will extend negotiation talks into early next year the peso up about 9% this year, guys but jeff, when you're looking at the peso chart and these negotiations, i don't know i mean, it feel like a whole lot of hand waving without a lot of change right now but there's a lot at stake so it's hard to kind of look at the implications. >> i mean, it's like a game of poker where all red cards are wild, right? sort of like what am i supposed to do with this? as we look at it, it's an uptrend, oversold condition, at the uptrend. at the marginicgin we'd be buye the condition. one thing trump has shown, taken position that's extreme and seem to work his way back to something that would be extreme if you started with that, doesn't look as extreme as what you end up with. i think that's what this ends up being. outside my area of expertise if i look at the oversold -- meantime, politico reporting rand paul could be a major thorn

in the side of the republican budget plan. that has to come before taxes. kentucky republican reportedly is prepared to vote no on the gop budget if billions of dollars are not cut from the plan. voting is slated to begin thursday and passage is essential for any hopes of tax reform sarah, i mean, is that a hurdle for you for this market? going back to the fact that we're continuing to close at these new highs and new levels >> i think that in the beginning of the year the expectation was if you didn't get tax reform done, the marx was goiket was gb a problem. it's something we're looking forward to in a positive way i'm not sure the market is going to see a problem if they don't get it done, if it moves into ex-in year because there's been talk about that already. i think they'd like to get it done i think the market can look at the anticipation for that and use that as a reason to be happier going forward. >> by the way, michael, a late development is actually that senator thad cochran of mississippi has returned to washington, of course, he was in very poor health recovering from medical issues they're trying to get every person who might support the budget and tax reform --

>> that changes the nose count basically on potential votes for the budget resolution, right so before it was you really couldn't lose more than one or two. so maybe that helps out. a little bit i've been saying all along, the moment it really matters, the whole tax reform thing to the market, is the moment when 2018 earnings estimates seem dependent on getting a corporate tax -- >> is that true right now? i know they're high. they're pretty high. >> the stated number is probably got some of that baked into is but i don't think the market's going to focus on exactly how that plays into earnings forecasts until that moment. >> do your estimates, sarah, account for that do they jump higher when you start looking at -- what are your favorite companies right here >> so we like defense here we think that energy's finally gotten some relief from higher oil prices i think there's some good places here i think that building in all those tax reforms is going to be a tough thing. and it's going to depend on where analysts are in their estimates to see where that goes i'm not baking in too much now i don't want to worry about that. >> let me squeeze in this news, netflix, before we get to ibm results which are crossing right

now, jeff, netflix actually crossed lower after it hit an all-time high earlier in the session. we reported it was higher after those earnings yesterday they managed to beat at least on the revenue number netflix was the most searched ticker today on cnbc.com and analysts were largely positive about the quarter. at least five different firms raised their target. goldman sachs noted it does raise the risk profile of the stock. the company said it will spend as much as $8 billion on content next year. dropped a percent and a half on the close. >> this is exactly what you have to be careful of, these are glam stocks, very much in focus when they can't respond to good news, absolutely have to take that for what it's woorth. this is a saturated stock. the fa i'd be careful with this one >> let's move from new tech to old. i shouldn't put it that way. i know, let's let josh lipton talk about it, josh, those ibm numbers are out. how did they do? >> kelly, ibm reporting eps of $3.30 versus expectations of

$3.28. revenue $19.15 billion, kelly, expectations of $18.6 billion. that does mean 22 straight quarters of revenue decline year over year, kelly gross margins clock in at 47.6%. strategic imperatives so ai, analytics, cyber security, cloud, $8.8 billion, up 11% as reported cloud revenue in the quarter, $4.1 billion, up 20% cognitive solutions, that includes watson, $4.4 billion. global business services $4.1 billion. technology services and cloud platforms, that's $8.5 billion down 3% as reported. looking ahead, ibm maintaining its full-year guidance of at least $13.80 kelly, back to you >> all right thank you very much, josh. the shares moving up about 2.5%. michael, what do you think >> maintaining guidance, both for cash flow and for earnings per share, i think is basically

going to take a little bit of the drama out of here. also, the stock, i will say, you can't necessarily depend on the first reflex in terms of how the stock reacts to earnings i think with ibm in particular, you sometimes have people digging through the numbers figuring out what the tax rate was. all the other kind of footnotes. but, look, i think it's probably as expected in a stock that's in a down trend, and it's not really giving much to get excited about. >> sarah >> i would agree with that i think you've got a nice dividend yield there, not expensive but a constant decline that they're fighting and doesn't look they found anything to turn it around. until you see an inflection in revenues, it's a place people are collecting in dividends. >> jeff, it was mentioned earlier by our bear on the company that strategic imperatives, in u growthy it st was up 7% last quarter this quarter it's up 11%. and says cloud accounts for 20% of the company's total revenue is that enough. >> a show-me stock still i doubt it is. still in a down trend as mike points out it's a show-me stock

overbought conditions in down trends that where we are. seller >> but we have seen companies reposition themselves, the old tech company i'm thinking a little bit of oracle lately, been able to join more of this new tech momentum kind of play can ibm get there? is it a matter of time or like an ex-tistential -- >> going to require more oracle is in an uptrend. intel breaking out cisco breaking out look nothing like ibm. >> sarah, are you an owner of those other names. >> we own microsoft and cisco but don't own ibm. >> i was going to say at some point when you get to some threshold, when people believe new strategic initiatives are generally new businesses as you're defining them and get to a certain critical point as a percentage of sales and revenue, i mean, sales and earnings, yes, then maybe the stock can get revalued i'm not sure that the market sees that just yet. >> the other thing to mention if they do a big emphasis on artificial intelligence, of course, and they're just saying they're putting more ai or watson into the cloud trying to

differentiate from offerings from microsoft and amazon and some of the others, the analytics business growing, i think they mean 5% year over year but, again, sarah, you prefer a microsoft here you know, is there any reason why ibm would kind of elbow its way into your portfolio? >> i think this goes back to the point you were making. until you see an inflection, until it changes and changes enough, it's real willly hard to at declining earnings quarter over quarter over quarter and be excited about the new parts if they're not growing fast enough to take care of the parts that are shrinking. you need to see an inflection before people get comfortable with stocks like that and can become the story of the new things i don't think there's enough of that for them. >> all right there's ibm moving higher about 1. 5% coming off the initial move there after reporting the earnings guys, thank you very much for joining us today sarah hunt jeff. the dow briefly did cross the 23,000 level this morning for the first time and closed within just three points of that up next, we got someone who says the run is far from over

and he'll tell you where he sees opportunity. that's right after this. later, chip and joanna gaines, hosts of "fixer upper" give us their thoughts on the real estate industry and why they have chosen to end their hit show we got to ask them about that. and we always want to hear from you, share your thoughts with us via twitter, facebook or over e-mail. send in any questions for chip and jo you're watching cnbc first in business worldwide. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. anything worth pursuing hard work and a plan. at baird, we approach your wealth management strategy the same way

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the dow today closing just shy of 23,000. about 2 1/2 points shy after hitting the milestone earlier in the session are there still investment opportunities here let's ask richard bernstein, a cnbc contributor from richard bernstein advisers creative name, rich. thank you for joining us. >> yeah, thank you >> let's talk a little bit about the fact, as i like how you put it, we're eight years into the bull market, people are just waking up to that's still true. that's been true all along but it's still true here isn't it >> it is, kelly. i think this happen bes been ann bull market and people have been so scarred by 2008 that they're more scared, 2008's about to repeat during this cycle, than

ever looking for opportunities to invest. and i just don't understand how people expect to build wealth under the desk in the fetal position that's just not what capitalism is all about >> we'll talk about this later but i actually see people getting back into the housing market sooner than they seem to get back into the stock market we've been burned by housing a lot more recently, although i guess maybe it happened at the same time. what do you think about that >> el witwell, you know, that's definitely true. real estate is perceived oddly enough to be somewhat safe people think there's a stable income stream and things like that what's very interesting is that reits, if. you will, if you use that as a proxy for real estate investing have been acting more and more like bonds and less and less like real estate because so much money has flooded into the sector, there's actually changes going on in the way the sector's behaving. >> rich, if we sort of grant the point that maybe the public hasn't reengaged with stocks at least emotionally the way they have in past cycles, clearly as somebody who focuses on

fundamentals, it's possible that if they ever come back and become very interested, it will be at an extremely expensive market or maybe the fundamentals won't be there what are you actually kind of foreseeing in terms of how the remainder of this cycle plays out? are you just playing for that kind of overshoot in a bull market or are the fundamentals still there to justify things? >> well, there's two things and what you just said there, michael, number one is that, yeah, people tend to come into the tech tyequity market in dro the bottom of the nooiinth inni, two outs and two strikes on the batter that's when equities are the most popular is right at the peak, bot tom tom of the ninth that's going to happen in this cycle, too, whenever that happens that's the sentiment environment that we'll see however, you know, somebody when i was in the greenroom before, somebody said that this is a liquidity-driven market and i agree that there is a lot of liquidity out there, but this is not just a liquidity-driven market the earnings are accelerating not only in the united states, but around the world and you don't hear enough about that relative to the liquidity

that's out there >> i think that's a good point but fortunately we have a deluge of earnings upon us for the next couple days. and maybe we'll play that up more rich, thank you for joining us. >> sure, thanks for having me. >> good to get your thoughts richard bernstein. we have developments on the travel ban or lack thereof eamon javers at the white house with those. >> reporter: that's right. the white house is reacting to the federal judge in hawaii that took a step to block the president's travel ban the latest version of the travel ban which the white house has been trying to get put through throughout the course of this year sarah huckabee sanders now issuing a statement in response to that. she says, "today's dangerously flawed district court order undercuts the president's efforts to keep the american people safe and enforce minimum security standards for entry into the united states." she goes on to say "the department of justice will vigorously defend the president's lawful action. the proclamation restricting travel was issued after an extensive worldwide security review by the secretary of homeland security and following

consultation by the president with members of the cabinet including secretaries of homeland security, state, defense and the attorney general. so the administration here indicating they're going to continue to defend this in court, but the hawaii judge now taking a step to block the current version of the travel ban, kelly >> all right, eamon, thank you for now. we'll keep following it, eamon javers at the white house. the u.s. government also planned to hit canadian jet maker bombardier with a 300% tariff after boeing complained it was selling a plane at an unfairly low price bombardier made a deal that could help it avoid that hit we'll explain how that would work coming up. amazon striking a deal of its own to install divelery lockers at apartments run by the nation's biggest landlords our fast take on that when we come right back.

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this close that's how close we got, 2 1/2 points from closing above 23,000 on the dow today we did touch it earlier in the session. but let's get to sue herera this hour for a cnbc news update. sue. >> hi, kelly, thanks so much here's what's happening at this hour, everyone market pundit under fire today for comments in his latest gloom, boom and doom newsletter. fauber wrote, "thank god white people populated america and america has enjoyed 200 years in

the economic and political sun under a white majority." faber told cnbc, "if stating some historical facts makes me a racist, then i suppose i am a racist." faber who often appears on business news channels including cnbc has been kicked off the board after that commentary. no comment yet from the other companies that have faber as a director we have reached out to all of them a federal judge in hawaii has blocked major parts of president trump's latest travel ban. that ban was set to go into effect early tomorrow. barring most nationals of syria, libya, iran, yemen, chad and somalia. the ruling does not apply to the part of the ban restricting travel by certain north koreans and venezuelans. the white house says the decision is wrong and it will vigorously defend the ban. "scandal" star kerry washington will be an executive producer on a drama series for facebook set on the south side of chicago. it's called "five points" and

will present fooi poiive pointsw of the same event according to "variety." will air on watch, facebook's new platform for original shows. google maps will no longer tell you how many calories you might burn following a route the experimental feature gave automatic estimates for walking a route in calories and mini cupcake equivalents. users complained about potential inaccuracy and the inability to turn it off and the pressure of counting calories. or in my case, mini cupcakes it's a lot -- it is a lot of pressure you see, like, 20 mini cupcakes. >> or scones. >> exactly, kelly. >> i was thinking this morning, i was eyeing one, i thought how many calories? 100, 200, is it 400? >> i know. >> what's too much for an unnecessary -- anyway. sue, thank you very much. >> with you got it see you tomorrow >> all right sue herera airbus is striking a deal with bombardier over its c-series aircraft. some say the deal looks like a bailout. phil lebeau is here to explain

phil >> reporter: well, certainly it's causing controversy with boeing, you know, we said just, what, half hour ago, boeing issuing another statement saying we're not going to let this deal go by without some people fighting it in washington. certainly boeing fighting it here's the deal essentially. airbus will take a majority stake in the c-series plane. they're going to basically run everything in temprms of sales, logistics, manufacturing of the airplane production may eventually be expanded to airbus' plant in alabama. there will also be a line up in canada joint venture was discussed by prime minister of canada along with president trump they had a conversation about it last night no details about that conversation the heart of the issue are the tariffs that have been proposed by the department of commerce and these are -- these are being proposed because they say, look, these planes are not being sold at market value. we think the tariffs should be 299% well boeing is blasting this deal with bombardier saying if

you think this means these tariffs are going away, think again. shares of boeing took a bit of a hit today. but the company issued a statement essentially saying twice now within the last 24 hours, we plan to fight this deal between airbus and bombardier saying this looks like a questionable deal between two heavily state-subsidized competitors to skirt the recent findings of the u.s. government. our position remains that everyone should play by the same rules for free and fair trade to work." by the way, we're also going to show you shares of delta because delta is the customer which has ordered 70 c-series planes kelly, last week, when we talked to the ceo of delta, he denied or he -- shouldn't say he didn't deny, he refused to tell us what price they have paid for these planes which boeing says is way below market value that is at the heart of this kbla complaint and ultimately the deal between airbus and bombardier. >> i love this story, puts boeing and delta on different

sides of the issue so from delta ace pi's point of said, look, we ordered the planes because boeing doesn't make them. are they right about that is. >> that is true, they're not in that segment of the market but they also got a good deal. now they're not telling us exactly what that deal is. let's be clear, when companies, when airlines order new commercial airplanes, they never pay the list price i mean, it's one of these things, it's listed at $80 million, nobody's paying $80 million per plane. but is it as low as boeing suggests which could be as low as $19 million which boeing is saying, look, that's way below the market value. these are essentially being dumped because bombardier needs to sell these. that's the complaint from boeing delta's response is, no, we're paying market value, and that's why we're ordering these and we think it's a good plane. so that's -- you know, the crux of the issue here, and, of course -- >> yeah. >> -- the argument from boeing is, hey, now you have airbus stepping in because bombardier is losing money on this plane. >> i know. in alabama, you know, can --

there's a lot of interesting angles here. we'll see where this partnership goes and whether they keep the tariffs on them. phil, thank you. >> you bet. speaking of tariffs, news on that out of d.c. kayla tausche, an update on the nafta talks. >> reporter: the lead trade negotiator for the united states, bob lighthizer, held a briefing with reporters following the conclusion of this fourth round of nafta talks and in it he said there is no active process to withdraw from the nafta deal despite a very sharply worded statement at the conclusion of these talks where he said he has seen no evidence that canada and mexico would be willing to make the concessions needed that the u.s. wants in order to make this deal work. he did say that he will consult with the president following this round ending and see what the president suggests as to winning over congress, which has been highly critical of material changes to this deal, they just wanted to be mode modernized they don't want it to be really substantially changed. he said once the president comes

around to a final deal, congress will have to get onboard with whatever plan that is, if the president supports it. he said he's not surprised that business interests have been lobbying congress because that's the way that it's always worked. on the timeline, which he announced this afternoon, they would be extending through the first quarter of next year he said the year-end deadline was always artificial and that they viewed an ending to these talks by roughly march as an appropriate buffer between the finishing of those talks and the mexican elections next summer. so now these negotiators are targeting the end of the first quarter. that's how far they have scheduled these talks out to, but he says it is true that some of the more difficult topics and some of the most difficult parts of the negotiation will happen toward the end so certainly, kelly, the plot has thickened but he says there is no active process at this moment to withdraw from nafta, though he says you always think about what might happen, but there's no active process right now. kelly? >> yeah, markets thinking through the same thing

kayla, thank you very much kayla tausche. up next, small hedge fund wants to break up a big european bank we'll have those details for you. later the stars of the hgtv hit series "fixer upper" chip and joanna gaine, s explain why they're leaving the show we're going to get tirhe take on the housing market that has been red hot, at least in waco. that's coming up that are developing powerful batteries that make everything from cell phones to rail cars more efficient. which helps improve every aspect of advanced rail technology. all with support from a highly-educated workforce and vocational job training. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov.

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welcome back here's a quick look at how we finished on wall street today. the dow hit 23,000 in the session. didn't close there 2 1/2 points shy still 40 points higher today it was the best performer. s&p up about a point and a half. nasdaq lower by half a point russell down about five. ibm out witherings at the top of the hour. the stock had been moving higher since that it's now up 3.5% trading just about 152 bucks now we've got breaking newsnews on amazon. seema mody, what now >> amazon studio price roy price resigned following accusations of sexual harassment by an amazon tv producer keep in mind last thursday amazon said price was on a leave of absence following the allegations. now spokesperson from amazon saying roy price is resigning. back to you. >> perhaps inevitable. seema, thank you. let's get to our fast take

today. shall we michael, are you ready >> let's do it. >> we begin with the call for the banking giant, credit suisse, to break itself up into three parts. and investment bank, a wealth management and an asset management unit. the call is coming from a activist hedge fund working with the former credit suisse exec. the interesting thing to me, will the big u.s. banks to be pushed to do the same thing? >> a couple years ago, a proposal jp morgan ought to break up, et cetera. kind of went away. they kind of beat back that idea i don't think you're going to see that kind of pressure to do it in the u.s. banks unless their valuations really stagnate for a while. i think they've done okay. the one to watch on that i think that would be a signature move would be "b" of "a"," merrill lynch, right >> people talk about merrill like that these days as if it's this jewel -- >> that's right, within the event. for a while it wasn't part -- >> right it's interesting you say that. we'll see. there is actually -- that's not the only company bringing itself into three parts maybe today

daimler is actually doing it, the mercedes-benz parent company announced a plan to split its cars and vans business out from trucks and buses with mobility and financial services being the third unit so perhaps we are seeing the start of deaconglomeration after all. >> it always makes sense on papers very discreet -- >> outperformed and done quite well. >> they've done that for many decades. it makes sense also when you have businesses here that maybe if they're not at odds, you know, mobility, the kind of forward-looking kind of parts. >> the growth. >> may be at odds with some of the older ones. all right. finally just in time for the holidays, amazon has an early christmas president for doormen, ones who seem to be piled under boxes. amazon struck a deal with several big apartment companies including equity, residential, and avalon bay to install lockers in more than 850,000 properties according to the "wall street journal." which is great what about the burbs, michael? >> not my problem.

i like this idea especially new construction. but in the burbs if you have one of these great country estates, your footman or somebody takes it in. >> the country estate. yeah, very funny. >> it's a big issue though, right? >> yeah, it's huge. >> whether it's a building lobby -- >> their growth, if they're t e taking it seriously enough to do it for the apartment buildings, there has to be an interesting solution for the suburbs. >> neighborhood lock box. >> replacing the neighborhood mailbox that used to exist i like that. when discovery networks purchased scripts this summer hgtv was seen as a plum for the deal "fixer upper." i can't believe this, chip and joanna gaines. this is a live image, they're two feet from us right now we're going to hr eafrom them directly about this move and so much more right after this feel that? that's the beat of global markets, the rhythm of the world.

for most, the cadence of today. to us, the pace of tomorrow. it's people and machines uncovering opportunity. cloud computing providing endless capacity. blockchain making transactions safer and faster. new markets born where they weren't before. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

it's time for your business of the week. jenny of jenny's splendid ice cream is credited with starting the artisanal ice cream movement when listeria was found in a pint of their ice cream the company went into crisis management, rebuilding their few safety program and their reputation for more, watch "your business" weekend mornings at 7:30 on msnbc. >> sponsored by american express open helping you get business done. double digits. dy it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68.

the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor. little over three years ago chip and joanna gaines were known as house flippers in texas. they find and remodel run down properties, led to their own line of paint, furniture, housing development. it's been five seasons they're announcing "fixer upper" is hanging it up after this one. out with a new book "smart things i learned do something stupid," stole my subtitle for a book someday chip and joanna join us at post the. welcome. >> thank you

>> is absolutely, thanks for having us. >> i started watching hgtv again after 20 years ago two months ago when we bought a house we were looking -- these are -- you recognize these? >> i do, those are my top 25 colors. >> okay. this is -- >> wow. >> soft landing i'm putting in the front sitting room. >> i love that >> blackboard is going -- >> one of my favorites. >> you guys, so -- >> she's good. >> she is good. >> i ordered the stick-on paint samples because i thought if joanna gaines, i trust her judgment more than anybody's to have accomplished so much in a short period of time is pretty fascinating. chip, your book talks about how this was kind of an accident you wanted to be a baseball player, that's something you and michael have in common. >> here we are. >> which clearly indicates our talent >> and i love the way that you guys work together which for a lot of people, i don't know, i mean, it -- do you think you can keep working together, having an amazingly successful business, you know, and consider being great parents and all that, what happens now?

>> yeah, i mean, jo and i are firm believers you can have your cake b and eat it, too that's why we're living this thing out. i mean, a lot of people i feel like have to pick one or the other. you know, you feel like you go all career and maybe the family suffers to some extent some people kind of weigh it opposite and the family's the most important that was kind of the family that i grew up in i feel like my dad turned down promotion after promotion to be home and be at every ball game and some of the things which, again, as a young athlete you can probably relate to i wouldn't have traded it for the moon but, you know, there was one day that jo and i just right after we'd gotten married 14 years ago and looked at each other, we were like, what if we could pull both of these off, do you think it's possible? i would say that it's extremely risky because in theory, one might have to suffer and honestly, that weighed a little bit into the whole concept of us deciding that the fifth season was going to be the last we wanted to make sure that we really step back, make sure that jo and i were on good footing,

make sure the kids were all doing well after five years of this, it feels like an eternity. >> do they like the tv cameras what's it like for them? >> i think the older they get, the more they're like, oh, we don't really -- i think it's more now it seems almost like a job that they never asked for which is what we kind of looked at and thought if they didn't ask for this, of course we need to pull back a bit >> sure. >> i think a lot had to do with just our decision. wae we want this to be something where they feel like if they want to do it, they have the people, if they don't, they're not having to do that. >> honestly i'm one of those people who didn't know much about waco except the bad stuff before i started watching the series i read you were saying they wanted maybe to start it and move it to austin or dallas. you were like, no, this is waco. it has so much potential and now you're tapping that. can you give us anecdotes or sense now that you opened the silos, how many people are coming in? again, we're having you guys on, makeup artists, people on the floor here, saying we went to waco last year, we wanted to hang out at the silos. what -- how much of a boom do you think there is >> i mean, we're thrilled to

death to see this play out right before our eyes. years ago when we first got started, she had this little shop, we called it the little shop on bosque and this thing was 1,200 square feet, tiny, tiny little spot all of a sudden the show comes online, hundreds if not thousands of people started showing up to this thing on the weekends jo and i would show up to the little shop on bosque and do the dog and pony show. we'd take selfies and the whole nine yards one thing led to another next thing you know we couldn't even get in the building at all. it was just like line around the block. that's when we bought the silos which is an enormous property. and now we're averaging about 30,000 people a week that come down to the silos in waco, texas. >> a lot of cupcakes. >> that is a lot of cupcakes. >> lot of people say they've gained five to ten pounds just by coming and visiting the silos which is something we're proud of. >> so five or so years ago whether it was by design or not was a pretty good time to start to kind of broadcast the opportunity of renovating home

talk about where the market is. >> you bet. >> the fact you're backing off from that aspect of it on television say anything about whether the market is still a good opportunity >> i think the market's hot. waco, texas, has never been hotter, late reit lit rally the texas has never been hotter. from a housing perspective, a few years left in it as far as this amazing meteoric uptick we've seen the last five, ten years. >> your premise is buy low, fix it up, sell better what happens if it's harder to find those properties? >> that's a great point, guys like me literally, the market has gotten tight ten guys competing against you, four of which had never done this before in their entire lives. a lot of times you watch these guys go, hey, listen, this guy won't be around too much longer. i can wait him out but, you know, five or six out of that same ten are seasoned pros and just got to know when to say no and we turned down houses left and right but when

we get the opportunity to buy right, we love buying and selling. >> i also want to show people all the different -- i mentioned the paint line you have. there's also the magnolia furniture i've seen in pier one. there's the target deal furniture in pier one, the target deal you just announced, bed bath & beyond. i started watching the show and i turn around and you guys are everywhere, which is awesome i know it's important for you not to have to travel too much for people like me who want to consume the brand, to get that out of waco, how do you balance that with what people say, which is, oh, but you have to stay authentic and you have to have local craftsmen? what other ways can you get this outside of waco and scale it >> it's important to us with our partners, they know i'm a busy mom of four, every one of our partners literally comes to waco, texas. when we're designing, when we're putting the magazine together, it all happens in waco, texas. that's a huge plus that they really understood that people are asking from all over,

can you help us with our house with your young children, and we don't really love to travel right now in the season, for us it was getting it out there. because our passion is really to help people in their homes, whether it be paint, whether it be decor we feel it's all about home, it all starts there >> the connecticut people, if you guys did a connecticut show, they're lining up. we always like to ask people who come on about their biggest money mistake. chip, that's the biggest premise of your book, sort of. does one come to mind in particular >> we were all in in a small development in waco, texas, we had gone from being small flippers and renovators, we had hit a couple of doubles, we put a little money together. we went all in in this particular development in waco, texas right as the market crashed. we were day dreaming about this project, we bought it, did all the infrastructure and august the eggs in one basket, come

2010 the market just fell apart. i remember like it was yesterday, i mean, the phone literally stopped ringing. >> what did you learn from that? was that avoidable somehow >> that's a tough question obviously hindsight being 20/20, everything is avoidable. for us, we loved the idea of the never quit, never give up. a lot of developers -- i mean, we were small time, but a lot of bigger developers, they would find themselves in a predicament like this and they would just walk away. for us -- we were like, this is a local bank that's trusted us with these funds we had a couple of people who had already bought houses in this development two or three people. we're like, we are in the going to abandon this development, we know these people, we live next door to these people you go by the development today, it's 36 beautiful houses, something like you would see on a norman rockwell calendar >> guys, we would love for you to come back >> absolutely. had we kept that development, 36

of those would now be airbnb properties >> exactly a satellite camera in waco so we can talk to you. when we come right back, we'll have today csi w'slongord and we'll tell you what it is after this every year, we split it equally. except for one of us. i write them a poem instead. and one for each of you too. and one for each of you too. helen: cool. that actually yours... that one. yeah. regardless, we're stuck with the bill. to many, words are the most valuable currency. last i checked, stores don't take words. man: some do. oh. (alert beeps) not everyone can be the poetic voice of a generation. i know, right? such a burden. pay back a friend day is october 17th. get the bank of america mobile banking app today. ( ♪ ) whoo! ( ♪ ) woman: class, let's turn to page 136, recessive traits skip generations. ( ♪ )

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welcome back it's time for our closing word today. we mentioned the word is "tenure. here's why a new platform called the long term stock exchange is aiming to change the way investors and companies think about success by shifting away from short term thinking to more long term earlier today on "squawk box," eric ries explained his idea >> it's a new stock exchange that incentivizes companies and

investors to think for the long term we're in the regulatory process with the sec, we're expecting to file an application at the end of the year and be in operation next year. >> in ten-year voting, investors will gain more voting power the longer they own a stock. it also calls for new disclosure requirements he says public markets often hinder growth, innovation, and value creation he also points to a 50% drop in the number of public companies from '96 to 2016 and a spike in investor activist campaigns, all a symptom of the current structure. it's already getting some major attention from silicon valley. "the wall street journal" reporting the exchange is backed by peter thiel it could invecentivize airbnb t

join >> it's like a hybrid public/private market. >> i think the only way to scare people off of this is to use the word "tenure." that does it for "closing bell" today. "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," another day, another thousand-point milestone as the dow touches 23 grand. if you missed the move, relax, we've got the biggest bull on wall street and he'll tell us what he's buying right now ibm jumping, the conference call kicking off now will the results be enough to get ginnie rommetty off the hot seat >>