today. primary trend is down. i'd be cautious buying that up 9% i'd be very conservative, wait for a pullback >> just when you thought stocks were on the verge of something nasty for the dow jones industrial average that's where we currently stand. and a big bounceback it does for us, thanks for watching power starts now welcome to a special edition of power lunch you are looking live at capitol hill where the house is set o to vote on the tax cuts and jobs act. republicans need 218le to pass the bill >> and we are live in chapel hill, north carolina, where electric ceo just minutes away now from answering his critics about his reign at the once mighty and still formidable industrial giant it'll be his first comments since new ceo john flanery announced massive restructuring to any big dividend cut at ge. >> live on wall street where the dow is staging a triple digit

rally. back to the market welcome, i'm michelle cabrera, we have a big rally on the street major averages are posting the best gains of the month. nasdaq hitting an all-time high. walmart soaring to record highs in the back of a big earnings beat stock up 40-plus percent this year the electronics retailer tanking, down roughly 7% on a revenue miss going deeper inside the retail numbers straight ahead cisco systems, it's soaring, the company beating estimates and it's forecast coming in above street estimates stock hasn't been this high since way back in 2001 tyler. >> and thank you very much, michelle we begin this hour down in d.c a lot of action here today, the house is getting ready to vote on it's block buster tax plan. elon is live on the hill, eamon is on the white house. elon, you first. >> that vote is expected to start any minute now gop leadership is confident that they're going to get this bill

passed president trump was over on capitol hill for a pep rally earlier this morning he just left a few moments ago and house weighs and means committee chairman kevin brady came out and told reporters that the house plan does have the backing of the president >> this country's waited 134i years for this day, and they want to get the economy going again, they want more money in the pocket and we're ready to deliver. >> there are some hold-outs expected though today. at least four republicans from new york said that they are going to vote against this plan, though they did say they hope to be part of negotiations down the road on that state and local tax deduction. also i want to mention over in the senate, the finance committee is continuing it's debate on it's version of the tax plan grappling with the brutal new analysis from the joint committee on taxation that shows that households making less than $75,000 a year will see a tax hike and a significant one by the year 2027, because a lot of the individual tax cuts expire

in that version of the tax plan. now, the senate finance committee is expected to vote on it's plan later on this week, and for right now, guys, goldman sachs is still keeping it's estimate of passage for this bill at 80%, they expect that to happen by early 2018, that's a really bullish number, but this bill has had a lot of momentum when there were a lot of nay sayers here on capitol hill and around washington. back over to you >> all right, thank you. now let's head to eamon at the white house. >> yeah, we're expecting to see the president arrive here at the white house momentarily from his visit to capitol hill. the president cheering them on and urging them to get a big vote here this afternoon i'm told by a white house official that the president told them today that failure is simply not an option i'm told he walked through his recent asia trip and that behind closed door meeting up on capitol hill, just a little

while ago. he talked about some of those asian countries that he visited. he said that his country, his trip there was interesting because every single country has slashed it's corporate tax rate over the last decade according to a white house official that i've been speaking with here. he also said that he wants them to run up the score, i'm told. the white house very much has a sense they're about to have a big win here and they would like to have the biggest possible vote in terms of house republicans to send a message to the senate that this is a popular bill with a lot of momentum and ultimately, they're not totally concerned with senator johnson. that's been an issue that senator johnson coming out and saying he may not vote for this where they can only afford a couple of votes to be lost on the senate side. officials here telling me they think they can make some tweaks to this bill in order to get johnson's vote ultimately. they imagine they're going to have to negotiate and talk to a number of those republicans, make some changes in order to win votes over that they feel is sort of part of the normal wheeling and dealing of tax reform, guys, back over to you

>> all the sausage getting made. the tax reform bill as he's talking about, expected to pass the house as others have highlight head to, it's fate in the senate is not certain. let's bring in the white house political chief economist for vice president biden ladies and gentlemen, good to have you here. sir, you were there for the bush tax cuts what's happening behind the scenes right now >> well i think today you saw the president on capitol hill. the house leaders think this is baked, there's probably not a lot of wheeling and dealing happening in the house in the senate it's very much a different story starting with senator johnson. he's laid down a marker on small business tax cuts, and the senate leadership cannot afford to lose him. they're assuming they're going to lose susan collins, lisa murkowski. they're going to haveto meet him on that issue. >> handicap this for us, ultimately, what are the chances that we do actually get something passed through the whole legislative body

>> i'm with goldman sachs, i think it's high. i don't know that i'd go quite at 80%, but 70%. there's a couple reasons for it, one is these tax bills, while certainly they have very different elements are more alienled than they are opposed and there is a real sense, that, plus a real sense by republicans that this has to get done, they need it for the country and they need it politically for their own jobs >> jared, i heard you say something when sarah said 70% chance of passage. what were you thinking >> i was thinking north of 50, but i wouldn't go that high. i do think that adding the repeal of the obamacare mandate could peel off some senators and i completely agree with sarah and everybody else the drama's in the senate, not the house, we should watch this vote but don't expect much you know, one of the reasons, and i think it was elon called the recent score of this bill from the jct a brutal score, in fact, it shows that by 2027,

taxes go up on average for every household below 75,000 now, orn hatch is saying wait, what was that? clearly they made some sort of miscalculation, but i could have told you that this is what would have happened when you repeal the individual mandate, people are going to lose subsidies, taxes will go up they'll try to wheel and deal and get rid of that, but boy, that's not the way to do tax legislation, to lurch around like that. >> it's not ideal, but it's been done before. president bush's tax cuts weren't perm gnat and made permanent, most of them by president obama when republicans took control of the congress in 2010 it's not ideal, but you can't assume they're not going to ultimately be made permanent >> one point, i think that's a fair point let's be clear though that if they do make things that are now temporary permanent, that adds to the debt and deficit. in other words, the reason they're doing these phaseouts is because they're trying to

squeeze cuts into the package that only allows them 1.5 trillion of deficit increase if they make them permanent, those negative numbers go up >> noted >> so let me ask you, jared, about the repeal of the mandate, the individual mandate is that a money saver in the context of this tax bill or a money loser for the federal government >> it's a great question, a very important one. it is a money saver to the tune of 320 billion over ten years. that is it gives them that much more to play with. now, if you're going to -- >> and why is that why is that? is that because those people forced to buy insurance get 300 billion in subsidies to buy it >> it's part -- a big part of it is is that once people leave the insurance market who are moderate or low income they're no longer getting the subsidies, that's a big chunk of it it is also going to mean fewer people on medicaid because they too will drop out of the system.

so one thing you have to be careful of is republicans saying, nobody's going to lose coverage, and we're going to save over 300 billion, those both can't be true >> they lose coverage because they choose not to get it. there's nothing that says they couldn't still buy it if they wanted >> no question, some will voluntarily lee. others will lose their subsidy they'd like to keep it, but without the subsidy, they won't be able to afford it >> yeah, jared does make a fair point on that, but the reality is, by getting rid of this mandate you allow families to make their own choices with their money. they're going to get tax cuts, there are going to be more tax cuts likely made permanent as a result of this and with the growth of the economy, the increase in jobs, the increase in wages, the tax cut, this is a better package for the american worker than keeping a false subsidy that causes people's premiums to go up, you know, by 10, 20, as much as 30% each year >> distortions

>> there are -- >> quickly, jared. >> sure. there are versions to the plan where middle class people get a tax cut. the senate version is no longer like that. we have to be clear. >> we'll be watching this vote later on thank you so much. >> thank you tax cut hopes and earnings from walmart and cisco, big numbers here fueling today's triple digit dow rally remember the dow was sliding, not today, bob with us from the floor of the big boy bob. >> six down days in a row, finally a reversal and quite a big one here look at the s&p 500. we started with a bang 5-1 advancing the new york stock exchange and essentially we've been there for the entire day so the s&p just shy of it's highs doing just about as well as the dow more importantly the russell. there's a four day -- you could see all those down opens that we've had, not today though, we're breaking that here all the stocks and sectors that have been weak throughout the last week or so are the bleeders today. so this is a reversal day. to biotech, telecom, industrials, materials, banks, a

lot of the cyclicals we talk abouted are all the market leaders today here more important, we've talked about the underperformance the russell 2000 for six weeks that's a bell weather for tax reform is believed to be and you could see that orange line how much it's underperformed in the last month and a half or so today dramatic outperformer. and i think a lot of us on the expectation of the house will pass it's version of tax cuts as well finally just to want note, the retail situation, the energy stocks here though, the one group that is not doing well, $55 is holding on oil, but for the last several days, energy's been underperforming and here's your retail story here tail of two companies, walmart, beat, raised guidance, and fantastic sales gains, 2.7%. the best they've had in a long time guidance was good. best buy, really just the opposite in line, but the comp store sales missed guidance was on the light side, but remember, walmart, $8, folks, walmart is 25% of the gages in the dow jones industrial average back to you. >> we were talking about

reversals. what was interesting about the session is high yield are seeing a bid today. even though the it is widely seen as being a loser from any sort of tax reform package >> yeah, remember though, a lot of high yield declines was due to what was going on in the telecom sector and some of the limited growth opportunities that they've had, only so far you're going to go with that particular one so i think that's finally stopped as well today. they're on the upside as well. >> bob, thank you. bob, big board, let's get to sima for a market flash. >> melissa, dow jones quoting sources is reporting that an activist investor is looking to take the book seller private this is asset management approaching the company with reportedly a plan that would value barnes and noble at more than $650 million or about $9 a share. we are looking at the stock which was halted for volatility, now open and as you can see, spiking here by more than 16% on the support that activists investor could potentially take barnes and noble private

michelle >> yeah, big move. almost 18% thank you. still to come, the vote on the house floor for the tax reform bill. plus former ge ceo's first words since the company slashed it's dividend and trashed his reign at t theop power lunch will be right back re like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.

tale of two retailers. walmart on strong earnings, in fact best buy taking a hit sales missing estimates on the news brian magles, just raised his priet target to 105 for 100. he is a perform rating on best buy, great to have you with us >> thanks for having me. >> there is not much to pick at when it came to walmart's quarter, but the one thing that could be a possible, you know, something to worry about in the future is the degradation that we saw in gross margins. down 29 bips year on year and for the u.s. specifically, down 36 basis points year on year as we have increased price competition for the likes of amazon and throw in target there, should we expect to see that worsen? >> i don't know if it necessarily gets worse, but look, if i step back, and i think that's happening is wal moort here in a way the gross market degradation is positive. what it means is that walmart and all the power of the walmart

model is really standing it's own shifting retail landscape. i think that's why we've seen this big stock and 40% or so this year. the market's reevaluating walmart. basically saying look, walmart is now, is now positioned itself to compete very well in a shifty retail landscape could do well against companies like amazon. >> online sales were up 50% year on year. much, much better than peers contributed a lot in terms of the comp store sales, brian, where do you think those sales are coming from? >> well, it's a good question. look, i think a lot of it is -- it's consumer, a big chunk of it say is that consumer who's now with online, you know, so maybe they were shopping walmart stores or starting now experiment online. so to say that walmart in that case is maintaining that share it's probably i would be challenged to say that walmart is taking share from amazon.

i think mostly the customer that are experimenting with online. >> this is a multiyear high for walmart. can be, brian, get better than this for this company. or will we look back on this moment two years from now and say that was sort of the apex? >> well look, my colleague and i took our price target up today and that's a way of saying we think there's further to go with walmart shares here. i think the real key is, like i said, this business model is transformed. as we're talking to our clients. and i think one of the big reasons you've seen the multiple spin on walmart is that people are putting money to work along that idea. people want to bet susceptibly on the company that has the best shot of competing online with amazon >> what's going on with best buy, brian a lot of people had faith in it that when it comes to the holiday season, all important holiday season not going to

deliver, at least according to walmart consensus estimates. >> no doubt and the point of my note was, i think the quarter was better than the stock price reaction suggests. >> the holiday guidance. >> i think they're staying up well for the holiday if you look at the third quarter results, their quarter ended in october. there was some noise in there with the hurricanes and a lot of the retailers that taught. also with the introduction of the new apple iphones. there was some delay there that i think both those factors abate and turning to positives as we see from the q4. i think best buy's quarter was better than the stock prices suggests >> all right brian thanks for phoning in. >> thank you the house voting this hour on their $1.4 trillion tax plan. house speaker paul ryan making his case on the floor right now. this was a live picture from capitol hill we're going to head live to capitol hill when that vote happens as we head to break right now, check out the rally in the stock market, nice triple

digit surge from the dow higher by marn 200 points of gain of nearly .9% n'timism over the tax bill dot move, power lunch is going to be right back is changing fad we're changing with it. building a smarter grid, investing in new technologies, that's aep's road to the future. and the international brotherhood of electrical workers helped make that happen. the ibew's outstanding union professionals have the skills and training to get the job done right. that's good for our customers and for our bottom line. ibew members are our power professionals. they should be yours as well.

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we are waiting for the house to vote on it's big tax plan. of course going to have major impacts on the middle class, the wealthy, businesses, korngss, house speaker ryan making his case for the bill right now. this all comes on the heels of a new report showing that the rich are getting richer according to credit swiss, one in every 20 americans are now millionaires, including one million newly minted members of that club this year alone. in the new netflix documentary saving capitalism, former labor secretary robert rice says that as more income and wealth rise to the top, more americans will be left behind mr. secretary, welcome back to power lunch, it's good to have you with us. >> nice to see you, thank you. >> the title of the documentary is saving capitalism, it's a kind of humble objective, isn't it does capitalism really find itself in such peril that it needs saving if so, why

>> i'm going to have to interrupt as we go and listen into jeffrey, the former drrks oh and chairman of general electric who's being interviewed by mike allen in chapel hill let's listen a little bit. >> you left his ceo in the summer, left his chairman on october 2nd, so, we won't tell anybody, just for this audience, for our students here at chapel hill what's a truth you can tell them, corporate america that you couldn't tell them 46 days ago >> you get ahead by not following the rules.

i ran a company for 6,000 days and i would tell people, follow the rules. but really the way you break away in a career is by being willing to experiment, by being willing to try and change, and that i would say is something you should should know the reason why you've forked over so much money to get such a good degree is because you know you can always get another job so my advice to you is don't play it safe do something you love and be willing to really push hard to kind of get things and do things your way that's my advice >> now we're here talking about the smarter, faster revolution and something that you've said for this generation to get ahead and try. >> as far as being a fusion leader, i think the secret to the world we live in today is to be able to do two contrary

things at the same time. so i think the organization will be big and fast. will be a american and global, will be digital and industrial and the extent to which you can train yourself, not to be trapped into one way of thinking or another, but confuse these ideas or where the success that we had the company i probably admire more than any company in the world is amazon. what i love about amazon is they move with risk-taking and speed at incredible scale. i think, you know, can you be -- to build a great career. you need to be competitive wildly competitive but can you still be empathic? can you be somebody that actually can compete to be yourself, to be your best without ever losing sight of the kind of person you want to be? that's what success is >> now you've been on the inside, how does amazon do that?

how do they move with the fearlessness, the speed, the scale you're talking about >> the guys i admire most are the founders who grows into being a ceo. so if you look at fred smith at federal express, if you look at jeff bezos, so jeff knows what amazon was like when it had ten people -- and he doesn't tolerate old organizational concepts like matrix organizations and shared metrics. he says let's go so i think the world you live in, no matter what you do because the information age is going to move faster technology is 100 times more disruptive and you've got to be able to be a fusion lead eer best days, one of the first things you did was you took a lesson >> i've been on call for 30 years, never had a chance to take a lesson, right

i'm one of the few guys that's been in 120 countries and never seen anything. really other than the customers office or a hotel room. so i think really simple, stupid things are exciting when you finally are get a chance to pick your own time. >> you wish now that you'd done more of the let's go, giddy up than the sort of traditional corporate approach >> you know, look, i always felt lucky because to a certain extent, the company i led had a chance to sit in the front seat of history okay so ge today, let's say it has 10 or $15 billion of revenue in china, but i went to china when our revenue was nothing, zero. so i've had a chance to see how do you build a multinational organization in what i would argue would be into the biggest of the second biggest market on earth and do it from a ground level. you know, mike, so i think you can do that at a company like ge

that's harder to do in a small company, right i'd say the extent to which we can bend the curve in health care and, you know, big companies can figure some of those things out and that's the purpose we saw. >> now in the six or so weeks we left as chairman in the ge, the narrative has changed massively. was from a company that had some head winds to a company with a cash flow problem, massively lowering guidance and cutting it's dividend, sending the stock reeling, what happened >> look, i think, mike, the fact of the matter is this is hard to outrun in huge markets >> hard to outrun -- >> in used markets the company's in two end use markets and they won a gas sector at the end of the day, we're deposit of the businesses we're in i own a ton of stock, i believe in the company for the long-term, this is a great team and i'm fully confident that this company is going to thrive in the future. it's 125 years old, we go through cycles, and i'm

extremely confident of the team. >> if you look at what's happened and what's been said in the six weeks since you left, do you feel like you should have had more of a grasp of what was happening? do you feel like you had a blind spot >> look, i think, mike, i ran the company for 16 years, you know, that's kind of 65 financial quarters, i worked at # 00 hours a week. we had a pretty good knowledge for the company. only gas sector's tough, power sector's tough, again, this is a really great company i'm really confident in the future for ge. >> a couple weeks after you left the wall street journal reported that for much of your run an empty business jet followed your plane on trips around the world, in case yours had mechanical problems, now you said you didn't approve that, how did it happen >> look, i think it's a practice that in retrospect i wish we hadn't done. it was never something, it was never something i approved i never really talked to the guy in corporate area, really. so in every way, i think, i was this just about the work i really was it was a terrible practice, as

soon as i found out about it, we stopped it >> and so you didn't notice the extra plank? >> i really never thought about it, looked for it, knew what it was. i was totally focussed on the job. i'm 100 hour a week guy. >> now here's something that will serve the students here at chapel hill at the university of north carolina, what can we learn as leaders as would be rising leaders from that episode? >> well look, i think you always have to be aware of what's going on around you, but you also have to -- you know, in a company of 330,000 people, you need to be able to rely on the people around you to kind of have great business practices and get them done and the second we found out about it, we changed it, but again, you never perfect when you run a company that size. i'd say that beyond that, mike, what i would tell everybody in here is the importance of resilience, you know, in other words, we're sitting there today, in the course of a 35-year-old career, you're

bringing up some tough days, but nobody's going to have a perfect path i sure haven't but i was always willing to wake up the next day in charge, focussed, desiring to do a good job for the company. i always put the company first in everything i did, so i think for the students in here, the best thing they can learn is the importance of resiliency, perseverance >> you mentioned your amazing 35-year run at ge starting in 1982, pretty unlikely that any of our friends here will be in one place 35 years >> look, i think the nature of work, the future of work is going to change massively, you know, i think just the nature of small business and the role that small business plays, but, there's still going to be a need for companies like ge in that world. when you leave here, you're going to fly back to new york, i assume you're going to look out at 35,000 feet and you're going to see a jet engine on the wing

it's the only thing keeping you alive at that moment in time 75% of the time, that's going to be a ge engine you need that engine built by people that know what they're doing. maybe have been with the company for 20 or 25 years, so there's always going to be a need for products like that >> during your days as a free man, you were talking about how everything's happening faster, now you were the front runner to be the ceo of uber and then you weren't. are you bitter about that? >> i don't think i was the right guy. you know, initially when the job was first positioned out there, it was really to be kind of an executive chairman for the ceo founder. the job changed significantly in the time that i was thinking about it, but i do think there's an intersection between the digital world and the industrial world. that there's going to be more industrial people that play -- you know look, the uber platform is amazing >> how many people hearing --

>> their problems are not -- >> their problems are not technical. their problems are going to be regulatory, it's going to be through the driver's unionized some day their problems, the things that will limit uber's growth will be industrial world type challenges, not traditional world type challenges. i think there's more people that can play in that direction today than ever before >> it sounds like you're happy you didn't get it. >> at the end of the day, i wasn't really ready for something that visible, you know, that intense at that moment in time but, a year or two from now, those are the kinds of companies i want to be around. >> uber, would you say you're a long-term bull, bear, skeptic? >> the things you're going to find in businesses, there's always a difference between a good idea and a bad idea and between a good idea and an idea that makes money. i think uber's amazing idea. not just a good idea it's a seminole idea you know, the question is search

was a great idea, it's also a wildly profitable idea, right? i think that's what still has to be determined in uber is tha can you take that's an amazing idea and turn it into the fantastic business, profitable business and that remains to be seen. >> will you be a ceo again >> look, i want to work with growth companies i want to help entrepreneurs the space i liked the best, mike, is health care and you know what i'd like to do is like go back and maybe work with some people and start a health care company some day >> so that's a yes >> yeah, yeah. >> and how soon can you imagine starting a health care company >> gosh, i really, i need to kind of take a little bit of time first and think it through. i think one of the things that i've thought about -- >> months or years >> months or short amount of years. really i've always wanted to have a second life. i've had a chance to run and be

a part of a big multinational company far long time. what i'd like to do is be a part of another kind of have a second act. >> what else can you imagine in that second life, second act >> look, i mean, i think it's -- i think health care remains the most disruptive. the industry that needs to be disrupted the most so if you think about what the internet has done to retail, need ya, to so many other industries, fundamentally health care hasn't changed at all -- >> all right, we've been listening to jeff ellmelt being interviewed life couple of notes to think there, when it cams to the jet, terrible practice, shouldn't have done it, stopped when i found out about it i thought the question -- i wasn't quite clear how it is that he missed it they had a second jet going >> i think mike allan asked it, you never noticed the extra jet out there? >> and it wasn't quite clear what the answer was -- >> he said he was working too hard >> focussed on the job and

didn't really talk to the corporate aviation people. >> as for his performance of the company under him, when mike allen asked him, did you know what was going on? and he basically said, remember at the beginning, and mike allen struggled, hard to outrun our end use markets. which is a lot of vernacular to say their two biggest divisions, power, were struggling -- >> power, oil, gas -- >> what could they do? it wasn't his fault. it was what was going on to the industry >> did he make news when he said they were talking about him being the ceo, actually wasn't about being the ceo, executive chairman while travis was still there to help the founder. began. >> and then it morphed into something that would make him more of an operating executive. >> as the changes happened at uber we saw the whole thing e vovl, but deflecting any point of not really take the responsibility for what happened under his watch. well, it's what happened in the

two biggest industries >> or commentary about the stocks massive decline since he's left only saying that he has full confidence in ge in in the future >> and in the new team there maybe mike will get back to the stock question later on in the conversation if he does, we'll bring it to you. high stakes on the hill, folks, the house is voting right now. there you see the count, let's see, you've got to get 218 and they've got 158 right now in the yay column seven republicans right now voting anyway as we have eight minutes left in that vote. $1.4 trillion tax plan that's really what it would do to the deficit we'll bring the results to you live from capitol hill almost said chapel hill. we've been there too check out where we stand on the rally. triple digit surge for the dow we'll be right back. (beeping) we're on to you, diabetes. time's up, insufficient prenatal care. and administrative paperwork, your days of drowning people are numbered. same goes for you, budget overruns.

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without pg&e's assistance, without their training our collaboration with pg&e is centered around public safety. we could not do our mission to keep our community safe. anytime we are responding to a structure fire, one of the first calls you make is for pg&e for gas and electric safety. it's my job to make sure that they have the training that they need to make the scene safe for themselves and for the public. it's hands-on training actually turning valves, turning systems off, looking at different wire systems all that training is crucial to keeping our community safe and our firefighters safe. together, we're building a better california. voting is under way right now on the house tax bill.

just a few minutes left in that process. let's bring back in robert rice, former labor secretary who's new documentary is called "saving capitalism" it is on net flikts. mr. secretary, thank you for waiting with us and indulging us that moment with mr. emmelt. does capitalism need saving? >> well, capitalism needs safing in the minds of many people, tyler, who have been become very disillusioned. a lot of americans as we saw in the 2016 election when both donald trump and hillary clinton and even bernie sanders in the primary were saying to people, the game is rigged, the system is rigged, and they were saying it because basically posters were telling them that most people believe that the system is rigged against them and so many people who have seen no increase in their real incomes of many people who have been on a downward escalator for years, just the notion that the game is rigged undermines faith

in the system and also invites all forms of demagoguery >> how do you combat the sense that the game is rigged? how do you unrig it, if indeed it is rigged and most pointedly, as the house votes on this tax bill, does this tax bill unrig the system does it improve the situation that you put your finger on? >> well, the only way to unrig the system is to get big money out of the politics. and there's more big money in politics now than ever before. you know, i spent roughly half my adult life in washington, beginning as an intern for senator robert kennedy in 1967 so i've seen a lot of change in washington, the biggest change has been the amount of money coming in from big corporations, from wall street and the declining amount of involvement of average americans in politics and in our two-party system. that's a huge problem. and the tax bill is a good example of that.

i mean, every time there's a tax bill, particularly in the recent years, it's been you have lobbyists, lobbyists swarm around capitol hill like honey bees swarming over a hedge row of hukle berries. i mean you get so much, a swarm of lobbyists that are out for particular benefits for particular industries, for particular companies, that's what's going on right now. >> secretary rush, we just to want update what the vote is, republicans have 203 votes, they need 218, they can only lose to afford 22 republican votes can i ask you, what would help capitalism, should government get smaller or bigger to save capitalism >> i don't think -- i don't think it's a question of larger or smaller government. i think the real question is getting -- making sure that it is actually average people who are influencing the rules of the

game right now, we've got a capitalist system whether you look at rules of intellectual property or bankruptcy or tax laws and all of the compensatory damages in our tax laws, wherever you look, you've got very big players who are making all the decisions. so it's not large or small you can have a much smaller government that would be much less expensive if we got rid of all the corporate welfare, bailouts, subsidies, all the crony capitalism that has crept in our system. >> so let me point out that not a single democrat has voted for this law or this bill, nine republicans have voted against it, let's zero in on one -- i think the key parts of this tax reform and that is reducing corporate taxes. do you favor that? >> no. i honestly don't see why we need to reduce corporate taxes when american corporations are flush with cash, so flush with cash that many don't even know what to do with profits they have they're buying back their own shares of stock, they're sending out dividends, they're boosting

executive pay, you know, we -- of all of the things we need to do in this nation, providing a big corporate tax cut seems to me to be the lowest of priorities >> we're running down on time here with 28 seconds left in the vote there, the yays are 214, and the nays are 184 again, 13 no-votes from the gop, no favorable votes from the democrats with ten seconds left. i'm just going vamp label the here, mr. secretary, if you don't mind as we get down here as the vote is closed. let's see what the final total is whatever it is maybe there are some who are not voting as one second is left on the clock -- >> that one second got really long >> that was a long -- >> long second >> the congress can do whatever it wants they can stop time they can stop time so, if that is the final tally -- it is 219 to 190. we're going to go to our

reporter on capitol hill where the tax bill has passed the house. >> that's right, tyler, the house does have the votes to pass this tax bill it'll be official once they bring that gavel down. there are no democrats who appear to be voting for this and there are about a dozen republicans who are voting against it as well many of them over objections over the limitations to the state and local tax deduction, but make no mistake, that is a major victory for republicans. they had said they would get this done by thanksgiving, a lot of people raised eyebrows at that aggressive timeline, but it looks like that they have actually done that and now they can go back home to their constituents and say that they scored a major win now there are tough negotiations still ahead in the senate, but for now, republicans can take a victory lap knowing that they can pass this tax bill before turkey day back over to you >> all right, elon thank you very much. it's interesting there that there were quite a few nonvoters i saw. if we have that up there it was -- well, it was fewer than i thought 11 nonvoters, including two

republicans, but the count is 225 to 200 with nine non-voters. why would somebody -- i guess, could be a health issue, but if you were healthy in any way and could get there, you'd want to be voting on this, wouldn't you, elon >> yes, that is right. there are several republicans who maybe were absent today, there's also republican who had resigned from his position, so there could be some vacancies there, but we saw republicans, including steve scalise go by in his whsh in order to get to the floor. so people are making sure that they are there for this day because it is such a momentous day for republicans. paul ryan spent his whole life working on this issue when he gave his remarks on the floor. there was a standing ovation, a round of applause, even though he brought a bunch of charts which is not normally what people do when they're giving the floors >> he is wonky we're going to bring in eamon. another person who's going to

feel victorious about this, is the president of course. >> they're going to feel good at the white house about this this is sort of the half way mark of tax reform which is a big priority for this president. he rallied the troops up on capitol hill they wanted to run up the score here at the white house and it looks like they've done that today. looking at about 227 right now from mien advantage point. the expectation was about 228, one or two stragglers might still come in, they might do better than 228 when all is said and done we'll wait and see how many nonvoters there. this white house will feel that they've got some wind in their sails now going into the senate, and it's about whether or not they can negotiate with the stragglers in the senate holding out. senator johnson would be one of them and wild cards like bob corker he's been feuding with the president of the united states here at the white house, they will tell you that they feel that these republican senators who've been at odds with the president during the past several months will still vote for tax reform because they'll do the right thing for their constituents, no matter how they

feel about the president personally or they're sparring with him over the past couple of months >> here as guests of the house and the manifestation approval or disapproval the rules of the house and violation of the house >> the gavel comes down. now we move onto the senate. what are the chances that this actually gets done and does not become another thorn of the side of the president like healthcare reform ylan >> reporter: once it is moved out of the committee, i spoke with the member this afternoon, they do expect to pass the committee today when they come back from thanksgiving thises moving on the fast track here they want to get it done before oppositions able to build up negotiations with lawmakers to address those concerns they believe they could get

senator ron johnson to yes and senator rubio. so they're working on it and giving them time to hammer out the details. >> thank you very much, ylan we are sitting at session highs. we told you of the great earnings from walmart and as well as cisco. take a look at the russell 2,000, we are sitting at session highs right now by 1.7%, a gain of 25 points on the seiossn. we'll take a quick break, "power lunch" will be right back. helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. this is not the cloud you know. this is the ibm cloud.

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welcome back, the house just passed gop overhaul business lets bring in sarah fagan. they are happy about this.

>> before we get tlrks it here, important to know the psychology of this win and even the senate. you this i of a president, the republican president in office and this is the first big thing that has happened in 11 months i the psychology of winning is really important >> mr. kevin carthy there in front of the party i guess they are going to make remarks in a moement >> bob corker and john mccain indicated they are not there yet. we know ron johnson had a specific issue on small business the party has to bring him

around critical collins was always a critical vote and lisa keselowski if you start seeing more people talk about defecting as republicans, it gets really hard to figure out how this gets put together in the senate >> given those senators who are on defense, there is really no room for error right now what happens in the next 24 hours and what's happening right now do you think sth >> getting out of committee is key and as they move to the for vote, republicans only lose ten. you have to assume that they'll not going get one democratic vote >> they'll get a democratic vote until they get to 50 no democratic is going to put their in the case onecks out an this >> right, that's indicative.

you will lose susan collins and lisa keselowski. >> why are we losing our own tax s s? >> because of the appeal of the mandate. >> she's more moderate i think ultimately, you assume to lose two and you bring ron johnson around and john mccain does the right thing we got to slip in a quick break as we await the house respect leadership to make comments there. we'll take a quick break the s & p is higher than 1/10 of a percent, "power lunch" will be right back

back to capitol hill, kevin dray brai d brady is taking a victory lapse. think about what this means, families will save over $2,000 for small business law main street, they work their tails

off, the entrepreneurs that's right ton cut on the cut of mery making it. i am going to welcome 74,000 new jobs that are headed our way because of tax reform. and also, it means hardworking americans everywhere are going to see more in their paychecks and they need it so badly. we all know this quote "we'll rogers the difference of taxes and death taxes every time congress meets." because with the tax code we have americans have seen get worse and worse and worse. they see it get more unfair and complex and more uncompetitive well, when congress met today, americans finally saw something different. they saw us all come together to make our tax system better for them in our nation

today was a major step forward this is certainly not the last step in our tax reform journey we still have a way to go. we'll continue to listen through the american people. we have always said this is not our tax scope. we are going to listen to them and their representatives to make it better every step of the way. i look forward and all of us looking forward to work with president trump and the senate to get this bill to the president's desk by the end of the year we are committed to getting it done and delivering it for the american people. thank you. [ applause ] earlier there is no one man, no one person, who has plowed the field for more years, more boldly and effectively on behalf of tax reform for the american people, his greatest title is former chairman of the ways and

means committee and i am proud and we are all proud of our speaker and friend, paul ryan. [ applause ] >> thank you [ applause ] >> thank you first, i want to do a back atcha. i want to thank our good friend and leader kevin brady, thank you very much. [ applause ] thank you so much. >> i got to say this is nothing sort of extraordinary. let me just tell you getting 218 members to agree on something as complicated as the most -- well, we needed 218. okay, let me rephrase it getting 227 members to agree on something complicated -- [ applause ] >> this country has not

rewritten its tax codes sitz 1996 yet 227 men and women in congress broke through that today. that's powerful. of course, i want toll thank not just the members who made this possible, i want to thank the president and his administration and our partners in the senate who are doing their work as well [ applause ] from the start we said that failures is not an option. the president and his team have worked so constructively every step of the way with us. i have to say how proud i am of this conference. tax reform has been so very hard we know people are struggling in this country we know that we are just coming through a decade of real economic anxiety we know that this is a nation that has so much more potential that's not yet been taxed. that's what this day is about.

that's what getting this done is about. this is hababout getting hardworking taxpayers bigger paychecks and a piece of mind. it is about getting the economy growing faster so we can get bigger wages and jobs and we put america in the driver seat of the global economy once again. it is about giving people hope and a new opportunity. it is about making sure that america continues to be the best place in the world, the best place in the world to live and thrive and start a business and create a job and grow and construct. we got a long road ahead of us this is a very, very big milestone in this long road. >> we got a long road ahead of us and we have a time line to get it done at the end of the year we have a senate working to get this done. we are excited of going through the legislative process and going to congress and making this bill better i am excited of the american people who are waiting to see us get this done. the last thing i will say is

this, we collectively asked the country of 2016 to give us a chance to work for them. we asked the people of this country who are struggling, give us a chance to make value and make life better for you and give us a chance to improve your life this conference today is one of the greatest thing we can ever do to make good on the promise, i am so proud. i want to thank one of the women of our leaders of congress she's been the forefront of making sure we get our message out and making sure that we have two years and one month and we use it in that proportion. our chairwoman of the republican, katherine mcmoore rogers >> this is an exciting day for the american people and the american economy we stand here as representatives of families and small businesses and farmers across the country who have spoken and told us,

they want tax relief, they want an opportunity foor better life, today we are proud to stand and excited to stand and give them hope for a better tomorrow we all had the chance to travel around the country and i was recently down in north carolina. i heard a small businesswoman who came up to me and said you know what, if you are able to get tax reform onto the president's desk, i am going to double my business and double the number of employees. we heard those kinds of stories repeated over and over we want people to have larger paychecks, small business owners who kept on telling us, we like -- >> i am going to dip away from this sort of commentary that some of the republican leaders are speak there, katherine morris rogers are speaking there. addressing the passage of the tax bill that is the first major revision of american tax law

since 1986 michelle >> in the wake of that, the dow is seeing its best gains since september, s&p 500 are in paid for the best day since late october. russell 2,000 measuring of a small cap stocks, that's the highest of the day >> they cannot move profits over seas specific stock story, walmart and cisco systems both on upbeat running. take a look at walmart, higher than 11% on the flip side, l brands and best buy are hitting very hard rockwall automation is jumping to $225 a share. oil prices are continuing to slip, it is all hitting at a 52

weeks low. for more, lets head to bob pisani, we have asked so long, is tax reform already priced into the market? what does today's reaction tell us about that question >> i think tax reform is clearly a factor in the rally. there are some other things going on lets give credit where credit is due on the tax reform. l look at the s & p 500. stock is still 5-1 volume is on the good side and tax reform is a factor look at the most beaten up sectors in the last two weeks. things like the russell 2,000 and small cap stocks there is a leadership here as you can see here the dow transforms another group. another leadership group, biotech and industrials also had a tough time they have reversed clearly tax reform having some influence on that. there is a couple of factors

contributing there is a big cat move on the upside michelle mentioned, of course, of walmart and cisco, their earnings are helping i would point out proctor and gamble and nelson pelts getting onto the board there you add these up, these are almost after half of the dow gains of what we are seeing today and finally the third factor is the high yield turn around this actually started yesterday. this is the hiyld rallying again today and for whatever reason, i think the fact that high yield pressure starts to come off in the middle of yesterday is also a factor in the rally today. guys, back to you. mo . >> more about the house passing the tax bill joining us now, mr. bellows, what do you make of today's move bob believes it is one of the

reason why we see a rally. does it ultimately happen and does it add more to stocks gained as we go forward? >> you know at this point of the process is out moving forward and the house did that today i think the mark is riget is rio take some signals for that it is not done one thing to note that the senate's version are a little less generous for corporations they have a little bit more restrictions on interests and restrictions on base erosion measures what you are seeing in the house is not what it is going to look like they declared a hurdle today and the mark is right to react to that that's a step forward. >> dennis, tax reform quite standard or not. what do you think today's market tells us about the question. >> mr. bellows is absolutely right. the nate has to pass this yet and it is going to be decidedly different build up that they get and we can only afford to lose

two senators in the senate before this whole thing comes apart. i think it is a little too excited that the market is too excited today because we passed it by the house. none t none the less, lets give them a hand >> john, as you mention the senate version of tax reform not being as generous of corporations, a lot of companies that have a lot of debt on their book like telecom companies are finding difficulties with the cap on the interest deductibility on the debt. do you see it being on an ongoing issue. 38% of their high yield companies would see a sizable impact if this 30% cap is put in place. >> you know it is an issue the reality is there is a tax reform piece it is not just tax cut

there is a reform and there is winners and there is also losers we need to be cognizant of the losers and watch them carefully. the high leverage companies are certainly one, i think we need to be careful on telecoms though, telecoms have some idiotic stories going on there we have been under going the sector and given broader transformation of that sector. yes, they'll get impacted by taxes but there is a bigger story going on here. if i can just highlight one other thing is i do think there is some opportunities here as well you know the interest deductibility restriction may create incentive for activities and low level companies looking to buy and consolidated company getting under that restriction and targets being your higher quality rising start type and high yield credits, that's another trade that we have on

and we continue to like and if we do that interested deductibility changed, you can see a little bit of a tail win >> williams and haynes brands are rising stars, do you see them apart of this potential wave that's created because of this cap >> yes, that's right you think about williams, this is a company that's done a lot of delevering and it got downgraded a few years ago, they got their capitol structure the right side and delever their capitol and cash flow is looking okay going forward and the agencies have not quite given them the credit for that you can see their 50 bases point and spreads. that can happen with or without mma. i do think mma may made sense. >> interesting insights. dennis, indulge me i want to ask sarah fagan of

something that you just raised >> there are still some lapse to run. what is your sense about the ability to bring this across the finish line. there will be conference work that needs to be done and you can lose people in that process. >> you can lose people in that process. you know the senate very firm on their deficit numbers and the house has more leeway there. things are going to getharder for many house members who got bigger provisions and may have to walk some of it back. the house is ultimately is going to have to give more on this i think when you see the size of the vote today, it was almost 230 and close to 230 they have some room and they can lose some votes and still get it into the house >> you are fairly confident then >> well above 50%.

>> i think the sickolopsycholog winning. >> i would not have bet they would gotten it through before thanksgiving >> you will see what the vote is in the senate after thanksgiving >> sara, what happens to the market >> i suspect quite honestly, i think the entire move in the tax law has already been anticipated in the stock market. i think stocks are extremely high priced, i am a little short in my account by buying puts today is not my day. it is fully dispointed and acou. >> so it could be selling the news, in other words, i think this is one of those prime examples and by the rumors and sell the news. >> thank you, guys thank you, johnand dennis. >> here is what's coming up on " "power lunch." dan donovan one of the

republicans voting no, why he thinks it is a bad deal. that'll blow your mind the semitruck to bunile veed tonight. will it pay off for the company. stay tuned a. a. small businesses show their love to you. with some friendly advice, a genuine smile and a warm welcome they make your town... well, your town. that's why american express is proud to be the founding partner of small business saturday. a day where you get to return that love, because shopping small makes a big difference. so, on november 25th get up, get out, and shop small.

welcome back to "power lunch. i am seema m moody michelle, that's the latest, back to you. >> republican representative don donovan of new york voting no on the house tax plan, he will tell you why and the changes he likes to see up north carolina, here on "power," the biggest navy build up since ronald reagan lockheed martin poised to benefit one of his new ships morgan brennan is on deck with the story. take a look at this. 57 millimeters and it can fire 220 rounds big business and little warsh s

warships we'll tell you about the navy's newest ships when "power lunch" returns.

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billions of dollars in new

defense building, morgan brennan is joining us with the latest combat ship that's ready to go >> reporter: take a look at this, this is the martin lockheed warship it is going to be able to operate close to shore and for a warship, it moves very fast. there are seven more of these ships under construction here at marinet shipyard it is now working to make seizuthese vessels more lethal. >> it looks to bring vertical launching system and hopefully we can look at a laser base system on this so we absolutely see the growth potential and i think that's the desire as the navy looks towards the future.

>> reporter: this ship will be able to vertically launch and held and fire missiles those are made by lockheed martin all of that is key for lockheed. it plans to bid for a few competition. this is the navy's missile guided it is a program that could be worth of tens of billions of dollars. the navy released its request for proposal this will be a competition because in addition to lockheed, lcs coprime also plans to bid and suspected of other companies to jump into that competition as well back over to you >> are there any analyst concerns that there could be white house interventions in terms of nickelling and diming the price down, morgan >> reporter: yes, the thing about the combat ship, it is a

program that's brought forth in the early 2000s. its had its fair share of critics. these ships, they vary from ship to sip ahip and they cost about $500 million a ship. it costs billions of dollars and it is still very affordable. so that's a big push for this ship we spoke to the executive officer on this ship today he says he too in the beginning is a critic of lcs, now he's been on the ship and working on it and getting ready to deploy, he's says that he does not see a future navy and one that's 350 ships without it >> half a billion is affordable. >> shows you the scale that we are talking about here >> the complexity. >> yes thanks morgan. >> how did you get it out of the lake and into the ocean, that's what i want to know. it is on a lake obviously. >> good question

>> yeah. >> the long way. [ laughter ] >> the most expensive project ever purchased outside of real estate a leonardo da vinci painting sold for $350 million, we'll talk to man who reportedly just $10,000 for it that and much more ahead on "power lunch."

hello everyone, i am sue herrera, a mistrial has been declared of bob menendez the jury remains deadlock after deliberating for six days. ten of the jurors wanted t to acquit him. >> to those who embrace me, i love it. to those who gave me the benefit of doubt former ongresswoman, corrin brown arriving for her sentencing hearing after being convicted many may after 18th

count of fraud and corruption. prince williams visiting google hq in london he urged tech jiepgiants to inne and educate people on its dangers. you are up to date ty, welcome back good to see you. >> sue, thank you very much. i want to be the 4 thousandth to congratulate on your birthday. >> thanks for lunch, we had lunch in honor of sue today. > > >> ylan mui. >> they thanked president trump and now it is up to the senate do to its job. mitch mcconnell has put out a

statement saying his chambers are making real progress on its plan they are grappling of the inclusion of the individual mandate as part of a tax reform but they are dealing with the exploration of the individual tax cuts there are still some road bumps in this journey ahead of tax reform that momentum is everything here in washington, guys tax reform is cruising >> back over to you. >> thank you very much, yla ylaylan ylan mui the nasdaq at a record here. the dow is up 200 point. s&p 500 is up by a percent as well the russell 2,000 is a barometer of tax reform success, that's up by 1.6%.

consumer staple of telecom, the best energy by the way lagging and walmart is hitting an all time highs take a look at biotech, also strong right now with ive in the green and other names of all time highs today, hilton and sales force and papal. lets go to jackie deangelis. >> good afternoon to you the stock can be down because crude have been down for straight sessions. even though it fellen on it they all seem to be wearing off a little bit the question being raised, why would opec extending the cut on november 30th. when a, it would not have russia part of negotiations they have until march of 2018 to see how supply and demand are

balancing. you can understand why the commodity is taking apause. >> back to you >> thank you, jackie the house just passed the tax reform bill. it will slash federal taxes by $1.5 trillion over the next decades. not all republicans happy with us joining us is dan donovan of new york who voted no. it is good to have you here, si sir. >> it is good to be with you new york state taxes are high, i am assuming that it is the elimination of the ability to deduct state and local taxes is the reason you are unhappy with the villain that you voted no. is that correct. >> this is unfair to new yorkers. i am in favor of reforming our tax code it is burden some and complex and unfair the one that i think thing thato is making sure we represent all americans receiving a tax cuts i represent 47,000 workers, not paying for the tax cuts that the

rest of the nation are going to see. i have to make sure my family has food on the table and paying mortgages and children's tuitions i have to make sure that my middle class, people making $200,000, firefighters or nurse or teachers, $200,000 combined income is middle class where i am in. >> do you not believe people who say, you know what will happen if you got rid of the ability to deduct state and local taxes >> it would go down because states know they are going to lose population. >> you cannot put that on the taxpayers. >> that'll put it on taxpayers we are sorry we are going to take away our benefit and let your mayor and governor to take care of you. tha wrong. we get less than 80 cents back when we talk about this deduction being a subsidy in new york, no one subsidizing in new york new york is subsidizing the rest of the nation. >> is there a number, congressman, that you have in

mind my question is as this bill, wins its way into senate and comes back to conference, that is contentious issue is there a number that you have in mind that could make you go from the no column to the yes column if a compromise were checked, it wouldallow people to deduct a certain amount of their stay and local and property taxes is that where the compromise lies and is there a number that you have in your head? >> yeah, myself, representative king, we put forth a proposal that'll keep the deduction in place for four years with this e will i limination, yorkers are going to have two weeks to figure out how to pass it that's unfair. after four years allowing families making $200,000 or less to keep the deduction. and no one would get hurt with

that that's a fair proposal and good compromise it will protect the middle class and new york and let the rest of the country get the tax cuts that i deserve as well i live in new jersey where we have equally high income tax and maybe higher property tax. tell me if i am getting this right. when a person loses the ability to deduct the state and local income and property taxes they pay, their taxable income goes up by that amount, correct >> their taxable income goes up by that amount even though that income never hits their pockets because it is spoken for by a separate taxing authority. >> yes, this is a double tax >> this goes back to federalism. that's why this deduction has been in the tax code since 1913. it is a double tax, we are taxing new yorkers and people

from new jersey on monday that they did not receive because they paid that in taxes. that's the reason why four out of the five republican members of the new jersey delegation also voted no today. >> i don't know so i am asking, i am a bad prosecutor and i don't know the questianswer of question i am about to ask there is been for years a credit and deduction for foreign taxes that americans pay for example, if they have an investment portfolio that pays foreign dividends and some of that is subjected to foreign tax, if i have income that i see, i wrote a book and i got payments from europe royalties, i paid tax on that, do those credits persist or do es it go away, too. a lot of our big corporations make money over seas and right now i think tax burden mairelan is about 12% general electric and ibm

>> i am talking about an individual >> yes >> i am not sure if that's still in there or not. >> okay. >> i am concerned of the firefighters and teachers and nurses making their money in new york who are now losing the deduction. it is going to be a tax increase and not a tax cut for those people >> i will go do my homework and find out about that, congressman. coming up tonight, we'll head to the unveiling site, next first to the bottom market >> parallel shift and everything is about the same as it was. you can see that on the 24 hours chart. but, when you put in context, we are still on the lower side of what we are trading the last several weeks. probably with good reasons

as luke you look at the two-day chargers, i want you to know something. yesterday's low is right around 8 86.22. the lowest of the year was march 18th, that's 86.11 that's how much you want to pay attention to this particular tf. you know it is not having a bad day but it is still closing of 94 that pivots most traders on the flo floor. "power lunch" will return in two-minutes. every day, on every street, in every town, across america. small businesses show their love to you. with some friendly advice, a genuine smile and a warm welcome

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actually produce the truck phil lebeau is live. >> reporter: are you prepare to have your mind blown tesla have habeen working for sm tim time ylan was teasing us that this is going to be a changer. the end result is really whether or not this will change the trucking industry. it is likely to be built at the fremont plant which raises two questions. they are purchasing at the scenes in terms of production space. second after all they are struggling with model three in terms of wrapping up production if they cannot get it in order, getting the semitruck rolling is

far down the party list. the model three is what's moving the stock right now. yeah, there is a lot of chatter about this but nobody kpekexpeco make it the difference in the bottom line. whether or not this will truly change the dynamics for the big four when it comes to semitruck productions. we are talking about volvo and daimler. it daimler, they are working on their own of electric line i have never met logistics. if it makes sense in the market, they'll be interested. >> phil, thank you very much appreciate it. >> phil lebeau

>> brad, the great to have you with us, i am going to pick up where brad left off. this has to make financial sense for truckers to buy these rigs daimler is out with their electric rig the big rig right now is about a thousand mile on a single tank the battery waste takes a cargo space. how does it work >> thanks for having me, meli a melissa. >> first, this thing may make a latte. what you just said spells it out. the 200 or 300 miles of range here is limiting for a lot of the long hall applications we and other analyst haves affirm and spoken with players, they think of applications of short hall capabilities there.

700,000 unit globally, that's limiting to the market we think. >> phil mentioned the fremont plant, it does not sound like a plant would actually have the capacity elon musk is right on of how production model three will ramp, it does not sound like it has room to add a line of production for big rigs. >> correct >> yeah, i think that's where the obvious next question that comes out of tonight is when are we going to be looking for potential capital raise here to support the appropriate capacity to make these things in the future if you believe that they can make way for this in fremont, for better or worst, we think that throws caution for model three and they don't expect to build 350 or 400,000 of those because they are making ways of some of these. a lot of questions to be addressed tonight potentially.

>> so famously said, they are production held when it comes to model three. we are going to make a big rig truck. are you more optimistic or less optimistic of the tesla's story? >> oh, i think bringing in additional components of the narrative is just distracting from the goal of the company should be right now which is making a good mass market car, improving the market that they can do so profitably, that's th piece of the narrative over the last six or nine months the ecvent is interesting and good entertainment and a distraction. >> that latte better be good brad, thank you. [ laughter ] >> they need coffee. >> they seem like a latte group of guy >> you are looking at the most

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it's the most expensive work of art ever auctioned. robert frank here with more on this incredible story. >> yeah e it's hard to believe this number. even today it's only 17 inches tall, and 15 inch es wide, leonardo da vincis salvotor mundy, going for $450.3 million at christie's last night. the buyer is still unknown went to a buyer on the phone after a 19 minute bidding war. so how did a painting that sold for less than $200 in 1958 get to nearly half a billion for centuries it had been owned by several european royals including england's charles i then it was damaged, repainted, and it fell out of sight until 1958 when it was sold at a sutherby's auction in london for 45 pounds. marketed at that time as a work by a student of da vinci

it disappeared again milliuntil group of buyers bought it at an estate sale in louisiana for $10,000 back in 2005 it was then authenticated and sold to swiss art dealer eet bubier he flipped it for $127 million the painting attracted 27,000 people as it toured the world for christie's and made far more than anyone expected >> the one thing about paintings, i interviewed a former ceo of christie's many years ago, he said the following thing. "there is no other asset class in the world that can suck up so much money in so little space. q "can't do it with real estate. >> diamonds. >> jewelry -- >> diamonds do it. >> there are not that many. >> right, there isn't a diamond that big. >> right exactly. >> and this is a particularly portable asset because it's only 17 x 14 inches tall. >> is that right it's that small?

>> it's 17 x 14 inches tall. >> the people who paid the $ $10,000 for it, did they have a hunch it was an authentic da vinci? >> they did not initially, but very quickly, they -- >> slowly but surely. >> there have been rumors around this piece they thought, well, maybe. they spent years and years authenticating it. it wasn't until it was at the national gallery in london that everyone said it's a da vinci. amazing price appreciation >> yeah. thank quyou, robert. >> tlahanks. shares of cisco rallying today, the stock rallying to its highest level if 16 years. kim forrest. larry plk donamcdonald kim, i'll start it off with you, there's this notion it's timely moving to a recurring revenue model. do you buy into this here, at 16-year highs? >> well, i don't buy into the stock but i buy into the story and here's the story that the enterprise spending is back, and cisco is beginning to see a little bit of that

the negative for this stock, though, is that so much of its sales are in routers and switches which is a very challenged market with respect to prices. so they can't really get pricing, but they're trying with this software model that they're rolling out. >> yeah, and actually that specific division was -- had some declines and we're seeing today's session gain on that larry, where do you stand on cisco? >> well, the short interest ratio since may has tripled. so heading into earnings, the shorts were lining up and licking their chops. today many of these shorts got carted out and that's what's creating this huge surge if you think about it, they match the top end of the estimate on earnings and revenue. so they matched the top end of the street's estimate and the stock is up this much. so it's a massive short covering rally. that tells me you want to sell

that because typically short covering rallies like this are short lived maybe a week or so then the stock will settle back down into a normal trading range. >> all right both don't like the job. thanks, guys, appreciate it. for more trading nation, head to tradingnation.cnbc.com "check please" is next. and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> short selling can help you profit from a stock's decline. however, because it involves unlimited risk, you must have a plan first, screen for poorly rated stocks showing weakness versus the broad markets. second, look for the stocks with the poorest technicals in that group. and finally, incorporate risk namemagent techniques into your order to limit potential losses. you always pay

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or get everything you need to help capture investment ideas and make smarter trading decisions with fidelity for just $4.95 per online u.s. equity trade. fidelity. open an account today. ♪ >> all right my check please, restoration hardware, shares are doing very well today on the back of their earnings this remind eed me of is what te ceo said in september when he was at the goldman sachs retail conference when they really looked at their advertising in google, they your spending money on thousands of different words and discovered most people found their website through only 22 different words. they dramatically reduced their spending online. >> just by using those 22 -- >> yeah. it's mostly misspellings yeah it's great >> i'm watching barnes & noble halted for news pending. last trade it was up by 8 1/3%

we'll see how this story develops as we head into the time hour of trading. >> 31 years ago in 1986, i wrote my first cover story, i think it was my first cover story for money magazine on tax reform it was lower rates and fewer deductions equals tax reform that's where we're going 31 years later >> "closing bell" starts right now. hi, everybody, welcome to the "closing bell" today, i'm kelly evans at the new york stock exkachange. >> i'm bill griffeth we have the same numbers yesterday they were red, today they're green. pretty much a rebound. ned we were talking about weakness in the market stocks today are surging for the most part. strong earnings from walmart and cisco. both of them are just booming today. plus as you know, the house just voted to pass its version of the tax reform bill is tha