there is no talking. it's only texting and it's very -- it is literally under covers. >> god, we side old right now. >> we are old. >> hold on thanks for watching "power lunch. >> here's my cell phone. >> "closing bell" starts right now. >> nobody's seeing these texts hi, everybody, happy monday welcome to the "closing bell," i'm kelly evans at the new york stock exchange. >> feel like we did this last week >> kind of like this, with the dow up and nasdaq down. >> exactly we're seeing a repeat of this action i'm bill griffeth, by the way. jam-packed hour. i don't know how we're going to fit all of this in we got this rally on wall street, much bigger earlier, though media stocks in particular have been getting a pop famed media investor mario gabelli will be with us, has an idea for 221st century fox's

assets mario has a different idea he'll tell you what it is coming up. excitement over tax reform is helping to fuel today's market gains, murray energy ceo who's been a supporter of the president's says the senate bill is, quote, a mockery of tax reform, and his company's taxes will go up under this plan he'll explain and make his case. then pancreatic cancer one of the most deadly forms of cancer out there former nbc universal chair bob wright will join us at post the, talk about his new rush to take on a new push. he's rushing on this, too. >> oh, yeah. >> hoping they can get an early detection test out there on pancreatic cancer. let's start with today's rally, though. dow was up 300 early on, we're about half that level right now. bob pisani has more here bob? >> good news, folks, we are acting rationally in the last five or six days so the sectors in the stocks that might see the

biggest earnings boost from the tax cut are the ones that have been moving the most in the last five, six day. it's happening again today take a look at the sectors today. financials and energy stocks would be the sectors that would get the biggest boost from the tax cuts so they're the ones that are leading the market right now industrials, also we get a boost. telecom stocks would also get a boost. they, too, are leading the market technology stocks would get the least boost and they're the ones that are actually down and they have been down for the last several days now, if you look at some of the typical stocks in this group, jp morgan, bank of america, huge gainers recently they were gainers again today. verizon which is a telecom stock, another big gainer in the last two days. it's up today. exxon in the oil groups alts on the upside we may be testing the limits to how far you can push, for example, bank stocks going up. citigroup was $28 earlier today. it's down. that's well off of its highs till still up nice but there may be limits to how far

almost double digits finally, here's the story, this is a very healthy thing for the market because tax cuts creates a whole new group of sectors that potentially could have their earnings lifted. we've spent the whole year talking about faang stocks and semiconductor stocks because of their tremendous earnings growth now there's other sectors that may get some boost today not surprisingly most of the stocks are moving to the downside and seeing other se sectors that may get the boost from tax cuts moving up. by the way, guys, we're not out of the wg about maybe postponing it to 2019 and the president made a comment saying maybe we'll do 22% instead of 20% that would change the calculous a little l bit as with el. back to you. >> all right, bob, thank you let's get an update on that. high hopes for tax reform have been one of the main propellants for the market rally since election day 2016 so it's not quite a done deal here eamon javers in washington 2

with the very latest what's going on, eamon >> reporter: hi, bill. republicans proved they did have the votes in the united states senate early in the weekend. now the question is how are they going to iron out the differences between the senate bill and the house bill? we're waiting now for congressional leaders to announce the members of the conference committee that's going to hash out all those details and there's a lot here to go through. take a look at some of the big differences between the way the senate and the house approached tax cuts you'll see first of all, right off the bat, the house bill has four rates the senate bill has seven rates. the question is where do you go from there on the individual side on the corporate side, the house bill has 20% immediately the senate bill has 20% in 2019 then there's that little blip from the president over the weekend that bob just mentionewg the individual mandate that is a big deal under obamacare. not included in h the house. it is included in the senate there's another bunch of smaller differences. those are the headline ones. take a look at some of the other

ones including the amt, alternative minimum tax. there's been a complication if the tax code for a long time that a lot of people wanted to get rid of in the house, that's been repealed in the senate, the corporate is maintained, individual -- the repatriation rate for corporate, 14% cash, 7% illiquid in the house bill, totally different treatment in the senate bill the estate tax also treated differently in both bills and passthrough rate on businesses is different in both bills so when we get the announcement of who the negotiators are in in this conference committee, guys, they're going to have a lot to work through this week we're also expecting a battle here over a government shutdown that could happen by the end of this week. there's a lot on the plate here of these negotiators going into the next couple days. >> property tax deduction, state and local tax deduction, a big talking point in our neck of the woods. the tax deal, there are big winners and losers when it comes to the individual side

robert frank is here with some of those tee tadetails. >> hi, kelly broadly speaking the senate bill is a tax cut but some americans are going to get tax hikes all depends on where you live, how cut in 2019, that's mainly thanks to doubling the standard deduction and lowering some of those rates a married couple making about $200,000 in 2017, they're going to see their tax bill drop from $ $242,0 $42,000 to $2348,000 a couple making $24500,000 to $1 million, they're going to see their tax rate drop fr-- of coue we have the changes to the estate tax that's going to allow families to keep $22 million of their estate tax free. that's double the current

threshold. now, taxes are going to go up for some now, the bill basically eliminates deductions except for charity and mortgage interest, so people in high-tax states, kelly, you just mentioned, they could see a hike including the top earners. 14% of all of not currently who make more than $750,000 are going to see an increase under this senate bill the tax changes, of course, they expire in 2027 so more than half of all americans are going to see a tax hike within ten years because of this bill the wealthy after all that are going to fare better by the time this is zodone in ten years, 1 two-thirds of middle income earners are going to pay more in taxes by the end of the decades. guys >> lot of moving parts and pieces to this thing. >> very complicated. >> very. thank you, robert. see you later. let's talk about the market here as we were saying, sort of a

mirror image today of what we had friday friday the selloff of 350 points then a comeback. today a huge rally of 300 points and now we've cut that in half joining our "closing bell" exchange today, allison deans from aa deans advisory at post 9 sitting next to kenny from o'neal securities and rick santelli checks in from the cme in chicago so, kenny, we're kind of regressing to the mean here lately with this market >> right and so, you know, you shouldn't really be surprised about that, honestly, as the meltup continues, right, you're seeing this momentum slowing a little bit today. but you certainly saw it right out of the gate this morning at 9:30, the market opened very, very strong, in a bounceback to what happened on friday in relief over this tax structure as you guys just pointed out, there's a lot of work to do in the next two weeks with the reconciling both these bills and so the question is, are they really going to be able to get it done, are they really going to be able to attack each one of these individual issues and come to a reasonable solution that's

going to really work for everybody? i stil to happen. i think if they do, they're going to jame it through. >> what do you think of the diversion we're seeing between the dow and nasdaq >> nasdaq has a high component of tech stocks they're not beneficiaries of the proposals we've seen so far. that's a big difference. whereas the beneficiaries are financials, industrials and tend to be more in the dow jones industrial average so i think that's part of what you're seeing. also one's a much broader index. i'm wondering if there's profit taking this is not an inexpensive market there are still a lot of what ifs and, you know, this could be a one-time tax bump without a lot of real long-term economic growth benefit >> allison shlg, are you seeingy opportunities here that present themselves with this selloff or looking at health care which is also selling off today or the banks that are going up in anticipation of higher -- i mean, you know, what are you seeing out there right now >> my sense is, i've been a little worried the market's

expensive, even if you assume the earnings are going to get an 8% bump for the market 7%, 8% upside in this market one, if tech continues to sell off with or without a tax break, they're a great growth industry. financials have the wind to their back but had a huge run-up i'd wait for a pullback there. equities continue to be one of the better asset classes in the united states, maybe it's time to take some of your ex-pea shower ex-pea sue exposure off the table and move it over to where growth is a bit stronger. >> one of the points made about the market the last couple weeks is stocks have been on a tear. bond yields haven't moved much dollar is weaker but hasn't moved much is that saying what our guests are saying, this bill will be good for maybe the value of corporate equities but not really change the picture longer term in terms of growth and that sort of thing? >> i think that's an awful lot

of baggage to dump on the tax bill i'm sorry. i thought it was to mae. i think many would have expected we'd see more upside once the senate passed it maybe there's reserved for once the legislation is melded into one final bill but all in all, we've still come a huge way and to think all these issues, the dollar index held on to a third of a cent today. we're barely surviving the 93 handle now 7%-ish i do think all in all the tax bill is important. i don't think it's the entire backbone of the market i continue to think that a friendly business administration is going to work toward other issues over time, now that it's figured out how to potentially score a touchdown and i think the markets are going to be in good shape if anything, i'd pay particularly close attention to the -- interest rates just

haven't had the vinegar to the trade that the equity markets had and maybe that will change in h the weeks ahead as we get toward year end. 4. >> we will see thank you, all good no see you. thanks for your thoughts on today's market action. again, another interesting day we head to the close here. we got about 49 minutes left in the trading session. if you just joined us, big rally on the open this morning with the passage of the senate tax bill over the weekend. now we have a gain of 136. cvs one of the few stocks sitting out this rally after announcing plans to buy health insurer aetna for $69 billion when we come back, how this deal could affect large employers and consumers when it comes to health care cost. >> that's an interesting one. and he's been a big supporter of president trump's robert murray, ceo of the nation's largest private coal miner says the senate tax plan will raise his company's taxes

now and he's not happy about it. he'll explain why coming up. as always, we'd love to hear from you reach out to the show with your thoughts on twitter, facebook, send us an e-mail. however you want to do it. yoreatincn, rsinu' wchg bcfit business worldwide [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.

at interest lg day for the market the dow was up more than 300 points on the open this morning presumably after, in response to the senate passing its tax bill over the weekend s&p is up, both of them in record territory but technology, the pullback continues there. and look at the nasdaq down three quarters of a percent at this hour. >> a rough day for it. cvs making a big move to the downside as well after announcing it will acquire aetna for $69 billion in cash and stock. shares are down about 4.3% of cvs. aetna down 1%. this morning on "squawk box" the ceos of both companies discussed low the deal could reshape the health care industry. >> i would expect within the next couple years you'll see a dramatic change in terms of the store being not just about products, but also service offerings that can help people on their path to better health really work as a complement to the medical community, the

physicians in terms of ensuring that those consumers are following the care plans that their physicians are laid out for them >> let's get more on how the deal could impact large employers and consumers. bertha coombs has some of those details. bertha >> kelly, $69 billion is a record price for a health care deal aetna and cvs are proposing a very ambitious model they want to leverage 9,700 cvs stores to be health centers where consumers not only get prescriptions but health coaching for things like diabetes, basic primary cares in clinics and on the call today, cvs' ceo said he foresees addin things like collecting blood work at these centers. all of that would be cheaper with cheaper co-pays and less paper work then it's all in one network. the all in one model, pharmacy, medical markets, is a trend in the industry united health touted it.

anthem is going in that direction. they say they can offer savings by getting rid of the middleman on benefits. for pharmacy one benefits consultant told me the cvs/aetna deal would make it harter f harder for employers to get better pricing by putting the pieces together the way they want independently in exchange, employers are going to ask for performance on cost and health incomes et in a the firms are suspending their buybacks cvs, s&p has put its credit on negative watch because they're going to be borrowing $45 billion to finance this deal, promising to bring leverage down in about two years that's on top of $23 billion that they already have kelly? >> yeah, that's going to be a lot. raising some concerns at the same time they feel it's important. bertha, thank you. former aetna ceo john rowe will talk about the deal and when we can see more consolidation across the industry perhaps sparked by this one later on

"the closing bell. >> they said this morning costs for consumers will come down i want to know how they're going to do that, gaining the market share that would allow, the scale that would allow them to do it? >> or using more of these clinics. instead of people going to the emergency room, there's a neighborhood place i can stop by and get looked at -- >> i'm not sure how buying an insurance company allows you to do that. >> if anything, they look more like united health we talked about this being a response to amazon >> we will see that's their business. not mine coming up, billionaire investor mario gabelli will talk about his business and tell us exclusively why he thinks ruppert mrupert murdoch could do an ipo, instead of selling them to disney, comcast or another rival. plus, bob wright will be here to discuss this initiative to fight pancreatic captioner and how he thi cancer paand how the bill in

congress could affect development. coming up. what if we could keep more amof what we earn?d. trillions of dollars going back to taxpayers. who could possibly be against that? well, the national debt is $20 trillion. as we keep adding to it, guess who pays the bill? him. and her. and her. congress, we should grow the economy. not the debt. ♪

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steve jobs, jack benny, died of pancreatic cancer which is the fourth leading cause of cancer-related deaths and fighting it is proven to be one of medicine's most difficult challenges meg tirrell looks at which companies are trying to develop treatments for this deadly form of cancer. meg? >> that's right, bill, there's a lot of excitement in the world of medicine about advancements being made in cancer particularly with new

immunotherapies that unleash the powers of our own immune systems but largely evaded pancreatic cancer its death rate has been little changed for decades and its incidents continue to rise pancreatic cancer could become the most common cause of cancer-related death in the u.s. without better interventions some pharmaceutical companies are pallet work on the problems. potentially a billion dollars a year for a successful new drug, as well as, of course, the huge need for better treatment. biotech company halozyme has a medicine in late-stage trials for pancreatic cancer with patients with high levels of a marker that makes it harder for chemotherapy to reach the tumor. astrazeneca is also testing its drug in pancreatic cancer, targeting a segment of the populati population whose tumors express certain mutation finally, there is help md anderson tells me combination

is going to be the key there as it is in so much treatment five prime therapeutics is testing its experimental drug in combination with bristol-myers there is some work going on. obviously a lot more needed, you guys, to solve this problem. >> that's sfor sure. >> meg, thank you. meg tirrell. our next guest is looking to make strides in search for a cure for pank yatcreatic cancer >> we welcome back to the new york stock exchange, our friend, former boss, bob wright, former chairman of nbc universal, man who brought those two companies together and of course, former vice chair at general electric you know, we lost suzanne. i lost track now a year ago, two years ago. >> a year and a half ago. >> year and a laugh ago. and your entrepreneurial spirit right away kicked in you looked into it and you found that there's not enough early detection going on for this deadly cancer. >> there's not enough anything going on, really, despite meg who i really do respect that some of these projects have been around for some period of time

and i'm not here to try to advance the science and in one particular project, because it's not -- the nih does basic research hopefully they'll continue to do it well for another 100 years. they don't go in treatment they're not a treating agency. they're not an early intervention agency. they don't work on that. and so what i wanted to do is to create in harp, an advanced research project's agency. the model is in the department of defense >> yeah, i was going to say it sounds like darpa and is meant to, darpa being an incredibly successful agency within the defense department to launch science and defense innovations. what would hrpa look like? >> think of harpa as the navy s.e.a.l.s. the navy probably said when they originally came up the navy s.e.a.l.s, why do we need these people we can take care of this thing and i imagine it went through hell to get through that now of course it's the flagship of what they do. navy s.e.a.l.s takes on projects that are not disclosed to the

navy, necessarily. until they're -- take on very hard projects. darpa takes on extremely complex, scientific, in this case, it would be medical science or treatment or early diagnosis of things like that. in the case of pacifncreatic cancer, 85% of the people are diagnosed at stage 4 so there's no chance. >> it's not caught early enough. >> if we can improve that by 10%, that's 5,000 people would be saved just to get them to stage 1. so there's a lot of room almost everybody dies within two years. 55,000 people, two tleer years everybody's gone. >> what you and suzanne have done with autism, autism speaks is phenomenal. growth of awareness, research money that's gone into that whole thing. why has pancreatic cancer not seen that kind of a bounce

is it because, you know, as cold as it may sound, it's not a big enough market for big pharma to go after, necessarily? >> it's complicated. the nih has not had any real breakthroughs whatsoever everybody depends upon them to give them starts and these things and the chemos are everybody works on chemos to make them a little bit better. these chemos are terrible. >> yeah. >> they're terrible. they only -- if you don't have anything, you're going to be gone in a month and a half or two. with chemo, you might get to six months, five months, seven months, might be month snine mo. that's what they keep doing. >> yeah. >> the laharpa, pull people together, companies, others, individuals, and get a lot of money on it. big projects and put timelines on it, two years, three years, let's go, start. fix it >> the corporate tax bill is being advanced now because it would bring back the corporate amt, end up discouraging the use

of research and development credits that a lot of major companies i imagine including the pharmaceuticals rely on in order to employ scientists and pay them the wages that are necessary for this kind of development. is that a big problem as far as you're concerned that that would be potentially affected? >> i would guess that that's going to be addressed in -- in this week in some form or other because it is, it's a big issue. and it's a legitimate issue. but i think there's ways of addressing that. i'd be sort of surprised if it stayed the way it is you're seeing it in the senate i think that's going to change. >> let me move you to a couple other topics while we have is you here the talk that comcast is looking to buy up some assets from fox, 21st century fox what do you make of that and why do you think the murdochs want to sell some of those assets right now >> well, i think -- i think they want to make the company smaller. my sense is they want to put together the two companies that they've only been separated for,

what, several years. put that together, and my guess is they'd like to own that privately. and they -- in order to do that, they got to sell some assets that are harder to manage and aren't big enough to be major stand-alones, maybe five or ten years. so they'll take what the pieces are that are left and make that into a tighter company. >> who's the better fit, disney or comcast >> i think either one. >> asking you objectively, of course >> i think either one of them. they both -- it would fit nicely comcast has done a very good job with its cable properties so they're a proven entity. so, of course, is disney they're different animals. >> can i ask you about matt lauer for a moment >> sure. that's very sad. i knew matt lauer before -- before he came to nbc. he cameto channel 4, bill bolster is actually the person who's responsible for matt lauer's success. >> he was the general manager of wnbc years ago and became

president of cnbc, a great friend of all of ours. >> he saw matt had a great ability, he was an entertainment person and he really had a great ability to deal with people and people loved him here we go >> did you know -- did you know anything untoward about his behavior >> well, this is -- the awkwa awkwardness of this, you know, we all know that most people that get married, 60% of them find each other in their office. because that's where you're spending all your day. and so, you know, he -- he dated people, he did a lot of dating there was never really indication that was it was not consensual or anything, it was bothering -- so i think probably under that cover, if you will, he did some other things now turning out to be just horrible. >> it's not just matt. you know, the charlie roses and bill o'reillys and the harvey weinsteins >> what about lake -- >> and garrison keeler what do you make of this

phenomenon that we find ourselves in in this industry? >> is well, i don't know that it's any different in the oaany industry except the other industry doesn't have to publish it on the air all the time i know if there's anything unique here, an ibm place, too it's certainly going to be beneficial remember, you're going to have to allow people to have, you know, relationships because you can't prohibit that. so the question of getting people not to fear that they can have to accept some unwanted sexual advance of some very derogatory language, that's the issue here >> always good to see you, bob, thaur thank you. >> thank you very much wish us luck, we're in the white house. i'm trying to get this done. >> all right very good. bob wright, former chair of nbc universal joining us. time for a cnbc newspaper u.

let's get over to contessa brewer. >> here's what's happening right now. president trump engaged 83-year-old utah senator orrin hatch to run for an eighth term in office. the president toured a church of jesus christ of latter day saints charity house in salt lake city and side stepped questions of whether he was blocking mitt romney from running. >> mr. president, are you encouraging senator hatch to run for re-election? >> yes >> mr. president, are you sending a message to mitt romney >> he's a good man the supreme court is taking up a case that could make sports betting widely available new jersey's challenging a federal law that bars states from authorizing sports gambling if the supreme court strikes down that law, 32 states would likely offer sports gambling, legally, within five years, according to one report. netflix has reached an agreement to resume production of "house of cards" season six the show's final season in 2018 production was suspended in october following sexual assault allegations against star, kevin

spacey the final season will not include spacey that's the cnbc news update at this hour. back to. you. so many people see that show as a morality tale in politics for our time it's interesting to see the way art imitates life and life imitates art >> indeed. interesting to see how they pull that off thank you, contessa. we'll see you later. media stocks are higher today. disney reengaging in talks to buy 21st century fox assets. noted investor mario gabelli tweeted this monk, "don't discount the ability of rupert murdoch down an ipo. same regarding viacom, do the analysis!" naur you gabelli joins us by phone. thank you, sir, for joining us >> kelly, bill, nice to be on. obviously following one of my heroes of all-time both in terms of business and what he and his wife did for all of us through the functions on autism and now in other parts, bob wright

so, thank you. >> amen. amen, mario. so why ipo these divisions rather than just selling them to a comcast or disney? >> no, let's assume, bill, it's fairly simple, it's 2.5 billion people in the world in 2000, 1955, there's 7.5 billion today. everyone is walking around with a mobile device like television sets in your pocket. so how do we take our content in the united states and distribute it globally? clearly, fox has great assets in india, in parts of the world, viacom has similar great assets both in distribution and content, but why would i want to pay a double tax so if murdoch sells these assets for $30 billion, he's got -- there's got to be a tax. how do you defer the tax the simple way to do it is to take the assets, we talk about $7.5 billion, cap x on this bundle i take the assets that somebody wants, i put them into a bundle,

i take my debt, i put it on mat bundle i do an ipo. then i do a share exchange because the objective is to reduce the share count as well as unwind the asset. if that's what he wants to do, that would be an easy way to do it why pay a double tax the corporation -- >> mario -- >> go ahead. >> what you're saying, i want to mock su make sure i follow it as you're explaining it, these assets could end up in the hands of comcast or disney by a share sale instead of the way that's being depicted >> that's clearly one opportunity. why would i want to own disney stock? i like comcast, but disney -- >> ouch. >> look, i'm speaking for your church, so don't say ouch. >> why -- listen, disney would probably say, look, the parks are strong, the movie -- the studio franchises -- >> i'm sure -- >> about to launch over the top. >> listen, they can preach for what they want my own reaction is my clients own fox, i've been in the stock, i watched rupert try to buy -- let's assume there are buyers for assets more importantly, you have a

digital revolution going on, net neutrality coming down, you have the ability of broadcasters to buy cross assets and more importantly you got con stent a, how do we go after gen-c, go after the millennials, how do we go after 3 million people in india and china? >> right. >> globalization of the marketplace. which companies want to buy, which companies want to sell, how do we do it tax efficiently? >> let me ask you the same question i asked bob, why do you think the murdochs want to sell these, you're acknowledging sh everybo everybody is, valuable assets? >> well, let's put it another way. following me, i would take my european assets, my asian assets, part of my u.s. linear programming, put them in a bu bundle i take 10%, i go public, i wind up with the company, no debt and includes all of sky then i can negotiate some type of transaction with my own shareholders for share exchange. that makes me more valuable.

so to the degree that you want to exit a business, there are a lot of ways to do it and to the degree that you want to use comcast or disney or verizon or netflix or somebody else that wants to come after them, hey, look, we'll negotiate. why negotiate is the question. and, look, wehen you have done spinoff like the murdoch family has done with news corp., you're ready to a new one it's okay. it's in your dna it's okay. >> mario -- >> same thing for viacom, same thing for all the other buyers and sellers. >> what do you think -- kind of going back to bill's question, though, what is the catalyst for all of this happening now? >> well, we thought that, let's say there's deregulation in the united states, which is a very powerful -- you have a government that's more pro-business than has existed in a while. you have in addition to that the digital revolution, the digital dynamics, and you have companies like apple bezos' company,

amazon, google, so forth, market cap, $600 billion. fox is a tiny company at $70 billion market cap at $50 billion viacom is tiny at $10 billion in terms of the equity value. so, you know, there's a lot of mergers going on and it's time to do it scale up. >> who do you think -- who do you think ends up with the biggest piece of this whole pie we're talking about here >> well, i hope -- >> disney? >> my bet is that the public because there's no way you can have a tax leakage and there's no way i would want my clients that own fox to get a piece of disney without a contingent value right. i want to be locked into a valuation or control the exit strategy >> all right >> you figure on the tax bill, on the tax -- it's not what you sell, it's what you get and what you keep. >> you've already thought the tax part -- you sound like john malone now, too, by the way. >> john -- i looked, there are two guys in the world, john malone i met 45 years ago, you enter into a tax-free zone, you

pay less, pay later. but the greatest guy in that regard is buffett but he's very quiet about it >> yes he is. always good to talk to you, mario. thank you, be well. >> great stuff. >> you, too, sorry i couldn't make it today. bye. >> that's all right. see you later. mario gabelli hanging up the phone. >> which is an old-fashioned hang-up. that was no button you could hear that going. >> that was definitely a landline zblmp 20 minutes left in the trading session here boy, you know, the dow was up as we said more than 300 points at the open this morning. now less than 100-point gain here and the s&p has turned negative. >> everybody but the dow's turned negative. >> yeah. >> i hate to tell you, g, e shares fell below $18 today. also td ameritrade clients are buying it up in droves apparently we'll have j.j. explain why the company's retail inest vesveston the dow's worst performing stock. stay with us and energy to fuel its growth.

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the countdown clock is back we have 17:25 before the closing bell the market is losing altitude here the dow up now less than 90 points the s&p, the nasdaq, the russell, all negative territory right now. >> 90-point rallies never looked

so fragile as it does right now. up next, murray energy ceo has been an outspoken supporter of president trump's he's now calling the republican tax plan, quote, very d moressing. ana ckery of tax reform. we'll hear why in an exclusive interview right after the break. the moment a fish is pulled out from the water, it's a race against time. and keeping it in the right conditions is the best way to get that fish to your plate safely. bacteria can multiply to high enough levels that even cooking it will not destroy all of them. it's definitely the most important thing in my business. how fresh is the fish? where it comes from? how it gets here. the more i know, the better. sometimes the product arrives and the cold chain has been interrupted, and we need to be able to identify

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while we were told the tax reform was supposed to lower corporate taxes, our next guest says the tax bill is going to increase his company's taxes by $60 million a year joining us is murray energy ceo robert murray. mr. murray, good to see you again. welcome back >> good afternoon, bill. >> why are your taxes going to go up? >> the senate's legislation, in fact, is a huge tax increase on capital intensive, highly leveraged businesses the result comes from leaving the alternative minimum in their plan, and the deduction for a net interest expense for the cost of business as you said for murray energy, alone, this will waz oraise oure $60 million a year notwithstanding the other so-called benefits that the senate has proposed. this means that -- >> so just to be -- yeah

>> this means that very capital-intensive, highly-leveraged employers like coal mining companies will be forced into nonexistence with tragic consequences for our families and for many reasons of our country. >> just to be clear, mr. murray, so we saw when they put the corporate amt back sort of at the last minute, so that's on the one hand, it would almost make it that, you know, if you're going to pay 20 forget, you know, whatever else was going to happen, but i'm curious web y when you say they'd delete the net interest expense, is sthat goi that going to happen regardless or the late amt thing they added? >> that's what they added in at 2:00 on thursday night it is not in the house of representatives version of tax reform they added it in to appease certain senators, and it's a tragedy. it will override our computer model show, any other benefits of this tax reform, and actually

cost our company $60 million a year in a fragile industry this is not what president trump envisioned for our country >> mr. murray, couple things, first, you know, mitch mcconnell would be the first to tell you, you can't please everybody you're not -- he's been herding cats trying to get this thing through. there are going to be winners and there are going to be losers in the name of deficit reduction or at least not trying to exacerbate the deficit too much, something had to give, and the amt, the corporate amt, was one of the give brk the givebacks yt in there you're mindful of that >> no, i'm not mindful, and i think there's no excuse nr for t in my company and in america, just on my company, alone, there will be 65,000 americans lose their jobs some of the items some of these senators wanted in are thnot tht significant and yet at the last

minute, they put this in, killing all capital-intensive, all highly-leveraged companies in america and i suspect, bill, there are many companies in america who do not realize what has happened to them if they're capital intensive or highly leveraged no, i don't accept there should be tradeoffs what some of these senators want in their bungling and bubbling around for the last several months is not as significant as for jobs and for america as the tragedy that they put on us thursday night >> i know, i think there are a lot of people as upset as you are in all sorts of different industries so the interesting question is does this get eliminated right away or not let me ask you, what is the effective tax rate you guys pay right now? >> we don't pay a tax rate right now because we have a lot of net loss carry forwards. we have a lot of debt. but that is no excuse and it's

insignificant whether we have a tax rate or not. >> the point is -- >> it overshadows -- >> just so i'm following, you would go from basically paying zero taxes to paying 20% because of the corporate amt, is that right? >> no, that isn't what i said. i don't know what it will be i'm saying that it makes no difference what the fax rate is, kelly. you're missing the point the point is that we are out of business if you cannot deduct your interest expense. >> have you spoken to either of your senators about this, have you called washington to let them know what you think >> i have, sir and we're working on it. >> it sounds like you are. i don't mean to make light of it mr. murray, thanks for your time appreciate it very much. >> thank you, bill, for having me on rng a kelly, thank you, ma'am. >> our pleasure. >> robert murray of murray

energy joining us. >> $60 million a big number. >> all weekend corporate america has been focused on this but been very quiet out of washington. >> i'm gong to do the cashin number now he just told us the market on close orders show an imbalance to the sell side of $900 million. you know, this is partly why we're seeing the comeback in the markets and the s&p turning negative as we head toward the close here >> dow is up 82. we'll see if it can stay green with nine minutes to go. the s&p as bill said now down by two points nasdaq is down more than 1%, it's down 72 points right now and the russell is down five zblmpls after the break, apple suppliers dialogue semiconductor falling today after the company's ceo said it is planning for scenarios in which apple would design and d nufacture its own chips. ancut dialogue out of the equation that story when kelly and i come back ♪fly me to the moon ♪ ♪and let me play amon--

(ding) (bell mnemonic)

shares of apple supplier dialogue semiconductor getting hit hard today in overseas trading. the chip maker falling more than 20% after a big drop it had last week on that report that apple could cut the company out and instead design its own chip in house. on a call with investors today, dialogue ceo said he recognizes that apple does have the resources and the capability to design its own power management

chips, and while he does not expect apple to do so next year, the company is preparing for a number of long-term scenarios. just remind you that earlier this year, apple supplier imagination technologies plummeted after apple said that it would no longer be using that company's chips. you wonder -- i mean, they got all that cash, they've got the know how i would imagine that it would be cheaper to do it yourself. >> i was trying to think of the right expression for it. when you're sort of -- your clos closest friend becomes your biggest enemy, it's a tricky situation for all of these suppliers to be. >> hopefully they got other clients they can work with we'll come back with the closing countdown with the dow up 78 points. after the bell, we've got an exclusive interview with former aetna ceo john rowe. we'll hear what he thinks about the massive cvs/aetna merger and whether he thinks they'll allow the merger to go through when we come back.

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>> we had a big reversal , 28 points in the s&p. >> what do we make of thereat? >> what we're doing, we're testing the lirmt limits to the- stocks getting a boost from earnings look at the bank stocks, they all started strong most are on the upside there's been a selloff in the middle of the day. remember some of these bank stocks are up 7%, 8%, 9% in the past month we're testing the limits of how far we can go on that. >> this is interesting to me, we look at the best performer -- best and worst performing stock today, macy's is among us. the retailers are still doing well gap is up there on that list as well on the other side, advanced micro devices, chip stocks are suffering. >> technology would be the least beneficiary. it would have the smallest earning boost from the tax cuts. the big ones that would make a difference would be energy stocks and financials, logically, they're the ones up most in the last week. >> and even with the aetna/cvs deal, health care did not do well

a lo tt of insurers lower on today's trade. all right. they begin the process of reconciling the senate with the house tax bill we'll talk about that among many other things we got john rowe, former ceo of aetna on the big deal with cvs coming up on the 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. yes, the dow is going out at a record close that's hardly the story today. housht how about a 300-point gain that almost completely dissolved this afternoon? dow up only 37 on the bell after a very strong opening today. a quarter percent gain yes, it's good enough for a record high at 24,288. everybody else did turn lower. s&p 500 down down three points today. it's the biggest reversal for the s&p since last february,

february 2016. over in the nasdaq, weak performer all day continuing a theme from last week with the dow and nasdaq going in opposite directions nasdaq down 1% on the close. the russell 2000 dropping about 4 1/2 points good for a third percent decline. we'll be talking about what's going on with the markets today in a minute. ish lower after cvs agreed to buy health insurance aetna for $69 billion making it the biggest health care deal ever cvs lost 5% today. former aetna ceo john rowe will join us shortly in an exclusive interview to weigh in on the deal and potentially more consolidation across the health care space joining me now is cnbc senior markets commentator michael santoli at post 9. next to jeannie why yayatwyatt. all the way from san antonio welcome. cnbc contributor guy adami checks in from the nasdaq. good to see you, sir the big leader on the dow was disney with a big move higher. we'll talk more about some of the deals potentially going on

in that space. nearly 5% higher close for disney, while microsoft went the other way shedding nearly 4% today. over in the s&p, macy's led the day. retail had a pretty good session. while alliant technology was down 11% and all of health care today lagged michael, what the heck is going on >> yeah, i mean, look, it's a pretty ugly backslide move over the course of the day for the market you don't want to sugar coat it, on the other hand, if you woke up and said this is going to be the day we got after the expected senate passage of the health care, you'd say no big deal i do think, though, what the reversal has sown you is people came into december pretty heavily view stocks, pretty much counting on an extra catalyst with the tax bill and we're seeing the limits of how much cheap beaten down domestic-oriented value stocks can carry this market. most of the earnings and most of the multiple of this market is in the growth stocks that have been winning all year. the losers in the s&p, adobe, paypal, activist, stuff people

couldn't own enough of going into this month. >> jeanne, are you making moves in the market? the last week or so created interests dislocations. >> i think it's interesting. we're finally seeing a shift from growth to vaenl those tlue two are countersi countercyclicl large cap growth stocks have been leading the way especially technology, very narrow market run. >> yeah. >> you're seeing some of that unravel a bit. i think it will be a good healthy move more emphasis on the value stocks. >> are you buying any tech names on the selloffs here or are you -- >> actually, we are, some specific situations, electronic arts is one we're watching very closely, they continue to buy with the pullback. even microsoft yes, there are several tech names that we like, but we're encouraged to see that like the financials today, citigroup has been a big stock for us. >> look at bank of america with a huge move higher today. >> yes yes. it's wonderful we've been raising our exposure to banks u.s. banks you know, they're really going

to benefit with higher interest rates and lower regulation at least not more new regulation >> right. >> that's a great environment for banks. >> guy, do you think this is all sustainable? this has been a counter trend to what we're seeing all year, so do you kind of say, okay, well, the nasdaq is going to reassert itself, this will just be a blip or do you think there is an actual leadership rotation that's going to take place here? >> there's a huge rotation taking place without question. i thought last week this was just a blip. a couple days later after the fact, now you're starting to talk about thematic things and interesting the guest just mentioned higher interest rates are going to be beneficial for banks, except we're not getting higher interest rates, either. i don't want to make a huge deal out of it. mike talks about it all the time you're talking about two tens in terms of yields at levels we haven't seen in a decade again, doesn't seem to matter until it does. so i do think this rotation will contin continue

i understand why bank stocks are going higher i also understand why transports are going higher i think a lot of people are late to the game. for example, kansas city southern, the time to buy that stock was when president trump was talking, you know, a lot of the rhetoric about mexico back last november. that when it was an $84 stock. now it's in the one teens and everybody is getting excited about it so it's interesting, you know, i think we're late in the cycle on some of these names but we're just beginning potentially in a lot of others. >> is all right. we're circle back to this. the dow did hit that record after the senate passed its version of tax reformulate friday night it does still need to be reconciled with the house version. we've heard big concerns that corporate america does have. eamon javers joins us with the very latest now. eamon? >> hi, kelly, a bit of a head scratcher over the weekend from the president after that bill passed the senate. remember, the president had said his line in the sand was a 20% corporate tax rate on saturday, he said this.

>> business tax all the way down from 35% to 20%, it could be 22% when it comes out, could also be 20%. we're going to see what ultimately comes out >> reporter: the president, himself, there, floating the idea of a 22% corporate tax rate a lot of people scrambling to figure out what he meant by that including marco rubio, the senator from florida, who put out a tweet right afterwards said "for days heard anything more than 20% would be anti-growth and cat strocastrocc less than 12 hours later 22% is now an option? marco rubio proposed raising the corporate tax rate in the bill a scooch to pay for the expanded child health credit. that measure was shut down rubio expressing frustration over the weekend the president is talking about this idea of a 22% rate not clear that will go anywhere. but they are going to have to negotiate the differences between the louse and the senate bill there was some thinking that maybe the house would simply swallow this and vote to pass the senate bill, but it looks right they're going to avoid

conferees tonight and go to the negotiating table to hammer out the differences. there are a lot of big differences between the two bills and looks like there are a lot of negotiations still to come nonetheless, the expectation is republicans have the vote to get this bill done and send it to the president and the expectation is he'll definitely sign it, kelly >> eamon, at this point, how quickly might we expect to see this come out of conference, do you think? >> i think they're going to try to do it as quickly as possible. there's the alabama special election looming in the senate, right? that could bring somebody into the senate whose vote is a question mark on all this. the vote is narrow very narrow in the senate. they've got one vote to spare. so that could be something that they don't want to get in any way -- anywhere near so we could expect that they might try to do this this week or next week. we'll wait and see what the timeline is. >> all right, eamon, thank you mike, it's december 4th. that election is december 12th although it might take a few extra days for them to figure out who won. >> certify the winner. >> yep. >> seat the new senator. >> learning a lot about just how

exactly that process works >> yeah. look, i mean, obviously tough to handicap this. i do think the market is in a mode where this is what the traders think matters to other traders. so we're going to key off this for a while. i will predict, though, that whatever does come out of it, tax cuts will not be the market story of 2018. the market is going to dispense with it -- >> because they won't go effect in 2018? >> we're going to reprice stuff probably in a hurry knowing the way of the land at some point and have to find something else to fix sate on. >> i was going to ask, jeanne, whether now we bought the rumor saenl the fa and sell the fact. >> right, right. >> if this has been part of the 30% rally since the election -- >> absolutely it has been. absolutely you know, it's been from the day after the election, that's been the full anticipation. and it is important, i mean, it totally will affect corporate earnings, corporate margins, stock buybacks. >> will it move the share prices my point is simply, again, look at the actions -- >> could be all discounted

i think a lot of the reality, again, there are a lot of details, the devil's in the details. a lot of realitiy ies once the l is passed to sort through. and individual taxpayers are going to be pretty much very disappointed because there's nothing for the individual taxpaye taxpayers, in fact, it's a bit of a headwind to home buyers and homeowners and property owners. >> you're in texas, i don't want to hear what your property taxes are. you guys could get a windfall. you could get a lot of people sayi ining san antonio's never looked better. >> that's right. come to texas. >> let's talk about the big deal news of the day, cvs did reach a deal to buy aetna for $69 billion. the largest acquisition of the year although shares were down for cvs nearly 5%. aetna fell 1.5%. guy, what do you make of this one? >> what i make of it, well, there's one word that everybody's been talking about today, i think it's amazon they need both those players need to compete at that level. i think that's what's going on here this deal had been talked about for quite some time.

recall, obviously, cvs/humana was in the work s and that got nixed. it's going to be beneficial to consumers. it's going to force the hands of a lot of people. for example, does walmart instead of dating humana like they are now, do they go full fledged and buy humana those are the types of things you can see. the world we live in now is everybody trying to get ahead of what amazon could potentially do i think you're going to see more of this, not less. >> mike, the interesting thing about him bringing up walmart, the idea for cvs is to say we have stores, minute clinics, walk in, bring down the cost of care on tease plhese plans, wal could off that -- >> they could. the question is whether walmart has to be a buyer or deepen its partnership with humana or somebody else. also cv was as a percentage of the business was definiteliry more all-in on the benefit managers if it feels like it needs to own those different parts of the food chain, it's because the pbm was already there and the

in-store clinics. >> walmart you can argue found its footing on the retail side whereas if cvs hasn't and is relying on the pharmacy business, does it to have to be more -- i'll ask you, where does that leave a walgreen boots who now looks like the only pure play left? >> that's right. well, it's going to be very interesting to watch i mean, it is -- i agree, i think it's good for consumers but you potentially have three dominant, dominant players in there. >> and real quickly, why was health care so weak today? >> it's groit growth if you look at the medical device companies, all these global, you know, kind of low tax rate growth stocks, that was in the category that was getting smacked today. all right. in other deal news, we had disney reengaging in talks to buy 21st century fox assets. media stocks were higher across the board. as we mentioned earlier, disfully wdi disne was the best performer in the dow. mario gabelli pooh-pooh'd this

>> i also think, you know what, the entire space has been ratcheted down so i think disney, the stock, probably a little bit ahead of itself i would look for other players that have maybe half the multiple, for example, viacom seemingly has gotten its footing in terms of stock and discover, if you look at the discovery channel, disca, for example, that stock off the lows has been pretty interesting move to the upside i think you have the bob iger effect -- >> 7% today. >> -- going now. when he says things, people want to believe what he says. but i think if you really examine disney's business, the last couple quarters have not been particularly strong >> i think disney needed this boost. it's been a meaningful laggard in the market. disney has been really held back because they need more content for their streaming, and they really -- they really have to

step up and do this. i think it's a win/win >> go ahead, mike. >> i was going to just say, these stocks were caught up, yes, in the consolidation chatter once again, but also in the broader rotation because they have been laggards. like retail. they have been kind of considered to be the secular losers so that's part of the reason i think they were coming back. >> these are sharp moves you look at was up 3% today, as we said discovery up about 7%. disney -- comcast was up nearly 5%. >> despite a downgrade, actually the cable guys got downgraded this morning >> right. >> no, i do think there's some excitement that the asset value is being spotlighted again in part because of the m&a talk, in part the businesses haven't gone away that fast and people got used to this retail move i keep making the comparison, physical retail, considering to be amazon to oblivion. all of a sudden they're on a comeback that's lasted five or six months. >> today was another example of that before we go, how about blue apron popping 18%? after barclays upgraded the

stock. deals may limit the downside with apron given come son dags consolidation in the space jeanne, do you own this one? >> no, we don't. no, we don't coming back to things for 2018, i agree, it won't be the tax bill any longer. we'll have one, i think. i think it will be m&a activity. >> even more than we're seeing now? >> yes going to be lots of corporate plans for what to do with offshore cash, they've been waiting for definitive -- some clarity on what the new rules are. >> guy, we'll give you the last word blue apron or whatever, your choice. >> we learned over the last seven, eight years it's impossible to be short stocks like that because you wake up one morning, there's a deal, you're 40% in the hole i'll say this, i got a blue apron package a few months ago i cooked h i had the apron on, the whole thing. the food is great but they've become commoditized. they see limited downside. i see only downside. >> you got an apron out of it.

>> and i look good. >> thank you, guy, very much for joining us guy adami, jeanne wyatt, very mump appreciate your time. catch guy and the rest of the traders on "fast money" at 5:00. they also got a top technician breaking down why now might be your best collapse hance to get into tech. the aetna brand will not disappear, that's the belief of the former ceo in the wake of the deal with cvs. he'll join us on that next. federal ban on sports wagering outside nevada is being tested today before the supreme court. coming up, how the sport biz landscape has changed and how it could pave the way for legalized sporting gambling. we want to hear from you, outsitr the show and share you thgh wh us you got twitter, facebook r e-mail you're watching cnbc, first in business worldwide we know life can be hectic.

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so you don't miss your favorite show. and with just a single word, find all the answers you're looking for. because getting what you need should be simple, fast, and easy. download the xfinity my account app or go online today. cvs is buying aetna, a $69 billion deal that will shake up the health care industry what this could mean for other companies in the space cnbc exclusive, we're joined by former aetna ceo john rowe dr. rowe, thanks for joining us again. >> nice to be back. >> so for starters, this already do you think this is a response to amazon? do you think this is an effort

to look more like united health? what do we think is the primary motivation for this deal today >> i think both of these companies have been trying to increase their foot pretty prinn health care. they've been broadening their points of attachment with a customer in a variety of ways. aetna has been doing more consume er directed such particularly on the web. cvs has been developing minute clinics and home infusion program and so on. from that point of view, it's a natural step in the evolution. i think there are three things that are triggering it one of them you mentioned, kelly, is amazon it's not quite explicit yet. what they're planning on doing, but whatever it is, it's scaring cvs. number two, united has had some sacks success with their integrated model of a payer provider and subsidiary i think that's good data point for aetna. >> yep. >> i think thirdly, the fact that those horizontal mergers between aetna and humane that and cigna and anthem and

walgreens and rite aid were all rejected by the government is forcing people to think more vertically across sectors in order to increase their footprint. >> is cvs just sayi ining that will lower the cost of medical care for customers a as a way of currying favor to get the deal done or do you think that will actually happen? if so, why >> i heard you and mike comment on this earlier. n you gave two different reasons i think you were both right. i think it is true it will reduce the cost and care at the point of care. because minute clinics are less expensive, more efficient way to deliver usual primary care by that, i mean a blood pressure check, a blood test to monitor your cholesterol going in to get a throat culture or vaccination, et cetera. and that should reduce premiums and will probably reduce costs for the patient at the point of care in terms of a co-pay. the second point that you made was also right and that is the infusion of

millions of aetna members into the cvs program is going to give them more leverage with the drug wholesalers. they should be able to get better prices, and some of that, at least, should pass down to the benefit of the customer in terms of lower premiums. >> john, you mentioned that these companies have been sort of driven to look at a vertical merger like this having been blocked to get bigger horizontally, but of course now we have to question whether the government will allow this type of deal after at&t/time warner, is now under some scrutiny. so what do you think -- not so much handicapping what the government might say about this, but should it be a concern to regulators >> i'm not a regulator, but i don't see how this is add van attenti to the customer and i think that's what the decision should be about these are large national companies and we're not talking about enormous market share. i mean, aetna has 22 million customers. there are 318 million people in the united states. we're not talking about a 40%

market share here. there may be a given area where there might be some intensity z due to the consolidation in terms of the overall deal, it's hard to imagine mthat it would not be seen as helpful to the consumer. >> all right there's much more to discuss for now, john, thank you so much nr your time. >> thank you very much. >> john rowe, former ceo of aetna. coming this march, cross roads of health innovation and investment comes to cnbc at the inaugural healthy returns conference, held wednesday march 28th in new york city. for more information and to get tickets, go to cnbc.com/healt cnbc.com/healthyreturns. breaking news from the supreme court. eamon javers, what is it >> this will be viewed as a win to the trump administration and welcome news at the white house. the supreme court is stepping in allowing president trump's entire restrictions on visas, you remember his travel ban, to be enforced now with dissents, blocking a lower court ruling it said it could not be

enforced against close family members of people inside the united states. so the supreme court allowing this to go forward now you remember the president had said that this was not a quote/unquote muslim ban or discriminatory in any way. the president has broad d discretion to take action to control who can come into the united states and who can't. the critics of the travel ban said it was discriminatory based on religion and points of national origin. all of that has been hashed out in the courts. now a win here today for the president and supreme court. we'll bring you details as soon as we have them. >> if the ban can go into effect against six countries, what is the immediate effect going to be on travel from any person within those countries? >> yeah, that's a good question. i'm going to have to get some more detail on it, kelly, before i can pontificate on exactly what happens immediately the timing of all this, typically, when they lift these restrictions, is relatively quick. the processing can happen fairly quickly within a day or so and

they can be up and running we have to just take a moment to digest this, make some calls and figure out exactly what we're going to look at on the ground and what people might see in airports and things like that. >> yeah, supreme court -- man, they have a way of just -- i can't say it's terribly surprising sol some of the lower rulings, they were highly political. at the same time, this will be seen as such eamon, thank you, appreciate it. eamon javers. we have an earnings alert to get to with leslie picker. earnings, leslie, how'd they do. >> it's by many measures an ugly quarter for ascena i want to draw your pennsylvania attention to the stock price down 15% look at the eps that was in line with what analysts were estimating about 11 cents on n d adjusted basis on the revenue side, same thing, in line with what analysts estimating, $1.59 billion. what the market is looking at here are same-store sales

guidance for q2. the company is estimating that will be down 6% to negative %, that's versus the estimates of down only 3% i also want to read for you a quote from the press release from the ceo of ascena retail group categorizing the quarter says "we were unable to capitalize on the improving macro traffic environment due to fashion missteps that we cannot afford in today's environment. so, and relatively ugly quarter for an industry that's obviously been very challenged kelly? >> yeah, that's for sure thank you, less lie. anything you'd add on ascena >> no, obviously the market thought they'd be able to capitalize on those opportunities because a lot of chain retail has come back a highly leveraged company the old ann taylor, lanes brand right place this mean. >> down 17% after hours or ascena. what are the odds?

what the gaming industry and sports leagues are trying to figure out for the possibility speaking of a supreme court of a ruling favoring legalized sports betting for the entire country we'll explain what's at stake for this one next. starbucks announced it was shutting down its teavana stores a judge in indiana brewed up a another idea that's coming up in our "takeaway. accumulations up to 8 inches... ...don't know if you can hear me, but [monica] what's he doing? [lance] can we get a shot of this cold front, right here. winter has arrived. whooo! hahaha [vo] progress is an unstoppable force. brace yourself for the season of audi sales event. audi will cover your first month's lease payment on select models during the season of audi sales event. i thwell wait. what did you meetthink about her? it's definitely a new idea, but there's no business track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data-

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in the u.s. supreme court. eric has a look at how the sports landscape has changed and may change again if the court okays sports betting eric >> that's right. earlier today, kelly, the supreme courtoral arguments. potentially huge implications here depending on the outcome, we could see legalized sports betting across the nation. that could open the door to legali legalize $150 billion in estimated illegal gambling the case goes back three years when new jersey passed a law expanding sports betting in that state only at casinos and horse racetracks pro sports leagues like the nfl and nba, they challenged new jersey saying the expansion was illegal according to a 1992 federal law banning sports betting around the country the leagues have won every court decision so far, but new jersey has appealed all the way to the supreme court. >> willing to talk to the sports leagues. sports leagues have never been

willing to talk to me. they thought they were going it get rid of us a long time ago. they never met me. day have now. >> there's a lot at stake. the court could say the federal government is unconstitutional wom which would allow every state o offer its own version of sports betting. they want one federal law regulating it, not 50 states each doing their own thing legal experts who are in court today said new jersey had the upper hand based on the questions and comments coming from the judges. there's to ruling expected until the spring back to you, kelly. >> all right so i got to ask the longtime sports fan, mike, you're a baseball guy, here's my issue. i don't want this to look like the uk with a william hill on every corner i mean -- >> i question exactly how big the market will be i know that it will be prominent, with ill be a huge rush initially. >> yeah. >> i wonder if it's just a very dedicated core of people who would actually engage in it very much i don't know if you need the physical power -- >> that's true how big a market do you think we're talking? my guess is it would be

absolutely huge. what do you think? >> the estimates on illegal gambling which, of course, they're estimates because it's illegal, $150 billion to $400 billion a year that's gambling is already happening. it's not people are going to start gambling it's just a matter of switching those people from illegal to legal stuff that you don't have to hide in the shadows and then the state gets some taxes out of it >> eric, while you're here real quickly, recode is reporting that facebook's hiring, looking to hire an executive, citing the "sports business journal," what would be given a few billion dollars to spend on global sports rights. think that's going to be a big deal >> it's a start of something we know nfl streamed nfl games if you're trying to do a ten-year deal, for example, that money dries up pretty fast it's a small number to get started but it's interesting to see them competing directly with the broadcast networks for sports coverage. >> gambling's good you could gamble while on facebook watching your games all ties together. >> oh, gosh, here we go. er eric, thank you.

time now for a cnbc news update, let's get over to c contessa brewer. >> hi there, kelly president trump signed a proclamation to scale back two huge national monuments in utah, pledging to reverse federal overreach and restore the rights of the land to the people. he made his plans official during a speech at the utah s t state capitol. >> some people think that the natural resources of utah should be controlled by a small handful of very distant bureaucrats located in washington. and guess what they're wrong. a change in the way tips are shared could be coming a proposal from the labor department would allow employers like restaurant owners to require staffers to share tips with back of the house workers like cooks and dishwashers but only if they make at least the federal minimum wage of $7.25 an hour. the new york giants have cleaned house. firing embattled head coach ben

mcadoo and general manager jerry reese in the midst of a 2-10 season mcadoo was widely criticized for the way he handled the benching of longtime quarterback eli manning. defensive coordinator steve spanielo named sbrem he ed sbedd coach. >> what a saga that has been thanks, contessa brewer. on wall street, started up 300 points on the dow today, lost almost all of it. closed higher by 58. that was still a record close. different story for the other averages which did turn lower. s&p down three, nasdaq down 72%. more than 1% small cap russell shedding five points. let's get to some of the other big stories today in our "rapid recap." >> cvs health agreeing to acquire aetna, $207 a share in cash and stock, about $69 billion. >> it's really the perfect time to bring these two companies together to create a new health care platform that kcan be easie

to use and less expensive to consume consumers. >> think of an idea, we have 10,000 new front doors to the health care system, people can walk in, they can ask for some help, get guided to the system we can make the insurance the backroom of the operation. >> the stock market is going to have a big day based on the massive tax cuts we're very much in the process of getting aproou bla approved >> so far he's right, house is back in session a day early following the senate's passage of the tax reform bill earlry saturday morning. >> more than 90% of bills that go to conference end up getting signed into law. the chances of tax reform getting to the president's desk are pretty good. >> when you have done a spinoff like the murdoch family has done with news corp., you're ready to do another one it's okay. it's in your dna. >> it's a tragedy. it will override our computer

model show, any other benefits of this tax reform and actually cost our company $60 million a year and it's time now for the "takeaway. we begin today with arby's which apparently isn't done after buying buffalo wild wings. axios reporting the chain owned by roark has much greater acquisition plans. roa roark, they call it inspiring restaurant brands. this is all according to a pitch deck for the fund. michael l, c michael, couple things, do can you like a concept of sort of a rollup, who might be next? >> it makes sense to have a rollup on beaten down orphaned restaurant chains. i do think that makes sense. in fact, it sort of follows along the j. a.a.b. model, roll up coffee-related chains. i will say 35 chains have changed hands this year. >> 35? >> small a lot of them are smaller but they do include some larger ones

like pop eye's and others. the other thing it isn't like they have a war chest that's going to let them go after chipotle or something. $2 billion a lo the of money, you could leverage it a little bit. if it's multiple deals, it's going to be on the smaller end. that's a good point. next, you can't just close the money-losing stores and malls anymore. an indiana judge ruled starbucks must keep teavana locations open at least in malls owned by simon property group it's because the judge said, well, starbucks has more financial capacity to handle the losses which amounted to $15 million over 5 months. they had more capacity than spg was the judge's o pin yoiopinio. what about teavanas in other malls? is it going to be decided on who can handle the pain basis? >> that seems to not be the normal way of deciding thee things definitely a hometown judge. simon properties, an indiana company. you don't know if you want to extrapolate this out to a general precedent. it's really fascinating.

i mean, look starbucks was never saying we're financially strapped and can't afford to keep teavanas open. >> they were saying we don't want to. >> we don't like the concept, we're going to shut them down. >> i didn't see whether it was going to be appealed sounds like maybe it should be. >> said starbucks was exploring the opportunities. it's not clear on this basis if they can these are going to be the only 15 teavanas they leave open in the country? >> the whole thing is a little change. finally we could be nearing a mega ipo for chinese phone maker xiaomi and could pursue a listing next year. it sounds like they're looking to hong kong for the listing which could raise as much as $5 billion. the company has lost some momentum in recent years it was valued at $46 billion three years ago and wanted $100 billion market cap but that may not realistic now. i know it's -- >> it's an interesting test. i think if nothing else, really the headline is what you mentioned there, $46 billion three or four years ago in a

raging technology tape now they're basically looking to match that valuation it's hardware. it's not obviously the kind of magical platforms that people like to buy right now. >> it's access to the china market, michael. >> that is true. that's what is sold. basically anything you could make the case about the chinese consumer has sold even here on the new york stock exchange. i also don't really warm up to companies that have a huge round number of valuation in mind. so if that's, in fact, the case, in fact, that was facebook's problem, for some reason they wanted the $100 billion out of the gate and had a tough year after that. >> that's a great point. tune into "squawk box" tomorrow, andrew ross sorkin in shanghai for the world's largest starbucks for its official grand opening. he's combining two stories there. he'll be sitting down with ceo kevin johnson and executive chairman howard schultz to talk about the new roastry and plans in china and elsewhere don't miss it. investing in china also rose in popularity last month alibaba and ten cents were big buys in november for td ameritrade customers two vulnerable american brands also generated some investor buying

we will reveal those companies next. crossover vehicles have become the hottest automotive sales property now everyone is getting into the act including one of the biggest s me the in luxury cars. n those details are coming up. you always pay

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welcome back td ameritrade's investor mooumt a movement index which measures -- as the market soars to record highs, here to tell us what stocks they bought and sold in november, j.j., at td ameritrade general electric was withdraonee ones that popped out because apparently this is what retail investors are buying. >> people say, stot ck is getti killed, et cetera. we tell people buy when it's low and buy good companies over time why would this not be a company that people do that for? and in fact, what's surprising on this, kelly, our millennial investors. >> yes. >> like ge quite a bit you think millennials -- >> commercials -- >> yeah, exactly. >> there's got to be a novelty to a stock of a big and that's trading where it was 20 years before, right?

honestly, on some level, a lot of attention for that fact as well. >> still involved in so in businesses yes, they shed a lot of businesses but they seem to be back to focusing on what they do one thing we saw from the last earnings is if you change your -- if you let wall street know you're focusing on doing what you do well, lot's forgiven >> there were plenty of momentum names, tesla, amd, nvidia, micron, at&t, these were all the stocks people were buying in november interestingly, they also sold names like qualcomm, costco, foot locker, starbucks, nike, twitter. kind of a grab bag. >> it really was so on the buy side, i'll touch on that really quick, we saw third hont month in a row they t the chinese stocks alibaba, j.d., ten cent. that's really interesting. hitting 52-week highs, continue to buy them, not sell them. >> some of these names are up 70%. >> on a sell side, nike and costco, hit 52-week highs and people can't wait to sell them maybe it's more of the retailers rather than the retail delivery

met methods that people are getting rid of. >> in general, it's a pretty hot number biggest one-month jump, i think i read the tenth month in a row where there was no net buying than selling. >> we don't like that. sounds like it's going to be a contrarian -- >> maybe so. the reason we started it, again, it measures people who enkbgage once a month they've done really well when you overlay the charts with the s&p 500. somebody who touches the market once year and looks at it, probably doesn't do as well. they spend more time planning their vacation the people who engage with the market i think have -- >> let's talk about another hot-button issue as the tax plan moves through washington, you guys are focused on this fipo issue. sounds like they haven't changed it yet we talked to senator grassley last week, he cede we're going to take it out, we exempted the mutual fund industry, we're going to exempt individual investors from selling stocks when you're in the lot instead of specifically identifying them i haven't heard a peep about it. >> it's still going in the reconciliation process which i

believe starts in a couple hours in d.c sthaunk y thank you for mentioning this is a main street issue and affects how particularly retiree s. >> banks you don't have to be a client of ours.investor, you can type in your zip code and mail your representatives and senator. we think it's important for the average person. >> raises such a -- what do they care if you leave it in the bill, $3 million or something. >> not a large amount of money compared to what you normally talk about in d.c. this is a main street issue. this is not a wall street issue. >> j.j., thank you always a pleasure. >> thanks for having me. >> j.j. kinahan from td aher h

trade. today's closing word is mainstream sales of crossover vehicles have more than tripled over the last six years which is prettyb. we'll get a look at the ultra ry cuv later on the "closing bell." you're watching cnbc, first in business worldwide

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lamborghini joining the likes of porsche and launching its first luxury crossover vehicle. we're going to get a looatk the

car and talk about what it means to lambo's bottom line right after this

lamborghinien vail its first -- is it an suv? phil lebeau joins us. >> it looks like a crossover utility vehicle to me, though they gave us great vehicles off-road as if it's a true suv this is the aurus. it was unveiled in italy, lamborghini's first suv. the price $200,000, and for that, you will get what they call lamborghini performance wrapped in the finest material it goes on sale next year. you might be saying, who would pay $200,000 for a luxury suv?

you know what? ultra-luxury suvs and crossovers are red-hot right now. it started with the g-class back in the 2008-2009 period. look at the seams numbers. there's about 4700 sold worldwide, and by 2020, because you're going to see new models from other luxury brands as well,i expect to do reach almost 30,000 we have yet to see suvs from astin martin, rolls-royce and guess who is talking about getting into this space, even though the purists are saying don't do it -- ferrari they may make some kind of announcement in the next year, they too realize -- >> i mean, phil, it's kind of a sort of really high-profile example of this megashift in the industry, where no one is making sedans anymore, no one is buying

them anymore i think toyota's top-selling car now is the rav4. >> this has been going on in the mass market for a number of years. their families, maybe their wife, somebody at home may see, okay, you can drive that and take it wherever you want to take it, and go 100 however many miles per hour i want to be in a lamborghini. there you go now you've got your suv, your crossover, and make no mistake, kelly. as much as they say all of these have great off-road performance, most are being driven around usually by a driver and somebody is in the backseat the ultra-wealthy, they don't always drive themselves. >> it urus >> they even struggled during the presentation, most of all it

o-rus. >> it's guru without the g >> thank you. today's closing word is mainstream and tomorrow there's an exclusive interesting view with ian moynihan on "squawk alley" 11:00 eastern time don't miss it.

so that's the idea. what do you think? hate to play devil's advocate but... i kind of feel like it's a game changer. i wouldn't go that far. are you there? he's probably on mute. yeah... gary won't like it. why? because he's gary. (phone ringing) what? keep going! yeah... (laughs) (voice on phone) it's not millennial enough. there are a lot of ways to say no. thank you so much. thank you! so we're doing it. yes! "we got a yes!" start saying yes to your company's best ideas. let us help with money and know-how, so you can get business done.

american express open. [ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future. yours.

it's time for today's closing word today the word is "mainstream. we're not talking about media, but bitcoin. this weekend bitcoin prices closed in a $12,000, up about 1,000% so far this year. it's already minted the first billionaires in the wingle voss twins. just today the cboe announced they'll go on december 18th. it's not just the changes.

>> i can't believe a sing bitcoin is worth -- >> it's a big bang wind fall >> what are you going to do with your share of the money? >> buy a tiger. >> don't count your bitcoin. >> it's empty -- >> do you know where it is >> that was last week's episode of "the big bang theory. absence also had a plot line as well it's not all good news >> obviously getting too big and too buzzy and the trajectory of that price has gone two conspicuous. and that's just regulators, people trying to sort out what the rules of the game should be.

>> when it started, mostly used to kidnapping, drug dealers and shadowy internet, that certainly wasn't a way for it to become mainstream, but i get questions about it everywhere, from everybody all the time if you want the big picture, a piece of real estate on the future of some kind of pair a let internet somewhere, but it's not being treated as money. >> no. >> which is the way it was initially conceived, a decentralized currency. >> so you can rely on the price of hairwith you, and one week later it's not changed by 1,000%. and we saw venezuela launching its own. i feel like they conflay vets different goals. just because blockchain has

important promise -- >> you're talking about a software process that's really all we're talking about and everything gets the name of cry ocurrency. >> michael, this is why we love you. >> because i'm old "fast money" starts right now. >> the stock market i think will have a very big day based on the massive tax cuts we're very much in the process of getting approved, but based on the vote we had last week, the stock market has been reacting unbelievably well. >> that's how the day started anyway, but not how it finished. yes, the index showed up, they