time just sold it friday. i see activity in there today. snacks frommor east coa ofrom o. >> disney. we cover the name at luke capital. we have a hold on it, courtney has a buy on it. i think the fox deal will be huge. >> thanks for watching "power lunch" starts right now. the biggest change to your taxes and corporate taxes in 30 years about to happen in minutes. the house on the clock the vote that could redefine the tax code for the next decade we'll bring it live with full market reaction within minutes l will that tax vote give it the green light? we'll debate and it's not just your portfolio. how will that tax bill impact some of the most crucial parts of the american economy from retail to real estate? we break it down for you i i'm brian sullivan "power lunch" begins rightnow.

stocks giving up early gains ahead of the tax vote. the dow transports did manage in an intra-day record high before turning lower. energy and consumer staples the best performing sectors. real estate utilitys the biggest laggards as we are seeing the biggest rise in the ten day-year-old darden restaurant rallying, beating earnings estimates navistar is soaring to 10% the truck maker comfortably beating profit estimates revenues also beat navistar calling 2017 a breakthrough year of the company. shares of chicago iron tanking, being bought by mcdermott international for $6 billion in stock. the two companies provide construction and engineering services for the oil and gas industries that stock down almost 7%. >> thank you very much, melissa. welcome everybody, i'm tyler mathis mathisen we begin with breaking news. the house all set to vote on the

big tax bill in the next half hour the biggest change to the u.s. tax code since 1986 or thereabouts. it will affect every business and every household in this country one way or another the senate could vote tonight, send it to the white house for the president's signature. ylan knew wi has been there forever it seems covering this story. >> tyler, this looks like a done deal for republicans vice president mike pence is coming to capitol hill to have lunch with the senate gop, he's going to be sticking around throughout the afternoon and into the evening just in case they need his help to break ties, but the only question mark here in the senate is republican jeff flake the last time we checked with his office, he said that he was undecided but republicans are already billing this tax plan as a campaign promise they have kept it is a major legislative victory for them even though new polling shows that the bill remains deeply unpopular

the harvard harris poll shows only a third of americans support the tax bill broadly speaking but only about 68% of americans they they don't have enough information about this bill so clearly they're not watching cnbc here when you look at specific provisions within the tax bill, the numbers look better. 80% of americans say they support expanding the child tax credit so those are the numbers republicans will hone in on as they count on this tax bill as critical to cementing their hold on the majorities in congress in both the house and snaet in 2018. >> what is the margin that the gop have in the house? you mentioned flake might be the only one in the senate who could vote against it because everybody else i guess has declared how many votes can they afford to lose in the house and how close could it be? >> so they can afford to lose two. right now senator john mccain is home in arizona saying he will miss the vote, that puts the

republicans down to 51 republican votes so if jeff flake votes no, republicans will have 50 to the 49 no votes from democrats, assuming they all hold the line. so there has to be one more republican in there who waffles on this in order for vice president mike pence to step in but clearly they're not taking any chances. >> how about the house, ylan, what's the margin there? do you know? >> the house needs 218 in order to pass this bill. it looks like the only real opposition is coming from those lawmakers from high-tax states new york, new jersey, et cetera, who were going to be voting no on this but they are not a big enough block to really kill this bill. >> ylan mui, thanks very much. >> let's get tobob at the new york stock exchange for the latest hi, bob. >> the debate about whether or not there's any more juice left in this tax cut rally has begun. take a look at the sectors it's important to note that we start on the upside in most of

the sectors, we are now mixed and banks which are up earlier or not that was a big beneficiary of the tax bill here. other issues from the market, a little problem from the fang stocks we got a downgrade on apple, apple has been weak throughout the whole day so has the rest of the fang stocks overall but they're all still positive the big question is what happens now that the tax bill is imminent i want to point out. while we're debating the tax bill for months this got real at the end of november. that's when the senate budget committee advanced legislation on tax reform and as you can see here, the market lifted off, it was moving sideways for the last several weeks and took off and this became real now we see a clear rally in the last few weeks, look at the major sectors since november 27 you've got the s&p up 3%, the transport rallying, banks would be a very big beneficiary of tax cuts, also up strong, the

russell 2000 and semi-conductors, many of them pay a lower tax than other ones have been trading to the down side so now the debate is going to begin. what extent do we have this rally effectively over and should people take profits at this point i can tell you there's not a lot of consensus we'll talk about this more in the later hours and certainly tomorrow guys, back to you. >> we'll see you soon, bob thank you very much. here is the trillion question after a huge year this year, are stocks and your money likely to keep moving up next year or will a long-awaited pullback finally happen quincy crosby is chief market strategist with prudential financial. kevin mann is president and cio of walsh asset management. do we sell stocks because the tax bill looks like it's going to pass? buy the rumor, sell the news >> it's happening right now but it's not going to last what's going to happen is you'll see money come back in and the santa claus rally gains momentum the only thing -- i look at in

terms of the santa claus rally is do we see a rebalancing of the pensions like we did last year to take advantage of those stock market moving up much higher and the ten-year yield moving up higher and then grabbing that yield and rebalancing. we saw that last year and we may have that this year. but as far as next year is concerned, you still have the same underpinning for the market and i think you're going to see the president talk more and more about infrastructure spending and that is going to be his next agenda piece before the election starts. >> understood but kevin there has to be buyers is this line of thinking bunk? the people who buy stocks have extra money. they tent to live in states that are blue, new york, new jersey, connecticut. we don't know the real impact of -- everyone we talk to is nervous about the value of their home, about their ultimate tax burden our buyers going to pull out and see what happens to their tax obligations next year?

>> i don't think so, i think there's plenty of reasons to be optimistic for 2018 and this has been one of the most hated bull market rallies in our country's history. if you look at certain sectors of the market one area that is a net beneficiary of tax repatriati repatriation why? because big companies have excess cash to spend. >> don't they have excess cash right now that they haven't spent in 2017. >> they'll have more. >> so they need billions more than the billions they have on their balance sheet. >> and there's more drugs coming out in the patent and they don't have a pipeline to replace the revenue. the other area i see is small caps. >> you like infrastructure are you thinking in january with this tax bill under their belt that congress will have momentum for infrastructure in january? >> i think so, trump has already talked about it not just vis-a-vis the accident yesterday but that he wants to unveil a plan, whatever that means. at least initially

but the point is i think it's going to start to see the industrials which already have a bid from this plan and global growth but you'll see the industrial commodities continu to pick up as long as chinese data continues to continue in the upside but infrastructure spending could be a big boost for this economy. >> where is the money going to come from? >> i think they'll be creative one thing that will be interesting, the democrats have wanted this. at one point it was their plan then it got lost in the shuffle. we'll see if he can get bipartisan support for it but clearly this is going to be a -- an underpinning for the market. >> we've looked at this year as a very powerful american rally, and it has been but it's been a global rally does that continue next year and if so, where is your best target of opportunity equity wise >> i think it does and i think 2017 will mark the year that the baton was passed officially from domestic equities to international equities, we like

europe, germany in particular, we still like england, we like certain countries in latin america and we think the old brick trade minus russia is an attractive place to place money but there's still opportunities when it comes to the u.s. and if you look under the u.s. in financials is one particular area that can benefit from rising interest rates and also benefit from a less -- more accommodative infrastructure. >> all right, quincy, kevin, thank you. >> thank you. >> pleasure. the s.e.c. is talking about the crypto company 575 yesterday. >> the s.e.c. has halted all trading in this stock, albeit temporarily. it went into effect this morning around the opening bell, 9:30 a.m. eastern time. it's going to go until just shy of midnight january 3 and the reason why and because i have the document in front of me right now, the u.s. securities and exchange commission, the

s.e.c., says that they are temporarily suspending tradings of the crypto company because of concerns regarding the accuracy and adequacy of information in the marketplace about, among other things, the compensation paper promotion, statements in the commission filings about the plans for the insiders in the company to sell their own stock, questions have arisen concerning transactions in the company stock in november of 2017. this is an interesting story because it's the first time regulators have stepped in and formally cracked down on a company halting all of its trading because of what could be considered by some so much sketchy trading in the stock the reason why i mentioned such a big deal -- unlike these other stocks like the riot blockchain or the long fins that trade millions of shares because of some of this hyperbole around cryptocurrencies, this is a stock in the crypto company -- by the way, we have reached out for comment. crypto company trades on average

800 or 900 shares a day. >> what? >> and you look at overall shares, it trades on average over the last 30, 60, 90 days. so in order to move a stock from $3 to $13 to $575, you need a few hundred shares of trading have l yum to make that happen so that's why regulators are looking strongly at one of these companies and that's why reason why it could be a reality check for some investors out there. >> you have to be careful. let's take a step back awesome interview on your show last night i want our audience to step back and understand what's going on there's a company called block one. they have no product, they sell a token that they said has no purpose and they have no office. they have $700 million from investors. there's a company called future fintech -- >> oh, you went there. i was going to say -- >> ftft.

you mow what their former name was, sky people fruit juice. it was an apple concentrate company in china they went from fruit juice to blockchain. >> i should mention, you mention future fintech, ftft, the big disclosure there before you start thinking about this, this is a ten million market cap company, a stock that's lost about two-thirds, three quarters of its value over the past year. so when we talk about companies who are looking to cash in on some of this craze, they changed their name to something that's blockchainy, fintechy and they get a bid. >> i'm glad you made the distinction between the crypto company and long fin a little bit of a different story. the similarity here is that long fin financial basically a fintech company.longfin financi fintech company. it went public last week then it bought another company that touted itself as offering a blockchain solution to importers and exporters out there. what happened to the stock after that it soared. so yesterday we had the ceo on

"mast money" and here's what he said about the company's new valuation. >> i'm a profitable good company. people are -- this market cap is not justified, if you look at my revenues, i valued my ipo pricing, look at it, i valued my pricing at $5. five times my revenue. >> that company went from $5 at ipo to the high of $142 in yesterday's session. had a roller coaster ride. during this interview the stock went down about 36% of the afterhours session only to trade higher in today's session but this shows you there is an appetite out there the market will do what the market does to these stocks, to be fair to the ceo and to be fair to this company but this shows you the mania surrounding anything with blockchain associated with. >> it put blockchain in your name -- >> fintech, blockchain, crypto, bitcoin, ai, machine learning. >> our acronym is cnbc, there's

a lot of opportunity there for blockchain, bitcoin, crypto, we could do the whole thing. >> two c's in that name. >> and a b for bitcoin. >> exactly right. speaking of. does it seem like everybody's talking about bitcoin and blockchain if you think so, we have some numbers that may surprise you. don't go anywhere. we are moments away from the house vote on the biggest change to the american tax code in 30 years. it will imctpa you i promise. "power lunch" returns. ♪ ♪ ♪ ♪

what we do every night is like something out of a strange dream. except that the next morning... it all makes sense. fedex powers global commerce with vast, far-reaching networks... deep knowledge of industries... and, yes... maybe a little magic. ♪

take a look. you are looking live as bruent musburger used to say, there will be a vote on the final version of the tax reform plan it will be the biggest change to the u.s. tax code in 30 plus years, the senate have l vote on the same legislation, scheduled to, later tonight. add to this just some days left to prevent a government shutdown and there the chairman of ways and means kevin brady really one of the fathers of this tax legislation just yielding the floor. joining us to discuss is representative dave brat, republican from virginia, member of the freedom caucus. congressman brat, good to have you with us. do you represent the seventh district by any chance is that the district you represent? >> you got it, lucky seven. >> my father worked for a variety of congressmen who worked for the seven district for many years

jack marsh, french slaugter. >> wow, yup. >> i'm very familiar the district is a little different than fs back then. but that's not why you're here to talk. i assume you're going to vot for this tax bill. >> absolutely. >> i assume you expect it's going to pass. >> yup. >> but why are so many individual americans not convinced that it's good for them the popularity is well below 50% depending on what poll you look at what are they misunderstanding >> well, i don't think they're misunderstanding anything, they just watch d.c. and the swamp over the past couple decades and the average american hasn't had a wage rate increase in 30 years so you can hardly blame them for being skeptical, right and so we've got to convince them, the best evidence i always say, go to vegas, you can go to vegas and check the odds the odds on for this thing passing and economic growth and what will happen to the debt and deficit, what will really happen to your wages, politicians are going to sell you. i'm very optimistic. i taught economics for 20 years at college level and a single

mom at $40,000 is going to get over a thousand back $70,000 family with two kids gets $20,059 back. corporate rates go way down. we're competing with ireland that has a 13% rate. the deficit and the debt is the big deal the opponents are using that one as the biggie and so the tax bill itself, that may not pay for it, but the economy will if you keep growing at 3% like we are right now and the feds saying we're getting to four for the next couple quarters maybe, that pays for it all we have to come up with is $150 billion a year. if you're growing at three, that does it. so across the board on every major issue i see, it's a winner and so once people see in february their withholding go down and their take-home pay go up, that's going to be great. >> that will make people feel happy. take me -- i suspect that one of the things that individual taxpayers question about this legislation the idea -- they get the idea that corporate taxes

need to come down probably, that they're coming down to make them more competitive but individual taxes don't come down as much. put on your economics professor hat and explain how lower corporate and business taxes are going to -- in your view, i'm sure you believe -- flow to individuals in the form of higher wages and the like. >> the easiest argument is all of civilization you had massive central governments in charge of human history until 1776 and everyone was poor. everyone in the world made a thousand dollars per capita. then what happened you decentralized, you put money back in the hands of people, you incentivize business and then you grow and so instead of making $1,000, the average american now makes $40,000 or $50,000 a year and that's the answer. china and india, when i started teaching economics 20 years ago were making a thousand dollars

per capita now they're up to ten grand because they went with free markets so you have to be pro business business is where you go to work every morning so if you're not pro business i don't know how you get pro growth and pro growth is the only thing that makes you richer to me it's common sense. if you give money back to the consumer that's good, too, right? you get a demand side pop. but the only thing that increases productivity is people working with more capital in hair hands so we're going to incentivize capital, give you full expensing in year one. you're going to see more capital equipment purchases and then more hiring. so the college kids i taught for 20 years can go out and have multiple offerings right now you husband toll find one job -- >> congressman brat. listen, all that aside, you're in virginia. you are the epitome of the stake that has taken new jerseyians,

new yorkers, virginia all red has gone a lot blue, especially around the d.c. area, people are moving south. >> yup. >> do you believe that your state, the great commonwealth of virginia, tyler mathisen, will see an influx of population from the higher tax northern states >> well, i mean, that's the ultimate irony, right? everyone hates the high tax -- well, they don't hate. they don't like paying high taxes so they're moving to virginia to have a pro business low tax rate and then they come and they're voting on the other side of the aisle for higher tax rates and more regulation which they just moved away from. so, yeah, it's a little bit of an irony and also the state only grew at 0.6% last year we always used to outpace the country as a whole, right? which grew at 1.5% so virginia grew at 0.6 and guess -- a lot of government workers, they're all solid people, but if they want a pay raise, guess what? you better get economic growth in virginia going so we can pay your tab so i don't get it.

everybody should be 100% pro growth no matter what line of work you're in. >> we have to leave it there find me a house in madison county. >> nice stuff out there. that's beautiful. >> you like the bridges? >> i like williamsburg, too, very nice. congressman bratt, very much, appreciate it. another company placing an order for tesla's semi trucks. "power lunch" will continue.

♪ for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts, over the course of the week, to about 10 pounds of carbon dioxide. growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt. by embedding sensors into the pavement,

as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. that data runs across our network and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter. who knew asphalt could help save the environment? i put everything into my business. and i had all these points from my chase ink card. so i bought ingredients, utensils, even made custom doughnut cutters. wow! all with points. that's how i created the ripple. the doughnut, in a doughnut, in a doughnut. suddenly, it's everywhere. i mean, it really took off. what will you create with your points? chase for business. make more of what's yours.

the list of companies signing up for tesla's electric semi truck is getting longer add u.p.s. to it the parcel delivery company is buying 125 of them, the largest order so far for the electric big rig. each truck costs around $200,000 tesla recently got a pre-order from pepsi for 100 trucks. trucking company jb hunt, food services company cisco and walmart also have orders in. take a check on tesla shares today. it's trading lower along with most of the tech sector but it has been a good year for the stock. up more than 55% in 2017. all righty, coming up, the moment we've all been waiting for. the tax bill is set to go to a vote in the house of representatives. we will bring you that vote live when "power lunch" returns do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time

for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

here's your cnbc update for this hour. the senate banking committee rejecting president trump ice nominee to run the export-import bank two banking committee republicans -- senator tim scott and mike rounds -- joining committee democrats in voting no

to former gop representative scott garrett. >> in this particular case i think they tag add person who they thought had a real interest in the bank but unfortunately i think his interest was in abolishing the bank, not in making it a reformed bank. south african olympian oscar miss or theus seeking to get a lighter sentence he was found guilty of murdering his girlfriend in 2015 and rome's official christmas tree continues shedding its needles and facing public ridicule, poor thing that looks pretty pathetic since first being lit on december 8, the condition of the tree has worsened. it has been nicknamed spelaccio meaning thread pair or mangy that's what it means no

the vatican christmas tree is apparently gorgeous so it's a study in contrasts >> haven't they ever seen "charlie brown christmas?" >> that's what i thought, too. let's bring in cnbc's contributor larry kudlow and chris lew, former deputy secretary of labor under president obama. gentlemen, good to have you with us larry, i'll start with you it will be a big day tomorrow at the tax bill signing on the docket already bull there. >> i will. >> why is it that the american people aren't convinced about this tax bill when you look at the polls? >> well, it's tricky polls are polls. depends how the waiting goes, republicans versus democrats. i think this will sell itself once it goes into place. that's the important thing years ago with reagan people were not persuaded until they were persuaded reagan wasn't reagan in 1981

he became reagan in '83 and '84 when the economy exploded. it's very exciting for a guy like me working on this for a couple years with steve moore and steve mnuchin. i'm glad i'll be at the ceremony this is the biggest tax cut on the business side i reckon in history. maybe i'm wrong there it will have a powerful effect we're the on from end of a big investment boom which is going to helpevery single working american and will create even more jobs for more working americans. >> chris, i would guess you have a different opinion here on why the bill does not garner the kind of widespread support larry thinks will come its way after people get familiar with it. >> you know, i will agree with larry that polling numbers are fickle and these numbers are tied to the president's unpopularity but i think it's clear the american people see

this bill for what it is which is a big give away to corporations and the super wealthy the challenge going forward is will the american workers and american voters see the benefits before the 2018 midterm elections and who will do a better job of selling the benefit benefits right now this is a wildly unpopular bill we've been talking about the tax implications, we haven't talked about health care what this does to the 13 million who will lose health insurance as well as the higher premiums that are going to affect a lot of people. >> how can we say, chris, with definitiveness that it is an unpopular bill i hear politicians say that. i'm just curious i'm not challenging you, i just wonder where we're getting that. >> the poll numbers show this is polling in the mid-20s to low 30s. this is not me saying this. >> but you're polling people that have not read the bill. you're asking people do you like a food you've never tried. >> that's exactly right and i

think a lot of this is tide to trump's own popularity and his correct. he sold this thing as a massive tax cut and that this will raise wages by $4,000 for the average worker the question is if people will see that if they don't see that they will be disappointed and benefits that go to the super wealthy. >> let me chime in tax cuts for the rich, that's an old saw. that has nothing to do with anything we're not going to punish success, we're going to reward success. i wish the top rates had declined even more middle income rates keeps declining. the joint tax rate shows middle income are the biggest winners over ten years polling -- john and jim mclaughlin, two pollsters have been on this network many times. their polls, do you favor the trump tax cuts when they weight the polls giving republicans 32% and 35% and democrats 36%, 37% which is the average of the last four

elections actually 57% favor the tax cuts. i must say, the proof of the pudding will be in the eating. you'll get it fast by february the irs will release its new withholding tables and people will see marginal pay and the business side is lr working. you look at the cap x neck buums and the overall economic numbers, people are ready to pull the trigger big time. i'm very optimisti >> this morning's cnn poll, 55% oppose the tax reform proposals, 33% support the tax reform proposals. so i agree. >> v you can make polls say whatever the hell you want them to say you dropped in a not guilty bet

that people will lose their health insurance is that technically correct? or is what will happen that because the individual mandate forcing people buy insurance disappears that those people will elect not to take health insurance and because of that you will have more unhealthy people in the risk pool therefore premiums will go up. i want to get precision in the language there as to whether people are having their insurance taken away or losing it. >> exactly the congressional budget office has estimated in the next ten years 13 million people will have -- 13 million fewer people will have health insurance, next year that will be four million fewer and premiums will rise 10% and they will rise because a lot of the healthy people in the pool will choose not to have health insurance which will cause premiums to rise and that will make premiums ultimately unaffordable for many people. >> but chris, i have to push

back i don't want to be rude but you know -- you've been in the game, you're a veteran, those cbo numbers are not worth the paper they're printed on cbo has vastly -- and i mean vastly -- overestimated the so-called signups. they changed their logic and reasoni reasoning. i look at ending the individual mandate as liberating. it liberates the free market, it liberates choice it may bring down premiums and will bolster the private exchanges and that's part of this growth package. i know we'll disagree. i get that but it's important to recognize that the cbo has a terrible record and you're basing your estimates on the cbo and i can't buy it, my friend. >> let me tell you, when republicans want proposals to go through, they're happy to rely on cbo projections, let me say this, this is the basics of how an insurance system works. you can't have an insurance system that allows healthy

people to go out and create an unstable risk pool that's not me saying that, that's insurance companies, that's doctors and nurses. >> we're awaiting speaker ryan's concluding remarks, i gather preparatory to a volt. larry, you would know this when the top marginal rate has been cut in the past under kennedy initially from what was 90% to 50% and then under reagan down to 28% or thereabouts, the share of tax that was paid by the high eest earners has gone . why do you think that is chris and if that is how can one say this is a big tax give away to the wealthy? >> the numbers you've been showing all day show that people in the lowest bracket get about a $6 tax cut

obviously it is true that people who make the most amount of money will get the biggest tax cut. the question is if you are going to come up with a tax reform -- let's be clear, this is not a tax reform proposal, one that was the revenue neutral one or deficit neutral one that ronald reagan signed, you probably wouldn't have created this way if you were going to deliver more benefits to more people and come up with a better way to spend a trillion dollars >> but there's a bigger more important reason than this arth arthur lau arth arthur laver's whole modeling was not based on that. laffer's rates -- his point was the lower the tax rates in general the less tax avoidance and tax sheltering goes on. >> i buy that. >> i agree. >> while lower rates lead to a

higher share of gdp or however you want to lack at it paid by the so called millionaires we'll see this on the corporate side you wait the corporate tax rate going from 35% to 21% is going to knock out all these choices to go overseas with 700 companies in ireland it will pay for itself within three or four years. >> i just wonder how long the irs will take to get the refunds out. about 40% of americans get a net refund a net refund we saw delays last year. with these changes to the tax code, it could be a big benefit to companies like h&r block that provide up front loans >> and the irs hasn't been invested in by successive congresses. >> really. >> gentlemen, thank you very much chris, larry, we appreciate it it's basically all over but the shouting here. the vote is just moments away. stay with us we'll be right back.

i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital.

♪ ♪ ♪ ♪ what we do every night is like something out of a strange dream. except that the next morning... it all makes sense. fedex powers global commerce with vast, far-reaching networks... deep knowledge of industries... and, yes... maybe a little magic. ♪

laffer. >> with the house vote on the tax reform bill under way, we want to turn to one of the sectors analysts say could be a huge beneficiary from this pending legislation. that would be retail, isrt is up 12% in the last three months joining us the is oliver chen. great to have you with us. >> hi, melissa, happy holidays >> happy holidays to you your note stuck out. you took down the companies in your coverage universe down to a 24% tax rate and adjusted the earnings growth rate what we saw, planet fitness through nordstrom is that you have an increase in your price target is that sustainable? >> the sensitivity analysis in terms of what we looked at, the upside here is about 17% across the sector so that's a nice booth in terms of the tax rate

coming down. the big question is how much will this be reinvested? retail is a tough sector some of this may not filter down to shareholders as companies look to gain share through lower prices that's something to watch as well but department stores, planet fitness, those are nice beneficiaries. >> planet fitness has 100% of its revenues j jill has 100% in the united states so those are the biggest beneficiaries. are you saying these retailers are going to use tax savings to bankroll promotional activity to cut costs? >> it's a huge theme and dynamic that's happening as we think about what's unamazonable in this sector, a lot comes down to deep value, costco, t.j. ross, what consumers like is deep value and we've seen billions of price investment from walmart to

target so for sure there will be dynamics and that will be a factor as each of these companies chooses different strategies to reinvest as well. >> i want to take macy's as an example of a stock that in the past month has soared probably in part of the back of tax hopes, you say the price target could go to $28 a share up by $5 if we see that tax rate drop to 24%. we'll see eps growth of 21%, oliver for a company like macy's, does this change fundamentals at all? people say you can give a lower tax rate to a company that's not doing well. >> there's definitely a lot of pressure in the sector in terms of the future of the mall. the mall has been a tough place and they have too many stores at macy's however every little bit helps and this could get macy's breathing room and freedom to think about how to reinvest in

the store experience and hopefully consumers will have money in their pockets as well. >> oliver, i have to interrupt we're going to paul ryan. >> members and the staff of the ways and means committee, i want to thank them for this [ applause ] i want to thank one of my predecessors from the ways and means committee who helped lay the foundation to get us to where we are today and that is dave camp. dave camp did a lot to help us get to where we are. ment i want to most of all commend and express my profound admiration to the architect of this measure, chairman kevin brady. [ applause ] his endless patient and persistence and great demeanor have seen this through to where we are today

my colleagues, this is a day i've been looking forward to for a long time. we are about to achieve big things, things the cynics have scoffed at for years, decades even ideas that have been worked on for so long to help hard-working americans who have been left behind for too long. today we are giving the people of this country their money back this is their money after all. >> you're lying! >> speaker of the house is not in order. >> the chair notes a contravention of the law and against the rules of the house the sergeant at arms will identify the person or persons responsible and have them escorted from the house chamber. >> you're lying! >> before proceeds will resume. >> only the rich people -- [ muted ]. >> lost audio.

all righty obviously a demonstration there in the house and i guess the feed has killed the audio in case some language that would not be suitable for a polite audience or in the chamber of the house. >> we can't have that in the house. those walls have never heard words like that before, have they we've got the sound back. >> the chair will remind all persons in the gallery that they are here as guests of the house and that any manifestation of approval or disapproval of the proceedings in the house are in violation of the rules of the house. the chair recognizes the gentleman from wisconsin, the speaker of the house. >> i would like to remind my colleagues and the speaker that my minute can last for as long as i want it to last [ laughter ] i'm just saying. as i was saying, mr. speaker today we're giving the people their money back the bottom line here is the typical family making the median income in america will get a $2,059 tax cut next year alone

clal cl what this is is real relief for families living throughout paycheck to paycheck struggling to make ends meet. you know, they paychecks to paychecks. they hear about the economy getting better and they turn on the tv and see the stock market going up we need to make sure that these people in the community and country who are struggling see their own personal economy getting better and that's what this is all about. we got to understand that times are tough for a lot of people in this country right now today, this is about how much better things can be this is about more jobs, fair taxes and is about bigger paychecks. it is about faster growth and upper mobility and strong economy that makes all of us stronger and healthier those are the effects and the benefits of tax reform here is a heart of it.

here is why this is so vital that we do this. here is what it speaks to and what i truly believe is a generational defining moment for this nation. our tax code is so broken that it underminds the very thing that makes our nation exceptional in the first place it punishes hard work and is courag discourages our spirits and limits our potential of our own people when americans see good jobs going away when americans wake up and see the companies that they grew up in the communities that they are going away, they wonder if we have lost something bigger the mission that drives us here today is to restore this beautiful american idea, what is that idea? that the condition of your birth does not determinethe outcome of your life you can work hard, play by the rules and get ahead and make a

better life for yourself and better ones for your kids. we want people to be free to strive and make the most of their lives. we want the country with the resilience to endure and tackle all of its challenges. mr. speaker, economic growth and job creations will not solve all of our problems but it will help make all of our problems to much easier to solve. this is the direction that we are choosing here today. we know exactly where this leads us for years the powers that be have blocked in stone wall reform under a condescending and arrogance ideology it is a view of the world that

sees life in the economy as a zero your gain comes at my lost and therefore, we cannot do it look at where this got us? the work recovery since world war ii, flat wages and the economy just limping along stagnation is a breathing ground for a class base society where it predetermines the outcome of our lives. that's not the american idea they'll tell you this. just hand over freedom to the unelect bureaucrats and they'll figure out they'll know more and they'll be okay. more of your hard earn dollars to the irs will all be okay? there is your scam right there we know given the pportunity, there are no limits to what upper people and our fellow citizens and brothers and sisters can do for years now this tax code has

been skewed to the well connected, full of special interest carve outs and loopholes. the hardworking families of america have to jump through all the hoops that the irs can muster we clear out these loopholes so people can keep more of what they earn in the first place because it is their money in the first place. [ applause ] reforms means simplication two that's amazing and given the opportunity, there are no limits to what our workers or entrepreneurs can do. while the world has changed, the world is becoming more competitive and closer and smaller, our tax have not.

instead of leading, we have been fallen behind to the point where we are in the worst o the industrial world of how we tax our businesses we taxes our business a whole lot more than competitors. they win, we lose, that's not fair it is basically open season for our competitors to come in and take our jobs over seas under the current tax code reform means we go from back to the pack to the front of the pack so instead of the slow growth that we have been going through for years, we want to get to real sustained economic growth we want to build an opportunity economy where there is more demands for higher paying jobs that's the whole purpose of all of this. make sure that people can grow up and reach their potential and make sure the jobs are there to give people the careers that they want so they can reach their potentials so their families can reach their potential. that's why we are doing this this is without question the single most important thing

we can do to once again make america the best place to do business there is more just in this bill. with this bill, we are restoring the freedom making your health choices by repealing the mandate at the heart of obamacare and buying the healthcare that's right for you and your family. finally, we are doing something truly to put america in the lead we are truly historic to develop our own energy resources some people have been working here since i was in the second grade of this project. after decades and decades in the chamber, we are opening up a small non-wilderness area for responsible development. it is the most ambitious step we have taken in years to secure our own energy future. this is one of those times just take a step back.

lets just get a minute and collect ourselves and stem away from the noise we talk a lot about these jobs about turning points there is no doubt that we are at one of those turning points right now. this one, will determine the country we are going to have in this country too often we have seen before how dove creeks in and how the t tyranny of short term thinking takes over and how history fails to turn. there is after all a reason that this has not been done in 31 years. this really is a generational defining moment. and lets this moment be defined by optimists and not by fears and not the decline that we have become too familiar with this is our chance, this is our moment, lets turn at this turning point.

lets reclaim the principles that have guided us for generations lets recapture our destiny for generations to come so the beautiful story of the american idea is repeated and passed onto the next generation and a nation more united and confidence and mr. speaker, more free >> pass this bill, mr. speaker, pass this bill, i yield. [ applause ] >> we have been listening to house speaker paul ryan recapping his case for the tax bill on which the house will vote today the senate vote will follow a mandatory ten hour of debate in that chamber and accommodate a vote tonight or tomorrow morning. lets get to ylan mui in dc. >> reporter: this is an historic day for republicans as you just heard speaker paul ryan given a

passion speech calling this a generational defining moment steven mnuchin is also watching the floor from the speaker box as well. for speaker ryan, this is a personal one he spoke today about the last time that republicans did tax reform in 1986, he was flipping hamburgers at mcdonald's so he has come a long way spent his entire adult working life on this issue so this is indeed an important moment for him and it looks like again, republicans do have the votes for this to sail through the house and the senate later on tonight thank you very much. there is expected to be a vote in the house the first vote is likely not to be on the tax bill there is a procedural vote we are expecting the second vote will be the deciding vote in the actual tax bill. just the procedural note there

larry kudlow, i thought larry, it is an passionate speech by the speaker. the line that stuck out to me was paul ryan saying to me, if you want to scam, giving your money or giving your power to unelected bureaucrats or giving your money to the irs, that's the scam there is nothing in this that's the scam. >> it is your money. right up front, we are giving their money back referring to taxpayers. it is a tremendous -- this is paul ryan's best, i have known him since he was a young guy in power america in the early '90s. this is ryan's best time talking about opportunities and growth and rewarding success and more take home pay and i want to also add, someone mentioned, ylan mentions that steven mnuchin is there. kevin brady gets a huge kudo and

mnuchin never waiver on the growth message and tax cuts itself, he gets a big kudo and the senate gets smaller kudos along the way. >> you did not mention gary cohn >> mr. cohn worked hard on it. too. >> the reason i mentioned mnuchin is this -- oh, we are going to show you that vote and just to be clear here as ryan mentions -- >> that's not a vote >> well, it is part of the procedural vote that basically as i understand the parliament a parliament --you see a lot of democrats voting yes, they woul like to see this back to congress >> exactly right so you would see a lot of republicans voting know because

they wanted to proceed and not voting a lot this will take about 15 minutes and presumably we move rather briskly once this motion -- >> can i respond to that -- >> let me turn to ylan for a quick thought here and we'll come right back to you >> democrats are not giving up here as you can see by the vote of what's happening right now. the floor proceedings were interrupted by protestering protestering -- protesters shouting "kill the bill. you can bet that democrats plan to run on this bill as well saying that it is a move that republicans took that hurt their class base >> that was one of the points that our prior guests was making was the idea that this law may give democrats a populous

weapon >> no one is going to know how it affects them. >> i would ask on that subject particularly where are the jfk tax cutting progrowth democrats which we wrote about in our book. they are gone and the whole party takes ten giant steps away from that to the left. they are hoping this fails and i believe this will succeed based on my reading of history we'll see. >> lets continue to see the stock market goes up and the economy do well and your 401-k is doing better and 529 you will be able to use not just for post secondary education but k-12 >> your government union pension fund does much better with the stock market there are benefits i think to your point tyler from a political standpoint lets be clear. this is what i worry about and you can comment on this. the obama plan passed with no

republicans. healthcare passed with no republicans. >> right >> our senior major tax code change likely passed with likely no democrats it expires in serven years. could we sway the other way if democrats take the house back. why are we in the situation where each party is one side or the next, it is bad for democracy and this country, it is bad around the world. why cannot one of the other party ever agree with anybody, anybody? bill >> agree with that >> it honestly makes me sad. >> it is part of our democracy, no, it is agreed with the poinu made i have made it many times myself we are in a polarized position i take your point, you are exactly right. >> one vote, one vote. >> i agree with that, it is what

it is. these guys are professional politicians and my opinion is i know there are disagreements i think in the name is very good policy and i want to give president trump some credit because people told me two years ago when i started this, don't believe them and he's going to leave you hanging. >> when we say 20%, there were doubts around 20% and here we are at 21% >> let me finish my thought. what i am talking about is business planning. if the house or the senate go to the democrats in six years or two years or four years or whatever, what's to stop them from undoing this or doing their own thing and getting through no republican votes if you are running through a corporation, how do you do it when this is about permits >> that's my point you are correct, that's a risk unfortunately, tax policy has high risk to it. there is nothing we can do about

that when the great society legislation was passed, it was done in a bipartisan basis that's gone. i hope it comes back i agree with your point. we just have to live with it >> but, but, don't let the good enemy be the perfect there are flaws this this bill >> there are flaws in every bill >> steve forbes calling this a down payment >> down payment on future's tax reform there will be corrections coming up on this one you got to play the hands that dealt you politically. that's what i am saying. i give a lot of credit to the leadership they stuck with >> we should know the procedural vote is still under way. in the meantime, we want to get to eamon javers who's also in dc >> reporter: there is nothing like having the vote to put the spring on your step. we saw paul ryan giving his

extended one minute remark there in support of the tax bill i can tell you their up bbeat a the white house and they feel very much this is going to pass and broken it legislatively. they were not able to get the obamacare repeal done. that was met with some finger pointing, the white house now, they feel like they have the system down and they're a little bit more organized and effective in communicating k capitol hill and able to pass this major piece of legislation which they view is as political win their and sets them up for some legislation win next year and what are they going to move on from here. we are told they are going to be moving onto welfare reform and in the early part of last year but sort of fell by the wayside, one of the things to look at was they pass the bill

today, does it tee them up for other legislative winser early in the year. you have to pass early legislation by the end of the year it becomes difficult to move anything there maybe a window now to do a couple of things as well as tax reform bill today. >> political climate it really changes the political climate. >> in terms of the momentum. >> that's exactly right and probably changing the economy. >> lets take a quick break as this vote as about six or seven minutes left and we'll move to the main course of "power lunch. atl he vote on the bill itself we'll be right back.

let's get started. show of hands. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.

all right, the vote continues there, it is a procedural vote of four minutes left to go this would be a vote to send the bill back to a conference committee with instructions. you see a lot of democrats voting yes on this motion to recommit and a lot of republicans saying no, that's the last thing we want to do is send it back to conference once this procedure vote is out of the way, we'll move onto the main event the major averages are basically steady a little bit in the red right now. you see nasdaq is of the most of half a point bob pisani is tracking on the floor. hi bob >> they're having a vote over the house and we are having a

vote down here as well the vote is, do you sell on the news in we have been talking about this tax code and you can see here we don't have a lot of energy today i want to point out what the markets have been doing since the tax code got really hike november 28th, that's the day when the senate budget committee came out of tax reform we were sideways throughout the good part of november and the market start taking off right after this you can see some clear winners and losers banks for example would be a big winner here. you can see conductors to the sown side and transports have been down. that was the lagger. the important question is where do we go from here the spread on the two and the ten years have been steepening

noticeably the last couple of days finally a little steeping of the year's curve back on friday or early on monday morning bank stocks which i mentioned before of the big beneficiaries have not been doing that well the last day or so overall, you can see moving sideways some people say it is priced in already and we are running out of steam the point here is there is a debate that's begun in the last several days about whether anybody should be selling on the news about this and given the fact that the market have clearly advanced in the last several weeks on the tax legislation. right now the dow is down 22 points, guys back to you >> stick around, we'll get more on wall street's take on the tax bill brian, what's interesting first before we get into tax, i was talking to somebody at your shop a couple of days ago and they said you guys are focused on

financials and insurance companies that the tax bill is good but some deregulationulatioderegulationst we had is better, is that fair to say in. >> on the tax side, banks pay a high effective tax rate. they don't get high benefits next year we think a senate bill that's going to modify some parts of dodd frank. it should pass or probably pass. what we'll see is not the biggest banks but some smaller banks that we call the small mid cap banks. we think there is some growth opportunities for them and these artificial dodd frank's barrier thresholds got lifted. we think to go back to a more normal m&a environment and not for the biggest banks. we are dealing with regional and community banks. so you put the two of those stories together we think it is a compelling story going into 2018 for banks.

>> brian, according to your analysis, when you run a 20%, we are running a 21 we'll go over the 20s. you see eps boost of about 18% for the small and mid cap banks. is that factored in at all or do you see this particular sub sector banks vastly under valued it has a lel moittle more room o run. every company is going to be different and everbany banks ar different on how much of the tax cut goes through the bottom line and makes its way back to shareholders i think the next event after the passing of the bill for investors to look at are the fourth quarter when we get into january. those are pretty important events for informing investors of bank by bank how they are going to benefit >> brian, our bob pisani is reporting that the yield curve

is finally steepening. i think that's a sign of fast economic growth to come. yield coaurve steepening and banks, how do you see that >> i think we are positive on it i think banks do well on that environment. one, the curve is steepening and two the long end seems to start to go up for the right reasons which is economic growth >> so, i think we feel pretty good about that. >> brian, here is the question that everybody is debating down here, this supply particularly to the banks since they had a big move up as you know. how does it look for the evaluations and you know it is expensive right now. we are at 20 times, 2018 earnings if you throw in the tax cuts and another 10%, you get down to 17% and a reasonable number. to advance the s&p 500 next year, you got to be comfortable and say we are staying at multiple 20s do you think the market can make

an argument that'll stay rich in the 2018 >> you can make that argument. i think they have room to run that maybe the overall market maybe is pricey but in terms of historical values, i think we feel as a dprgroup pretty good. this rally is not over it may take a pause, right it is a good run of the chart that you had earlier maybe it is time for the pause when you get in the new year's, there is another part of the bank story from the policy side which is the dodd frank fixes. that th that's a powerful argument that's going to propel banks and stocks higher. >> that's what i was referring to at the top of the interview which is those changes and again talk to us about what it may means for bank mma tax reform is the story we are

waiting. this is not the only big move that the government has done what does it draw down, we'll call it a dodd frank, what is it going to mean for bank deals >> brian, when you look at dodd frank, it had a couple of different thresholds the main one that we look at is the $50 billion threshold. when a bank goes over that side, it triggers high burden. banks below that have been reluctant to grow above that organically or mma what legislation proses is raising that threshold and giving the feds a little discretion how it regulates it it has not incur added or compliance cost or we are not worried of the increase cost that comes along with it banks under $50 billion of the

$30 billion unless we see that's a sweet spot for banks that are going to want to combine and merge and so that's part of our theory going into the new year of increase banks mma activities but at a specific part of the mark we still think bigger banks, the universal banks when you get over $300 billion. we are talking about the jp morgans. they're going to have a difficult time engaging in mma activities it is particular to sector of the banking industry which are the small and mid cap banks. >> brian gardner, thank you very much >> we appreciate your time the capital in the background there lets go inside the chamber of the house. a motion has just defeated by a vote of 233-190 on party lines to recommit and send the

conference report back to the conference committee for further instruction. when we return, we expect the main vote on the big tax bill on 503 pages if i am recalling correctly will begin we'll bring you back after this.

most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley i used to have more hair. i used to have more color.

and... i used to have cancer. i beat it. i did. not alone. i used to have no idea what the american cancer society did. research? yeah. but also free rides to chemo and free lodging near hospitals. i used to maybe give a little. then i got so much back. i used to have cancer. please give at cancer.org.

all right, folks, the main vote has begun, we are told and there it is beginning. it is a five minute vote with 3:40 left on the clock there is no two-minute warning there will be no replay and it looks right now as though this bill is off to a big league. presumably those from blue states of state and local taxes are a major local issues such as the new york suburbs of new jersey and connecticut the house is voting on the tax bill it is a quick vote when they get to 2018, they'll have the vote but it is not passed until the gavel comes down >> steve liesman and larry

kudlow is here with us about the fact depending on the polls, there is not a lot. >> it is hard to find what's interesting. is there support in the house? >> 26% of the public approving of the plan, by the way, just 56% of republicans which is a low number for the party passing in this bill the one thing republicans have gone going is the large number of people who say they don't know and they are unsure it is up above 30%. obviously, i think results are going to show here what's interesting in our polling is that people don't believe we got our tax cut so this idea that there is a tax coming, if they actually get a tax cut. >> right now going in, it is sort of politically astonishing.

>> i just hate to see us obsess about this polling stuff no matter how good or bad they are. holding rights are going to be change by the irs. the investment tax cuts which are huge and changes the whole landscape for american business. corporate tax rate, expenses and the repatriation i believe that beam are goipeopg to be polling and they are already started to do so that's going to be what's popular. >> the 218 margins have been clear. there are 224 yeas and 11 nays from the republicans and 187 nays that means that this bill has the vote to carry but as we pointed out earlier, it is not official and there could be some last minute jockeying and what they call pairing of votes but

it would not come into play here but, you got to wait for the gavel to come down there is 49 seconds left >> we'll wait for the gavel. i have not read the bill 99.9% of the population have not read the bill and they are commenting on it here is my issues. i am going to be totally facts -- the bill cuts of holding tax rates by a couple percent across every income level and raises the income level and which those lower tax rate i am not supporting the bill, i am saying this is facts. >> why are people so reluctant to believe that they are not getting a tax cut? >> there is some percentage of people who just distrust the government and what's been said

to them overtime there is some percentages of people living in salt states and don't understand how it is going to play out. this thing is not back and forth many times we close december 10th or 13th, i believe. what was the state of the tax of the way it is now. you talk to congressmen who don't know what the brackets >> if the bill comes out it is unusual. >> some way they got rid of the things that's most objectablobje >> it is a small business stuff. >> i believe it to be a better bill i was talking to a lot of economists who thought it is a terrible bill on the individual side i think that really describes the economic able. >> terrible for individuals but

it is detrimental to the economy or is a net result because the business side is so good >> let me explain how economists look at this larry's point of view is widely shared lower taxes are better and simplified taxes and fewer tax breaks, economists love the efficiencies of that i think most of the people adpragr agreed the bill fail in that regard there is still many deductions out there and complicated tax system that had the government allocating resources in a lot of different way. it did well in the corporate taxes and not as well on the efficiency side. >> lets listen, shall we the speaker gavels the house back to order. the votes are tallied there.

227 yeahs. on this vote, the yeas are 227 it is adopted. it is laid on the table. [ applause ] there goes the gavel fallen to the floor as speaker ryan and members of his gop caucus applaud the packages of the biggest tax cut and revision since 1986 john harwood joins us as well. john, your thoughts on this moment and what if anything tees off? >> in terms of the vote later this week, i presume and the legislative agenda and opportunities in 2018. >> well, a couple of things, tyler, the exuberant of paul ryan at that moment, you can see

he's joint ventuyful he's put up a lot as houspeakerf the house and putting up with a president -- first of all, he's thrilled second of all when you ask about the agenda going forward republican leaders made it clear that the next step for them is going to be pursuing entitlement reform paul ryan says in addition to cuts, not entitlements spending programs as well as the discretionary parts in the budget. the over writing is that republicans believe taxes should belower and the government should be smaller. they think that's good for the economy and they don't want government to do many things i want to add one thing to steve liesman excellent summary why

people don't appreciate this bill and the way proponents want them to. it is in the bill that the individual tax cuts are temporary and the corporate tax cuts are permanent and three, the idea of the vast d disproportion of the amounts of tax benefits are going to go to the people at the top. the only way out of that is the school of economic theory that says the vast majority of corporate tax cuts go to workers. if that's vindicated, then it won't be so disproportionate i would say majority of the economists don't share that view larry made that agreement, steve mnuchin disadpreegreed with it most economists do not >> your reporting, john, it is great. i want to weigh in the distribution starts at the top is incorrect and

unmeasurable and what matters here is economic growth and productivi productivity always matters >> if you have a lot of money, 1% move either way won't be a bigger monetary gain or loss that if you don't have a lot of money. >> larry, what about the models that show the growth effects that are going to be small >> not all the models agree with that >> but if you look at joint tax and the model which is run by a former george h.w. bush shows modest growth effects. the tax foundation does not show this puts us on a pack of 3% growth every year. >> it is a fair point. although i think you can find my firm in dc if i give enough money, it can come to the conclusion >> it does not matter. what matters are the results can i repeat that. what matters are the moreddels

the polls. this is going to be terrific popular. if i am wrong. >> i will be wrong >> i will come back to it. we have been asked to hold on. >> because ylan is going to tell us the drama is not over i don't know when you slept the last three weeks, amazing reporting, the arizona senator is coming down, add mmittedly n fan of the president >> that's right. things are moving fast here on capitol hill and as for house, we saw vice president mike pence walk over to the house floor to watch the last few minutes of the votes and watch the gavel comes down on this i know we have been talking a lot about the importance of this bill for tax reform and the tax bill also remember mehere, this bill includes items from the agenda and the individual mandate and

opening the arctic -- this is really trifecta for republicans. they can just run on passing this bill alone and say they accomplish of what they promised to do for the campaign trail >> ylan, thank you very much, appreciate it. i know we'll be talking to you again. >> we should note that we are waiting for republican leadership to come off that floor after the historic vote to pass the tax bill in the house of representatives as soon as we get them there at the podium eak he meantime, we are going to snin a quick break, "power lunch" will be right back. ♪ ♪

♪ what we do every night is like something out of a strange dream. except that the next morning... it all makes sense. fedex powers global commerce with vast, far-reaching networks... deep knowledge of industries... and, yes... maybe a little magic. ♪

hello everyone, i am sue herrera. here is your cnbc updates at this hour. british police arrested four men on suspicion of terrorist attacks. police are asking local residents to remain alert but not alone.

>> what we have seen is -- if you see any suspicious items, report to police and members of security don't ignore it. king abdullah is meeting at the vatican with an interpreter, the content of the talks have not been disclosed. the move allows federal researchers to experience with viruses like flu and sars. that's the news at this hour we are waiting for the live shot there at the capitol "power lunch" is back in two-minutes. right now when you get an unlimited family plan,

netflix is included. wow t-mobile covers your netflix subscription, so you can catch the hottest new movies and shows all year long on us. amazing and it's your last chance to buy any of these hot new samsung galaxy phones and get a 2nd one free. that's one samsung for you and one to gift. just in time to finish off your list. t-mobile...holiday twogether. wow! record time.s. at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. get ready, because we're helping leading companies see it- and see it through-with digital.

right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits.

it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor. welcome back, it is rick n santelli here. boy, it is been a long time since i have seen the long end up that much especially of

indefini inderence. if you look at 30 years, they're the leaner in terms of push ing the yield up i heard larry say it is because it is about growth i would not diminish that. even boom years of all rates and strategies of the future, they are following the path as well the only thing that totally does not fit, oh, does not fit in this picture box is the dollar index. look at it two-day it is still down with a bit here and every other market whether it is stocks interest rates starting to come alive and the dollar index is still below the technically significant 94 level >> rick, thinks it >> we have been waiting for the bond market to wake up to the reality of better growth and tax

cut coming and better over seas growth and federal reserve raising rates and the bond market has yearn do you think this is the day they wake up to and wake up to the reality? >> i think imagine a big tug of war with that. there is been a lot of selling and treasuries for all the reasons you name but, it goes unnoticed because the international bind the flag that i pointed to on tug of war is not being pulled just after the election, our markets rocketed and there was a delay for international markets. less regulations may not be your cup of tea politically if you are looking at the economic and business side of it, it is. the long end we'll have problems until other central banks quit doing things

it is going to wake up a lot more than it has because of positive economic aspect because it is slowly going to start to win more and more. >> how much? >> eight bases point today >> lets assume right lets assume there is a growth path >> i am going to stop and listen to chairman of the house ways and means committee. today we achieved those goals. as we go forward, i want american taxpayers to think of three dates and keep in mind, new year's day, america will have a new tax code for new era of american prosperity february 1st, to look at your paychecks because you will see the tax relief we deliver today. on april 15th, you will for the

last time file your taxes under this horrible, terrible tax code that we are putting behind this for the american people. together we did this and we got the leadership of our house, especially paul ryan and the work that's been done by the american people to represent us. we are delivering a new tax code >> i want to thank chairman brady for the work thathe has done, bringing this conference together and going through the conference report through the senate and being the bill pass the floor today. it will move over to the senate and pass to d and become law every american that fought for a pay raise and for every parent or every parent dreaming of opening a business to be a small entrepreneur, i want you tokno that we heard you loud and clear. this bill is about the american come back and opportunity keeping more of what you earn. to make americans competitive

around the world and make sure small businesses have an ability to compete it is going to be the lowest that they have seen in 40 years. the family is going to double their standard deductions. come february, check your checks you will get a raise in your payroll of what you are going to see based on what happened today. >> this is an historic day if you somebody who's been working really hard and you just want to keep more of your hard earned money, this is an historic day for you if you are an american like those of us here that are tired of seeing jobs shift over seas because america had the highest corporate tax rates in the industrialized world and we could not compete anymore. this is an historic day for you to see those jobs coming back to america. if you are somebody that's sitting on the sideline after eight years of sluggish growth

in the economy that's less than 2% so you gave up looking for work this is an historic day for you because now you finally have the shot of the american dream again because we are building a tax code that works for family and create jobs that makes america competitive again and allowing families to put money back in your pockets there is a lot of work that gone through, all have worked tire lessly for months and our attitude from the beginning that failure was not an option because the american people have been waiting too long for this last time of something historic like this happens was in 1986. ronald reagan talked about how hard the journey was and he never gave up. the headline read that this was a day that many thought not possible but became in efevitabe >> today the impossible became

the inevitable again >> it is a hopeful day and a brighter day for all americans and their families as you think about the impact of this package on evidence americans, it is so clear whether your moms or dads or students or seniors or business owners, everyone is going to have an opportunity for a better life that's why we are so excited today to see the tax cuts and jobs bill passed the house with a big vote we'll continue to celebrate what this bill has to offer if you think of bringing down tax rate force all americans and those that have an idea that start a business and grow a business and create jobs, this is the beginning of a new bright future for them. that's why we stand here so excited about what it means for people and for everyday americans and hardworking men and women that have been doing all the right thing feel like they fallen behind, they have a right future

i want to start off by thanking the american people, our c constituents for sending us here to do the work for them. this is the most important piece of legislation that congress have passed decades to help the american workers and the economy. this is profound change and this change is going to put our country on the right path. for all those millions of men and women of america living paycheck and paycheck, help is on the way for all those businesses that are tied with one hand booipd their ba behind their back, help is on their way. i want to thank chairman kevin brady and all the men and women who made this possible this has been a long work in process. what this achievement marks is a promise the majority made, it is a promise that this majority

keeping. we were serious and the american people place their trust in us to do this work for them and today we are making good in that process and fulfilling that promise. this is one of the most important things that we to get the u.s. economy growing faster, to help people get bigger paychecks, to have a fairer tax system, and to simplify the system so people can have more peace of mind. so kevin said it the right way, on january 1st, americans are going to wake up with a new tax code in february, they're going to see withholdings go down so they see bigger paychecks april 15th will be the last day they have to comply with the old bad system this is a good day for america this is a good day for workers this is a great day for growth and we're very excited about this moment. thank you. questions? >> so you have said that you've spoken often about the tax cuts that families will see in the first few years of the plan. what can you say about the tact cuts that individuals will see

in the end of the next decade? because the jct analysis showed -- >> sure. obviously we have every intent on making those permanent because of the senate rules. you know why that sunset is there. so it is obviously our intent like times past to make all those permanent. >> do you think the impact will actually be bigger >> kasie >> congress doesn't have the greatest track record of planning to do something later then following through how can you guarantee americans that they're still going to see the benefits of this tax cut >> look at what we've done right now. we were planning on doing this tax reform bill all year long last year. we worked on it all year we ran on it in 2016 we spent 2017 working on this legislation, and here it is. we're getting it done. this was a promise made. this is a promise kept >> last question. >> yeah. >> mr. speaker, does the lack of democratic support mean that this tax overhaul is vulnerable the same way that the affordable care act was vulnerable -- >> i think the comparisons are nonsector because the affordable care act because the affordable care act approved to be

extremely unpopular, to raise ream yums premiums unaffordable this is going to grow the economy, increase paychecks, take home pay. thank you, everybody, appreciate it. >> speaker ryan wrapping up what you'd call a gop victory lap upon passage of the biggest tax revision since the 1980s calls it a good day for america, a good day for workers and great day, larry kudlow, for growth, and he also expressed the gop's intention to make the individual tax cuts that are in this plan permanent. a lot of them sunset five to six years in we're going to take a quick break, talk about this more. look at the markets, which are basically little changed right now. we'll be right back.

well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. directv has been rated number one in customer satisfaction over cable for 17 years running. but some people still like cable. just like some people like pre-shaken sodas. having their seat kicked on an airplane. being rammed by a shopping cart. sitting in gum. and walking into a glass door. but for everyone else, there's directv. for #1 rated customer satisfaction over cable, switch to directv and for a limited time get a $100 reward card. call 1-800-directv.

moments ago the house officially passed the tax bill the senate will vote tonight after a mandatory up to ten hours of debate. democrats are expected to use a full five hours, republicans expected to use vastly less amount of time we'll see where that vote falls tonight for the senate. meantime, let's bring in robert frank as all of this is happenhappenie wealthy figuring out what to do. >> i want to look at what's

going to happen next year after we have this bill, what we know from looking at this giant gap we have now between the tax rates that are paid by individuals, and those that are going to be paid by passthroughs and companies. we've never had in this country such a giant gap difference between those rates. and this was a bill that was designed and billed as one would. put the tax reprayerers out of business this is the full employment act for accountants. i talked to a lot of highly paid, sophisticated accountants, that are devising ways to shift vast amounts of income that had gone on the individual side, into the business side >> is there going to be a frank llc next year? >> i would like that but i think the corporate side is going -- and i think we're going to see a lot of uncertainty on the real estate side >> yeah. >> in blue states. not that it's going to hurt the market, we just don't know initially. first quarter is going to be soft. >> as we go to break, why don't we hit the market, very quickly? market not reacting a lot but we've had this huge move upwards, of course, ahead of the vote the dow is down .10%.

the question now, what is going to happen? maybe the most interesting move of the day, tyler, you pointed this out, ten-year bonyid eld up maybe a sign of economic growth. short break. we're back with more "power lunch" after this. hey! yeah!? i switched to geico and got more! more savings on car insurance!? they helped with homeowners, too! ok! plus motorcycle, boat and rv insurance!

geico's got you covered! like a blanket! houston? you seeing this? geico. expect great savings and a whole lot more. geico. ♪ let out your inner child at the lexus december to remember sales event. lease the 2018 nx 300 for $319 a month for 36 months. experience amazing at your lexus dealer. it can detect a threat using ai, and respond 60 times faster. it lets you know where your data lives, down to the very server. it keeps your insights from prying eyes, so they're used by no one else but you. it. is. the cloud. the ibm cloud. the cloud that's designed for your data. ai ready. secure to the core. the ibm cloud is the cloud for business. yours.

an historic day as the house passes the gop tax plan. a victory lap being taken by members of the house this afternoon. and that brings to light some --

brings to mind some comments some lyrics. >> a song. i was thinking of "down across the delaware" about leaving new jersey i wubder if this will -- >> good song. >> we only have seven seconds for you to sing it we'll give you a pass. >> thanks for watching "power lunch," everybody. >> "closing bell's" next hi, everybody, welcome to the "closing bell," i'm kelly evans at the new york stock exchange. >> i'm bill griffeth historic day breaking news, as you know, this afternoon, big step forward for tax reform with the house just passing the bill moments ago now it moves on to the senate, where it will be voted on later tonight. presumably passed there as well. we'll tell you what's in it and the sectors that may still have room to run in the stock market. plus exclusively. we'll talk about how the bill could effect his business. or not >> right