material he said this kind of stuff in the past, but guys, we'll see, will led zeppelin not do new stuff but release old stuff we have never heard i, for one, hope so. why not? led zeppelin. >> why not >> thanks for watching "power lunch. >> "closing bell" starts -- >> "closing bell starts right now. hi, everybody, welcome to the "closing bell," i'm kelly evans a the new york stock exchange. >> we feel like we should be opening with cashmere or something right now. >> that would be my preference >> both led zeppelin fans. we love to hear that, the in u material for next year i'm bill griffeth. we new deal talks to talk about. probably heard cnbc confirming boeing is, in fact, holding takeover talks with brazilian aircraft company embraer details and what it could mean for the aerospace industry which is seeing consolidation right now. another online brokerage

jumping into the bitcoin game wall street legend art cashin has a bitcoin prediction for 2018 we'll tell you what it is in a couple minutes >> can't wait for that. plus the question everyone wants answered, will my taxes go down because of this bill? we got a financial adviser who breaks down the impact of the tax reform bill coming up in a little bit. we begin in washington today, lawmakers are expected t vote in a little less than two hours on the legislation to keep the government from shutting down let's get right to kayla tausche for the very latest right now. kayla? >> reporter: bill, they'll vote on the house's version of thereat legislation that was published overnight. it would be a short-term extension of government funding at current levels through january 19th, as well as funding for some critical programs like children's health insurance. and the fisa surveillance program. in addition, the house is going to consider an $81 billion disaster relief bill they've been debating that as well as the funding bill for the last couple of hours on the floor. there have been some very spirited debates from the

defense hawks, from people who are fiscal conservatives also those from states who want more money for disaster relief the republicans need 218 votes to pass. as of this morning, there were still some republican holdouts, but speaker paul ryan was working through the day to help whip some of those votes and get more of his members on jb board. this morning the democratic leader in the house nancy pelosi was asked whetherny democrat would help them get over that threshold. she said the republicans shouldn't need it. >> republicans control the congress they control the house they control the senate. and they have the signature in the white house. they have the votes to keep government open. they have the votes to keep government open. they don't need us to keep government open. >> reporter: the expectation is that the measure will pass the house this evening the senate could consider it this evening and although there are some stalwarts in the senate, who have some issues with parts of the legislation, in the words of one white house official i spoke to this

afternoon, the jet fuel is thickening lawmakers want to get home for the holidays we'll see what happens this evening. kelly, bill, back to you >> the jet fuel is thickening. i love that. thank you, kayla we'll see you later. >> thank you get to our "closing bell can the "exchange, joining us, peter, chris cordero. post at post 9 rick santelli over at the cme. welcome to everybody chris, start with you, i mean, we're up about the 5 on the dow right now, we were up more than that people around here were starting to talk about maybe we hit 25,000 before year end what do you make of the rally today? >> yeah, i think it's just more coming off the tax reform. as this sinks in, i think it's got more legs. maybe we hit 25 by december 25th for a christmas present. >> and, you know, peter, i'm looking at the leaders and the laggards sector wise today the leaders, energy, financials, telecom, the laggards, utilities, real estate, and tech clearly, this market is repricing based on the tax bill right now.

>> absolutely. and there's nothing wrong with that because for this market, the continued go higher, hold support it, at certain key levels, you know the financials to do better you need energy to do better and that's what we're getting. so i think you're going to see a continuation of this like chris said, i do think we'll probably see 25,000 for christmas, or right around that time you know -- >> let's think about this for a second today's thursday tomorrow's friday. that's the last day of trading before christmas. >> i'm giving you 6 1/2 hours to get this done. i don't think this is a mission we'll be on. no, the santa claus rally, there were a lot of analysts that felt it because the market had moved so well over the course of this year, but we might not see the santa claus rally. you are seeing it and money flow into equities. >> before we get to rick, chris, the sectors i just mentioned, with energies, financial and telecom among the leaders, those were the ones that were expected to benefit the most, benefit from tax reform, are those areas

that are appealing for you for 2018 >> we found both financials and energy appealing financials especially next year we're going to get a lot of rate hikes and should help out big money center banks, help out the insurers that's an area we're pretty high on and big beneficiary of this tax reform. >> even if it happens on the short end, this is the sort of theme of this year, rates went up a lot on the very short end i understand that can be a help for some financial -- >> especially for the big money center banks where they've got all this money on account of the federal reserve. every time they tick up rates by a quarter of a point, it's just adding millions to their bottom line, without doing anything. >> yesterday, ten years bumping up 2 1/2, the 30 years, you know, we're hitting multi-month highs. now we pull back a little bit today. what do can you sigh going on here >> i think that's very important, actually, that we're pulling back you know, the momentum of the long end seem to have stopped

right as virtually a handful of points unchanged. 30-year bond is the only matu maturity that can't peek its head above where it was last year bunds have settled back around 40 basis points. dollar index can't get any traction at all. i don't know, unchanged for a ten year i think is the safest bet. 2.44, 2.45, slightly higher. i find it interesting the conversation you were just having even though it might be out of fashion and they're trying to find another benchmark rate, doesn't matter tomato, tomato benchmark short rates do reflect the increases of the fed many loans are floating. so, yes, i give kelly the trophy of the day, it's all about the long end as much as i think interest rates are going to go up, i think th better, i think stocks have plenty more runway, with a couple of very large central banks continuing to do what they

do, bank of japan, ecb, the long end is going to struggle, not going to break free of its shackles any time immediate. willfu definitely not no in 2018. i do think a major steepening of the yeelgd yield curve, major steepening is probably in the in the cards for a while. >> i'm blushing. >> i'm impressed trophy of the day. >> chris, you did have a coupled of specific names here, allstate fits the financials things you were talking about cvs in the middle of a big acquisition and royal dutch shell. >> i think cvs is a really interesting story, it's priced really well. css integrated caremark. they're taking the entire vertical integration in the health care system i think they'll be a really interesting play to do that. >> is all right. we have to go at this point, guys thank you, all have a lovely weekend. merry christmas if we don't see you before then. thank you. a fwhnews alert on obamacar enrollment numbers bertha coombs has the details. >> they look better than a lot

of people thought. cms administrator tweeting out that 8.8 million people signed up for coverage by the end of the enrollment period on december 15th. that's a lot higher than people anticipated given the fact that this year the enrollment period was half as long as it has been in recent years. also the administration had really curtailed outreach and funding for advertising. nonetheless. it's down from last year 9.2 million at the end of the enrollment period. much stronger than a lot of folks anticipated. enrollment is still going on in some of the state-based marketplaces like new york and california those folks have into the new year to sign up. back to you. >> yeah, they had a much shorter period of time here. that's an impressive number, bertha, thank you. how about etrade jumping on the bitcoin bandwagon? brokerage firm saying it will allow custer ins to trade bitcoin futures. bob pisani has more. >> hello, kelly. etrade is now going to alloy customers to trade cboe, cboe

futures in bitcoin joining td ameritrade and interactive brokers. the e-brokers have been actively recently particularly on bitcoin. more venues for trading bitcoin future are starting to open up cboe, futures contract, down recently, 18,000, when it started trading. that was december 10th now 15,500 that's down 15% last week and a half speaking of bitcoin, i asked art cashin what might happen with bitcoin in 2018? particularly how the federal reserve and other central banks might react in cryptocurrencies got really big >> i don't think they want bitcoin, but there's an aspect of it that they would like and what they would really like to do is get us out of the cash business have me stop carrying around green pictures of dead president s and id stead have an all-digital economy.

they can keep track of that. i think what you'll see is the fed, itself, may wind up helping somebody top a digital currency. >> great point speaking of predictions, art had a strong track record recently predictions from last year, about 2017, this year, first, he correctly predicted we couldn't get tact relix relief until the 2017 2017 right second, predicted the markets would not -- worried about inflation, not deflation this year finally, his one miss at a chance of a populist revolt would sweep through europe populist parties did gain in european parliaments populists were turned back in the top leadership positions throughout europe. still, you got to admit, flthre out of four ain't bad, kelly. >> give him that fourth. i mean, maybe eastern europe, maybe it's just -- you know, not maybe the level hest talking about but all of those -- >> pay a lot of money for that kind of batting average, though, in major league baseball. >> that's right. the full interview, by the way,

tradertalk.cnbc.com, guys. >> thank you, bob. see you on the close. 50 minutes left in the trading session here the dow and the russell are in record territory the s&p is close we'll keep an eye on that. everybody is positive as we head toward the close. one day after being engulfed in a war of words over trade, boeing is now making headlines again. this time eyeing the takeover of a foreign aircraft maker we'll have details coming up. and now that tax reform bill is just waiting for the president's signature, financial planners are working overtime answering all their customers' questions. we're going to talk to a leading planner next about how to approach the new tax system. stay with us ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity,

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welcome back utility company pg&e has warned investo investors it's going to stop issuing dividends due to the possibility that it could be held liable for the october wine country wildfires in california that caused more than $9 billion in damages company did not indicate when those dividend payments might resume the stock has tumbled 13.6%.

i mean, that's tough when a utility -- >> exactly. >> -- is not paying a dividend. >> absolutely. it would be very tough if they're held liable. shares of embraer soaring today. cnbc confirmed the company is in ongoing deal talks with boeing phil lebeau joins us on the newsline with the shares up nearly 20% hi, phil >> hi, kelly it's easy to see why embraer shares are move higher and have moved higher following the news they are in discussions with boeing about a possible combination of the two companies. here's what we know. these talks have been going on for some time. however, before any deal would be consummated, it needs the approval of the brazilian government that's because the brazilian government holds golden shares in embraer they can essentially veto any deal even if the management of embraer and boeing come to an agreement. if it doesn't sit well with the brazilian government, it won't happen so, what do the two companies do to mitigate that possibility

boeing is looking at options so that they can assuage any concerns with the brazilian government both embraer and boeing issued a joint statement today essentially saying, these talks may not result in a transaction, and from here on out, we'll have nothing further to say on the matter as you take a look at shares of embraer, yes, they got a nice pop today, keep in mind, this is one of the dominant players when it comes to regional and small commercial airplanes what are we talking about? we're talking about from the very small, small as 37 seats, all the way up to 140, 145 seats. that is a growing part of the market, it is part of the aviation market that boeing does not play in right now. they have a limited offerings there. so they could expand their portfolio if they were to take over boeing -- take over embraer, excuse me we can tell you the talks is been going on for some time. what's interesting is there will be a knee-jerk reaction of people to say, this makes sense, since airbus is taking over

production and ownership, if you will, of the bombardie ar c-series, in the 150 seat market wouldn't it make sense that boeing would respond by trying to take over embraer i know from talking to sources these talks have been going on before the airbus and bombardier deal was announced a couple weeks ago. guys, this is one of those that have a lot of people in the world of commercial achuativiat says, makes sense, can they make the deal come together and will the brazilian government sign off on it? >> and that's the big question, the last one, there, and i happened to be talking to michelle caruso-cabrera during commercial breaks when she was down here for "power lunch" and, you know, she points out they are not known for giving up control of companies in their -- within their borders and you'll wa wonder what the two companies are going to have to do to try to convince the brazilian government to go along with this. >> correct i think that there are a number of options out there the question becomes, how much

control, if you will, does boeing want to relinquish to the brazilian government and i think at the end of the day, that's going to be the number one gedetermining factor would it be accretive to boeing's bottom line if they were to swing a deal sure they got the cash to make this happen the question is, bill, do they want to give up some type of control, if you will, in terms of the brazilian government having a say in the future of this combination here? or certainly in the future of boeing, if it were to take over embraer. >> phil, keep us posted. thank you very much. >> will do >> that's our phil lebeau. turning now to tax reform. governors across the country are working hard to find a loopholes in the new tax bill that would preserve some deductions for their high earners robert frank has more. hi, robert. >> kelly, millions of americans are about to get a tax hike because a provision in the tax bill getting rid of state and local tax deductions but the high-tax states already fighting back governors of california, new

york, and new jersey have deployed armies of tax experts and lawyers to find ways around the rules to help their most affluent taxpayers right now, there are two main ideas taking shape the first relates to the income tax side states could replace the income tax with a payroll tax so where they tax companies the equivalent of the income tax for each worker, the companies could deduct their payroll taxes and turn around and refund it to the employees at the end of the tax season this is complicated. would take a lot of cooperation from companies it is under discussion the second big idea right now relates to property taxes. now, new jersey and california are both looking at the possibility of turning their public school systems into 5 501-c3 charitable organizations, taxpayer would deduct taxes that go to the schools. in new jersey let's say if half of your property taxes go to the school system, you could deduct half of that as a charitable gift

now, 18 states already do something similar where they offer tax credits to scholarship-granting organizations like private or religious schools, and by the way, if all else fails, the governors are also planning, considering, threatening, a lawsuit to block the federal government from killing this deduction. so, states rather than cutting taxes right away, are sort of taking other tact and figuring out ways to avoid it or fight it guys >> you mentioned turning schools into charitable entities i'm nodding my head, kelly has this major skeptical look on her face. >> my whole face is like, i can't even believe some of these things they're coming up with it i mean, i don't know, i guess we have to find out if this kind of stuff is even kosher, robert, but, yeah, it just seems strange, just seems like a denial -- by the way, even if they turn it into a charitable dedurction a lot f people aren' going to itemize anymore they're going to file for the larger standard deduction now and call it a day. >> well, when you're talking about higher-income folks, kelly, they can't do that or

doesn't make sense to them on the school issue, i agree with you, it sounds wacky but there already is a precedent, a lot of states have taken this on big-time where people contribute to a school, they get a dollar-for-dollar state tax credit and get the federal write-off for charities so in some cases people were actually saving more on their taxes than they were actually giving to the school system. so, ironically, it was the democratic politicians that for the past couple years have been trying to get rid of this, now the democratic governors are going to embrace it saying this could be our salvation so i agree, it sounds cooky but it's happening in a certain way in certain states so there's precedent. >> fascinating. >> it is. >> robert, thank you. >> see you a little bit later. state and local taxes are part of a what individual taxpayers have to figure out in the new tax era. >> let's talk about it, whether your taxes are going down or not. ivory johnson, a member of the cnbc financial adviser koicounc as well. ivory, welcome back. soo i'm sure you were listening to

what we were talking about this is the conversation everybody is having these days trying to figure out how it impacts their own bottom line next year, right >> the tax code will make you more creative than you were the previous day you know, it will be interesting, obviously, it depends on where you live and what your circumstances are, whether or not your taxes go up. if you live in states like california, new jersey, new york, then, you know, i offer you my condolences because you're losing state tax and state income deductions over to the extent that it exceeds $10,000. fortunately, though, for most americans, it will be an immediate tax cut. a lot of the provisions that would have hurt those demographics went away so the student loan deduction, they were going to disallow that that's still deductible. tuition waiver that graduate students get, they're going to tax that tax reself-employment taxes. personal exemption going away,

they have the $2,000 child tax credit all the way up to $400,000 household income. the problem, though, is that it's temporary it's more or less like, you know, you go buy a car, they roo reduce the car cost, then you pay more interest expense, right? >> right >> the tax brackets grow at chain cpi. chain cpi grows slower than cpi, presumably slower than wage growth what will happen, there's an embedded tax increase already in the plan then after 2025, all these tax breaks go away so we know that after 2025, a lot of the individual taxpayers with ill be paying more. >> hi, ivory, i'm still wondering what happens potentially next year after the midterms if there's a change in power in congress, but just taking things as they are for right now, then, what is kind of the main things that you're recommending people do right now? i mean, are people coming to you and asking about forming passthrough businesses and things like that >> yeah, well i think when i would call people and i would tell them, you know, you live in

long island, you have a second home, these are all the bad things that are about to happen to you, then they would look for solutions. we thought we could prepay some of their state income tax, the final version disallows that depending on municipality, you can prepay some of your property taxes but, yeah, the passthrough taxes are great because, you knows you can deduct 20% from your income taxes right off the top. even if you're a service professional organization. service company. you know, accountants, financial planners if your income is less than $315,000 joint, you get that deduction. if you have rental income, if you have a rental home, put that in llc not only does that protect you from creditors, but then also you get some other advantages. >> say that again about the prepaying your taxes on a state level. it disallows the income tax but does it disallow the property tax?

prepayment >> that depends on your municipali municipality >> it did anyway, right? >> right a change on the tax bill or not, depended on your individual municipali municipality does the tax bill allow it if your municipality does >> property taxes, yes, state income taxes, no unless you're paying quarterly taxes and pay it before december 31st >> all right ivory, by the way, anything people should do, like, literalliteral ly in the next three to five business days before the end of the year >> pray. >> well, yeah -- yeah. you should always pray, but if you know you're not going to be able to itemize next year, you may want to prepay some of the childhood deductions this year so there are some things you can do >> thank you for taking time away from your phone which i'm sure is ringing off the hook. >> yeah. >> thank you, ivory. >> you're welcome. >> merry christmas >> we know the s&p 500 has been on a record-setting pace in 2017 how does that compare to some of its past performances?

actually it's not that unusual we'll have a look at that next. and remember on "mission impossible" when the recording device would self-destruct after five seconds i'll tell kelly about it later it seems apple is trying to prevent that from happening with older iphones. we'll explain. coming up. (siren blaring) ♪ working as an emt in a small town usually means hospitals aren't very close by. when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. there's nothing worse than when we're responding to the hospital, and the hospital doesn't have the right specialist. evaluating patients remotely, by an expert, is where i think we have a potential to make a difference. robots can do a lot in medicine these days, but they can't think. they're still machines.

for nuanced decision making, we still need humans. we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network that will enable breakthrough innovations to take place. as we get faster and faster wireless connections, it'll be possible to bring those capabilities to more remote sites, and be able to operate on a patient in a way that was just not possible before. when you think about underserved areas, you tend to think of remote locations. but the reality is, an underserved area is anywhere where the person that you need, who has the expertise for the problem that you have, is nowhere near you. low latency is crucial for things like surgery, because the response time has to be immediate, it has to be real. i could put on vr goggles like these, and when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away?

(dr. vasquez) it's going to be life-changing, and life-saving. okay it's getting interesting here we have a news alert on embraer and the talks with boeing phil lebeau, we've heard from

the brazilian government >> we have, bill, and two headlines coming from reuters regarding the brazilian government's reaction to a potential deal between boeing and embraer. the first one is the brazilian government, it is open to embraer partnerships in commercial aviation, but here's the key caveat here. not a total sale of the companies. that's according to a government source being reported by reuters. other headlines from reuters, the brazilian government rules out any deal transferring control of embraer, again, day are citing a government source so this leaves the question of what boeing be able to do with embraer? the possibilities are an equity stake in the company certainly not as intriguing, i'm sure, to some investors, as an outright takeover of embraer, but certainly a possibility. and there are some reasons to think that boeing might be interested in this given embraer's dominance, if you will, when it comes to the regional jet market and boeing's desire to have a greater

exposure there the headline is if you're thinking you might wake up someday in the next couple of weeks and boeing says, hey, we have bought all of embraer, think again. at least according to these headlines because the brazilian government is saying, huh-uh, we're not going to sign off on any deal where the control of the company is transferred away from brazil. back to you guys >> boeing had to have known this going in i mean -- >> i guess it depends on how advanced the talks were. i mean, is boeing, itself, testing the waters and having these discussions? >> kelly, they have been ongoing, and i don't think that this is simply something where boeing threw out a line and said, well, let's see if we get somebody to nibble on this i do think there is genuine interest from talking with people at boeing in terms of what the company might be able to do with embraer having said that, i think bill is right, they knew going in that the golden shares, and the relationship between the brazilian government and embraer, that was going to be a huge hurdle that they probably

were going to be unlikely to overcome now, nothing's finalized, but that's just according to the reports out of reuters >> it's just the beginning of those negotiations, i guess. phil, thanks very much i'll be very interested in seeing -- >> you bet. >> -- what embraer's shares do still holding on to more than a 21% gain there we'll see what the market response is to these reports. >> yes, exactly. >> started to come off the high there. >> there's shares of boeing, by the way, down about 1% as well, with half an hour to go in the trading session. apple is now responding to claims it's slowing down iphone speeds on purpose. the company explaining in a statement that its iphone batteries age or exposed to conditions like the cold, they struggle to respond to power demands. apple says that can result in the device becoming less capable of supplying peak current demands which can result in the device unexpectedly shutting down to protect its electronic components got all that apple said its goal is to deliver the best experience to cust momers and introduced a

problem last year to fix the problem. >> can i point out this never happens to the blackberry? >> blackberry has -- >> the battery doesn't decay like these iphone batteries. that's really what's going on here. >> you have a pretty new blackberry. >> i've lad older blackberries and when you -- see, this is also -- i have a company-issued iphone and i do not do those software updates. >> i do them as soon as they happen. >> what happens? >> no, it's good. >> then you get question marks when you want to type an "i. >> that was very annoying. back in the pre-iphone era, i was not big on upgrading, windows, would crash your computer d i do it religiously now. the second it's available, i'm upgrading because it makes a huge difference. >> i've never upgraded i do the annoying things -- >> it's worth it to stop getting those, alone. never done it. >> time for a cnbc news update with sue herera. >> thanks, go is

heerst what's happening a the this hour, everyone. republican members gathering for an enrollment ceremony to celebrate the final step before sending the tax reform bill to president trump. the bill was signed by house speaker paul ryan. and then senate finance committee chairman orrin hatch senate majority leader mitch mcconnell then had this to say >> it is not just on the individual side. i was pleased to see america's corporations standing up almost immediately and saying that employees are going to benefit from this great tax cut. turkish president erdogan calling out president trump saying the u.s. cannot buy ankara's support in approving jers ri jerusalem as israel's company. erdogan expects trump to rescind his decision. south korea's top court upholding the suspended prison term of a former korean air executive who threw a fit and delayed a flight in 2014 when she was served nuts in a bag

instead of on a dish she was originally sentenced to one year in jail which was eventually suspended and upheld today as we said. that's the news update this h r hour i'll see you guys next hour. kelly, back to you. >> all right, sue, thank you very muc very much, sue herera. we're off the session highs. i'm joined by jeff, chair of renaissance macro research you got de graphs -- >> whoa. >> of bullishness you see in this market. >> yeah. i think the important thing to keep in mind is that momentum doesn't tend to peak with price. people sort of believe that that happens and, in fact, it's not if it you look all the way back to 1928, you can see here, this is the number of times that the s&p makes an all-time high here we are today. this is the second highest ever. >> so -- >> since 1928. >> so this says s 60 here. >> 65 i think is the number. >> we feel like this year has been crazy with the number of record highs you look back across this, there

are a number of peaks that out. >> there are the next year tends to be positive, not negative so, you know, if you look the a this data, say, boy, it feels like it has to mean revert, the data would actually tell you just the opposite. things tend to continue, maybe not on the same robust pace, but they actually tend to continue and we think that will be the case for -- >> let's look at the momentum right now. this is sort of what you're talking about, relative strength of this market. >> right. >> this is a chart of that 14-week relative -- >> 14-week relative strength index, again, back to 1929 see it long term we're here that is one of the -- one of the highest readings ever. what's interesting is as you go back and look at these historically, with the exception of about nine months prior to 1987, each one of these resulted in substantially higher returns for the market the next 12 months forward. >> if you told me the first part that, the relative strength index is having its best of all-time, sounds like a sell signal, but actually it's the opposite >> look at the data, it has a

horseshoe to it. good returns happen when it's very low, when it's very high. it's in the middle where you want to be careful of. that's not where we are. we actually look at this of being a very good signal long-term, again, price does not tend to peak with momentum we think that's important. >> eye-opening stuff jeff, thank you very much. >> thanks for having me. >> jeff degraaf from renaissance mi macro. nike, ahead of their earnings coming up after the bell tonight, a bull and a bear weigh in on whether the athletic wear leader can reach those numbers. stay tuned >> cnbc sector sort is sponsored by sector spdr etfs. keyboard clacking ] [ mouse clicks, keyboard clacking ] [ mouse clicking ] [ keyboard clacking ]

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10%. that's how much of puerto rico's gdp was invested in ubs' bond funds there. now in the wake of hurricane maria, those investments and savings have been wiped out and now a congresswoman wants action we have details on the story when kelly and i come back

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turning flow ining now to told you about earlier this week involving residents of puerto rico who lost their life savings. "broken bonds" revealing ubs knew some of the major risks associated with puerto rico bond funds but brokers continued to

sell them to conservative clients, fwhaeranyway and now lawmakers are washington are demanding some answers leslie picker has this update. leslie >> hey, that's right, kelly. in our investigation we profiled a family who say they lost a combined $2 million from proprietary puerto rico bond funds created by ubs we spoke with the family first in august, and then in november, six weeks after the hurricane. when we went back to puerto rico, we found jervacio and maria garcia and miguel castro arroyo in worse financial shape. this is the building that maria and miguel inherited from their father they had collected rent for years but that source of income stopped after the hurricane. the restaurant re-opened the day we arrived. >> a very sad country right now because you don't see an end in sight. >> reporter: are you worried how long this can go on? >> oh, yes, very, very worried we say what is going to happen

how long is this going to be >> reporter: can you afford to live in puerto rico when it's like this? >> this is where we live we have to adjust with what we receive. so for me to say that i can't live puerto rico, it won't happ happen it would happen. >> the family settled with ubs about a week ago for an undisclosed amount ub ubs declined to comment on a settlement a spokesman wrote "concerns about puerto rico and its prospects had been a subject of wide public debate and press coverage for many years. no ratings agency or analysts predicted anything like the precipitous drop in bond prices that occurred in august and december 2013. he added there were no undisclosed issues with the funds and that the funds

generated tax-free returns greater than 12% in 2010, 2011 and 2012 cn cnbc's investigation prompted a senior member of the house financial services committee to call for a hearing over these sales practices in puerto rico representative nidia velasquez sent a setter today to the chairman of the committee writing, "the reported claims of deception, mismanagement and coercion highlighted in the cnbc article, if true, are egregious, unethical and potentially illegal. the chairman sets the calendar for the hearing. guys >> and if they do, what are the next steps, leslie, as now she's said that this could, you know, something she obviously wants to follow up on. >> it's up to the chairman to set the calendar for the hearing. it's unlikely that that takes place before the end of the year as we're nearing a close and congress is quite busy these days tieing up the loose ebnds with the tax bill and so forth it's up to the chairman, we've

sent a letter to the committee to get a comment from them we have yet to hear back on that hopefully we'll be able to provide more answers about what's going on with scheduling this hearing, if and when it might be >> again, such a great job, you and your team did, on that, leslie, and it's such a tenuous situation for the people of puerto rico. just so tough to watch there thank you. >> is thathank you, bill. >> see you rater. >> leslie picker 14 minutes to go, the dow holding on to a 75-point gain we've been losing altitude s&p up eight, the russell up 2/3 of 1%. nike is up with earnings one bear says it's unclear how nike will balance brand sanctity, scale and growth as it lln s to achieve a goal of $50 biioin sales a bull takes on that argument, next he's one of those guys who always smells good. his 5 o'clock shadow is always at 5 o'clock. you like him. your mom says he's done really well for himself.

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art cashin just stopped by, told us the market on close orders show an imbalance too the sell side of $1.2 billion. looks like it may take us out of record territory for all the major averages we're sitting right on the number for the dow the s&p is below its record. and, boy, the russell is sitting right on its number as well. so we'll keep an eye on that as

we head toward the close. >> up 14 124 on the dow earlier. we halved that. nike, up more than 27% this year, nike shares, up nearly % today. is the stock a buy from here for investors? >> joining us in the discussion, jamie from sanfred b. bernstein and sam from susquehanna financial group. you're our bear, right >> i think so. >> you don't think they're going to hit the $50 billion number they're looking for in a few years. >> i think the clarity isn't there. we were out at their investor day a month or so ago and impressed by the product and everything else they were showing. however, the domestic business is the big kahuna. they got tons -- everything is a very large scale right now they are balancing protecting the scale and keeping the brand cool or the brand scarcity that balance is very, very difficult at the levels that they're at i'm not saying they can't do it. they got -- the consumers'

attention span is much less than -- it's shrinking by the minute. >> right. >> because of all the information. so they have to flow a lot of new stuff or less new stuff more often to make it work. and to see if they can scale that then they have to protect these big franchises at the same time. very difficult to do we don't think we're going to know if they're there until the middle of the calendar '18. >> you have a $57 price target shares are under $65 right now jamie, what's your price target? >> my price target is $67. >> okay. not terribly above where we are now. so -- >> well -- >> talk -- yeah, talk a little bit about what you expect out of the quarter. >> sure. the real question is, is the innovation there, is the product there to drive revenue growth, both in north america and interfacially over the next year i think what we're starting to hear from nike at the analyst day in october, but also from some of their retail partners even here in the u.s. is that the innovation is there.

i think there is increased excitement about the new products that are coming out over the next year, whether that's vapor max or the react cushioning platform. i think ultimately nimike' -- ce down to the product. that's the thing i'm so bullish about. with their pipeline of innovation, amount of cap-x they spend, how much they spend on marketing, that's what will drive numbers. >> when you look at nike's numbers, and the outlook, how much do you take into consideration the resurgence of adidas, and the role under armour plays in any of this as well, jamie? >> sure. i think adidas has had a phenomenal run over the last few years and i certainly wouldn't argue with that. i think the question for nike is, you know, what can they do to, again, innovate and bring out new product that can compete? and i think what we're hearing from clients buying products

like vapor max, also, again, from the retailers is nike is really, you know, rising to that challenge. we've also started to hear at least some early signs that some of the product in adidas, those classic styles like the stan smith and superstar is slowing down and that may be happening just at the time nike strived with the new product innovation. >> what do you say to that, sam? go ahead, sam. >> well, i mean, look, i'm an ex--retail buyer i have no problem with nike product. what they're doing is great. the problem is is that you're dealing with a whole new world of how people shop and, again, if you put too much product in the marketplace, more product than there is demand, even if something's great, then you have markdown with the residual product, you hurt yourself, they can't afford to do that. it's a hard thing to scale you know, i'm all for the product. what i saw was amazing, but that right now is not enough to get people there you have to have the whole thing and it's very, very hard to do and nike's realizing that.

as far as adidas goes, they're doing great, but they never bid into nicke nike, unfortunately, as well as a lot of retailers didn't take adidas seriously enough three years ago and were complacent and now they're playing catchup. nike is a great company. it's unclear if they can get to where they -- >> we'll see you after the bell for reaction once those numbers come in. sam, thank you, and jamie. heading to the close with six minutes left here. the dow up just 50 points we're out of record troerritory we'll have the countdown with all, just a couple days left before christmas here, right >> yes, we will. it's fast approaching. after the bell, we are counting those days down since the christmas falls on a monday this year, it means people have one less day to get their packagesin time. coming up, we're going to go to an amazon prime now hub for a shipping status update

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he has stocks and bonds. your dad wants to go fishing with him. your dad doesn't even like fishing. you like your brother-in-law. but you'd like him better if you made more money than he does. don't get mad at your brother-in-law. get e*trade. just inside three mooeinutes and, boy, the market on close orders did take a toll on the dow and other major averages today. for a time it looked like we would have all-time highs today for the dow, the s&p, and the russell, but we've drifted lower as we go into the afternoon here the dow up only 55 points right now. had been up 124 at the peak of the day. what's very interesting to me, is to see the sectors and how they performed today i'm going to bring in bob pisani

on this because it is clear the markets were responding to the tax bill the best-performing sectors in the s&p today were energy and financials two of those sectors that would benefit the most from the tax strategy the new tax bill. >> and i think the key point here is we were talking yesterday, you and i, about what happens next do you sell on the news, do you rally oro ta do you rotate that's the rotation. energy and banks doing better recently under the tax cuts up you notice semiconductors and tech has generally been down today. we've got some big semiconductor names down 2 or 3%. >> and the worst performing sectors actually were real estate and utilities >> of course -- >> interest rates have been getting clobbered as the ten year moved up. you've been talking about that. >> exactly they'd be affected by taxes as well the story we're following, maybe we'll get more details next hour, talks between boeing and embraer, up 20% today, though that may g coming off the boil here after the brazilian government said. >> you're not surprised, are you? >> exactly as i mentioned earlier.

>> that's not one of the crown jewels. >> boeing lad to know that going into those talks with embrae we'll see if they're open to a partnership of sorather than -- >> strategically it makes sense. i can't see the brazilian government giving up that much get -- i'd like to see the terms of that partnership. >> clearly boeing has to do something with airbus buying up other companies as well. it makes sense. >> i think the deal makes absolute sense. >> nike has earnings out after the bell this will be very interesting. nike for years has been a stellar performer. for various reasons they've struggled a little bit, some of that the competition from adidas you got outlets that have gone by the wayside that has hurt under armo rrur a lot. >> remember technology, you can now make sneakers with computer code don't need that many humans to do it. you can make sneakers anywhere

in the world the ability to move in, become competitive in the sneaker industry, getting smaller and smaller and adeed decemb deedid them a run for the money >> no records. plus signs nonetheless we are waiting for the vote in congress on the spending bill. that could happen this next hour as well 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 dow is up 124 points at the highs of the session today we lost a lot of that on the close. added 57 own the bell there not record territory eight points shy of that closing at 24,784. s&p 500, meanwhile, up 5 1/2 points to 2,684, below its record close nasdaq today, actually i can't tell you russell 2000 up 7% to 1,547 for

the small caps just shy of their record closing high so, again, that leads to us staying in positive territory today. nothing like the gains we saw earlier this afternoon we have nike out with its quart quarterly earnings in a couple minutes. we'll bring you numbers and instant reaction to the results coming right up. joining me today to talk about this, cnbc senior markets commentator, michael santoli bill smid from smid capital management rob cox from reuters breaking views. welcome to everybody the biggest winner in the dow today, chevron, while the biggest loser was intel after a couple strong sections the biggest loser, pg&e corp, had to suspend its dividend on liability concerns about the california wildfires coming up in this hour, the house is expected to move forward with a vote to fund the government and avert a shutdown, we'll share the details when we have them. mike, it sounds like they've agreed to something about a three to four-week extension to jan 19th.

>> they're pulling a little bit of expense out of this week it looks like if it goes this way i think the markets are pretty much okay with that, not necessarily on pins and needles here you notice that the volatility has really waned i remember saying months ago the dominant mode of this market is when all else is equal, when there's no real news swinging things, the s&p goes up about 1/5 of 1%. that's what it did today yes, it's off the highs but just this upward drift has been the mode no reason to think that late december, that's going to change maybe next year we get a different feel. >> rob, there still were some sectors. energy was doing quite well. we have oil prices, you know, wti sort of 58%. maybe there's a tax reform ta tailwind look at the outperformers today, energy, financials, telecom, the laggar laggards, more utilities, real estate and tech. that's been the theme since passage of this thing looked really likely and now is basically done. >> as mike said, not like anyone expects the grinch to steal christmas here from congress you had the biggest tax cut in history. even the democrats, no one's going to jump in right now and

try to upset this apple cart and then so what you're seeing is the same stuff we've seen ever since it became pretty likely that we would get this corporate tax cut. so i'd imagine, you know, without some sort of incredible shock or -- >> yeah. >> -- some sort of insight into bad earnings or that kind of thing we're going to goat this way for quite some time. >> bill, you think the faang mystic is decelerating what does that mean? mystique >> what happened was we had a massive momentum market for two years up until about a month ago, combined with a ten-year stretch of growth pounded value into the dust. and the wrath of value is raising its head here. you know, value just clobbered growth since the 24th of november and that's probably around the time the window dressing got done for everybody wanting the end of the year show they own facebook or google to make everybody happy they hadn't done better, combined with the pressure coming off the tax

selling simultaneously so you can see the tax loss selling stocks are roaring even before the january effect kicks into gear. >> right but, you know, typically people are selling in december, and then you kind of get that rally in january, right, bill? you don't think that's going to happen this time around? >> well, there should be a fallthrough rally in the things that were miserable, right, the retail, the old media, the pharmacy basically -- >> yeah. >> -- the amazon death list is doing great right now and is likely to do great for quite a while because they were treating those stocks like it was going be a depression in their industry for five years. >> well, on that note, let's talk about finish line, which today was soaring after reporting better than expected earnings the struggling shoe company had a beat on revenue. a better than expected quarterly loss, albeit, the stock up 13% today. still down more than 30% year to date we do have nike earnings coming up, bill what would you say about all that >> well, actually, my wife got

me a new pair of nikes about three weeks ago, and they're super comfortable, and i wish she'd had gotten them for me when the stock was at 48 oar 505 o 50 by the time i realized what a great shoe it was, the stock -- we don't own those companies the shoe is terrific has got to work in favor of those shoe retailers. >> mike, that's what we heard, maybe there's to much inventory or litany of other issues going on -- >> north american business, it's still tough, still competitive i don't think it's necessary the category is oust favor or anything like that when you're the biggest market share and still sort of fighting that battle while still trying to keep your brand to the sort of prestige status, it's not easy to show great growth. >> what did you think about finish line today? >> it's in the category of stocks after the amazon/whole foods deal, people just threw them out you have a stock that's up 50% in about 6 weeks. >> wow

>> and down 35% year to date. >> wow. >> that shows you that they were pulverized into the fall, people realized they aren't an imminent death situation and seems like, again, business stabilized, consumer in decent shape i don't know if you want to extrapolate out the rebound trend but shows the market shot to the downside. >> for 2018, are all the names even with the rebounds we've seen still so cheap they can have an okay year or same narrative about amazon's advancement going to come back to the fore? >> part of it depends on your time horizon if you look at the valuations, i mean, there are very few companies that trade on a sort of sales, you know, price-to-sales basis that amazon does there are a few, a couple that out there. they tend to be things like, i don't know, home depot, areas where people think amazon won't any time soon get into it. shoes, i mean, sneakers, first of all, why people -- why people continue -- why americans continue to love sneakers, it's a little embarrassing wedge y iu go around the world and see

people walking around in sneakers, looks terrible i love my sneakers for running or sport it's a little bit of a sad excellent. then again on a day when we've seen life expectancy apparently is declining, maybe it's a good thing people are wearing sneaks. i mean, you have to be so -- >> so grim. >> it's almost friday. >> it's a repeat business. it's a repeat business. >> real quickly, bill. in a good way? >> it's a repeat business. a great brand with -- they buy something from you and they wear it out in four months. you know, that's nirvana compared to other businesses. >> i know. i'm doing -- mizoto running shoes. go ahead. >> the other thing is with these faang stocks, i don't know if everyone noticed but there's been a great deceleration on those stocks an lot of people are holding those stocks and not taking their profit on them because they want to bet into the next year and take the capital gain next year. so they don't have to pay the tax for, you know, for 14 or 15 months later the following year. and, you know, would i want to be sitti inting with a bunch of overpriced growth stocks right now when value is starting its first significant move

gosh, in forever it's torture >> i don't know. it had another one, you know, the first quarter of this year so there's been head fakes in terms of the value rebound, bill. >> well, we're going to talk about the big deal news today. shares of brazilian aircraft maker embraer were surging cnbc confirmed deal talks with boeing reuters reported the brazilian government is open to embraer partnerships but not a total sale of the company. rob, what's your read on all this >> there's no way this brazilian government under temer is going to sell it he even said not during my government there are elections in october again, no one wants to be talking about -- no one wants to run in this environment where you've sold the one sort of great manufacturing company out of brazil. it's had troubles for sure but you can see why boeing wants something because it gets into that sort of level below the 737. i think it is. the sort of, you know, smaller jet -- you know, and i think airbus just did this deal with bombardier which gets in the same area. you can see why both guys would

want to do it. this is brazil the idea that they would sell their crown jewel of manufacturing, i just don't see that >> the same time, mike, there were some kind of talks. does that indicate there's some openness >> there was an approach, some kind of engagement i mean, i think, really the takeaway is for a company that as rob said is the crown jewel, national champion in this area for brazil, a $4 billion market cap. >> wow, is that all it is? wow. >> this company is given the currency effects and everything el else. >> bill? >> we own alaska airlines. they're taking their short flights, kind of the two hour and under flights, i don't know if you've ever ridden one of those for two hours. the seats were uncomfortable it's misery. they're bringing embraer 75 seaters in and i am just -- can't wait and alaska's an exclusive buyer of boeing. so if they form a partnership, that would make complete sense that's one good customer of boeing that they've be able to

satisfy with adding embraers by the du dozen. >> maybe that's your outcome embraer up 22% on all that. meantime, steve liesman reporting economist larry lindsey considered for the federal reserve bank vice chair job. the white house slois looking fr monetary expertise for the role and lind desey is interested. under george w. bush and currently head of the lindsey group. familiar face to us, of course what would his employment mean at the fed >> certainly understands the fed, understands how the fed kind of engages with monetary poli policy definitely seems like a skeptic on the new toolbox that the fed's been using the last few years, central banks in general. i think it might be perceived as a slight tilt in the hawkish direction given where we're starting from in terms of monetary policy. maybe a lighter touch on regulation. >> he's slightly activist. remember back when he was on the federal reserve board in the '90s, he was gung-ho about

stopping the bubble. >> right. >> way before it actually -- >> yes a traditionalist way of approaching central banks. >> people look back and said, if we just listened to you, we would have stopped this growth in the market. >> is trump going to appoint somebody who's going to lean against -- >> it's hard to -- i mean, you want someone you can get confirmed and without any controversy. i suppose larry lindsey is your guy. he's not a new name or new face to anyone in the senate. and certainly the republicans where, you know, he served with george w. bush, i think, h.w. bush >> w bill, what do you think the effect of this would be? >> first of all, the higher interest rates and more expensive capital reduces the price/earnings ratios people are willing to pay for future growth so when you think about some of today's most popular stocks, earning less revenue growth stocks, more expensive money is bad news for growth stocks as a category so you can just see that coming. secondly, millennials forming

households and creating families and buying cars has a much more powerful effect on interest rates than what the fed does you got -- for the price of money to change, more of it has to be demanded than is supplied. the suppliers are the boomers, and the borrowers are the millennials and they're starting to kick in in a big way. you're starting to see that, diana olick's housing numbers and other ways. >> yeah. >> that's what's coming. that will be completely out of the fed's hands. once those rates, you know, like jeff gunlock said the other day, once those rates hit 3%, you know, it's going to be really interesting watching people own high price ratio of stocks as the price of capital goes up. >> you're pushing the millennials over the fed this is why we like you, bill. meantime, spotify taking an unusual route to avoid a traditional initial public offering the music streaming service is expected to receive approval from the s.e.c. for its direct listing on the new york stock exchange now that means spotify can transfer its shares to the exchange without raising money

as is done in a typical ipo. before that can be done, nyse has to win approval from the s.e.c. to change its rules s.e.c. has until feb 15th to make a decision. okay rob is ready for this. you're talking about slaw. >> you know about the faang stocks, b.a.t., b.a.t.s from china. we have an idea this year will be the year of the s.l.a.w.s spotify, lyft, airbnb. >> bill can't wait to invest, by the way. >> they may be too growthy for bill these are company thaies that ae disruptive, the they way work, way we play, the way we get around and travel. what's interesting about spotify, the "s" in the s.l.a.w., this deal, itself, could be disruptive. i know you'll say google did this, other people have done this, difference, variations but, and it never stuck. but the idea that you can just say to wall street investment banks, hey, about that 7% gross

underwritings spread -- >> forget it. >> -- stuff it, we're going right to the market. could be quite disruptive in its own way. >> i see it as a one-off spotify doesn't want to be public they're kind of grudging all around they don't want -- they're not signing up for the marketing piece of the wall street road show and ipo process so we'll see i mean, people have tried to -- >> it depends on how well it goes off it depends on what the volatility looks like. >> the google thing -- >> by the way, how much money did google leave on the table? >> right, they go public, it's something like 80. it wasn't a great deal for the seller of stock. >> right >> although it was conclusive. people got to play a role in the dutch auction. >> bill? >> it looks like arrogance is what it longs like right? i mean, think about it do you want to go to the most brilliant traders in the world and have them take you public? and have them squeeze every dollar out of it or are you one of the golden disrupters that can just go in there and just do whatever you want everybody's going to love you and it's all going to be hunky dory it's arrogance the psychology on that side of the market, by the way, i saw a

chart the other day, i will say this, i was shocked to see for people under 40 what percentage use traditional radio, what percentage of them use things like sirius, spotify, et cetera. >> yeah. >> i mean, it's not good news for the radio industry, the advertising-based radio industry >> two bankruptcies there, or near bankruptcies depending -- in the last couple weeks >> well, those millennials are buying houses from me, they're not listening to conventional radio. right, so -- >> i'll think about that when i turn on the sonos later. >> exactly >> guys, thank you we got to go bill smid, rob cox, always keeping it interesting ment s.l.a.w. >> look for it. nike shares have been red hot raling 20% in the last two months dow component is about to release its earnings we're going to get instant analysis and reaction to find out if it can keep running. in a few minutes the house is ex. pekt e xptetootoneeng the government open and avoiding a

shutdown we'll bring you the results of that vote as soon as we get it 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

welcome back we have those earnings from nike now. eric has the numbers >> that's right, kelly actually nike beat leehere, earnings per share, analyst

expectations were 40 cents, 6 cent beat on revenues. $8 $8.55 billion. expectation expectations beat of $150 million in fact, despite these beats and stock being up, they actually did worse than expected in north america, and in greater asia they had a small beat in china, and actually the best place where nike did the best was the europe, middle east and africa divisions. not the places that analysts were hoping for. obviously, north america is the big situation right now that people are following that was short 5%. people were hoping closer to around, you know, down 1% to 3% for that kelly, back to you >> wow that is a big miss eric, thank you. looks like the share are up about .5 sam is back with us, manager at susquehanna financial group. sam, for the focus on the north american business, the fact the revenues were down 5%, versus we heard again people talking about, you know, maybe a very small decline at all, what was your own expectation, what do you think? >> we were looking for down just under 3%, so a little bit worse.

again, we're sort of -- we just want to know what they're going to say about how things are going to build out and the flow of usiness the gross margin came in late l bit better inventories may be slightly elevated we just really are looking for how they position themselves going forward. and, again, while this is a better than expected number, it doesn't necessarily answer the question, and just on eyeballing it, it looks like the tax rate also came in a little under what people expected which can give you a couple scents. i mean, so they -- i mean, they're such a huge company. they can, you know, take a dollar out of here, dollar out of here. somebody told me a few years ago, you know, if they cut $200 million out of their marketing spend, the majority of the people in the world would never know they actually did that. so, i mean, that gives you some idea. >> all companies, isn't the famous line we cut out half our marketing budget if we only knew which half >> or wasting. >> just to put it in perspective, their marketing -- their demand creation revenue, i think right now is about 70% it was until a year ago the size of under armour's overall

business i mean, revenue. so it's -- this is just such a huge company, it's a great company. i just think we aren't -- as i said earlier, we're just not there yet to say what the direction -- >> what would you want to hear from them? in terms of the flow of business in terms of how they're going to take on, you know, the north american market, whatever else >> i personally believe, a growth company, aggressive and don't rest on their laurels. they were as they were earlier slightly complacent a couple years ago. what i like to hear from them is, look, we're going to really relook at the u.s. we're going to make sure we can get back to that pull model that they've always -- well, they've spoken as-- i don't think they talked about it for seven quarters get back to the pull model, which might mean making the u.s. smaller for the time being to take the bull by the horn, but right now, i think it's hard to balance these -- maintaining these huge franchises and, you know, keep -- you mentioned it a few minutes ago, you know, keeping it cool.

so it's -- >> yeah. >> -- a very delicate balance even for the best company out there. >> for comparison's sake, here are some of the numbers. north america revenue, supposed to come in over $3.5 billion it was $3.49 billion europe, middle east, africa, $2 billion. greater china, $1.22 billion see some convergence there what do you make of the strength in europe? >> well, i think we have to see what the currency neutral number was. i think they got a benefit from currency, again, i haven't seen that it's going to be important to ro look at what currency-neutral numbers are. my guess is it benefited them a little bit on the total, bullt,i mean, again, they have great stuff and also europe has been tougher than most lately as well. >> exactly. >> coming out ahead in europe is good we'll have to hear -- china was good but not gangbusters so -- >> you know, the numbers come for this quarter at an interesting time for the stock it's had this huge ramp in the last two months. the low 50s up into the mid 60s.

and it's right around the level it traded exactly to -- christmas eve 2015, this stock hit $68. >> wow. >> it's kind of done this very long, painful round trip as the overall market's been marching higher for most of that time you know, it seems right it's a little bit of a challenge of the old highs. see if there's enough fundamentals -- >> i think it's going to be an interesting call when they give a little more clarity on what's going on with a lot of factories you mentioned from currencies and so forth really quickly, last word. >> real quickly, one of the reasons stocks moved so much is everybody came out of a very upbeat analyst day with great product, great everything i mentioned earlier and sent the product's great, moving, that the can't be the story athese days for any company we have a news alert on insurer, chubb leslie picker has those details. >> that's right. chubb announcing today a $1 billion share buyback program through december 31st, 2018. their current share repurchase authorization expires december 31st

so nujust in a week or so chubb the world's largest casualty insurance company shares down just a little bit there, brut, you know, i guess this must have been expected by shareholders given the end of the current share buyback program at the end of the year back over to you. >> leslie, thank you mike, there's a lot buffeting insurers right now including the tax reform bill. >> there's many. in a course of business, we do buybacks chubb, what an insurance company, is going to do. not huge for a $67 billion market cap company le look, i don't think this falls into the category of a company that's going to get some kind of tax cut windfall and is plowing it just into buybacks. this is more of a routine thing. >> i'm trying to remember, i think evan greenberg of ace which bought chubb was saying they would be hurt by the bill because it takes away some of the advantages for insurance companies that operate -- >> to operate -- >> -- offshore. >> that is true.

over time, think it's going to affect the profitability of business, where they put company. right now, a insurance company is not going to build measure insurance factories. >> right. >> if they're well capitalized, they're going to buy back stocks. >> what this might suggest, they can see a hit and figure out structurally not impacting this buyback liberty mutual, a company coming out heavily in favor of this and saying it levels the playing field for bitcoin ro eer for the day it's been on fire this year. everyone wants to cash in. including an iced tea company. that's next in the "keaytaaw." we're expecting a vote in the house to avoid a government shutdown that should be any minute now. we'll bring you the results as soon as it happens ♪ ♪

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welcome back it's time for a cnbc news update with sf zf sue herera >> the united states general assembly voting overwhelmingly to condemn president trump's recognition of jerusalem as i israel's capital and rescind the decision the vote was 128-9 with 35 nations abstaining, i should try to say israeli prime minister netanyahu declaring the vote null and void >> israel completely rejects this preposterous resolution jerusalem is our capital always was, always will be but i do appreciate the fact that a growing number of countries refused to participate in this theater of the absurd.

thousands of mourners filled a conference center in a toronto suburb to pay their respects to apotex founder barry sherman and wife, honey, who were found dead in their home last week. prime minister justin trudeau was among those in attendance. the jupiter, florida, community raising thousands of dollars in less than a day after toys for tots donations fell short. jupiter elementary school leaders joined with district leaders to buy enough toys to provide a toy for every one of its nearly 900 students. good for them. and we are just getting late word that the vice president pence has made a surprise visit to afghanistan it was cloaked in a rot lot of secrecy. met with afghan president ghani and returned to the air force base there to meet with the troops this, of course, comes as the trump administration plots a new course for the war in afghanistan. the vice president landed about a half an hour ago that's the news update back to you, kelly >> wow, maybe gives the troops a

writ l bit of lift, too, before christmas. >> absolutely. >> those aren't easy to keep secret thank you, sue. >> you got it. >> sue herera. here's a look at how we finished on wall street today. went out much more tempered than we started the dow was up 55. no one had a record at the close here we were close during the session, of course, dow up more than 100 at one point. s&p closed up five, nasdaq up four and the russell up seven. let's check on nike, too, reported earnings earlier this hour the earnings beat top and bottom line the north america revenue number was shy of expectations. shares reversed lower by 4/10 of 1%. let's get to big stories in our "rapid recap." >> we think there are going to be a lot of very negative effects of this tax bill that will undermine the ability of the united states to fund its priorities >> the passthrough community has been dealt with incredibly generously. >> i know we've got the fundamental right in this tax reform bill. i think it's going to allow

businesses to start making those investment decisions they've been holding off for probably too long. >> i think that you're going to see orders for planes that are already just through the roof go nuts here. like, i just think that everybody's involved with e-commerce doesn't have enough -- you know, parcel, f fedex. >> i think this is very disappointing. strong leaders erers disagree fa very simple reason there's no case. >> brazilian government is open to embraer partnerships in commercial aviation. here's the key caveat. not a total sale of the company. >> filed for the ability to list new and novel bitcoin etfs but done so on behalf of issuers we will not, ourselves, be the issuers of bitcoin etfs. >> you know, i was thinking about that one yesterday, michael. th the nyse, itself, is not going to -- >> they're facilitating it kind standing ready to do so.

>> he was good to clarify all that. as yoou saw happening live i the house, lawmakers are starting to vote on a bill to prevent a government shutdown. we're going to bring you the results as soon as they're done vote it would extend funding through january 19th. it's time for our "takeaway" today, we begin with the latest in the bitcoin mania long island iced tea is changing its name to long blockchain corp and shifting its company to investing in the technology behind buiitcoin nova is changing its name. long island iced tea is a micro cap. a lot are. shares more than tripled, as you saw, after this name change. honestly, this is the best example of what a bubble this whole thing is. >> it's really kind of reaching into the sort of classic penny stock kind of look at me pump and dump type world. that's really what this seems to hark back to. >> ironically today finra came out and warned investors about pump and dump schemes. i have to wonder, i mean, when a company changes its name, the

mere fact that it existed as securities entity before and exists as one now, does that make it kosher when it says, we're just going to start going into bitcoin technology? >> you know, it's a buyer beware thing. look, they're still going to operate the iced tea business. they're not going to actually stop that. so, no, it's a clear kind of profiteering thing i mean, there's some talk at some poi point it might have been a danger of getting delisted this magically gets a market cap up to a zone where they might be safe, not have that happen. >> for now. >> why did they stop at blockchain, why not make it cloud, a.i.? >> wouldn't get this much of a pop today. next, wearables are so 2016. e-marketer says one in five americans will be using a wearable device, like a fitbit or apple watch, next year and usage will plateau for several years beyond that. meanwhile, the firm says more than half of u.s. households will have a smart speaker by 2022 and speakers are expected to outsell wearables this holiday season plus we got rbc's mark mahaney

saying amazon is a buy, alexa will drive sales by 2020. >> after years aft s of everyon saying it's about mobile, what's your mobile strategy, it's the stationary strategy. >> understofundamentally it's at voice. this is such a pain having to get into it, tap aroundclumsy. if you want to do anything on the internet, it's a frustrating experience >> it's smart, it listens. what i found interesting, if you go into a best buy, physical best buy, they're kind of near the counter with the impulse buy stuff. >> interesting. >> it's kind of, why not >> they're so cheap. we got one as a party favor not long ago i mean, you can pick up these things for 30, 40 bucks. i forget who called -- >> shows you how valuable it must be to somebody on the other end. >> that's what i was going to say. someone called this the trojan horse christmas because all of these kind of gimmicky speakers which people -- fun and set it up, are meant to be a way to get this technology and get those platforms into your house. and really gain a bigger hold on your life.

>> it's what -- you know, in the movies, people just walked right into the spaceship when the aliens came. they don't have to take it in a hostile way. finally a retailer is testing a new code 8 personal shopping service for busy nyc moms which retailer, you might ask? none other than walmart, of course they also own binomos, which is pretty high end. trying to make the website as price competitive as famous stores can they be the low-cost leader and go high end? >> i don't know if they're going to do that by exploiting the walmart brand. walmart is becoming a portfolio of brands for different tiers of retail, going to make use of the logistical strengths -- >> it's a good point you make, is a name change going to be next alphabet did it, tapestry did it if walmart should be a low-priced subsidiary -- >> they have tgot rid of stores longer walmart stores. walmart, an entity, for whatever you might need

definitely experimentation i don't think they're saying this is going to be huge overnight. it's kind of interesting especially i think people's willingness to try a service they hear about or is rated highly, they're not going to hold the fact that it's got walmart on the back end against it >> i still don't think walmart is going to be trumpeting that fact. we have an earnings alert on the uniform company, sintas. let's get to leslie picker to those results. >> i want to draw your attention to shares of sintas rising higher in the aftermarket after a beat on both the top and bottom line for their second-quarter earnings. let's start with the bottom line cin cintas reporting $1.31 adjust ed versus $1.27, estimated by analysts on the revenue side, $1.61 billion versus $1.59 billion estimated. they also raised their 2018 eps and revenue guidance now speaking in the press release today, the ceo, scott farmer, talked about how the integration of gnk continued to proceed as planned that merger created $14 million

insynergies, almost twice the amount they achieved in the first quarter. keep an eye on those shares as, you know, people continue to digest this one, kelly >> yeah, they're up 3% it has been a juggernaut leslie, thank you. how about nike let's check on those shares after its earnings they initially were a little bit higher then they reversed lower. they're basically unchanged. the conference call might be key. set to begin in just a few minutes. plus, are retailers generally up to the challenge of delivering all those last-minute gifts before christmas we will head live to an amazon prime now hub next. and right now, the house is voting on a bill to avoid a huowrnment stdn. we'll bring you those results as soon as the voting ends stay with us

christmas is four days away. if you haven't gotten all your online shopping done, there could still be hope your gifts could arrive before monday morgan brennan joining us from prime hub. a one h hour delivery? they're getting it down pretty quick. >> reporter: the amazon prime now is exactly that, one or two-hour delivery if you're a prime member if you're a prime member, get that two-hour delivery for flee,

if you want it in one hour, there's a small fee associated with we're in the new york city hub one of the amazon prime now hubs across the country they're located in more than 30 areas. mostly they're densely populate areas. most of the hubs have 25,000 items are so available for delivery cowen and company does a survey monthly of amazon shoppers from what they can tell, grocery, personal items, household essentials, those are the top ordered items. amazon tells me paper towels are one of the most ordered items ear. i've seen bottles of water, watermelon, you name it, thing you need last-minute amazon prime now very well may be able to deliver it to you not all of your gifting needs, though no the full selection that amazon.com would have, of course but it's not the only option google -- worked with more than 50 retailers nationwide. they can get you same day or next day in a lot of cases no membership there. you just have to meet a minimum shopping threshold to have that available.

in fairness, not all retailers are available in all markets using that service and you got the regular retailers trying to leverage both their stores and startups to help get new items delivered quickly. best buy charges $5.99 for four cities macy's in 33 cities helps deliver same-day from stores that's going to cost between $8 $19. slice intelligence ran a scan for us of e-mailceipts to se what happens with the patterns of spending for amazon prime now and showed so far for the season orders up about 2% and if you look at last year on december 23rd, they did see a spike up of about 3.2% for some of those last-minute orders. that very well could happen now. slice also looked through the data to try to figure out exactly how big prime now may be for amazon what they can tell, it averages to be about 0.8% of amazon's

revenue, at least from october through the end of december during that holiday season kelly, back over to you. >> is courtney, did you -- did you say watermelon >> reporter: yes >> what -- >> reporter: i did there's watermelon there was a watermelon right over here, as a matter of fact it's gone now. that was fast. i see it still on the shelf. maybe one of them -- i saw it go in a bag it's out for delivery already. >> my guess is someone's juicing. that can't be a christmas gift unless there's some usage -- >> reporter: yeah, true. >> maybe an inside joke. >> reporter: maybe there's a party and there's some kind of watermelon drink being offered sounds refreshing. >> i'm learning a lot. courtney, thank you so much. >> reporter: thanks, kelly. >> courtney reagan. from bitcoin's massive run to a record-breaking sum for leonardo painting, there's plenty of alternative investments offering big returns. we're going to take a look at whether wine will join those ranks coming up. right now, the house is voting on a bill to avoid a government shutdown. as soon as we get the results, we'll bring you that voting tally. tell you what happens there. coming up on "fast money"

more companies are cashing in on the crypto craze as we were talking about. where are the regulators former chairman of the s.e.c., harvey pitt, will bon e on to discuss whether a bigger crackdown may be ahead (news anchor 2) all lanes on highway 50 remain closed at this hour. (news anchor 3) the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year. 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 study and analyze the flow of traffic. then, we will take all of that data and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter. and sacramento is just the beginning. with advances in cameras, sensors, and network speeds, we have the ability to make cities smarter, and happier. what excites me about this technology is that we're using some of the most cutting-edge machine-learning, and ai, to help solve the most fundamental challenges that cities face around the world. who knew asphalt could help save the environment? (lani) and the possibilities are endless.

welcome back you're looking at thousands of dollars worth of wine sitting right here next to me. up next, head of sotheby's glalinob we business is going to tuck abo talk asht about whether you

should add vino to your portfolio. 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. ♪ ♪ trace every precious product, every step of the way, with a blockchain built for business. the ibm cloud. the cloud for business. yours.

as markets hit record high after record high, it seems like all signs are pointing up for investors. according to stanley druckenm l druckenmiller, the rally has investors putting their money in almost everything. >> distorted market signals and causing all sorts of what i would call misallocation of resources. >> like bitcoin or is that unrelated? >> no, it's not unrelated at all. bitco bitcoin, art, wine, equities, credit you name it. everything is one way up and there are huge distortions

taking place >> so is wine the next bitcoin joining us to discuss is jamie, sot sotheby's head of wine welcome to you both. you get the point. i was reading the other day journalist just been launched and we've seen very strong demand through all the vintages for burgundy. >> in the last year, wine has been the top performing collectible investment we talk a lot about art, diamonds, collectible cars but wine was the number one, up 25%. is wine an investment, is it a legislate thing that if you buy the top quality today, you know it's going to be worth more in five to ten years? >> it's going to increase in value.

we have 24% more new wines coming into our market, younger collectors are coming in there's a limited supply of fine wine it has to increase in price over the five to ten-year period. >> we talk about the global synchronized growth. i remember in 2009 or so, you shipped a huge cargo ship full of wine to hong kong it was a huge risk, no one had done it before and now hong kong is the largest wine market in the world will that strength continue next year, with the chinese still driving the market >> i think so. this year we saw 60% of our sales word wild going to asian buyers, not just in mainland china and hong kong, but taiwan, singapore, malaysia. i think that just continues. >> is the best wine going to china and not staying here in new york where we can get it >> it is a global marketplace. there's plenty of competition

for north american buyers, latin american buyers, brazil and mexico, and europe as well it's a global market >> how many times might a bottle of wine at auction change hands after auction? does it turn over a lot? are people buying it to eventually consume it? >> that's an interesting question we never know how much is consumed we think it's about 50%. >> one five or five zero >> five zero >> you think 50% of it is consumed no way really >> if you were in asia or hong kong -- >> you're going to the wrong dinner parties, clearly. >> i don't get it at all i understand sometimes people are drinking it, but i would have thought the number was one five >> no. when we're in hong kong and taiwan, we're drinking great wine every single night with passionate people who love it. >> what do you have with you >> a couple of bottles at

different ends of the spectrum dlc 1996, a great vintage. this was the top selling producer for us, 16% of sales at about $11 million. >> so people ask me what is the favorite wine of the rich. >> do people really ask you that question >> they do or if our viewers want to know, if you want to sound cool around the very wealthy, what's the wine to have it used to be la fite. now it's drc, the wine to have $2200 a bottle it sells for as much as -- >> as much as $40,000 a bottle >> and people are drinking it. what's the other one then we've got to go >> 2015 burgundy from a super producer, joseph dreyer. that's $30 a bottle. >> even i might have a sip of that one jamie, thank you, robert, thank you very much. breaking news from capitol hill

kayla tausche, did they vote >> reporter: this did, and kelly, as expected, the house garnered enough votes to pass the government funding bill to keep the lights on here until january 19th there were a handful of democrats who voted in support of this, but not until the very end. and more than a dozen republicans voted against it but even so, 226 votes in favor of that bill that is enough to pass we'll see when the senate takes it up. it is expected to be tonight, kelly. >> kayla, that's actually surprising to me that you said democrats voted for it and some republicans did not? >> reporter: normally that's how this works the democratic votes are withheld until the very end. they want to make sure the republicans on their own can get to their threshold, then the gate goes up and they're allowed to vote in favor of it that's how it worked two weeks ago, that's how it often happens here there have been a lot of republicans dissatisfied with the fact that defense spending didn't go longer or other fiscal hawks who felt like the spending is too high as it is for the

programs they reauthorized for various reasons you've had republicans throughout date saying they weren't going to vote in favor of this. > kayla, thank you very much. >>a ceo change at a pizza company, those details when we come right back. it's a small finger...a worm! like, a dagger? a tiny sword? bread...breadstick? a matchstick! a lamppost! coin slot! no? uhhh... 10 seconds. a stick! a walking stick! eiffel tower, mount kilimanjaro! (ding) time! sorry, it's a tandem bicycle.

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welcome back we have a news alert on papa john's leslie picker has the details. >> reporter: a new ceo will start on january 31st. papa john's founder says that the new ceo will put the spotlight on our pizza he will remain chairman. back over to you >> leslie, thank you i was going to see if we could compare papa john's performance to domino's. domino's has been a great prefer papa john's had a drop, the ceo said it could have been because of the nfl anthem protest, then they had to walk that back because of the outcry. i don't know if this has nothing to do with it.

>> the company's announcement said this succession will put the focus back on the pizza, on the product, implicitly saying there was a distraction here, we created a little too much of a fuss at the top. who knows if there's a back story to that. >> papa john's is now below 60 while their rivals like domino's have had such great performance -- >> domino's is off the highs a little bit but it's been the out performer. >> domino's can go down? >> yes, it's down in the last couple of months >> that's your information on pzza, the ceo is stepping down nike's call starts in just a couple of minutes. the shares were a little back and forth. mike, they missed on the north american revenue number. i guess the gross margin was okay there's a lot of different things to look for >> they had lofty goals in north america. the path to achieving it is what everyone wants to hear you want to hear what they say about tax cut, regional economic

strength, where the demand is, in their various markets beyond that, it's a similar story. >> i'm a little surprised the shares are taking the north america news in stride >> north american news margins are okay they're clearly executing all right. just on the actual top line for north america, not quite there >> mike, thank you that does it for "closing bell." "fast money" begins right now. now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," it's crypto stock mania. it seems like any company that mentions the word "blockchain" heads for the moon and the bitcoin bug is fired up tonight as it sinks for the second day in a row. shares of nike are volatile in the after hours session th