tremendously, tremendously china would have superseded us in two years as an economic power. now they're not even close china got rid of their china 25 because i found it very insulting. i said china 25 is very insulting because china 25 means in 2025, they're going to take over economically the world. i said that's not happening. and we have gone way up. they went down i don't want them to go down we'll have a good meeting and see what we can do but i have to say this, millions of dollars will soon be pouring into our treasury for taxes that china is paying for us if you speak to mr. pillsbury, probably the leading authority on china, he said he has never seen anything like it. you know who else hasn't china hasn't but we're going to try to make a deal with china because i want

to have great relationships with the president and also china okay >> how do you see the role as a moral leader mr. president, how do you see your role as a moral leader? >> there are so many people. >> as a moral leader though. >> i think i'm a great moral leader and i love our country. go ahead >> thank you, sir. you said earlier in the press conference that democrats had a choice that you would not work with them on legislation if they were investigating you do you not have a choice in the matter as well don't you have a responsibility -- >> no, no, i think it's very inappropriate. we should get along and get deals done now, we can investigate. they look at us, we look at them, it goes on for two years and then at the end of two years, nothing is done now, what's bad for them is being in the majority, i will just blame them, you understand. i will blame them. they're in the majority. honestly, it makes it much simpler for me they will be blamed. but i think nancy pelosi -- you

know, i put that statement out on social media today about nancy pelosi that if she is sure of votes, because frankly, i think she deserves -- and a lot of people thought i was being sarcastic or kidding, i want i think she deserves it. she's been fighting long for it. i really mean this there's nothing sarcastic about it it was meant with very good intentions i think she deserves it. she's fought long and hard she's a very capable person. you have other people shooting at her trying to take over the speakership. and i said if it's appropriate, if we can and if we will, if she has a problem, i think i would be able to very easily supply her the necessary votes. that's not said in any way other than i really believe she deserves that position i also believe that nancy pelosi -- and i can work together and get a lot of things done along with mitch and everybody else we have to work with. i think we'll get a lot done >> mr. president, why can't you

do that while subpoenas are coming through >> excuse me >> why can't you work together while there are subpoenas and investigations in process? >> i think we will now that the election is over. the election is over now everybody is in love and then i see the hostility of questions. i come in here as a nice person wanting to answer questions and i have people jumping out of their seats screaming questions at me. no, the elections are over and i'm extraordinarily happy. i really am. by the way, i would tell you if i wasn't look at what happened in florida. look what happened in georgia. look what happened in so many locations with governorships nobody talks about the governorships. look at the amount of work that was given to these other candidates against my candidate. and i'm extraordinarily happy. and if i wasn't, i would be like there's nothing wrong. you look at midterms and you look at elections generally, you see it's very rare that a party

who has the presidency does well we did unbelievably well to win florida, both the senate and the governorship against two very talented people, i'll tell you what, we did incredibly. to win georgia, when you had some of the biggest stars in the world campaigning endlessly, including president obama, you know, i will tell you what, this is a great victory for us. and again from a deal-making standpoint, we're all much better off the way it turned out. because i really believe if the democrats want to, we can do a tremendous amount of great legislation. yes, please, go ahead. should we keep this going for a little while >> yes. >> yes, i think you should keep this going. >> when you get bored, will you please tell me, seriously. >> we're never bored >> hopefully not i don't want to overstay, but, please, go ahead. >> hi, mr. president

i'm from pbs newshour. on the campaign trail you called yourself a nationalist some people saw that as emboldenly white nationalist. >> that's such a racist question >> there are some saying the republican party is seen reporting white nationalism. what do you make of that >> i don't believe it. why do i have my highest poll numbers ever with african-americans? why do i have my highest poll numbers with african-americans why do i have my highest poll numbers? that's such a racist question. honestly, i know you have it written down and you're going to tell me. let me tell you, that's a racist question you know what the word is, i love our country i, do you have nationalists. you have globalists. i also love the world, and i don't mind helping the world but we have to straighten out our country first. we have a lot of problems. excuse me, but to say that what you said is so insulting to me, it's a very terrible thing that you said >> mr. president, people have -- you talked about middle class

tax cuts on the campaign trail how will you get democrats to support that policy? >> you have to ask them. >> what's your plan with democrats? >> you know what my plan is, i will ask them. if they say yes, i'm all for it. if you say no, there's nothing you can do because you need their votes. >> mr. president, you said many times on the campaign trail that you didn't want nancy pelosi to be speaker, or at least you suggested that you spent a lot of time talking about her. >> it's not a question of want so let me answer, would i have preferred winning by two, three, four, i would almost have to think about that certainly, i like to win, and if i win, she's not going to be speaker. >> what did she say to you yesterday that made you give her, your support? >> honestly, we had a very warm conversation she loves this country and she's a very smart woman she's done a very good job

she was really -- she's had a very -- >> did she promise to stop proceeding to impeach you? >> we didn't talk about impeaching do you impeach somebody because he created the greatest economic success in the history of our country? let's impeach him because the country is so successful let's impeach him. has he done anybody wrong? they asked somebody, has he done anything wrong no, let's impeach him anyway they also said let's impeach justice kavanaugh, let's impeach him. now they have the second woman coming out, i hate to say this, but it was public. after him we're going to impeach the vice president we're going to impeach mike pence. mike pence doesn't get impeached for anything so let's -- let's impeach the president, and then we'll impeach the vice president these people are sick. you know what, they is to get their bearing. really, they have to get their bearing. really when you ask about division, they're the ones that

cause the division they cause tremendous division. >> regarding all of the retirements in the house -- regarding all of the retirements in the house, mr. president, quickly, you said -- >> who is retiring >> you said that many of the retirements that happened in the house made it very difficult -- >> many retirements, yes. >> that made it very difficult for you in this election cycle and it was because they were chairmanships. but the company of a committee and paul ryan retired. why do you think that is whose fault is it? >> jeff, i retired him, pure and simple i retired him. i did the country a great service. give him that. he's retired i would like to call it another word but we are going to treat him with great respect go ahead jeff flake that's another beauty. >> two questions, please -- >> one, one. too many people. >> all right you seem to enjoy this venue very much. are you going to make the standard press conference a

staple of the remaining two years, or -- >> no, no. >> -- will you have more briefings with sarah sanders >> i think sarah is fantastic. where is sarah sarah is so great. she represented me so well she's been horribly treated by a lot of people. >> she's going to stay on as press secretary? er >> we were talking about it the other day, i had a period where i figured i wouldn't do any real interviews and they will say why isn't he doing they're coming up with all things never over the last couple of months, i decided i will do a lot more, we will stop with the helicopter and then they say why is he doing so many press conferences, what's wrong when i don't do them, you say what's wrong when i do do them, you say what's wrong and when i go in the middle, you say what's wrong but maybe you know that, right okay, good no, you did. excuse me, you complained about access when i purposely just

stayed away from the press for a while because i wanted to see how it worked. can i be honest with you, it didn't work well it didn't work well. >> mr. president, the question, sarah will stay on as press secretary. >> please, go ahead. >> first off, i personally think it's very good to have you here because the free press -- >> i do too. i do too. >> it's vital. >> the media, it's worth billions. >> i have two questions for you if that's all right. it's a rare opportunity. first, just a point of clarification on the tax reform issue. you brought up the audit that doesn't prevent you from relicing them. >> that's true i didn't say it prevented me i said lawyers will tell you not do it. next question. more exciting than that, please. >> second one, michael colskeend you called black voters stupid, omarosa used the n word and lil

jon said you called him uncle tom. >> i don't know who lil jon is. >> he was on "the apprentice." >> oh, i see. >> did you ever do that? >> i would never do that and i don't use racist remarks if i did, you would be knowing about it i have been hearing the tapes for years and years. number one, i never worried about it because i have never used racist remarks. i have never used racist remarks. >> one point of fact because you told her you had -- >> quiet, quiet. >> it's just 8%, sir, single digits. >> see, when you talk about division, it's people like this that cause division. great division, great -- point of fact is i never used a racist remark that's the point of fact where are you from >> i'm from yahoo! news media. >> yahoo! good i hope they're doing well where are you from >> mtv lebanon. >> lebanon. >> thank you, mr. president. we're so happy to as well have this opportunity

the president said he will not follow your sanctions and he's going to keep buying oil -- >> who said that >> the president of turkey. >> i know. >> and he will -- >> i can't understand his -- >> he will meet him soon will you have this talk. and some companies will take the same steps that the president is doing. >> let me say about the oil. we impoised jused recently the strongest sanctions in the history of our country just about. i guess north korea's there too. but i gave some countries a great on the oil i did it a little bit because they really asked for some help. but i really did it because i don't want to drive oil prices up to $100 a barrel or $150 a barrel because i'm driving them down if you look at oil prices, they've come down very substantially over the last couple of months that's because of me because you have a monopoly called opec. and i don't like that monopoly

i don't like it. and oil prices are coming down so rather than deciding to be as tough as i am on most of the sanctions, what i've done is i said, we're not going to do it that way we're going to let some of the oil go out to the countries that really do need it because i don't want to drive oil prices up to $100, $150 a barrel. which could happen it's a fragile market. i know it very, very well and it's the absolute right decision they will get tougher as time goes by maybe. but i don't want to have any effect on the oil prices worldwide where i drive them up because i consider them to be a tax and i don't like taxes. >> the peace process is over . >> congratulations to jon tester congratulations. i'm sure you're very unhappy about that go ahead yes, please. >> can you address -- >> we will take a couple of more and then we'll go.

>> can you address concerns in places like georgia, where people waited in line to vote for hours where voting machines weren't working in certain districts and -- >> you think that's the reason the candidate lost >> well, there are concerns being raised that it was -- >> i wasn't in georgia, other than i love the state. i do love the state. >> president of the united states, are you concerned about the access people are having to voting >> i heard it was very efficient in georgia i heard it was very efficient. but, again, you'd have to ask the state governments because, just one of those things you're going to have to ask them. go ahead, please please, go ahead >> thank you, mr. president. you expressed some concerns about social media companies unfairly sensoring conservatives during the election. do you anticipate working with democrats to regulate these companies or are you satisfied >> i would look at that. i think it's a serious problem at the same time you start getting into speech. it's a very dangerous problem.

that can be the beginning. so it's very dangerous believe it or not, i'm one that really likes free speech a lot of people don't understand that but i am i big believer. when you start regulating, a lot of bad things can happen but i would certainly talk to the democrats if they want to do that, and i think they he do want to do that. >> former president barack obama famously said he had a pen and a phone to use executive power on issues like immigration. do you see yourself using executive power to get some of your immigration agenda done >> i do. i do i think some of it i could use executive power on some, not all. but he certainly used it he used it on dacha. and when he did it, he said something to the effect, i'm not allowed to do this it will never hold up. but i'm doing it anyway. and he did it and they found judges that approved it.

we also found judges that didn't approve it so it's obviously going to be determined in the supreme court. and if the court rules in favor of what president obama thinks they should rule, which is is wh what he said, then i will probably have a deal with the democrats in a very short period of time. we were very close to having a deal until we got that very strange ruling >> you also made some promises during the campaign and i am wondering if you're going to follow through with them. >> which one are you talking about? >> birthright citizenship. >> is it yes or no >> inl we have the absolute right but that's another case that will be determined by supreme court of the united states. >> are you going to send 15,000 troops to the border >> you have been reading the sa sa same domts i have. you know exactly what i'm doing. next question. >> it's more than a month since the death of mr. khashoggi, the

journalist -- >> it's a sad thing. >> do you think saudi arabia is guilty of having him murdered? >> i'm working very closely with congress, working together with very talented people and we're working with congress, we're working with turkey, and we're working with saudi arabia. and i'm forming a very strong opinion. go ahead, john >> mr. president, just a quick followup, you said something about nancy pelosi, you said that nancy pelosi, she loves our country. do you regret some of the things you said during the campaign at various times you said democrats want to put a wrecking ball to our future, destroy our country. >> i believe that. with their country policy, they're using a wrecking ball on our country. i believe that 100%. this would be a wrecking ball. but i believe there's a compromise somewhere and i think that could be good for our country. one more. >> do you regret the ad you did that was branded as a racist ad and fox news wouldn't air it. >> no.

i'm surprised you asked me that question i do not >> thank you, sir. i think we would all love to have more of these if you're willing. in 2017, shortly after you took office, your homeland security department shuttered a program to counter homegrown right wing extremism, white suppress mix and related terrorist groups and redirected that funding towards fighting islamic terrorism do you believe white supremacist terrorists, right wing terrorists, these homegrown terrorists on that side of the spectrum are a problem, sir? and what does your administration believe -- >> yes, i believe all hate is a problem but i do believe that is a problem. and it's a problem we want to solve. >> how so? sir, what are you going to do about it cut off the funding. >> mr. president, you said --

>> we are giving funding for that, a lot of funding but i do believe it's a problem. can i tell you what, it's a problem i don't like even a little bit >> mr. president, you said pretend i'm on the ballot yesterday. you called it a referendum on your presidency. many local districts across the country rejected your midterm message, particularly suburban women. how do you bridge that divide now? >> i think it was very well received look at the results. midterm elections are disasters for sitting presidents in administrations. this has been very successful -- look, you can write it any way you want if you disagree with me s this been an incredibly successful one look at ohio i mentioned georgia. i mentioned florida. how about the governor of ohio, the fantastic -- excuse me, excuse me. fantastic man who was down in the polls and everybody was talking about this person that was so great, and i went up there and i did a rally, and

they have now a great governor you're going to have a great governor of ohio for an awfully long period of time, but for four years, and mike dewine is a fantastic person i went up there for two reasons. because i felt that his opposition was not a good person, and we know a lot about him, and i felt mike was a fantastic person and he won not only did he win, he won easily so add that to florida, and add that to georgia, and add that to all of the other races that we won outside even of the senate races, which were the biggest of all. because these were races that mike pence can tell you and some of the folks over here can tell you, these were races that were going to be unopposed. we were not going to oppose certain of the people running, certain senators they said they couldn't be beaten they said heidi could not be beaten please don't do it this was a year out. >> what about the suburban --

>> excuse me you're telling me about popularity they said many of these people, when i said 9 out of 11, they said many of these people, these weren't like easy races. these were tough races and so i think the level of popularity, the first question i was asked was about well, what have you learned what about your own popularity i think that's what i learned. i was very well received by this great country, by the people of our great country. and i'm very proud of that because i love the people of this country these people, we are the greatest people. i love the people of our country. >> what do you say to women -- >> i will tell you something, when you look at the races we won in florida, which we weren't expected to win, and georgia, which we weren't expected to win, and ohio, which we weren't expected to win, and i mean, you look at some of them, the number of votes that we got is incredible so i'm really happy with not only the way it came out but the response to me as your

president. as your president, i have made our country safe i've rebuilt and am in the process of rebuilding our military and the jobs are here, every one of them, built here. we're going have -- very shortly, we're going to have the strongest military our country's ever had i've done more for the vets than any president has ever done certainly in many, many decades with choice. and with other things, as you know, with other things. but our vets are doing better than they've ever done but if you look at choice, choice alone, look at what we've done with choice but the people of our country are very happy with the job that i'm doing. >> looking ahead to 2020 -- >> one of the things they want so much is security. they want security both at the border, they want it with our military, they want it with law enforcement they want it with i.c.e. we've taken out thousands of

ms-13 gang members, thousands. hard to believe, thousands out of our country women of our country who are incredible people, they want security they want safety they want financial security also we've done that. but they want physical security, and we've taken out thousands of people that shouldn't be in this country. but we have to get strong immigration laws so they don't come in. we want laws where they don't come in, where we don't have to take them out per se and, again, i'm very honored to be with all of you it was a great day yesterday it was a great evening i think we had a tremendous success. and hopefully the tone can get better and hopefully -- hopefully, the tone can get a lot better, and i really believe it begins with the media. i really -- we used to call it the president. >> does it begin with you, mr. president? >> i really believe it begins with the media if you would cover -- and there was a very interesting story

written in a very good paper recently that talked about the fact that it isn't good what the media is doing, and that i do have the right to fight back because i'm treated very unfairly so i do feet back. and i'm fighting back not for me, i'm fighting back for the people of this country thank you all very much. thank you. >> the president wrapping up a press conference that went well over an hour and a half. it was wide ranging, as you might expect, and at times combative and concluding on the note that hopefully the tone in public discourse can get better and he believes it begins with the media and that he's fighting back not for himself, but in the best interests of the country. a lot to talk about here with a lot of folks, john harwood is here from washington, melissa lee, amman, michelle and ben weidman, we appreciate you being here ayman, i don't know where to begin. >> wow, this president is fired

up after election night last night. you saw this aggressiveness from the president of the united states he wanted to take credit for republican wins in the united states senate. he doesn't want to take blame for republican losses in the united states senate a couple of big pieces of news here one is i don't think we've ever seen a president of the united states come out and denounce and mock members of his peernt wown defeated the night before for to the campaigning with him during the course of the campaign but this president named off a number of republicans, called them out, mocked them in some cases. >> losing candidate in utah among them. >> mike kauffman, he said too bad, mike. that's something we have never seen before from the president of the united states he also said he might not work with democrats at all on anything if they proceed with investigations into his administration, into him personally we can assume the democrats will do that. so i think that gives us a sense of where we're going here over the next couple of years, the tone there. >> go ahead, john. >> i was going to say, i thought we just saw a portrait of a president who understands at a

visceral level he's in very big trouble. he's lost the house of representatives. he's facing the mueller probe. while understanding that, because you could see it in his affect, the way he lost it in exchange with reporters, jim acosta, peter alexander, our colleague from nbc news and others, this was a president who was rattled, but he was trying, contorting his public remarks into glorification of himself, all of the things he's accomplished he seemed to try to set up the results in georgia that i beat president obama there. president obama campaigned there. it was odd, i thought disturbing, to see a president behave that way. former republican member of congress sent me a note while he was talking and said this is all about him. it suggests he's all entirely in his own head trying to create a reality in which he has triumphed when he obviously has not triumphed. >> i didn't see him -- i

didn't -- >> we're going to go to nancy pelosi, who is starting here in just a moment. i guess starting right now. >> the biggest winner in yesterday was the health care for the american people, for our seniors and hard-working american families, health care was on the ballot and health care won elected an extraordinary class of dynamic and diverse candidates, members reflected who reflect their districts and who embody the bountiful diversity of our nation. women led the way to victory, with at least 30 new women coming to the congress is that not exciting and there's still some races that are not finalized yet so there could be more. democrats also secured big wins in the governorships across the country. while it is my responsibility to lead the house for the democrats, winning the governorships is essential,

essential for good policy in our country and open elections and the rest so victories in wisconsin, illinois, kansas, maine, michigan, new mexico, and nevada i'm very proud of new mexico that our colleague omichelle grisham is the governor. even though that's replacing a democratic governor, governor hickam, that wasn't a pickup but it is a democratic member there. jim rauls in minnesota, our colleague again winning in minnesota. for us seeing the extraordinary leadership of these members going into governors' offices seeing the increased number of democratic governorships, it was a great night for the american people we from the beginning, we focused on health care two years ago today, the day

after the election, not the same date, but the same day after the election, everyone came together and said we see the urgency, we want to take responsibility, and that gave us opportunity to protect the affordable care act. that was so essential to the health and financial security of america's working families, and we knew it would be a target of the trump administration so just so you know, by that slogan we mobilized many of the groups outside they were self-mobilized as well but we all came together, depending on -- despite where we might be on the spectrum on other issues, to say this was our focus. we plan to launch our campaign on the weekend of martin luther king day when that is in january and we did after the president's

inauguration, as you know, something historic happened in our country, the women's march and much of that was about health care, women's reproductive health, and the beat goes on over the course of that next year and a half, working with the outside groups, and they deserve a great deal of credit i'm proud of our democratic unity in the commerce of the united states and our inside maneuvering, that unity was essential to the clarity of our message and their differentiation from the republicans on that subject. but working together, voting together, we were able to make our case the outside groups, and we participated in some of this, but the outside groups had 10,000 events across the country speaking about the risk that was involved in the republican policy in terms of health care in our country there are assaults on medicare, medicaid there are assaults on the

benefit of a pre-existing medical condition. being taken away, all of that, so much more the issue about the cost of prescription drugs, all of those issues by lobbyists, at the groups of advocacy groups across the country, labor unions, veterans the list goes on and on. it's so many people who were involved in that leading up to the name on the ballot, and some of you said to me, how did this emerge as the issue in the campaign? my answer is, we made our own environment, because we knew how important health care is not only to the good families but the financial well being of their families, health care costs being such a major assault on their economic security

it was -- it was -- and when we put together our for the people agenda, our first priority was to lower the health care costs by lowering the cost of prescription drugs mitch mcconnell went forth and really admitted that medicare and medicaid in some aspects of social security, knowing these benefits were on the chopping block. the president pulled his punch when it came time to lowering the cost of prescription drugs by enabling the secretary to negotiate for that so this is -- >> we've been listening to nancy pelosi, the presumptive speaker of the house, speaking about last night's election results after the sweep of the house by the democrats. this happening right after president trump's lengthy and wide-ranging news conference right now, of course, we have to take a look at the markets here because we're holding on to solid gains on the back of election night nasdaq is up by more than 2% points, s&p up by 1.7%

that's gain of 46 points on the day. and dow jones industrial average, this is a 400-point rally here, gain of 1.6%. >> our website is running a headline saying dow is up 400 points after trump signals bipartisan cooperation on the economy. and we're not the only one when you finish watching that website, do you get the impression there's really going to be bipartisan cooperation >> not in the least. i think he's signaling the fact what happened last night was pretty much what people expected to happen. >> exactly. >> but the democrats would take the house, republicans would hold and maybe gain in the senate and the democrats would pick up governorships. >> after 2016, this was the relief rally and finally the polls were right in their predictions that the democrats took the house only and republicans kept the senate. >> and the market is comfortable with the idea that little will get done. >> gridlock is fine for markets. the expected happened. i think there's a check on trump

to some degree which markets might be comfortable with that idea he doesn't have unilateral power now and there is in this country a democracy that still works and you can check the power of the president i do think there is somewhere in here a real belief some infrastructure spending is a possibility. i don't really happen to share that belief because i don't think democrats want to hand a big win to trump but he has shown he can deal with nancy pelosi or at least try to and chuck schumer, he does want to spend money, loves to build stuff, it's not impossible the question is, of course, where does the money come from we have a huge deficit but investors at least believe that's a possibility >> one of the things we've seen over the past couple weeks is volumetity in the markets. but what the president was suggesting is political volatility still to come when he asked if he endorsed the deputy general, if they job security. he declined to answer that question and said i will wait. >> he said i'm happy with most of my cabinet. >> yes and rosenstein went right under the bus there.

the president clearly seems to be signaling he's been to make significant changes. >> and interior -- >> not a big, wet kiss. >> pay attention to more news coming. >> and totally shut down the rumors i am hearing about whether nikki haley would be vice president. >> he proposed to pence, would you be my vice president and hand it over to him. >> another thing we've never seen before on live television >> one of the points, to the idea there may be some possibility of cooperation on a couple of domestic economic topics, the idea of some sort of middle class tax cut was tantalizingly discussed to me. i think it is -- it's not impossible i think it is far from probable that that would happen, but he seemed to dance around the possibility when one of the reporters asked what kind of

tradeoff would you make to get in terms of some kind of heightening of corporation taxes or taxes on the wealthy to enable a middle class tax cut. >> the president rolled back the estate tax, which isn't that much money, or other tax cuts that went to the high end, democrats would entertain that trade, sure. but also they're interested in restoring that state and local tax deduction, which was taken away in the tax reform bill. but ultimately, it's a combination of ben's point about democrats not wanting to get too close and deliver too much of a victory to trump but also the fact they are real-world questions about how you can pay for all of the things we're talking about. if we're talking about something for health care, something for infrastructure, something for middle class taxes, the deficit in 2019 is going to be a trillion dollars and that is something that the traditional parts of the republican party, the republican senate may not be eager to exacerbate. >> and we were discussing while we're watching him too, ma

listia, you brought up some weakness maybe in the social media stocks because there might be cooperation on regulation there. the republicans are bitter because they think they helped -- they were manipulated by the russians and therefore helped elect trump and conservati conservatives are bitter because they think they're censored by facebook and twitter you have different competing reasons why but willingness to go after them. >> you can't put both of those things in the same bill. >> that's a fine risk for this company. that's about hearings. that's about continued criticism. i don't think it's about actual legislation. >> regulation? i think it could get regulation on both sides because people are so angry on a number of fronts with these organizations. >> investors in facebook seem believe that's a possibility thank you so much for joining us let's get more on today's big rally with cnbc contributor michael pharr, the president and ceo of other and senior

strategist with bessemer trust gentlemen, good to see you i hope you were able to watch at least some of the president's press conference and we were debating here the reasons for today's relatively strong rally in the dow and other equity markets michael, why would the market move up as sharply as it has today? >> i did watch the president's press conference, tyler. i thought it was kind of a tale of two press conferences too the prepared remarks sounded so presidential and down the middle and then you got into his questions and answers and it looked like we had the combative president again. we will see who actually shows up to negotiate with the house and the new congress i think we have a bit of a relief rally here. there was some trepidation that we could have seen some significant changes, changed indeed that the market was not expecting, they didn't get, but i think we were holding back a

little bit, dry powder this was a relief rally. i would caution investors the down draft created damages there. we still need to build a base. so caution should still be the order of the day but this is not a bad place to be. >> the context is that the dow is back to levels we've seen october 10th so it wasn't too long ago. john tani, in terms of how you view the markets or how you view individual sectors, what's different today versus say 24 hours ago, anything? >> i think we removed just a huge element of uncertainty. this could have gone in a number of different directions but ultimately markets got what consensus was expecting. we removed uncertainty it's unlikely you will get major, meaningful policy now over the next couple of years and for that reason investors and market participants can focus on the underlying fundamentals you did comment or touch on a few things that transpired over the last few weeks that certainly affected investor psychology but let's not forget,

the underlying fundamentals, economic data, corporate profits, all of these things look positive and i think that's partially what mark markets are keying off of this morning. >> right we're going to to lose joe's feed here. we lose your satellite feed, but michael farr is still with us. excuse me. the economy was a little really discussed there except for the ancomiums to larry kudlow with respect to the performance of the economy. looks like we lost both of them. i will just keep talking away here i think what was interesting as the president talked in part is where he pivoted and if the economy starts to go the other way, he made it clear who he's going to blame. >> oh, absolutely. he said we were discussing this yesterday that he already set up strawmen for why the stock market would go down he would blame powell, he would blame the democrats. he's got two scapegoats lined up

pre-election say ready to go in case the stock market takes a dip. but here we are with a relief rally at least on our hands. >> all right, we were with president trump in his press conference today saying he's hopeful the two parties can work together i have seen a lot of thesepost election press conferences and they usually say that. can bipartisan really break out in divided washington? we will ask relative jeb hensarling and we will also ask him who's likely to be his successor running the financial services committee in the house the brake? 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 lead with digital.

all right, with the democrats taking control of the house, it is going to change who leads some very important congressional committees looking at who can take over and what can change. >> tyler, of course a change of power in the house comes with a change of leadership nancy pelosi obviously the presumptive speaker but here are some of the other lawmakers that

investors should start watching, because they are the likely committee chairs in a democratic-controlled house. you've got richie neil on the ways and means committee also have maxine waters, likely heading up financial services, peter defazio is a likely share for the championship committee, elijah cummings on the oversight committee. the ways and means committee is one of the most important for the markets because it oversees taxes and trade. richie neal has already said that the bar is high for him to approve a new usmca, and back in the '90s, he was one of the lawmakers who voted against nafta. so he's someone who not only has tough rhetoric, he's also taken some tough votes also want to talk about peter defazio, likely head of the transportation committee he has already met with the administration to discuss his plan to fund a big infrastructure investment. he's looking for about $500 billion, and that would be funded through a new invest in

america bond also important is frank pallone, who would oversee the economy. he talked about working with democrats to regulate social media and big tech companies both democrats and republicans at least have an interest in bringing the tech ceos to the hill, holding their feet to the fire frank pallone is the one the administration and republicans have to work with in order to make that happen but, guys, the president was also very clear in his press conference saying if investigations that the democrats are promising go off, negotiation, bipartisan, that goes out the window. back over to you. >> thank you very much are we headed for total government gridlock or are there areas the two parties can work together let's explore that with representative jeb hensarling of texas. he decided not to seek re-election this year.

chairman, welcome as wulalways it's good to see you. >> thank you for having me back again. >> one of the commity chairs that is going to obviously flip is the one you have run over the past few years and likely to pass to a colleague of yours, maxine waters. who on occasion you have been extraordinarily complementary of, particularly her help on jobs and confidence act that passed the house but she's someone the president mocked as a low i.q. individual and she comes at some of the topics that will come in front of that committee than a very different way that you do or would have, right? >> you think >> tell us what to expect from maxine waters. >> number one, i agree with you, there's probably north of 99% chance she'll be the next chairman of the house financial services committee my own impression is there's a tale of two maxines. you've kind of described both. on one hand she's capable of

being a serious legislator, of negotiating and being a leader but we also know that speaking of being a leader, she's led the charge for impeaching president trump. she was the one who makes incendiary comments about harassing the president's cabinet and his staff in public places like restaurants and shopping malls politico had an article a couple of days ago that quoted her as basically seeking revenge or retribution against the banks. so the big question is, will the house fm services committee continue to be a beehive of legislative activity i'm pretty sure we have produced more legislation to the house than any other committee most of it in a bipartisan fashion. or will the committee be basically turned into a spanish inquisition or the star chamber to harass the administration, to intimidate the administration.

leader pelosi has already said that subpoenas basically are a tool of negotiation. it's not how i view it but it's basically how she views it and i think the american people are going to be watching and they know a shakedown and harassment when they see it. >> so let me bare down on two areas you raise there. one is the idea that the new chairman, the incoming pruktive chair, miss waters, would take a stance that could undo some of the deregulatory work that the administration and congress has done with respect to banks and other financial institutions talk to me about that, and then talk to me about the common risks that the chair would use subpoena power to go after either cabinet members, the president or his family, subpoenaing, for example, his tax returns. >> well, one, i don't believe that she will be successful in

rolling back what the president in this current congress has done what i do believe though is that she and others can slow down the pace of deregulation and thus harm economic growth in that way. i do believe it will be a test of the president's nominees in the current heads of say the seg and cftc and fdic. it will be a test of what is their backbone made of i assure you they will spend most of the day doing nothing except answering subpoenas for documents and appearances. and they will be, you know, sauteed, fried and grilled there's no doubt about that. and so i don't think she can roll it back, but i do think that she can slow down the pace. now, i know a lot of her democrat members want to legislate. the question is again will she let them do that i don't know the answer to that

question so, one, i don't think there will be a general rollback but i can tell you she will have the power of subpoena. i have it today. it's something that i treat with a lot of respect and trepidation. i think on average i may have used it once a month during my n you know, she may use it a half a dozen times before breakfast so again, i don't know, and i think the american people know the difference between legitimate oversight and political harassment and intimidation, and they'll be watching closely >> chairman hensarling, thank you, as always you've been very generous with your time over the years, and we hope you're continue to come back on cnbc >> thank you, appreciate it. >> you bet across the country, several issues on the ballot about legalizing marijuana the results and what they could mean for pot stocks like tilray, surging 13% today. can it go even higher? that's next on "power lunch. obvious.

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it is a mixed bag for marijuana stocks today several initiatives on ballots across the country regarding marijuana, what could those results mean aditi roy live in san francisco. >> hi, tyler it was a good night for the

cannabis industry with key wins, one analyst wrote could grease the wheels for pro-marijuana legislation in congress. let's talk about the ballot initiatives first. voters in michigan approving the legalization of recreational marijuana. north dakota's adult use measure did not pass with the michigan win, they project the state's marijuana market will reach $1.3 billion in 2022. one potential beneficiary is medmin which has exposure to the pharmacan acquisition. on candidates, congressman pete sessions losing his re-election bid, blocked dozens of cannabis bills and jamie pritzger wants to legalize recreational marriage marriage and pro-marijuana democrat ned lamont is the projected winner in the gubernatorial race and

tilrat's company spoke positive about the results today. >> thanks. what do last night's results mean for investors paul rosen is the co-founder and former president and ceo of pharmacan capital, known as the kronos group paul, great to have you with us. what do the various propositions that have passed in the three different states actually do and change in terms of how you look at the cannabis space and how you look at investing? >> it's another sort of sign that we're reaching a stage of what i call sensible cannabis reform in the u.s. market. you take what happened last night in michigan and in utah and missouri and aggregate with the other states that passed medical or recreational program, we have 33 states of the 50 that have either a medical or

recreational program, ten of which have a recreational program which encompasses 220 million americans or roughly 68% of the population. so individually, it's just another data point that suggests that the desire for sensible cannabis reform at a state and citizen level is enhancing in every election season at a gubernatorial level, you highlight it correctly that developments in illinois and connecticut and new york, so the collective sort of takeaway from last night's results are that there's sort of an irrevocable amendum toward sensible cannabis reform >> that seems far off and in the meantime a lot of the cannabis companies are workingoen various licenses and distribution agreements state by state because you can't transport cannabis across state lines. how long do you think that situation will remain in place, because coming to some sort of federal legislation seems like that would be the holy grail in terms of unleashing investment and unleashing sort of economies

of scale in this industry. >> that will be the breakout event and i think what will be the incremental steps such as act passing. the seismic event when we will resolve the die cod me between federal and state law. my own feeling it will happen post-2020 and closer to 2022 this is conjectural. i'm gathering the data points that have shown sensible reform and postulating we're reaching a tipping point and the breakout i expect will happen in the next four years >> thank you for your time, paul rosen. >> thanks for having me. health care has been the best performing sector in stocks so far this year how will it fair under the new congress and don't forget about the fed meeting today, decision tomorrow "power lunch" is over that one much overlooked todabut i significant. don't go away.

i'm melissa lee. we are 24 hours away from the next fed interest rate decision. what will chair powell signal about the pace of rate hikes and

what does the market want to hear trade and health care, two issues front and center as the president starts the second half of his term under a new congress and bull's eye, target rallied 32% this year, but one analyst says it has more room to room to run. he'll join us with his take. "power lunch" starts right now >> melissa, thank you and welcome, everybody, to "power lunch" on a busy post election day. we are seeing a significant post election rally the dow on pace for its highest since october 9. the s&p and nasdaq highest possible close since october 17th, less than a month ago. the russell 2000 has moved out of correctionterritory with th gains that you see right there today. all 11 of the s&p 500 sectors are higher, led by health care,

technology, and consumer discretiona discretionary. communication services and industrials they have now moved out of correction territory. west texas crude meanwhile down nearly 1%, lower now for an eighth consecutive day flirting maybe with dipping below $60 a barrel semi stocks on the move, micron and intel are the biggest gainers. we begin with full team coverage of what last night's election means for you, your money and some key sectors of the economy. eamon javers, bertha coombs on the health care beat and contessa brewer has a roundup. eamon we xwin with you >> feisty is one way to describe the press conference we saw a few minutes ago. the president clearly fired up, bracing for a fight, heading into his own re-election now in 2020 with the mid terms behind him. the president was asked if he's

prepared now to work with democrats who have taken charge of at least part of capitol hill, the house of representatives, if the democrats are focused on investigations of the president himself. here is that exchange and here is how he handled the question >> if they start investigating you, that you can play that game to investigate them -- >> better than them. and i think i know more than they know. >> reporter: can you compartmentalize that and still continue to work with them for the benefit of the rest of the country? >> no. >> reporter: are all bets off? >> no, if they do that, then it's just all it is is a war-like posture >> "a war-like posture" if they investigate him. we heard from nancy pelosi speaking up on capitol hill. she's the presumptive speaker of the house for the democrats. she is signaling the democrats are going to conduct what they call rigorous oversight and what the white house would call an investigation, an aggressive investigation into the president, so presumably that war-like posture, guys s where

we're headed for the next two years between the democrats and republicans, and that begs the question of whether anything policy wise of substance can happen in this atmosphere. we saw this carnival-like atmosphere in the east room. the president mixing it up with the press, denouncing reporters in some cases by name. this is a president who is angry, who is fired up and ready for a political fight, and a fight with the media >> this is his, this is part of what he does, when attacked, when put on the defensive, he pushes back. >> absolutely, and he's on the defensive on a number of fronts, because you do expect the democrats on capitol hill ar going to go after his tax returns. he was asked about that today. he gave a long answer about being under audit, which he's given before he clearly does not want to release those documents. democrats might be able legally now to go get those. that's something that the president doesn't want to see. >> and as we know, we all know, working in the media, and we get the questions, too, there is a strong strain of people in the country who feel the same way he

does about the media >> absolutely. >> very strong strain. >> very split. lot of people loved what they just saw from the president of the united states, mixing it up with the media in the east room, rhetorically punching them in the nose, a lot of people cheering that on today >> thank you dominic chu we go, what wall street is thinking, now that the election is over com, tell us >> tyler, melissa, guys, the opinions awounbound. we did put together a small sampling of them to give you an idea of how these wall street strategies are treating the election results and what we could see in the coming weeks and months we'll start with the macro view from goldman sachs on the midterm election results and one of the things they're pointing out, among many, the removal of uncertainty in the election is supportive of risk assets, so think better for the overall market also, don't expect any new initiatives. do not expect any new initiat e initiatives on taxes or infrastructure because of the divided congress no change to the trajectory of

u.s./china trade relations that could mean more tension to come and added tariffs are still expected in 2019, so that's goldman's take on that another one to look at here as well as ubs's take on the midterm results, their view from the cio suite, they think the election outcome will not affect the broader outlook for u.s. stocks so short term, medium term, not a bunch but they are looking for a further significant reduction in the likelihood of fiscal stimulus, so tax cut 2.0, slowing deregulation in financials interest rates going higher could be good and lower loan losses could be good as well, and they are cautious on industrials on balance, that's something to watch and we'll clear it up here with the take from citigroup on the midterm results. fed policy and trade war issues are still unresolved that's going to be something to watch there. the tone of the new congress not likely known until january 2019, that's also one to watch there the partisan differences versus hopes for compromise, they think

that the partisan differences could win out in this situation here and they're not viewing the election in any way, shape or form as an all clear situation to buy the overall market. just an idea of a lot of the talk and commentary coming from wall street strategists. over to you. >> thanks, com chu one sector impacted by last night's results is health care bertha coombs is live with more. the sector is surging today. >> it is it was the most important issue for voters and today it is the leader in the rally. the upshot is for hospitals, insurers, the status quo is what's going to remain under a divided congress, predictability is good news, after two years of volatile uncertainty so house democrats can't push through medicare for all medicaid players are rallies because senate republicans can't repeal obamacare for its medicaid expansion which got a boost from voters in idaho, nebraska and utah, where governors aproetzed the aca program and maine which has a democratic governor who carry

out that state's binding referendum from last year, bringing the number of states that enacted the expansion now to 33. for hospitals, greater expansion of injured is also seen as a win, and with republicans losing the house, that puts to bed fears of possible medicaid and medicare cuts to pay for tax reform and we're seeing a broad relief rally in health care, but the risk for potential bipartisanship on regulating drug prices is there, though after all the rhetoric today, melissa, investors don't seem too worried about the possibility of bipartisanship breaking out any time soon on the hill >> yep, bertha, thank you. bertha coombs at the nasdaq. turning back to the broader markets, the dow and s&p 500 on pace for their sixth gain in the last seven days. what are the biggest issues facing investor? we bring in the chief investment officer with bny and the cio of equities federated investors which just got $437 billion

under management >> many billions, billions and billions >> leo, i'll start off with you. has anything changed that causes you to adjust how you view the markets, how you view individual sectors? >> how we view the markets with respect to asset classes, not really i think the market's telling us today this is more than a satisfactory result. it was anticipated the bond market a lot of investors might not be paying as much attention to the bond market which is having a nice reaction today, but it doesn't really change our capital aelection decisions. sectoral impact is a different story. >> steve, same question to you >> we had three things we were worried about coming into this, melissa. one was the election the second is the fed, and the third is the trade war we have one of them out of the way. the election, you know, on the one side, i put a piece on federat federated's website called political goldilocks

the two risks the market was worrying about was one, a blue wave that would have threatened the pro-growth agenda of the trump administration, the tax cuts and the deregulation, and the other side of it, a red wave that would have potentially led to additional deficits and problems on debt/interest rates. the bond market is rallying today. that's good for stocks, and the pro-growth agenda looks like it's in place, so yes, it looks like political gridlock here, very unlikely. we saw the press conference. we're probably not going to see a lot of cooperation that's probably good from a policy perspective, ironically, right now. so we just got to get past, you know, the trade thing, and the fed, and those are still out there. we think they'll get resolved positively. >> those are pretty big things, aren't they, or could be who really knows leo, you mentioned this a moment

ago, we have a 410-point rally, 427 points now on the dow, strong rally here. you said that sectoral positions, positioning is a different matter rather than asset allocation explain what you were driving at there. >> we're broadly an equity friendly investing environment we haven't changed our overall market forecast. 2800 to 2900 by year end this year, 3100 next year with respect to the sectoral mix, i think investors will want to be sectorally diversified, and what we're seeing today is a return to -- >> that means what >> i think as we weed through sort of the sector results, you're seeing today a return to the growth oriented sectors. >> in a big way. >> if there is a positive surprise on the infrastructure side, energy, materials, industrial stocks have severely underperformed and i think investors need to be prepared there as well, we're concerned about the financial sector, given the change in leadership

at the committee level, in the house, but generally, we think the intrasensitive sectors which have underperformed are probably going to be performing a bit better in the next 12 to 18 months >> sounds, leo, almost like you want to be invested but you're not sure everything's going to shake out, so you also want to exposure to growth >> because remember, growth stocks are sensitive to rate structure and i think this election gives us a pause -- >> the rise in interest rates >> in the bond bear market they grind but not to punish growth stocks. >> leo, how should i be investing with the results in? >> steve >> sorry, steve. >> we think the market looks broad here we like a lot of sectors debris with leo on the growth side lot of the stocks have been deeply oversold and are rallying today in relief as well as the health care. we like the biotechs, but we

really think the area of the market that has been really held back here, that probably still has more room is the cyclical side, within tech, even the semicap equipment names, energy stocks that really are pretty depressed, we think they could have a nice bounce and certainly on the industrial side there's something for everyone i think right now in the market, which is one reason why we're reasonably optimistic. we still have some big hurdles in front of us >> gentlemen, thanks so much steve and leo. coming up, it was not a blue wave, not at all, but it was a female wave, a record number of women will now head to congress. look at who won and how women voted. plus the economy front and center, in one new jersey community, where the race is still coup to close to call. we will take you there withwha people are concerned about, and tell you what they're watching and the great fedspectations, will the fed stay on track or a change of

tone on hiking interest rates? we'll find out in 24 hours, a look at what to expect ahead "power lunch" is back in two minutes. let's begin. yes or no? 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. whooo! want to take your next vacation to new heights? tripadvisor now lets you book over a hundred thousand tours, attractions, and experiences in destinations around the world! like new york!

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election results the nasdaq is up by 2.16%. 158 points is the gain, pretty much session high and so is the s&p 500, up 1.7%, the dow is up by 1.7%, 423 points so far on the session. women and the economy taking center stage in this election. jane wells has a look at the record number of women headed to congress brian sullivan is live in morestown, new jersey, where the race is too close to call. brian, let's start with you. >> reporter: you mentioned the stock market, by the way, a lot of folks we talked to earlier in toms river, near the motion, we're here in morristown across the river from philadelphia, have all referenced the stock market and the economy they've referenced it, but it is health care the number one topic of conversation, the number one thing on voters' minds as they came out of the exit polls and to your point, this race yet to be decided we've been talking to people all day yesterday and all day today about what they care about, how

they were planning to vote listen to what david had to say about health care as the reason why he voted today >> the medication that i take to keep me alive to keep my cancer in remission costs $9,000 a month. i am covered with the affordable care act if the republicans are to monkey around with that much more or god forbid, take it away, i won't be able to afford the medication i need to keep me alive, literally >> reporter: health care 41% of those coming out of the exit polls. as you know, it was the economy, as they always say that, it's the economy, fill in the blank it is the economy as well, and we talked to people in morristown which leans democrat, but there are trump fans here, even if they don't like him personally, they like what's happening with the economy >> i am a trump supporter. i don't like always what he says, but i like what he does. so i look beyond that and i'm really pleased with what he's

accomplished when the economy is good, everybody's happy. people are having work done, confident, feel good about the money they have in the bank. >> reporter: so guys, we came here to talk about the macro economy today after the election but keep in mind new jersey changed their voters laws any ballot postmarked yesterday will still be counted. this new jersey third district which cuts across the center middle of new jersey from burlington county to ocean county about 2,300 votes, too close to call, 2,000 votes are left to come in. we may not know the outcome for a couple of days, as long as that postmark is good and dated last night, then that vote counts certainly so we may be here in morristown for a while but frequently voted the best town in america to live i got the pie lady behind me, i'm going to hang out and eat pie. >> looks like a beautiful shot brian, thanks. now to jane wells we go, scottsdale, arizona w a look at the record-breaking mid terms

for women, including a race there in arizona, jane, in the senate, where two women squared off. >> reporter: yep, tyler, talk about another beautiful place. arizona's going to have its first woman senator. we don't know who it is yet. that race is too close to call, and it has been a record-breaking year for women in fact maybe a record-breaking year for interest in voting for women. voting lines late into the evening last night near arizona state, some complaints about the lack of machines it will be interesting to see the final numbers in this election on younger voters according to an nbc exit poll, when asked if it electing more women was important, nearly 80% said it was either very important or somewhat important. record number of women have been elected to the house, 98 and counting we have a few unknowns so far. overwhelmingly democrat, i should add the numbers in the senate are holding steady but when it comes to electing businesswomen in the congress, the answer was almost always no yesterday, of the eight we were following, only

one, kristie houlihan, a democrat from pennsylvania party affiliation may have been an issue in this election according to the center for american women and politics. >> republican women did not fare well we saw women lose ground both among incumbents and those running as non-incumbents. it was hard for them to gain seats in this environment as republican women >> reporter: now being chief executives of a state, well, nine women have been elected or reelected as governor. that ties a record the georgia race too close to call if stacey abrams wins that race, there will be a record ten women governors. so you would say 20% of the states run by a gender more than half the population. we're getting there. also, by the way, two states have the first female governor, south dakota and maine, one from each party guys, back to you. >> jane, thanks. jane wells in arizona for us coming up, etsy excels, up

26% today and a whopping 150% so far this year, leaving amazon far behind is this stock handmade for great returns? "trading nation" is next only half the story? at t. rowe price our experts go beyond the numbers to examine investment opportunities firsthand. like e-commerce spurring cardboard demand. the pursuit of allergy-free peanuts. and mobile payment reaching new markets. this is strategic investing. because your investments deserve the full story. t.rowe price. invest with confidence.

welcome back to "power lunch. this is "trading thagsnation." etsy is soaring more than 26% today alone following earnings that stock now up 150% this year meanwhile rival amazon up 48% in the same time, though well off its highs. did etsy win the battle or win the bigger war stacy gilbert, and mark newton kick that around a bit stacy, this is not really a zero sum game etsy is a tiny fraction of amazon in sales but what do you think the merits and demerits are? >> mike, you're right. you compare etsy's $600 million to amazon's $200 billion plus these are different companies. amazon's hand made is the

competition to etsy. amazon itself, sean pattel covers with a positive rating, 30% upside from here, loves the story long-term on the recent pullback, buying at the dip here secular growth is incredibly strong and e-commerce is just outside of hand made this is everything that it does. advertising and cloud, cloud is probably the biggest growth for amazon over the next couple of years. etsy what i'd say here, there is no indication. we don't cover it fundamentally. there is no indication in the options market that investors are nervous yet. it's roughly a 25% probability that we could see the stock cut in half over the next year so investors who want to protect those recent gains could consider buying puts on a relative basis, they are not expensive relative to history. we want to own amazon, etsy for investors fortunate to be involved, we think puts are attractive to protect here >> mark, what is the technical side look in each case

etsy looking overheated maybe but what is your evaluation? >> both are stellar performer this is year, up over 150% etsy was up five-fold. the stock as you mentioned up 26% today alone. i think it will be difficult for that stock to see too much more in the near term the area 53 near september highs should be important resistance i look to buy any pullbacks. i like the momentum and it's grown faster with regards to performance wise last year other than amazon. amazon is down about 15% since mid-september, so it's had its fair share of technical deterioration. today is a near term positive, if i had to buy anything for a three to five-day period, i buy am skon today, thiazon today buw faster in the months to come >> all right, short term and the long-term play, thanks, mark, stacey, appreciate it. for more, tune in to "mad

money" at 6:00 p.m., jim will be talking to etsy's ceo jim silverman. next on "power lunch," we are less than 24 hours away from the federal reserve's decision on interest rates. what will chairman powell signal about the pace of rate hikes, and what does wall street want to hear? we will look at some fedspectations ahead >> and now the latest from tradingnation.cnbc.com and a word from our sponsor. [ phone rings ] what?!

ready for christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. >> want to draw your attention to a surge in energy stocks, particularly the oil drillers, after one closely watched ballot measure in colorado failed, specifically shares of bonanza creek energy, extraction oil and gas, companies that produce mostly in colorado where voters rejected proposition is 12 which would have limited drilling

within a certain proximity to occu occupy noble energy also up one of our guests yesterday said these stocks could jump if that proposal failed. today is he upgrading shares of noble energy, which you see there are up by more than 4% let's head over to sue we r herrera. >> hello everyone. at least nine people were sickened by a carbon monoxide leak at a nashville hotel. five people were taken to the hospital levels were several times above the safe limit >> the people working out were the first to indicate something was wrong, they got sick and got out of there had this happen overnight and possibly in an area where people were sleeping, it could have been a very much different outcome. north korean state television airing a video of kim jong-un seeing off cuba's president at pyongyang

international airport. the two leaders reportedly discussed ways to boost bilateral ties which were first established in 1960. pope francis lamenting the fact that there is so much poverty in a world with so many resources. it was the theme of his weekly general audience at the vatican, where he stressed the importance of generosity. you are up to date that's the news update this hour i send it back to you guys >> thank you very much the oil market closing for the day and jackie deage his is all over it at the cnbc commodity desk. >> good afternoon, tyler oil prices finishing the day lower after the eia reported builds in gasoline and a 400,000 barrel a day jump in u.s. production, 11.6 million barrels. it's a staggering figure and rising faster. opec and russia got ready to increase in case the iranian barrels came off they didn't and now the oil market in a position can could go back into glut status as we head into the winter

the democrats taking the house will pose challenges for the administration's energy policies and could also mean less drilling and that could put a lull bit more balance into those oil prices and take them up a little >> thank you, jackie we are 24 hours away from the next fed rate decision >> no rest for the weary, after dealing with the midterm elections we think about the federal reserve. here are the fedspectations for the november meeting of the u.s. central bank, 90% of our panel says no rate hike in november. 85% though expect that rate hike in december, so some pretty good certainty around a fourth rate hike for this year how many next year 2.5. what does that mean? pretty much good agreement on doing two, and about half of the panel of 30 say they're going to stay at two and another half say they're probably going to do three next year. let's put all these quarter point rate hikes together and i'll tell what you it adds up to

we'll end the year at the overnight rate the fed uses to adjust overall, the overall economy at 2.4, going up to 3 and stay there and eventually at some point in time the panel believes the fed gets a little bit restrictive by a quarter point, and ends its cycle at 3.3% now remember, hiking rates is just one of the things the fed is doing it's also reducing its balance sheet, if it stays on course, it will reduce around $4 trillion balance sheet by 600 billion we asked the panel what is that worth in rate hike terms 15% say less than one hike 32% say it's equal to a single quarter point hike and 32% say it's really two or three hikes the average is 35 basis points, so in your mind, when you think about how much the fed is going to do next year, it's the rate hikes, maybe two or three, but then an additional $600 billion reduction in the balance sheet back to you. >> steve, thank you very much. we want to mention that stocks are now at session highs

across the board look at all the green there up is 1.8% for the stindustrials and h nasdaq up better than 2% or 167 points what impact will the midterms and a divided congress have on the fed, the economy and potentially future trade deals we bring in larry lindsay, president and ceo of the lindsay group and former director of the national economic council under president george w. bush welcome and good, as always, to see you. >> great to be back. thanks for having me >> let's start with what you think the markets are telling us today about the outcome of last night's election >> i think that there's a sigh of relief. thank god it's over. all the yelling and screaming and ads and requests for money well, at least we'll have a pause maybe for two months until 2020 starts. >> let's talk a little bit

about, we talked about how the election may affect the fed in theory it shouldn't affect it very much at all, but maybe you see a way it does, that i don't. the economy, and policy that might affect the economy, and more so take them one at a time and trade was the third. take them one at a time, the fed, the economy and trade >> we'll start with elections and the fed. the fed doesn't pay any attention to elections and they won't this time. i think that i'm on the side of the minority with regard to december we have had a tightening of financial conditions there's no question about it, during the intrameeting period i think the fed would be wise even to recognize that in its statement. in addition, the third quarter pce deflator came in at 1-6. it's fallen for three quarters in a row so there's hardly an urgent need to raise rates, and

the fed's walking across a mine field here, especially with that $600 billion that you mentioned. you know, we don't know when some mine is going to go off it's better for the fed to go a little bit slower. >> all right, and let's talk about trade and how a democrat controlled house might affect such things as the usmca and other trade deals where the congress may get involved. >> we need to remember the democrats are the protectionist party in america, and so i know there's a lot of talk it might cause trump to be more willing to make deals. i don't think it's going to affect trump one way or the other. i think it's going to make it more difficult to get deals through, and i think you'll see actually probably a little more hawkish trade stance with the democrats in the house >> larry, you had mentioned you're in the minority when it comes to thinking the fed should hike interest rates in december. what happens if the fed hikes interest rates in december what happens if the fed

continues with its already telegraphed path >> well, we'll see the big problem here, melissa, is risk. you know, we've now had three booms, and two busts, largely driven by monetary policy in the last quarter century now, i really think it's important just for the fed's institutional survival for them not to have this one end in a bust, too. so i don't know whether it's the next quarter point or the quartert poiquar quarter point offer that or the quarter point after that, but it is going to happen remember, the fed deliberately ran an easy monetary policy to push asset prices up risk expanded all around the world. we're now taking that away things should go into reverse. so i don't know when it's going to happen, but i think it's important to do it cautiously rather than speedily in order to

minimize the harm. >> what do you mean by institutional survival of the fed if the rate hike that results in a about u.s.? >> what would you think of an institution that was supposed to moderate business cycles, but in 25 years ran three booms and three busts, one of them very severe it would be very hard. i mean, i'm as pro-fed as anyone can be, but how am i going to go out there with that kind of record and say gee, central bank something doing a great job. no, they've actually, they would have actually destabilized the business cycle if they end up with, you know, three strikes and you're out situation >> larry, thank you. some provocative thoughts. >> you're welcome, take care tech companies have been under fire in washington recently, so how do election results change the likelihood of government regulation for those companies? julia boorstin joins us from los angeles.

>> reporter: melissa, if the democratic house and republican senate can compromise that, could drive change around key issues for the tech industry including privacy, anti-trust and immigration. first privacy. we could see the house democrats push privacy regulations with representative hanna building an internet bill of rights saying moving it through congress will be a priority ahead of california's privacy law going into effect in 2020. second, anti-trust enforcement, congress could call hearings on proposed mergers, and presumptive speaker of the house nancy pelosi has talked about the potential to create a new agency to manage techs growing impact here is what president trump said when asked about regulating social media companies >> when you start regulating, a lot of bad things can happen, but i would certainly talk to the democrats if they want to do that >> reporter: the third issue, immigration, with tech companies

looking for skilled workers the house could moderate the anti-immigration agenda. melissa, back over to you >> i'll pick it up there, julia, thank you very much. floridians have voted and disney is the big winner we'll tell you why, next see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st.

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all righty, welcome back gambling was on the ballot in several states including florida. >> big win for disney and the seminole tribe of florida which owns hard rock together they spent more than $44 million to support an amendment that bans new casinos without approval from florida voters, ripping away that power from the legislature

for hard rock, it staves off competition for gambling dollars since the measure doesn't apply casinos on tribal lanes. it presents florida as a family-friendly vacation des nice the miami dolphins and others argued the amendment blocks the possibility of legalizing sports betting in florida, but that's not clear. the amendment applies to card and casino games and slot machines but in other states where a casino toe hold is the first step to a sports book so we'll see what happens in florida. better showing for casinos in arkansas voters passed a measure to award a casino license in four counties two to existing facilities, a greyhound and a horse track but leaves two openings for other applications the governor opposed the measure but said he'll respect the will of the voters. the president of the united

states tweeted he's replacing attorney general jeff sessions the tweet from the president went out a few moments ago saying "we are pleased to announce that matthew g. whitaker, chief of staff to the attorney general jeff sessions at the department of justice will become our new acting attorney general of the united states he will serve our country well." the president going on "we thank attorney general jeff sessions for his service and wish him well permanent replacement will be nominated at a later date. this is not entirely unexpected but is you are prizing in the wake of the press conference earlier today the president was asked about jeff sessions and declined to say that he supported him, declined to say that jeff sessions had job security as attorney general the president was also asked about jeff sessions' deputy, rod rosenstein the president declined to endorse him as well. no mention of rosenstein in the president's tweet here, but by replacing jeff sessions, who recused himself as head of the russia investigation, then

punting the russia investigation to rod rosenstein, the president has now replaced an attorney general with somebody who will be able to oversee the russia investigation without being recused presumably also by replacing jeff sessions with his chief of staff, as acting attorney general, the president is avoiding for the meantime the prospect of a senate confirmation fight over a new attorney general, that could be politically fraught of course, the republicans retaining control of the senate in the midterm election last night, so presumably friendly ground for a confirmation eventually but the president here saying that he is replacing the attorney general with his chief of staff no word yet guys on the fate of rod rosenstein, whether the president will push him out or whether this the president in the president's view will fix the problems that he's seen at the department of justice. guys, back over to you >> eamon, thank you very much. john harwood joins us now. this news is surprising perhaps only by virtue of its speed and how close it came to the press

conference, where he was, the president was a little bit equivocal about staff changes, though he did say i'm happy with most of my cabinet >> right but i think it also explains somewhat the president's demeanor that we discussed at that news conference he's very concerned now about the mueller investigation. he's moving quickly before democrats take over the house to try to reshuffle the justice department he's made clear that what he doesn't like about jeff sessions has nothing to do with other policy it has to do with his refusal to recuse himself or his decision to recuse himself from the oversight of the mueller investigation, which is threatening the president right now. so we have no word on rod rosenstein but one has to assume that pushing jeff sessions out now is a precursor to getting rid of rosenstein and making an attempt to get rid of robert mueller, which is something that has the potential for causing a constitutional crisis.

>> elon, what are you hearing from your perch? i assume you're still at the white house, and how this came down the wire reports indicate that, to no one's . >> well, there was just a recent flurry in the briefing room. i thought it was quite notable that during the press conference he respontded by saying how happy he was with pompeo i think one thing that is also notable is this is the kind of things house democrats have said they were worried about, wary of as they try today prepare their agenda as they take control of the house. protecting the mueller finances, that's at the top of their legislative agenda.

>> i can tell you we are getting new information from sander saying they received the resignation letter earlier today and the president has accepted it that's one the idea of replaces sessioning is one that has been kicking around washington far while. it is that it does allow the president to put an acting person in place. it is between the two men. i will have to do a little bit more of a deep dive. one of the things you'll be looking at is the marijuana

policy it is expected to be relatively condition sis tent here. we have to see what the new acting attorney general intends to do the russiainvestigation. he said he thought it was very unfair he said he was following department of justice guidelines in terms of his own role in the trump campaign sessions felt that he had to recuse himself and leave the russia investigation to rosenstein

the question is what does rob t mueller dohere >> i looked at the stock market reaction they had been down this road before which would bring potentially the u.s. to a constitutional crisis. the dow lost about 20 points off of highs s&p a couple points off of the session highs. we are holding onto a strong rally here the markets seem to believe there are a lot of steps between here and there >> there may be. we are going have to watch that play out you never know what somebody put in that position will do a couple of things to note here.

before taking the job as jeff sessions said that the mueller investigation was violating the law by looking into the trump familyfinances. >> they said they do not support the mueller investigation. it feels as if president trump is seizing at the moment democrats take power or on the brink of taking power or seizing a pretext or justification >> one of the interesting back stories here and whoever elon jump in here is that for many many months there was very little shade or cover given by

people even in the president's party about the idea of removing mr. sessions but over the past several months lindsay gram has moved very decidedly into the camp that says it was time for a change. he is one that some mentioned as a possible successor i heard him say multiple times he was not interested in that. mr. graham is partly at play in this isn't he? >> sure. the hallmark of the republican congress has been to shield the president from accountability. so when the initial speculation about firing mueller came up last year you had republicans say we think the investigation should continue.

as we moved further down the road you had people like lindsay gram take a some what empty attitude the question is what does paul ryan do? she still the speaker of the house. they are prepared to move forward. app lot of people on capitol hill expected jeff sessions to be remove affidavit the midterms maybe not necessarily this soon after the midterms but this is something that went from being a shocking possibility when discussed maybe a year ago to something that republicans on the hill had accepted was inevitable and likely at this

point so clearly this was telegraphed. >> and i would point out this this also means any pretense towards bipartisanship is basically out the window i think that it galvanizes news in the house it says that the investigation mueller and the investigation is paramont you also see warnings to

protecting mueller going forward. >> so we move forward here the president during the press conference an hour or two ago said repeatedly that he could end the mueller investigation. >> i think he has feared the political backlash now, that may inhibit him further or he may have decided it is time to test that backlash given the fact that the democrats are taking over the house. it is much increased in the senate there are stronger republican numbers are they going to stick with him and is he going to test that question i don't rule out the possibility that some republicans would stand and say no this is too far. i can't do it. we really don't know.

sessions departure maybe the speed was unexpected but market seems to have expected it. stocks have not moved much at all. >> i would say this iss an operatic climb and fall for this man that was one of the first sitting elected officials when most wouldn't go near him. >> he was very dogmatic about

pushing it we see all of this going on with harvard right now. an incredible rise and fall far man highly esteemed by the president because of the mueller investigation has fallen so dramatically >> thank you for your investigation. thank you all. we leave this hour a couple of points session highs closing bell starts right now. >> thank you very much for that it is attorney jeff sessions has resigned we have john harwood, libby cantrell and amon james here >> that's right. saying he is resigning at the president's request. that indicates that jeff sessions has in fact been forced out as the attorney general of