reported earnings. this is great in beauty and retail, trading in a much more reasonable valuation. >> dunkin brands, americans are happy once again today, they'll buy their doughnuts and coffee. >> we'll close out by showing you the market again, just about highs of the day dow up 767 stocks having a good day "power lunch" begins now scott, folks, thank you very much welcome, everybody i'm tyler mathisen rally on the three big catalysts are bringing out the battered bulls today. is it a rally to build on? or just a flash in the pan dovish comments from the fed chair powell today, that's one of the catalysts saying he will be patient when it comes to rate hikes in 2019 and beyond we have the details on that straight ahead apple in correction territory, and more facebook tanking almost 40% from its recent high. netflix down more than 30% from its 52 week high where the buying opportunities are in this market we'll take that apart for you on this very happy friday,

everyone "power lunch" starts right now ♪ >> welcome to "power lunch," everybody. i'm kelly evans. we have a trifecta of headlines fueling the gains today. strong jobs data, optimism about trade talk and dovish comments from fed chair powell. all of this adding up to the dow around session highs with 785 point gain right now that's 3.5% for the dow and the s&p. the nasdaq up 4.25% now. technology is super strong today. intel is the biggest gainer in the dow in percent boeing, 3m, all big points contributors treasury yields higher across the board as well, moving back up 2.6% there, 2.669%. there is crude oil, on pace for the first five-day win streak since august and its best week since june, melissa. >> kelly, let's get straight to the monster rally at this hour seem wa mody is tracking all the

action. >> the market got what it wanted a dovish fed, hawkish data, we started the session higher by around 300 points on rising hopes of a trade deal. and in that stronger than expected jobs report, helped the lift market lift higher. add to that, comments from fed chair jerome powell. that's what helped us build on the gains. currently up 782 points for the dow jones industrial we should also mention a strong performance in asia, europe also close to the upside. in terms of sectors helping this market move to the upside, tech staging a dramatic comeback from yesterday. this risk on tone is certainly one characteristic as part of today's market dynamics, one of the best performing assets, not just today, and for the week, is oil, up another 6%, just this week that's what's behind the rebound in energy that we're seeing. biggest percentage gainers on the dow, look at the screen, that will show you how the market is still very much foc focused on the trade discussion next week between the u.s. and chinese officials.

boeing, 3m, staging a comeback from yesterday's declines. apple also up nearly 4%. what is also notable is this move that we're seeing in financials remember, one of the worst performing sectors last year in 2018 were the banks. today, they're higher, not just big cap -- large cap names, regional stocks, f.a.n.g.s to the upside as well back to you. >> thank you very much while you were talking there, the dow nipped at the 800 level briefly two big factors are really driving this strong rally. one, a very strong jobs report, and, second, dovish comments from the fed chair jay powell and the conference down in atlanta. steve liesman is there, with the highlights hi, steve. >> hey, tyler, yeah. put those two things together, the strong jobs report and dovish fed chairman and you have a witch's brew for a powerful stock market rally let's look at the bullet points on powell and more detail about what he actually said and what was different here first, he was flexible on rates. i think he sort of said that

before didn't hear a whole lot new there. what was new is the calling inflation muted which does allow more so the flexibility on rates. the biggest change my opinion was the balance sheet being up for discussion i want to read you, take a look at the next screen and where you see, what you see is the former language that the federal reserve used in june 2007, the official language, when it changed its plan to reduce the balance sheet. if the material deteriorates, a sizable reduction in the committee's target for the federal funds rate listen closely what fed chairman jay powell said today. >> if we came to the view that the balance sheet normalization plan or any other aspect of normalization was part of the problem, we wouldn't hesitate to make a change. >> so that's a new thing, if we see it as a problem, we'll change it and not necessarily cut rates first. we'll have to quiz him on that in the january press conference

or maybe give us more meat on the bone before that the other big story is the jobs report coming in way over expectations and economists have to dust off some old adjectives here to describe it, superb, wonderful some of the words that were used 312,000 against an estimate of 176,000, almost double what was expected november revisions are october up by nearly 60,000. strong number for wage gains unemployment ticking up because people came into the workforce so for the right reasons, didn't find work, they may find work next month so could decline and the labor force participation, more people coming off the sidelines into the workforce and then if you look at what that means for fed policy, look at what oxford economics says, not necessarily out of the woods yet on rate hikes. strong labor market picture support our expectations that the fed will keep a tightening bias in 2019 and hike rates twice next year. you have to think, if numbers

like this continue, if numbers, you know, 100,000 less than these kind of numbers continue, that the fed is not done here. >> steve, that's why i wonder if we hadn't heard from powell and his predecessors today, you know, we were starting to sell off in futures this morning after that really strong number came out that probably would have set the tone for talk about more hawkishness, if it hasn't just been for the timing of hearing from them later on, right? >> yeah, i mean, my initial read, i didn't follow it all the way through, you might have, but i saw the market rally on the numbers, i was surprised about it i think the market was happy about some talk about china trade talks which is the other x factor we haven't talked about yet. so if you look at the futures through the morning, early morning, on the way up, they got a push, i thought, from the jobs numbers and then another push from powell. so three factors there it tells you that all three of these things that are out there, the trade talks, worries about the economy and worries about the fed, not necessarily co-equal out there, but certainly three factors on a par

with each other as to what is on the mind of the market of course, the market itself is its own factor, kelly, as you know if it goes down further, the fed got spooked by this, it could create its own economic realities, not necessarily recession, but certainly detract from growth if you have strong declines in the market. >> powell met the market, steve in terms of what the market was thinking that's what it seemed like to me, at least powell came around not markets' thinking. >> on the balance sheet, on the balance sheet for sure, melissa. but i also think sometimes the market is unavailable to hear what the fed is saying i think they were on rates i think the fed has been flexible on rates for a while. maybe not as quickly as the markets wanted, when powell said, you know, not auto pilot on rates, but a long way from neutral. i think they have always been flexible on rates. this muted inflation idea gives them that flexibility now to do so but the balance sheet is where there is the big change. something that i know the fed has been a little bit surprised at how the balance sheet got

from no discussion at all to being, you know, cause number one of concern for the market. so now that they're there, okay, listen, if you think you need a change in this thing, we'll do it, if it becomes a big problem. but, remember, there is a big if in, if it becomes a big problem. >> on the balance sheet, remind me, i thought he used the word the reductions were on auto pilot there, basically and this then -- >> in december >> that's what he said, in december today, that is a reversal. >> right and by the way what powell was picking up on was the policy statement i read for you back in june 2017. affirmed by yellen and then also by him a couple of times before that, the fed did not want to have two variables in play for monetary policy. it didn't want to be changing rates and be changing the pace of reduction in the balance sheet. i think today is the first big

sort of idea that they may alter that thinking. >> steve, thank you. great stuff, steve liesman there for us. >> pleasure. stocks soaring to session highs, 800 point gain for the dow now. the building blocks are falling into place joining us for more is david katz of matrix asset advisers and jim mcdonald, welcome, guys. >> hey >> thank you >> david, for you, sentiment, did it get so bad on the downside here, so bearish, that that itself explains the rebound. do you point to the fundamentals that changed overnight, even going back to china's cutting the reserve ratio. >> a wealth of factors have been built in just tremendous negativity in the market, you had the worst quarter in a decade, the worst december since 1930. valuations are pretty interesting now. they're 14 1/2 time earnings today, a little relief in terms

of better news out of china, better news on the trade front and better news out of the fed and good news on the u.s. economy. those are all good the market is spring loaded at this point and we think you saw last week a thousand point up day, some significant down days. inflexion points, a lot of volatility at some point that will be on the upside. >> right, jim, let's talk for one second about these swings. another day, where we're seeing 3.5% not just that the points are big, the percentages are big a lot of people say, it is algorithmic trading it seems like twitter mobs that come to a decision one way or another, every 30 seconds and then move on what do you think about the big swings we had? >> i think there has been an influence from computer based trading and rules based strategies that has led to an increase in volatility if you look out, though, over the medium term, the markets will follow fundamentals, the growth picture in 2019 still a little bit uncertain we want to be putting money in

areas where we think we're going to be compensated for the risks. we think high yield is an area that looks good today. in that sense. you look at the sell-off, we went through, from the end of september to christmas eve, the market was down 20%. high yield was down 6. look at today's rally, the markets up 3.2%. high yield up 1.6. so gives you some downside protection but also some upside participation. >> david, speaking of high yield, that's basically a proxy for risk in the market too anyone who thinks a recession is coming should stay away from these parts of the market. we had gotten pretty high on recession odds for the last couple of months, but mostly just the sentiment data. even the different version of the pmi gauge this morning looked better for the u.s. do you think a recession is in sight? >> we don't think so we think the u.s. economy is good, but the earnings are going to be slowing, slowing down some the real wild card is international trade and tariffs. if that's resolved, we think it will be a very good economy this

year not a recession, not as robust as last year an interesting thing if you look at earnings growth of the s&p 500 and s&p 500 returns, a near zero correlation that means your earnings growth is not your primary determinant. you can have slow earnings growth, 5%, 10% earnings growth and good stock market. >> jim, yesterday we were all concerned about apple. and sort of the question mark it put in front of earnings as we go into that season, what the guidance will be like. what changed we know the fed is going to re-evaluate its policy in terms of earnings, david mentioned there is no correlation. it seems like the markets are hanging on what the guidance will be for 2019 and we're yet to get that guidance, we're waiting for the conference calls. >> sure, so i give a reminder we're in the preearnings season. when is when the earnings come out of companies that will miss. we go through this every quarter. there is some information

content when you have a company like fedex indicating global trade is slowing, apple indicating that the consumer and china is also slowing. that is information content. but we don't think we're leading to an earnings recession in 2019 we see earnings growth in the same midsingle digit level for the year. >> finally, jim, on the inflation point, a big topic of discussion, you know, throughout the morning. why is it the economy can be this strong, we can add 312,000 jobs this late in the cycle and still see no inflation or are the wage gains going to ultimately point that way? >> no, we had a theme for three years now called stuck flation, technology bringing supply into industries prevents it from taking hold. you can look at the inflation break evens, the market is not worried about inflation. that's why you can have a little bit of an uptick in the wage gain number today and the market is not particularly concerned. >> stuckflation, a new one for me

thank you, both, appreciate it very much. jim mcdonald and david katz. news of trade meetings between the u.s. and china next week in beijing helped kick off this rally ylon mui has the latest from washington. >> reporter: those trade talks could drive the agenda next week, but right now president trump is still meeting with congressional leadership from both parties in the situation room of the white house. that meeting has been pushing past 90 minutes long we'll let you know if it wraps up and everyone says anything to the cameras. but president trump has already made his case directly to members of congress. earlier today he sent every one of them a letter and power point presentation that outlined his vision of success. one of the slides was entitled this, solutions, and it included not just funding of border wall system, but also addressing what the president sees as a crisis of illegal immigration democrats have been trying to get the administration to break these all into separate negotiating points government funding, border security, immigration, today the

white house made clear that these are all connected issues and that's one of the reasons why this negotiation process has been so unwieldy and so intractable. also, as you mentioned, the administration confirmed today that they will be sending a trade delegation to beijing starting on monday that will include officials from the u.s. trade representatives office, the treasury department, commerce, the agriculture department as well guys, interesting to note that all of these are agencies that are affected by the shutdown the u.s. trade representatives office tells us they're using existing funding in order to complete those negotiations. back over to you. >> thank you very much positive trade headlines, we talked about, contributing to a big gain in our cnbc china trade index, up more than 3% as you see right there. almost 4%. not just tech. a lot of retail names in that index. companies that sell in china and those that sell made in china products trade war's impact on retail next and later, we'll talk with white

house economic adviser kevin hassett about trade, the fed and much, much more. stay with us as "power lunch" continues, the dow is up 785 when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. when it might be time to buy or sell? with fidelity's real-time analytics,

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fidelity. hey, batter, batter, [ crowd cheers ] like everyone, i lead a busy life. but i know the importance of having time to do what you love. at comcast we know our customers' time is valuable. that's why we have 2-hour appointment windows, including nights and weekends. so you can do more of what you love. my name is tito, and i'm a tech-house manager at comcast. we're working to make things simple, easy and awesome. big rally on wall street 783 is where we stand, up 3.5% the first week of 2019, a wild one on pace to end higher despite fears of an economic slowdown in china.

one stock hit hard this week was, of course, apple but is tech the only sector at risk let's bring in ike foreshell everybody is trying to figure out what the impact of china will be. in your coverage, you got apple on the one hand blaming china squarely, but you also got nike saying they're seeing no impact from china what is the real story here? >> i think the real story is it adds more fuel to the fair case on the multinational brands. look at the way the brands have traded, they have underperformed the domestic retailers i think you already had concerns around currency, some concerns around europe, which has been negative all year. and from an apparel and accessories standpoint, really concerning now you got china, just seems to be rolling over a little bit that's just adds more problems to the multinational brands. nike did have some better things to say i think the athletic guys, lululemon as well, they're doing just fine. if you listen to the bread

crumbs the other guys are saying, pbh said some negative -- >> luxury, as simple as high price and luxury and midprice and sort of consumer >> i would say luxury is a different animal athletic seems to be the one bucking the trend. general apparel, casual footwear is slowing down. luxury is really slowing down. some of that is the macro and the china consumer but some of that is also just some of the changes the government is making there, cross border shopping. the government crackdown there tiffany, they call that a meaningful decline in their chinese consumer but it wasn't the mainland china comps, it was their china customer only 8% of tiffany's business, for example, is on the mainland. but around 30% of the business is due to chinese consumers. >> how do they know that >> you look at the tourism that takes place, the chinese consumer, credit card data and what not chinese going to europe.

>> credit card back to a chinese ad they know that the sale that was made in l.a. or new york or whatever was made -- >> you can track all of that there has been a big deceleration in that as of q3 and hear the news from am, epplt makes you concerned that things from q3. >> and apple is more expensive on the issue of china, last night, they cut the reserve requirements and talked about basically stimulating the economy if needed. it seems like the chinese themselves are admitting there is a slowdown here. >> gdp slowed. apple called that out. it has been slowing throughout the last six months. it is just concerning for my group. it is not the china is a huge percent of revenue, for the multinational brands, they penetrated the u.s five, six, seven years ago they penetrated europe. and china has been a big opportunity. bf corp., pbh, they started to go after china in a bigger way, taking in licenses and it is not

just a sales slowdown, but profits are tough to begin with. >> what was so remarkable about apple's warning was that just in november, they said china was okay and then all of a sudden, a month plus later, china is not okay the retailers report a little later. is it possible we could see a turn around before they close their books on the quarter they got a little bit of time on their side here. >> anything is possible. i think what we're talking about is a slippery slope. because of that and because of the increased risk on multinational guys from my conversation with investors, i think the people want to stay safe how do i stay safe in this group? i want u.s. centric, expensive, large cap, i want off price. i want tj, ross, burlington. not my coverage universe but the discounters, auto parts, dollar stores, safe havens. that's where i see money flowing around right now in my group. >> ike, thanks for coming by up next, wynn resorts up 10% this week as china fears have

eased somewhat a key court case involving the company being heard today. we'll get you the latest big comeback in chip stocks. amd, nvidia, intel among the leaders. basic materials doing well too "power lunch" will be right back

welcome back to a huge rally on wall street today the dow up more than 800 points, session highs, a moment ago.

all 30 components of the average are higher, led by intel with more than 6% gain. the laggard is verizon, up by a quarter of 1%. 3.3% gain for the dow. 3.4% for the s&p, and 3.4% for the nasdaq. steve wynn is suing the company he founded to keep his dirty laundry secret in after a nevada judge will decide whether details of the investigation into wynn's conduct should be made public. the stock doesn't seem to be bothered either way, up 10% this week contessa brewer joins us with more. >> wynn resorts sees its new massachusetts casino as really crucial in 2019, supposed to open in june right now, gaming license is under review as a result of the allegations against steve wynn wynn, the man, argues that wynn resorts the company violated his attorney/client privilege in its cooperation with a massachusetts gaming commission's investigation. he's suing to keep what he considers privileged information from being released publicly in

this investigation report. we're waiting to hear right now how a judge rules on some of this evidence. in the meantime, the company's share prices climbed more than 11% this week, off its 52-week low of 9201 on christmas eve and this is not the only casino having a great week. las vegas sands and mgm are up, all with significant exposure to the macau gaming market. we have the gaming revenue numbers for december up 16% year over year, significantly beating the expectation of 11% growth. any talk here about the chinese central bank aggressively addressing a slowing economy there, the prospect of resolving the trade tensions with china and the u.s. only improves the optimism here. on a final note, the domestic casino operators are likely to see a boost as well from the jobs numbers and from the wage growth as well they're having a great start to the new year >> what is the -- i don't mean -- for what he allegedly

did, but what is the public's interest in having that kind of information released if as we all know he is no longer affiliated with the company? >> i don't think it is just about -- it is not just about what he did. it is how the company handled it i think when you see the -- what i've been told by insiders, when you see it all collated in one report, this is not journalistic reports that are sourced and all that, this is an official report to a government agency, that it is going to -- >> goes to whether the company was honest in what it reported. >> we have also seen some high profile departures of executives there, and a board member too including the man who stepped into the chairman role once, a long time pal of steve wynn's, it calls into question what did the company know and when and is there still a risk here that they would not maintain some appropriate corporate governance where this is concerned. >> i would think a lot of companies are watching this very closely. the notion of a ceo or any

executive having attorney/client privilege with an in-house counsel is an interesting -- >> let me tell you how that worked there was all this outstanding litigation with a co-founder with lehman, what happened was because steve wynn was an individual party to the lawsuit, and then the company was a party to the lawsuit, their lawyers got together and they were sharing information. so the company lawyers, he says, had information that was privileged, that then got handed over to the massachusetts gaming commission so it was not the in-house counsel for wynn resorts doing the handing over, it was his personal counsel working with the wynn resorts lawyer. it is a very complicated -- >> is that casino going to open in massachusetts >> it is on schedule to open and they have got -- they continue to operate as though the license will be granted, but the company has said to me, company insiders said we're not taking anything for granted and everything that the commission has asked for us, every bit of cooperation we have given them

because it is very important to us to maintain that. >> are they going to continue to operate under the wynn name? the. >> property itself in boston has been changed to encore boston harbor as a way to differentiate it i think that the wynn brand is so valuable, in the only here in the united states, but especially in china that it would -- i think that it is a valuable brand i don't think they have the same sort of stigma attached to it there. i don't think you'll see that change you're asking me for my gut reaction, that's it. >> i went to macau once, i went on foot, a big mistake, a big mistake. i'll tell you the story later. contessa, thank you so much. coming up on "power lunch," a blowout jobs report, we'll talk about what it means for the economy. investors as you can see on a buying spree today with 3% or better gains for most of the major indexes. we'll play a game of deal or no deal to help you decide which stocks are the best bets right now. and nfl ratings may have

rebounded, but college football's biggest game of the season, monday night, they're having trouble filling the seats out in california. thndore when "power lunch" returns homas. if you were choosing a network, would you want the one the experts at rootmetrics say is number one in the nation? sure, they probably know what they're talking about. or the one that j.d. power says is highest in network quality by people who use it every day? this is a tough one. well, not really, because verizon won both. so you don't even have to choose. why didn't you just lead with that? it's like a fun thing. (vo) chosen by experts. chosen by you. get six months apple music on us. it's the unlimited plan you need on the network you deserve. now buy the latest galaxy phones, get galaxy s9 free.

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welcome back breaking news out of chuck schumer and nancy pelosi speaking at the white house after meeting with the president. let's listen in. >> we recognize on the democratic side that we really cannot resolve this until we open up government and we made that very clear to the president. services are being withheld from the american people. paychecks are being withheld from people who serve the needs of the american people and our border security will suffer if we do not resolve this issue. we are committed to keeping our border safe, that has always been our principle to honor the oath of office we take to protect and defend our country and our constitution we can do that best when

government is open we made that clear to the president. mr. leader >> yeah, i basically, same thing as what the speaker said the bottom line is very simple we made a plea to the president, once again, don't hold millions of americans, hundreds of thousands of workers hostage, open up the government and let's continue the discussions i pointed out to him, for instance, a call i got in my office this morning, a fire dispatcher from upstate new york, wife is pregnant, signed a mortgage, can't get the faa to approve it now fha to approve it because the government is closed this kind of situation is happening in millions of instances across the united states in one way or another so we told the president, we needed the government open he resisted. he said he would keep the government closed for a very long period of time. months or even years

the discussion then -- we discussed a bunch of issues as the leader said, somewhat contentious and we'll continue discussing, of course, but it is very hard to see how progress will be made unless they open up the government >> madam speaker, did you talk about a daca -- >> that was chuck schumer and nancy pelosi after meeting with the president at the white house this morning, talking about the government shutdown and indicating that no progress is being made there they're being asked some questions. we'll monitor it >> their argument there, obviously, is that they don't want -- they think they can solve the problem only after the government is open but that would require the president to give up his principle bargaining chip. >> it seems look a stalemate at this point and as we await any sort of progress, you know, the clock is ticking, goldman sachs, for every week the government is shut down, that shaves 1% to 2%

off gdp. as -- >> two weeks now, day 14 now with no end in sight. >> by mr. schumer's telling, the president is ready to keep the government closed for months or even years, that according to mr. schumer, and you wonder what, after today's very glowing jobs report, how that jobs -- those jobs numbers and unemployment claims and so forth. >> funny you say that. adds to this idea that maybe trumponomics is working or the president doesn't have to cave and to deal with the economy or deal with the stock market and say, you know, to your point, not going to be a huge ec econ impact. >> possibly. to sue herera for the cnbc news update >> thank you very much, melissa. here's what's happening at this hour, everyone german police detained one armed person after shots were fired near cologne's main train station. according to officials, the incident followed an altercation involving several people who fled on foot and in a car. a manhunt is currently under way

for the remaining two suspects u.s. secretary of state mike pompeo was looking for an update to saudi arabia's investigation into the killing of journalist jamaal khashoggi what he visits riyadh next week this as one unnamed u.s. official says the u.s. does not think narratives from saudis has hit the threshold of credibility, end quote. 82-year-old senator pat roberts of kansas says he will not seek re-election in 2020 in his career, roberts oversaw eight farm bills and what he described as success in improving national intelligence after the iraqi war. and history in waco, texas, for the first time since november of 2014, the uconn women's basketball team ended a winning streak they fell on the road against baylor with a final score of 68-57. you're up to date. that's the news update at this

hour ty, back to you. >> that is a shocker sue, thank you very much stocks soaring on positive comments from the fed chair. and on a stronger than expected employment report. 312,000 jobs were added in december, despite concerns about a trade and a partial government shutdown that began at the end of last month. unemployment rate rose slightly to 3.9% while the participation rate in the workforce basically steady at 63.1 more on the economy and the new congress with marc morial, president and ceo, and joe watkins. we'll get to the government shutdown and its economic impact in just a moment but it looks like these numbers and compared even to a strong 2017, we added more jobs in 2018 than in 2017 who would have thunk that?

>> i think this is a continuation of the expansion that began under obama has continued under trump when it comes to jobs. but the warning signs are there. the volatility in the stock market, the confusion around tariffs, the slowdown in the farm sector. reports from places like the port of new orleans, cargo volumes may be beginning to decline. i think things people have to pay attention to, so while it is strong, the question is, is it sustainable with all of the other factors that are at play in the economy today >> let's pick up joe watkins on the mayor's point because obviously when you're looking at employment numbers, you're looking backwards, looking at what happened, are you concerned about some of the same telltales or cinders in the wind that the mayor is concerned about >> i'm feeling pretty good about the numbers today. i thought they were very, very strong and i like the fact that

there is even narrowing going on in the gap between black and white unemployment if the unemployment number went up slightly, only because more people looking for work. and that's all good. the labor force participation rate picked up slightly. up over the year, all these numbers are good indicators of how strong the economy is and the fact that we're headed in the right direction. i'm very encouraged by today's numbers and i think we're moving in the right direction >> mayor morial, back to you, whoever deserves credit for what is going on here, some of it back to the obama years, certainly economy continuing here to do well in the trump administration one thing encouraging in this report is wage growth, above 3% for several consecutive months that's what we wanted to see and apparently it is coming through. >> it is beginning to come through and that's certainly a good sign. but we need a lot more wage

growth to make up for the many, many years of stagnant wage growth that's why the sustainability of growth, the sustainability of job creation are really the issues that we're going to be talking about in 2019. and i think chaos around tariffs, the confusion around the government shutdown itself could put a million federal workers on the unemployment roles. so there are many, many warning signs here in early january that we have got to keep an eye on when we talk about 2019. >> it is going to be interesting to see how that shutdown plays out. and with that in mind, gentlemen, indulge us, we're going to break away to ylan mui at the white house we expect to hear from the government shortly about the government shutdown and his discussions with the democratic leadership ylan >> that's right. sarah huckabee sanders just announced the president will be holding a press address from the rose garden. it will be an open press event, but when we saw him yesterday,

he did not take any questions from the media we'll see if he does so today. we heard from democrats just now saying that president trump resisted their calls to not hold the government hostage over his desire for a border wall we'll hear the president's take on that meeting and how it went. and what he will see as the potential success in these negotiations back over to you. >> chilly day to have a press event in the rose garden we'll see. ylan mui, thank you very much. back to marc and joe, if they're still there. joe, as you look at this government shutdown, it seems like the democrats have taken the position that we'll talk about the matters of border security and barriers and so forth. and a more comprehensive look at immigration. once the government is reopened, that is a predicate, but the president, if he goes along with that, would be throwing away his biggest bargaining chip. >> that's right. that's right right now the president has

no -- that's a nonstarter for president trump. he wants to talk about the wall. he looks at the polling numbers that support him, certainly among his base, support among republicans and he knows that he has the support of many republicans and a majority of his base to hold on to keeping the government shutdown until congress will that uck alk to ht border security and border wall. i don't think this impasse will end anytime soon auntil they com to a conclusion they can agree to with regard to funding with the border wall. >> marc morial, final -- go ahead, pick up, marc. >> is this about a political base or is it about what is best for the american people? a million federal workers, people who can't get their mortgages. let's recognize that the american people are for border security, they are against the wall they think it is a waste of money. they think it does not work.

they think it is being oversold. they think that it was promised that mexico would pay for it let's open the government and then have a discussion, not only about border security, but about dreamers, about comprehensive immigration reform that's where the american people are. 23 new members of congress won in districts that president trump in fact carried. his base is eroding. this should not be about anybody's political base it should be about what the american people want, they want an open government, let's then continue the discussions about border security. >> mayor morial gets the last word we'll give it to you next time thank you very much, guys, have a great weekend. >> thank you, tyler. >> you bet let's get to the bond market rick santelli tracking all the action at the cme. volatility in equities and the bond market as well, rick. >> yes they're sharing the same direction. rates up, stocks up. look at the two day of 10s the right side today, we traded higher than yesterday, definite

positive sign. open the chart up towards early 2015, this 2 1/2 area is very huge you see on the macro chart we want to be cognizant of that, not only to that, but the 240 level even below that is also very significant it is where we ended 2017. started out 2018 and never looked back. with regard to what is going on in both markets, the hyg is higher the vix is lower let's put them on the same chart. inversely correlated when you see that pattern, that means the storm clouds have moved away a bit and finally the dollar index, we haven't closed below 96 since the end of october you see on this midoctober chart. we're getting close once again i will caution, one of the things that keeps the dollar coming back is some of the odds in the marketplace should that slowly dissipate, it is going to be very interesting to see if we can hold some of the important technical support levels just below where the dollar index is trading.

tyler, back to you. >> rick, thank you very much rick santelli in chicago is today's big rally the buy signal the market has been waiting for? we'll look at several beaten down stocks and ask our traders if it is deal or no deal howie mandel will be back with "power lunch" ghafr isrit teth

all right, folks, we're waiting for the president to come out into the rose garden on the south side of the white house there. close by the west wing, to talk about his meeting with democratic leadership, already heard from speaker pelosi, leader schumer and others about where this impasse stands and it looks like it remains a very, very stark impasse nevertheless, the markets are up very strongly. earlier by more than 800 points.

w58by 7 weill be back after this i am a family man.

i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. welcome back, any moment now we'll hear from president trump there in the rose garden after

meeting with congressional leaders nancy pelosi and chuck she mer. we just heard from schumer and pelosi a few moments ago it sounded like their discussion with the president didn't produce a lot of progress. no big surprise that the president himself is going to make a few comments about it the negotiations yesterday still go back to the impasse over funding for the border wall saying that vice president pence was saying to schumer, why didn't we talk about the offer that i put on the table. schumer turned around and said you put $2.5 billion for the wall and the president wants 5.6 or more than $5 billion, and so we'll learn more hopefully from the president himself shortly about whether it still comes down to that sum >> pelosi and schumer saying the meeting with the president was contentious at times, that the president was ready to keep the government closed down for months and perhaps years, and of course this all goes back to the issue of border funding. amazingly,ed markets are still able to hold onto strong gains in today's session on the back of jerome powell's appearance in

atlanta. we're up still by 768 points on the dow. >> yeah, and the suggestion that maybe -- well, a trade delegation is going to china next week, and there may be some movement there, at least some hopefulness on the part of both sides that a deal might, might be in the process of getting worked through i guess we're going to go now to ross gerber, ceo of gerber cow sake and a fast money trader tim seymo seymour. we're going to do that and talk about the markets while we await the president. i'm sure you'll forgive us if we have to break away tim, is this a rally that you think has legs >> if you look at some of the things that gave us the strength today, obviously a jobs number, but more importantly the fed that people are now starting to reassess how they felt two weeks ago. i don't think fed powell has done anything differently today. maybe we started to talk about the balance sheet. i think he had some relief out of some better numbers out of china on their services pmi and

even on the state pmi whether you want to believe that or not and 100 basis points of cutting. it seems like chinese policymakers are starting to scramble around a little bit. >> ross, how would you be positioned into monday, tuesday's meetings with china? >> well, i think it's going to take more than these meetings to really prove that trade is going to be solved, so you know, we're just not going to get ahead of the curve here with trump because, you know, the bottom line is anything could happen. even at this press conference, the market could end up down for the day depending on what he says, so, you know, we're in a very conservative position for our firm we're maintaining our allocation with a very large amount of cash. >> what's a very large amount of cash >> right now i'm holding 15 to 20% in cash. >> historically, what is it? >> zero. you know, i don't like cash. so you know, the reason i have cash is i'm going to put it back to work when i feel more confident that the government's working for us and not against

us, and it just feels like, today for example with yellen on stage with bernanke and powell, i mean, god, it was just great to see her and bernanke, too, and the confidence they can build in markets. >> it's funny you say that i was also struck by her confidence in the way that she handled some of the questions. do you think the market's pining for the return of janet? >> oh, for sure. i mean, just powell sitting next to two of the smartest people in maybe economic history who have done a wonderful job for this nation, i mean, it was just like please bring them both back. so maybe he learned something from them in this discussion and investors are buying. >> let's bring in ron ensana, cnbc contributor who joins us here on set. >> the third smartest person in economic history >> you forgot about green span. >> oh, no. i think they're better than greenspan. >> powell gave the markets exactly what they wanted, exactly what they wanted. >> absolutely.

flexibility. the obvious recognition that the markets are discounting slower growth both at home and abroad, all the concerns about trade look, he said we'll do what's appropriate for the economy at the appropriate time whether that means no rate hikes or whether it means two, that remains to be seen, but clearly he's now acknowledging that there's been a slowdown. i also think he's doing a great job. for the people who keep bashing jay powell, if he makes a mistake by raising rates a quarter point too much, that would be unbelievable in the annals of fed history. usually they overshoot but a much deeper margin than this i think he's being unfairly maligned >> but is he not learning the lessons of messaging on the job? >> but they all have every single one of them. >> i'm not saying that's not the case, but it seems to me that that's what we've learned over the last five or six months. >> tyler, is it messaging? the question here is ultimately do we think that the fed is doing something different as of today than they were going to do two weeks ago. >> yes.

>> yeah. >> you think the fed put us back in the market, and the fed is listening to the white house every day? >> that the policy stance is flexible, that's a completely different message than we heard in october. >> and when he acknowledged the markets -- >> is it just a message? you know, if your point is he's just learning how to talk things but nothing's actually changing? >> my point is that the fed has said basically the same thing that they've said two weeks ago, which is that first of all, two weeks ago remember, this is a fed that came in and said we're only going to go two times next year they said we're at the bottom end of our neutral range that was a major adjustment. >> so you would sell this rally, tim? >> i'm sorry >> you would sell this rally >> i think the fed is not necessarily any more your friend than they were two weeks ago the fed is absolutely -- central banks are taking liquidity out of the market. >> here comes president trump to the podium in the rose garden after meeting with chuck schumer and nancy pelosi. >> thank you very much we had a very, very productive meeting, and i think we've come

a long way i'll discuss that in a second, but first i imagine you've all seen the incredible job growth, 312,000 jobs, which took everybody by surprise. estimates ranged from 160 to 180,000, and this really took people by surprise this is a great number i think it has a lot to do with the factories and with the companies that are moving back into the united states who have left, and now they're coming back to us instead of being in other countries. i can't tell you what that does to other countries, but i'm the president of this country, so 312,000 jobs was a tremendous number, and obviously having a big impact on the stock market today. and i do want people to remember that we've had a tremendous success despite the fact that i am in the midst of negotiating incredible trade deals for our country, that should have been negotiated many years ago by

both parties, to be honest, but many years ago we are doing very well in our negotiation with china we've pretty much concluded our negotiation with canada, with mexico we have done the deal and signed the deal with south korea, which a lot of people said was not going to happen, would be impossible it's a good deal it was a horrible deal it's a good deal i think a lot of this has to do with the fact, though, that already companies are moving back into our country that have left our country in some cases in some cases they're moving back because they want to be here, but in many cases these are automobile companies that have left and gone to other countries and now they're coming back to the united states, so it's nice to see one of the things that's so beautiful to watch is 3.2% wage growth that hasn't happened in so long for our country. that's an incredible thing

that means people are actually getting more money, taking home more money, and that's something that's really nice to see. a lot of you have been following me when we were on a thing called the campaign. that was an exciting campaign, a great campaign, and i used to talk about wages going down, not going up, but going down for years. 19 years, and now they just went up 3.2%, and yet there's no inflation because other things are going down like the price of your gasoline at the tank. it's low and that doesn't happen by luck. i work hard on that. that's like a tax cut for people, so a lot of good things are happening, labor participation rate increased to 63.1 that's an incredible number also, so i just wanted to bring that out the economy is very good, and remember from the time of my election, the stock market's

gone up very close to 30%, and that's with all of the things that are happening, and there are a lot of things happening. we have a massive trade negotiation going on with china, president xi is very much involved, so am i. we're dealing at the highest levels, so we're doing very well we're doing very well. in the meantime, we've taken in billions and billions of dollars in tariffs from china and from others our steel industry's come roaring back, and that makes me very happy i think we'll have to build a steel wall as opposed to a concrete wall because we have steel companies again. there's something awfully nice about that sound so we had a productive meeting today with speaker pelosi and senator schumer. i thought it was really a very, very good meeting. we're all on the same path in terms of wanting to get

government open. we're going to be meeting, i've designated a group, and we're going to be meeting over the weekend, that group, to determine what we're going to do about the border really, i want to thank a lot of the border patrol people and i.c.e. people who came up yesterday. they had a tremendous impact on, i think, a lot of democrats, frankly but a lot of people because they were able to lay out exactly what the problem is, and one of the problems described to me as an example, your ports of entry, we're going to agree with chuck and nancy and steny and dick durbin was there, we're going to agree that we want to make the ports bigger, more powerful, able to handle more traffic, have very, very powerful drug equipment there, so they make very good stuff now. we don't have it because of budgets and other reasons, but we're going to make our ports of

entry very powerful, very strong we're going to have the best drug finding equipment anywhere in the world they make it much better today than they made it even two years ago, and i explained to them the problem is, though, we can have a wonderful port of entry, but you have 2,000 miles of border between the united states and mexico, and if you take a look and you see, like we do, through certain technology including cameras in airplanes, not just drones, you'll see vast numbers of vehicles driving through the desert and entering where you don't have a very powerful fence or a wall. that happened this week where a wonderful, young police officer, i spoke to his wife yesterday, where he was shot, viciously shot for simply stopping a person that came over the border

illegally. got shot, killed and took the most beautifu picture just hours before, a christmas picture. we don't want that happening but i was explained, too, and i explain to people because it's really common sense, so you have ports of entry, and we have great security at the ports of entry, and then you may have fencing or walls up and down, left and right, east and west, but they stop because we don't have proper border security. these people have vehicles, and they drive to the right. they're not going through where we have great border patrol officers and i.c.e. officers and military now i tell you, the military's done a fantastic job. they don't stop. they go right to the easiest part and the weakest part, sometimes out in desert, but you have miles and miles and miles of unprotected area, and you can

see where they drive over. you even have people walking that trek, and that's a very dangerous trek, and they bring children or even worse, they use children you know, children are the biggest beneficiaries of what we want to do children are hurt more than anybody else these coyotes what they do with children all because we have open borders because they think they can get away with it. they don't come in through the port where we have a will thelof protection they come in through empty areas, vast spaces, empty areas just like this terrible person came in when he shot officer singh. they come in through these vast open areas you don't even have a sign saying mexico, u.s there's no sign designating you have just entered the united states it's just open space, and i explained that to the meeting today with nancy pelosi, chuck schumer, and a lot of other people at the meeting, and i

said one of the things that happens there is human traffickers. maybe that's the worst of all, where you'll have traffickers having three and four women with tape on their mouths and tied up sitting in the back of a van or a car, and they'll drive that van or the car not through a port of entry where we have very talented people that look for every little morsel of drugs or even people or whatever they're looking for. not going to go there. they get off the road, and they drive out into the desert, and they come and they make a left turn, usually it's a left, not a right. most of them come out because in san diego and in areas of california, we just finished brand new walls, beautiful walls. steel walls, and they wanted them badly they were asking us, that's why we did it there. i said let's not do it in california california always complains through their great governors. they're always complaining

i said let's not do it let the governor ask us, but we did it anyway because they really needed it they were having tremendous problems, so we built a brand new wall in san diego, and it's working really well. you should go and look at it it's amazing it's incredible how well it works, but these coyotes and these human traffickers, they make a right turn before they get to the port of entry they go as far as the wall is or as far as the barricade is, and then they make a left, welcome to the united states and what they do with usually the women, sometimes children, that they are trafficking in you don't want to know about so the only way you're going to stop that is by having a solid steel structure or concrete structure, whether it's a wall or some form of very powerful

steel. now, the steel is actually more expensive than the concrete, but i think we're probably talking about steel because i really feel the other side feels better about it, and i can understand what they're saying. it is more expensive we mentioned the price that we want $5.6 billion very strongly because numbers are thrown around, 1.6, 2.1, 2.5. this is national security we're talking about. we're not talking about games. we're talking about national security this should have been done by all of the presidents that preceded me, and they all know it some of them have told me that we should have done it so we're not playing games we have to do it and just remember, human traffickers. remember drugs the drugs are pouring into this country. they don't go through the ports after entry. when they do, they sometimes get caught when we finish and the democrats

do want this, they want ports of entry strengthened, and i want to do that, too. in fact, we have it down it's about $400 million, and we could have the best equipment in the world. now what they'll do, if we have the protection and we have strong ports of entry with this incredible drug finding equipment, i don't know what they're going to do because they're not coming in through -- past the steel gates or the steel walls or the concrete walls, depending on what's happening because we are meeting this weekend we have a group, i've set up a group. they are going to tell us who their group of experts and probably people in the senate and congressmen and women are going to come and we have three, i said give us three then i said you know what? send over nine or six or three, or two, doesn't matter

send over whoever you want, but it's common sense. so now, when they make that turn, they make it, and now all of a sudden they can't go any further, and they have to go back, and that's going to stop the caravans for two reasons number one, they're not going to be able to get through, but when they realize they can't get through, what's going to happen? they're not going to form and they're not going to try and come up. and they can apply for asylum, and they can -- most importantly, they can apply for citizenship because the companies that i told you that created these great job numbers, they're incredible job numbers beyond anybody's expectations. i don't think there was one wall street genius of which i know many of them, but hethey're not geniuses, there's not one that predicted anywhere close to these job numbers. i thought they were going to be good, but there wasn't one that i saw. so now we have everything so beautifully handled.

we need to have, however, we need border security, and all of this security, if we do what -- i think what the democrats want, all of the border things that we'll be building will be done right here in the good old usa by steel companies that were practically out of business when i came into office as president, and now they're thriving you call up the heads of u.s. steel and i could name ten companies. you look at what's going on in the steel industry, it's almost a miracle. it was a dead industry we need steel for defense. we need steel for a lot of things, steel and aluminum but those industries were in deep trouble the steel industry was almost dead, and now it's a very vibrant, vibrant industry. so what i'm going to do is ask, first of all, mike pence, vice president to say a couple of words because mike is -- we put together a team of people that

will work over the weekend, and they'll be negotiating on the border, on the look, on different things having to do with border security including at the ports of entry, and i think they're going to be very successful because i found the democrats really want to do something. so we're at 5.6, if you look at it, $5.6 billion, but we are able to also in addition to that because what we want to do has to be done properly, and we're negotiating very tough prices, very, very tough because you heard much higher numbers. those higher numbers were very much a misnomer. you heard 20 and 25 billion and daca what happened is when a judge incredibly -- because it was an incredibly, i will say wrong decision in fact, president obama when he signed the daca with the executive order made a statement to the effect this isn't going

to work, and some judge from the 9th circuit, here we go again, upheld it. and then it was upheld by the 9th circuit appellate, and now it's going before the united states supreme court, and hopefully that will be properly adjudicated because if it is, talks will begin on larger immigration matters having to do with daca, having to do with other things so that is taking place. we may add a few things onto our discussions over the weekend, but i'm going to ask mike pence, and then i'll have nina mccarthy say a few words, and we'll take a couple of questions. we're very proud of the jobs and the jobs numbers that was incredible, and i think i'll be even more proud if we can have great border security for the first time in really the history of our country, the southern border is a dangerous, horrible disaster.

we've done a great job, but you can't really do the kind of job we have to do unless you have a major powerful barrier, and that's what we're going to have to have. so first, we start with mike pence. >> thank you, mr. president. we are nearly two weeks into a government shutdown, but our nation is also in the midst of a crisis on our southern border, and today president trump convened for the second time this week republican and democrat leaders from the congress to address both issues, and we are truly grateful for the candid and constructive dialogue that took place today here at the white house with speaker pelosi and leader schumer, with our republican senate leadership as well, and

we look forward to continued dialogue over the course of this weekend. make no mistake about it, we are in the midst of a crisis at our southern border. every day nearly 2,000 people are apprehended or stopped attempting to come into our country that have no lawful claim to be here last year alone, 17,000 individuals with previous criminal records were apprehe apprehended attempting to come across. >> we're going to leave the rose garden right now and vice president mike pence president trump was speaking earlier prior to pence about the government shutdown negotiations, the border wall, and trade talks with china let's get to ylan mui at the white house. it almost sounds like president trump and pelosi and schumer were at two completely different meetings. >> what really struck me how different their characterizations of that meeting was. the president saying they came a long way, that it was a

productive meeting he said that democrats want to make a deal, that they seem to be on the same path toward wanting to reopen the government, but that is not at all what chuck schumer and nancy pelosi said. pelosi called the meeting contentio contentious. chuck schumer reiterated that and said the president resisted their pleas to at least reopen part of the government, so we're now hearing disagreement about the meeting itself, which doesn't give me a whole lot of confidence in their ability to actually reach a resolution on the substance of the issues. i thought it was also interesting that kevin mccarthy, now the minority leader i should say in the house was standing next to president trump, but mitch mcconnell was not. he is apparently already back at the capitol. he told reporters that the discussion was spirited and that he was encouraged, though, by the fact that there is a working group that will continue to hammer out some of these details and continue the negotiations and the talks through the weekend. >> all right, hang on there, we want to bring in ron ensana and

peter book bar he is also chief investment officer with bleakly advisory group. >> we're still holding on to the dow industrial average we lost a little bit how does this press conference, the disparity between the views of that very same meeting on the government shutdown influence at all your view of the markets and where we go from here? >> i think the markets have become desensitized to the circus in washington, and that goes back ten years since we've already had multiple shutdowns because the markets assume, okay, we're shut down but we're going to soon reopen if this drags on for months we're talking about a different story. since the average shutdown only lasts a few weeks, the market is under the assumption this is going to be the same case. what's happening with china, what's happening with the fed, far surpasses in importance the nonsense with this shut down. >> does this underscore the contentiousness, the divisiveness we're going to see coming down the pipe

>> i think that's assured. i don't think this is going to be anything less than a contentious relationship between schumer, pelosi slash the president. for them to be even to agree on infrastructure would be remarkable, particularly since we don't really have the money at the moment to spend coming up with some sort of common ground there would be i think a stretch. i would agree with peter, the fed commentary, china easing the upcoming trade talks between washington and beijing are probably more important. if kevin hassett, the white house chief economist yesterday came out and said every two weeks of shutdown costs 1/10 of a percent of gdp that's a meaningful drag on growth going forward that will have to be made up later in the year. >> are you hearing anything about how this gets resolved we're in day 14 now. we're about in the next couple of days it's going to be the longest one yet. everyone here from the president is talking about this going on for weeks or months. is that really going to be the case >> yeah, well, i think that the

problem now is that it's not just weeks or months but chuck schumer said that the president seemed open to the idea that this could last for years. so we are now in a situation where folks are kind of inoculated to the idea that this is going to take a really long time there seems to be a baseline assumption that this is not going to be resolved quickly, and so when we have kevin hassett, for example, saying this is a short-term problem, not a long-term problem, markets assuming that this will get wrapped up, tied up with a bow perhaps fairly shortly, i think that is the wrong assumption because everyone here seems to be girding down and sort of batoning the hatches preparing for a pro tracted and lengthy fight. even the fact that we're using the words weeks and possibly months to describe this and now years being interjected into that discussion as well. that is a very different frame of mind from what we saw in the past two shutdowns that we've seen over the past year. >> the economic impact, peter, is going to grow, though

so by one expert's tally, 13.5 million jobs are at risk when the government shuts down, not just the 2.1 figure that's cited. you have the ipo pipeline that might be affected in terms of the process to go public you have the housing market that is affected in terms of certain paperwork for closures and those departments being open. >> economic data that won't be released either. we already saw that in december. >> the effect will widen. >> irs refunds that people may not get. >> that's right. that would be a huge problem. >> you can't even process your payments there's no one there to take them if you're doing quarterly estimated payments and there's no one there or you're writing checks that won't be cashed. >> we have been waiting for the irs to post a new shutdown plan now that filing season has begun. we have not seen that plan get posted online yet, but there is a lot of talk even before the shutdown began that because of the complex nature of the new tax law, the filing season might have to be delayed now it looks almost inevitable that that will have to be so, so not only tdoes that push back th

time you have to file, it pushes back those refunds as well. >> that's a pain point as is the pain point that's coming when people start missingpaychecks. >> yeah. >> and they may not be able to pay for groceries, and they may not be able to pay their rent, and when that happens in the individual districts of congress people on either side of the aisle, the clamor is going to rise very loud, very fast, amplified by the media and that's when i think you get the solution. >> agreed. that's one that carries on for months the insanity about this is the government spends $4.5 trillion a year, and we're talking about a few billion dollars. >> are we, though, if we're talking about the entire housing market, the entire retail sector -- >> well, over his couple billion dollars. >> yeah. >> but it's an important priority, and it's going to protect the economy, but my question goes back to tyler's, which is, you know, can we really measure the impact of this it's going to be more disruptive as time goes on. >> it's difficult also, those people who aren't going to get

paid they'll eventually get paid. >> right now they might not have the money. and i think that comes quicker than a matter of months. >> it has to. >> most people are living paycheck to paycheck. >> there are some secondary probts, too. when you miss a month's payment on your mortgage and go delinquent that affects your credit report if you're a government employee. those are secondary effects. >> that can be even retro. let's get back to the president who is back at the podium. >> mr. president, senator schumer came out and said that the meeting from his point of view and speaker pelosi's was contentious. he also said you said in the meeting this is him quoting you, i just want to check, that the shutto shutdown could go on for months or even a year or longer did you say that. >> i did. >> and is that your assessment of where we are? >> absolutely i said that. i don't think it will, but i am prepared and i think i can speak for republicans in the house and republicans in the senate. they feel very strongly about having a safe country, having a

border that makes sense without borders i've said it many times, we don't have a country. i hope it doesn't go on even beyond a few more days it really could open very quickly. i told them bring who you want we have three people you can ideally bring three. you can bring six, you can bring nine, you can bring 12, and they're going to be working over the weekend. i think it may have been somewhat contentious, but i think it was very productive i have to say that, and i think he said that too. >> what was the productive part from your point of view, mr. president? did the democrats move at all in your direction on funding of a border barrier >> i don't want to get into that because i don't want to put them in a position where they have to justify anything to a lot of people that they have to make happy. we want to save lives. we want children to be safe the children are being decimated and i'm not talking about necessarily children in our country, i'm talking about wonderful children that are coming up from other places, whether it's honduras or

guatemala or el salvador or mexico or other places and we have to take care of those children also. we can't let them die on the way up what's happening to women on those caravans, you're not talking about it, but it's horrible what's happening. if they know it's not going to take place because they can't get through because we have a great border wall or fence or barrier they're not going to come up, and wroyou're not goint have the problem at the same time, they can apply to come into our country legally like so many people have done, and we need people, major. we have to have people because we have all these companies coming in. we need great people, but we want them to come in on a merit basis. they have to come in on a merit basis. they can't come in the way they've been coming in for years. i get calls from the great tech companies, and they're saying we don't allow people at the top of their class at the best schools

in the country, we don't allow them to stay in our country, so they end up going back to china and japan and so many other countries all over the world, and we don't keep them they get educated at our finest schools, and then we don't allow them through various set o circumstances to have any guarantees of staying. so we lose out on great minds. we can't do that we have companies that if we don't change that and we're working on that and we discussed that with the democrats, and i think they agree we're working on that, but we don't want to lose our great companies because we have a ridiculous policy that we won't accept smart people. so call it politically correct or not, but we have to let these great, brilliant companies have the smartest people in the world. yes, ma'am. >> one at a time, please. >> mr. president, why not reopen the government to create more space to have that broader conversation about immigration >> we think it can go very

quickly. we won't be opening until it's solved we think this is a much bigger problem. the border is a much more dangerous problem. it's a much bigger problem it's a problem of national security it's a problem of terrorists, you know, i talk about human traffickers. i talk about drugs i talk about gangs, but a lot of people don't say we have terrorists coming through the southern border because they find that's probably the easiest place to come through. they drive right in, and they make a left. not going to happen. not going to happen. so we're not going to do that. we won't be doing pieces, we won't be doing it in drips and drabs. i'll tell you what, i've seen a lot of people over the last week and a half, i've been right in this magnificent structure right behind you, it's called the white house. and i was here on christmas, and i was here, my family was in florida. i said go to florida, and i didn't even find it to be a lonely place there's something very special about the white house. i was here christmas i was here on new year's eve, and i will tell you the people

that i've spoken with, and i've gotten to meet a lot of people that i wouldn't have met, a lot of people have been coming through the white house and explaining different things and different attitudes. a lot of people that you think are upset and certainly they're not thrilled, but they say, sir, do the right thing we need border security, and these are people that won't be get paid border patrol yesterday was saying, sir, we're affected by it do what's right. it's time. this is after many, many decades, many, many decades. this should have taken place a long time ago. we're going to get it done, yes, ma'am. >> thank you two questions for you, was daca a part of the discussions today? >> yeah. >> and also, why did it take this many days for a working group to come together why didn't you just hash the details out today? >> sometimes that's what happens in a negotiation it does take longer than it should, and sometimes you agree to things that could have been agreed to two weeks ago that's the way a negotiation is. we set out a number, 5.6 billion. we're very firm on a number.

we also explained that as you probably understand the military's very affected we may use the military for parts of it. homeland security obviously is very affected. we may in addition to the 5.6, we will use homeland security funds. so we have things happening in addition to the 5.6, but we have to get a structure built. >> was daca part of the discussion that's just a follow-up. >> go ahead. >> was daca discussed? >> thank you mr. president, to follow up on that question, with respect to the daca program, were you discussing that in terms of a pathway to citizenship being included in an end to the partial government shutdown >> we discussed it a long time ago as you remember. that's when they had this mythical number of 25 billion, but actually, it was 25 billion but only 1 billion upfront then we talked 2 billion, 1. 1.5 billion, the rest of it the government couldn't guarantee because it's not set up to guarantee. you remember those discussions but where it really ended is

when the judge ruled against, and it was -- i said as soon as that happened -- because that was a shocking decision. it was shocking to the democrats, and it was more shocking to the republicans. it was an incorrect decision it was a political decision made by a judge, and i know a lot of people don't like when i say it, but try going there sometime to the 9th circuit and try winning a case, not easy everyone files right in the 9th circuit. the fact is it was a terrible decision and an incorrect decision when that decision came down, when that judge ruled the way he ruled, i said as soon as i heard it, i said you know what's going to happen? we're never going to hear from them again, and that's exactly that's what broke up the daca deal yes, we had a pathway. we had many things that was getting close to being a deal the problem was that the money was a very small amount of money. it wasn't really the 25. it was 25 and then come back every year well, we don't want to go

through that every year, but we were getting close, and i said as soon as that decision came down, that incorrect and horrible decision, i mean there's been anumber of them made lately, but as soon as that decision came down, i said you'll never hear from them again. and i called up, i said hi, it's president trump. what's going on? they said president trump, we don't know who that is it was over. the deal was over. that's what killed the daca deal it was nothing else. it was the judge's decision, and if the supreme court does what really everyone thinks from a legal standpoint it should be doing, if they don't allow the president of the united states, which is me also because if president obama is allowed to do that, i'm allowed to do it also, can you imagine? if the supreme court overrules that wrong executive order, we'll have a deal very quickly on daca and other things, and the democrats want that and so

do we, but once he ruled that way, it was something you couldn't really negotiate. yes. >> mr. president, two questions for you, are you still proud to own this shutdown? >> well, you know, i appreciate the way you say that, but once -- i'm very proud of doing what i'm doing i don't call it a shutdown i call it doing what you have to do for the benefit and for the safety of our country. but when nancy pelosi said you don't have the votes in congress, i will tell you what i was proud of i was never more proud of my republican party and those congressmen and women when they saw that and they got together and they voted 217 to 185 and it wasn't even close, that was an incredible day i'm very proud of that when she said you couldn't get the vote and i'm not hoellding that agait her because despite the fact

that i'm not saying it was an easy meeting or a kind meeting or a nice meeting but in the end i think we've come a long way. we're going to be working very hard over the weekend, and we'll see if we can do something you can call it whatever you want you can call it the schumer or the pelosi or the trump shutdown, doesn't make any difference to me just words. >> mr. president, my second question, sir on federal workers, sir, mr. president my second question on federal workers, sir. >> just one second, please >> go ahead. >> it may be the same question thank you, mr. president, two questions just to follow up on daca, are you open to a path to citizenship in theory for daca recipients and then can you explain to federal employees of the agencies that are closed which are not homeland security, why those agencies should stay closed homeland security is significant in of itself if it stays closed. >> because we want to do what's right, and we want to do it all at one time. we don't want to take it in pieces daca's going to be a great

subject. i look forward to discussing it. we'll discuss it at another time there are a lot of great things that can happen with daca if the democrats want to do that. i think what we're all waiting for to be honest is the supreme court judges, the supreme court justice's ruling in a not very long period of time. you know, as you know, it's up now hopefully they will be making a ruling maybe sometime in the summer, so i think before we discuss too much daca, i would like to see what happens i think it's a very important decision because, frankly, if they rule the way it is, it gives the president too much power. can you imagine me saying that but i would be entitled to the same power it's not a correct thing that took place, and president obama never felt it was going to hold up, and it held up, but i don't think it's going to hold up at the supreme court. if it doesn't hold up, you're going to see a lot of good things happening because you'll be having daca, and you'll be putting other things with daca

hopefully by that time the wall will be well under construction. just a little statement on that, we've already built a lot of the wall we've been working very, very hard we've renovated a tremendous amount of wall i just told you we did a lot of wall in san diego where we needed it very badly, where they wanted it very badly, so we haven't been sitting still for the first believe it or not less than two years we've been working very, very hard the wall is -- we've done a lot of miles of wall already, so we're not just starting off fresh, but we have large numbers of miles that we have to do, and we can't let gaps because if you have gaps, those people are going to turn their vehicles or the gangs, they're going to be coming inthrough those gaps, and we cannot let that happen. kevin, kevin, kevin. >> thank you, sir. thank you mr. president, appreciate that. a question about government employees, what is your personal message to those who are impacted by the shutdown, and if you wouldn't mind if you could comment on the remarks made by a

freshman congressperson about impeachment involving a bit of a profanity last night. >> well, you can't impeach somebody who's doing a great job. that's the way i view it i've probably done more in the first two years than any president, any administration in the history of our country you look at tax cuts you look at regulations. you look at what we've done for the vets you look at the rebuilding of the military, and the numbers that we're talking about, and many other things. i could give you a list. it's pages long. i think it's very hard to impeach somebody who's done a great job. that's number one, and we even talked about that today. i said why don't you use this for impeachment, and nancy said we're not looking to impeach you. i said that's good, nancy. that's good, but you know what you don't impeach people when they're doing a good job, and you don't impeach people when there was no collusion because there was no collusion you know russians better than i do, kevin, okay? there was no collusion i didn't need russians to help me win iowa.

i didn't need russians to help me win the great state of wisconsin and michigan and pennsylvania i won them because i went there and i campaigned hard, and my opponent didn't go there enough, and she lost a lot of good states, a lot of states that for many, many years for decades have gone democrat they went republican that's why i won not because of russia. >> your comment about the freshman congressperson's comments specifically about -- >> well, i thought her comments were disgraceful this is a person that i don't know i assume she's new i think she dishonored herself, and i think she dishonored her family using language like that in front of her son and whoever else was there, i thought that was a great dishonor to her and to her family. i thought it was highly disrespectful to the united states of america, yes >> go ahead. >> thank you, mr. president. earlier this week you repeated

your claim that through the u.s. mca mexico will be paying for the wall. >> that's right. >> can you describe in detail the specific mechanisms in the trade deal. >> we made a new trade deal. nafta has been one of the great disasters of all time, probably the worst trade deal ever made maybe. we lost millions of jobs, thousands and thousands of companies, nafta left our country dry. nafta was a disaster i campaigned on either terminating or renegotiating nafta, and bob lighthizer and jared kushner and a whole group of people did an incredible job. they did an incredible job, and now we have a deal that's great for our country, and by the way, good for mexico, good for canada also as you know, it's the three countries. we will be taking in billions and billions of dollars more money for the united states including jobs, including companies that won't be leaving us anymore and going to mexico

and in some cases canada to a lesser extent, but we lost 25% of our car business because of nafta. nafta was a disaster now we have the u.s. mca it's united states, mexico, and canada trade agreement it's brand new it's totally different it makes it very difficult for companies to incentive wise move to other countries, and we will be making billions and billions of dollars a year more money >> so why not do that for the wall >> excuse me because i didn't have to many, many times over, in fact, what we save on the usmca, the new trade deal we have with mexico and canada, what we save on that just with mexico will pay for the wall many times over just in a period of a year, two years, and three years so i view that as absolutely

mexico is paying for the wall. and that's fine. >> will you be pressuring -- >> yes, yes, ma'am go >> mr. president, thank you. you ran your campaign promising supporters that mexico is going to pay for the wall -- >> here we go again -- >> and that the wall was going to be made of concrete you said earlier the wall could be made over steel right now our government is shutdown over a demand from your administration that the american taxpayer is paying for the wall. how can you say you're not -- >> very nice question so beautifully asked. >> you didn't answer it. >> excuse me, are you ready? i just told you we just made a trade deal, and we will take in billions and billions of dollars, far more than the cost of the wall. the wall is peanuts compared to what the value of this trade deal is to the united states as far as concrete, i said i was going to build a wall. i never said i'm going to build -- >> you've said concrete. >> i know you're not into the construction business, you don't

understand something we now have a great steel business that's rebuilt in the united states. steel is stronger than concrete. if i build this wall or fence or anything the democrats need to call it -- because i'm not into names, i'm into production i'm into something that works. if i build a steel wall rather than a concrete wall, it will actually be stronger than a concrete -- steel is stronger than concrete, you can check it out. listen if i build a wall and the wall is made out of steel instead of concrete, i think people will like that. and here's the other good thing. i'll have it done by the united states steel corporation, by companies in our country that are now powerful, great companies again, and they've become powerful over the last two years because of me and our trade policies so if i have a steel wall or you could call it a steel fence, but it will be more powerful than

any of the concrete walls that we're talking about. it's possible that it will will look better, and one of the things -- i think you have seen this -- that's very important for us, very, very important, in speaking to border patrol, i.c.e., and actually local law enforcement and even military, they want to be able to see through it you can't really see through a concrete wall. they want to be able to see who's on the other side of the wall because if they're here and you have about a 12 inch concrete wall and you have people on the other side, but you can't see what's over there, it's very dangerous. they want to be able to see through the wall a see through wall made out of steel is far stronger than a concrete wall. so i'm very happy with it. i think, i think, i'm not sure, but i think that's what the democrats prefer, and if it can get them there, i'm okay it actually will be a more powerful wall and it will be a more beautiful wall than having a concrete wall. >> so if the new trade deal -- >> mr. president.

>> jeff, go ahead. >> mr. president. >> go ahead, jeff. >> you mentioned china sir in your remarks are you concerned about the words and the actions of apple this week with regard to revenue and can you tell us what sort of progress you meant when you were referring to trade talks with china? >> i think we're doing very well china is paying us tremendous tariffs. we're getting billions and billions of dollars of money pouring into the treasury of the united states, which in history we've never gotten from china, which you know it's been very unfair. i had a fantastic meeting with president xi who i both like and respect. one of the things that came out of that meeting was fentanyl, as you know almost all of it comes from china, and he's going to now criminalize the making of fentanyl and unlike our country, they have unbelievably strong prohibitions about drugs it was not on their list they view it as i guess some kind of a commercial product

now they view it as something that's very dangerous. they're going to be changing their laws to make fentanyl a criminal, a criminal process if you're making fentanyl if they do that, you know what their ultimate is, it's called the the death penalty. and i thanked president xi very much the first question i said to him before we started the trade talks in argentina, this was a meeting that was supposed to last for about 45 minutes, and it ended up being almost four hours, some of you were there. it was a great meeting we'll see what happens you never know with a deal, but i will tell you whoochina is not doing well now it puts us in a very strong position we are doing very well, but we're taking in billions and billions of dollars, and i hope we're going to make a deal with china, and if we don't, they're paying us tens of billions of dollars worth of tariffs not the worst thing in the world, but i think we will -- i think we will make a deal with china. i really think they want to. i think they sort of have to,

and i think we're going to have a great relationship i think that president xi and myself have a great relationship also, north korea, we're doing very well with north korea, and that's based on relationship also >> can you just -- mr. president -- >> one more quick one. >> just to follow up, sir, apple issued a revenue warning this week, which led its stock to go down and the rest of the stock market to go down as well. are you concerned about that >> no, i'm not i mean, look, they've gone up a lot. you know, they've got up hundreds of percent since i'm president. apple was at a number that was incredible, and they're going to be fine. apple is a great company, but that's not my -- look, i have to worry about our country. don't forget this. apple makes their product in china. i told tim cook, who's a friend of mine who i like a lot, make your product in the united states build those big beautiful plants that go on for miles it seems, build those plants in the united states i like that even better.

apple makes its product in china. china is the biggest beneficiary of apple, more than us, because they build their product mostly in china but now he's investing $350 billion because of what we did with taxes and the incent e incentives that we created in the united states. he's going to build a campus in lots of other places, so my focus is the united states i want to get those companies to come back like so many are doing into the united states i want apple to make their iphones and all of the great things that they make in the united states, and that will take place >> mr. president. >> thank you >> please, go ahead. >> thank you, mr. president. i want to ask you two questions, one as you talk about the wall, eminent domain, many of those who own property on the southern border will lose their property because of this, and once this happens, they say that they could go to court with you for years. it could take years. then also, what is the safety net for federal workers?

you're saying months and possibly a year for this shutdown do you have in mind a safety net for those who need their checks? those who need ssi, those who need medicaid? what have you? >> the safety net is going to be having a strong border because we're going to be safe i'm not talking about economically, but ultimately economically i really believe that these people, many of the people that we're talking about, many of the people you're discussing, i really believe that they agree with what we're doing, and we could have this, april, we could have this fixed very quickly this can happen by early next week we're going to be working over the weekend, we can have a solution to this, but i wanted to keep it all at one point. i think a lot of the people you're referring to, april, are really wanting that to happen. i really believe a will the lot want to see border security. they represent most of the border patrol. the people that you had yesterday that were at the news conference, they represent most

of border patrol every one of them said don't even think about us. get this fixed that is doing the great thing for our country. as far as eminent domain, you're right 100% eminent domain is very interesting. without it you wouldn't have any highways, you wouldn't have any schools, you wouldn't have any roadways what we're doing with eminent domain is in many cases we'll make deal upfront. we've already done that. the secretary has done a lot of that, and if we can't make a deal, we take the land and we pay them through a court process, which goes actually fairly quickly, and we're genero generous, but we take the land otherwise you could never build anything if you didn't use eminent domain you wouldn't have one highway in this country you have to use eminent domain it's actually something you don't want to use it, but if you're going to do a stretch as an example on pipelines and other things, you have to use eminent domain otherwise you'd never be able to buy the land if we had one person that wouldn't sell us out of

hundreds, it only takes one, then we wouldn't be able to build proper border security because we'd have that big opening i was talking about. some are paid up front you make a deal upfront. we're willing to do that in all cases and when they're unwilling to make a deal, which also happens, then you go to court, but in the meantime we're able to build the border security i think it's a fair process. i think it's a process that's very necessary, but i think it's fair. >> but couldn't that hold up your wall? >> no, it's not going to hold it up under the military version of eminent domain and under actually, homeland security, we can do it before we even start now, a lot of times we'll make a deal, and i would say a good percentage of the time we're making deals we have already purchased a lot of it. you know, a lot of the money that we've been given has already been spent on purchasing the land the right-of-way it's essentially a right-of-way. so we are very, very far along on that, but eminent domain is something that has to be used

usually you would say for anything that's long, like a road, like a pipeline or like a wall or a fence. okay thank you. good question. it's a good question please please, go ahead. >> thank you, sir. two i don't want to say you stood out there. you have so many questions i'm looking at mike and steve and kevin. i'm saying should we -- and oh, are you cold get out of here. here take mine. you want mine? i'm saying should we keep this going? >> yes >> okay. so let me know when you get tired. >> i'm not have you considered using emergency powers to grant yourself authority without congressional approval >> yes i have >> you have? >> yes

i have and i can do it if i want >> you don't need congressional approval >> absolutely. we can call a national emergency. absolutely i haven't done it. i may do it. but we could call a national emergency and build it very quickly and it's another way of doing it if we could do it through a negotiated process we are giving that a shot. >> is that a threat hanging over the democrats? zbli never threaten anybody. but i am allowed to do that. it is called a national emergency. >> the benefits from the trade companies, you're talking about tax revenue. >> they will pay tremendous tax. >> it is american taxpayers. >> i'll give you an example. when a company was going to leave for mexico we lost tremendous amounts of our car business to mexico if they stay all of those taxes they have been paying, real

estate, sales taxes, employee, employer taxes, tremendous taxes that nobody even understands they pay they are tremendous. federal income taxes state income taxes in some cases, all of those stay with us the wall is, you know, it's great. but the u.it is a tremendous disincentive anybody that leaves after this deal is done, look, it's one of the primary reasons that i like it i can live prenafta too. the only thing i can't live with is nafta i can live pre nafta, before everybody left new eng aland and all of the different places you have empty steel factories i can live pre nafta

that one was of the first ever paid >> would you consider mexico paying for the wall? >> many many times over. the usmca will make in the form that we right now are losing approximately 100 -- it doesn't include the drugs pouring in it is probably a much higher number than anybody would even know in addition to destroying lives and families so horribly we are losing close to $100 billion a year on trade with mexico for many years not only that, they have a tax of 17% we don't have a tax. we don't have to taxof 17% that was bad the day it was made they charged a tax before the deal was made. we didn't. it was absolete.

-- obsolete frankly oil companies have incentive to go and take oil out. that's why we are keeping gasoline prices so low you look at what's going on with gasoline prices. it is rather incredible. if you look back four months ago, oil hit $83 a barrel, 83. it was heading to 100 and then it could have gone to 125. you want to see problems let that happen. after i made some phone calls to opec and the opec nations which is essentially a monopoly all of a sudden it started coming down. i'm very happy with what's happened i'm happy people are paying less than $2 a gallon for gasoline.

everybody talking about it didn't happen through luck it happened through talent >> go ahead. >> reporter: if the shutdown does last months or years i want to understand how you expect federal workers to last that long without getting a paycheck specifically since your cabinet members are set to get raises tomorrow how is that fair >> we'll have to talk to the cabinet members then >> will you ask them to give money back >> it is very important we have great border security. i think it will be over with sooner than people think i will do whatever we have do. if we have to stay out far very long period of time we will do that many of those people that really have not been and will not be getting their money in at this moment, those people in many cases are the biggest fan of what we are doing. >> how do you know that? >> go ahead. >> the $10,000 raise that your cabinet members and senior

administration officials are due to receive starting tomorrow, will you ask them not to accept that >> i may consider that that is a very good question okay who else do you see out there? >> are you committing to that? >> go ahead. go ahead no all right. >> thank you >> mike highly recommended you first one is a follow-up to that you're a landlord, for people worried about paying their rent checks, worried about bill collectors would you ask them to go easy on them >> i this i they will. >> i'm sorry, would you -- >> i have been a landlord far long time. when you see there are problems

out there, difficulties out there, the people are all good for the money they work with people they work with people. >> so you would encourage them >> sure. i would encourage them to be nice and easy. we have a bigger subject called the security of our nation including terrorism. >> go ahead. >> i had a question about terrorism. who are they being captured? are they from travel ban countries? a second question is why is senator mcconnell not here >> he was here he was with us for hours at the meeting. >> why is he not here? >> he is running the senate. he has been fantastic. he has been really great

you want to answer that question >> i can't get into classified information but we know we stopped over 3,000 what we call special interest aliens trying to come in those are aliens they have identified are of concern. they either have travel patterns identified or they have suspected ties to terrorism. it's our sovereign duty. we have no way to know the identity of everybody that walks across the unsecured border. the ones we know about we can give you 3,000 we'll have to see what else we can give you there are ongoing investigations that i can't get into.

>> so i think we can say i think it was a great meeting it may get solved. it may not you know the number. you know what we are willing to do if we have to do it we'll do it. we have a very talented group of people i think some tremendous things will happen. i really believe the biggest beneficiaries are women, children, workers and a lot of these people that really do benefit are not only the people in our country but the people that travel up trying to get into a country that they think they are going to get into and they can't they get sick and there's tremendous damage done to them and their families these are all tremendous beneficiaries of what we are doing. it has a higher purpose than

next week's pay and the people that won't get next week's pay or the following week's pay, i think if you ever really looked at those people i think they would say mr. president, keep going. this is far more important i want to thank you all and we'll see you soon they will be working very hard over the weekend thank you very much. thank you. >> you have been listening to president trump talking about what he called a productive meeting. still no deal in sight trump said the shutdown could last for months or years trump said he did say that people talking about that. as far as we are concerned and wall street is concerned on trade he did say we are doing very well in our negot