that live nation has agreed in principle to a settlement with the department of justice over an investigation into whether live nation was forcing venues to use its ticketmaster company to sell tickets to live nation events >> thank you for watching "power lunch" >> "closing bell" right now. welcome to the "closing bell" everyone i'm wilfred frost. another record setting day here on wall street i'm in the nike post that stock up a nice 0.3% today, up 30% year-to-date. another fresh record return on intraday we'll be all over that story we'll report earnings after the close. markets are up with 59 minutes left to trade. thanks i'm courtney regan let's look at what's driving the action on wall street. the major averages setting intraday records as treasury secretary the stephen mnuchkin gives new details about the

china trade deal jobless claims fall. and real estate and staples are leading the charge joining us for the hour is stephanie link we're both feeling the holiday red but we got a green market. like a christmas theme we're now starting to see internalsin the market that's confirming the stabilization look at the 210 spread, the yield curve is steepening. nats a good sign asia stocks, they are breaking out. you look at oil up 10% in the past month all of these things are confirming we're seeing stabilization and that sets us up for 2020 seeing better growth my biggest question mark does this translate into better earnings i think we will see better

earnings which maybe not right away you have pmis globally that are stabilizing. i feel good going into 2020. it has to be an earnings growth year >> all three averages are up half a percent first let's focus on the big stories we're watching kayla tausche has the latest on china trade and usmca. then the senate spendling bill vote and bertha coombs has details on obamacare ruling the impact it could have on health care stocks. let's kick things off with kayla. >> reporter: here on capitol hill we are awaiting a vote on the usmca, the new nafta replacement. it's been a moving target throughout the afternoon, within the hour we expect that to pass with broad bipartisan support. a significant policy victory for the trump administration and also a deal that will set a precedent for almost every trade deal that the u.s. does going

forward. take for instance the china deal pieces of usmca are already word-for-word appearing in that deal which the treasury secretary earlier on cnbc said it's fully written and translating and very close to being signed >> i'm very confident, so it's just going through what i would consider to be a technical legal scrub, and we'll be releasing the document and signing it in the beginning of january >> reporter: china in return has been removing some tariff barriers on chemical, oil and gas products so we'll see if this is a new phase of relations between the u.s. and china as the administration de-escalates things going into the election >> are there any examples you can give us of some nuggets in the usmca that could be used in other trade deals what we might negotiate with the european union and uk and china we're still awaiting the details on

the translation. >> reporter: every one of the trade deals is a case by case basis as it pertains to the usmca and china deal specifically various intellectual property sections as well as the currency section are pretty much the same in both of those deals that's according to ambassador robert lighthizer. it is really an indication that the administration feels it has a strongly negotiated iron clad agreement with the usmca that will hold tight with adversaries like china as well as allies like mexico and canada thank you very much, kayla turning to the senate, we have a look at a vote to keep the government funded. busy day in washington >> reporter: that's right. later today the senate will vote on the second of two bills that would fully fund the government through the end of the fiscal year now earlier the senate already passed a bill that was focused on domestic spending and domestic priorities. that bill passed 71-23

so strong bipartisan support the second bill is focused on national security, includes funding for dhs and does not include money for new border construction but does allow the president to transfer money from other accounts to pay for his border wall. so that bill is also expected to passing a bipartisan basis they would then go the president's desk and we are expecting him to sign it before the government runs out of money on friday night. >> to what extent whether it's this or the usmca bill we were just discussing with kayla, to what extent should we be completely baffled that these bipartisan bills are likely to pass in the face of the most unbelievably divided impeachment hearing yesterday? >> reporter: what we're seeing on the spending bill is that this must pass legislation if congress did nothing the government would shut down starting friday night. a year ago we were staring down a government shutdown and

neither party walked away with that with clean hands. nobody wanted to see a repeat of that they knew they needed to get something done nothing focuses the mind like an impending holiday recess >> here, here to that. thank you as always. the health care sector would see more than $300 billion in tax relief from that spending bill that kwoucoupled with an obamac ruling bertha coombs is here the to break that down for us >> reporter: we have seen new highs today, in fact, for the health care sector led by all time highs for insurers by a split decision by the 5th circuit court of appeals when congress got rid of the individual mandate penalty that made the requirement to buy insurance unconstitutional 5th circuit didn't rule on the rest of the law so they sent it back to the lower court to

relitigate issues. the case won't be taken up by the supreme court in 2020. preserving the status quo for insurers obamacare medicaid expansion has been a growth driver the last ten years. that budget deal repeal of obamacare taxes will provide an earnings tail wind for insurers and for medical device makers in particular back to you. thank you very much. that's exactly where we're going to go. as you listen to what bertha has to say any of these names look attractive to you. >> the hmos for sure i own united airlines. it was a last chance trade for me a couple of weeks ago also cigna hpos are doing well because elizabeth warren backing down in the polls. less threatening on medicare for all. this is very positive for this specific subset within health care you want to stay long. not expensive talks. very strong balance sheets

if you want to play one that's the cheapest is cigna. united is the leader and quality blue chip. that's the one i own overall health care is doing quite well defensive overall but not expensive. >> not expensive but year-to-date returns now are not bad because of the q4 run. had quite a strong short term run up as you use a snapshot for all of 2020. do you want a significant piece of your portfolio. >> you do. i went from underweight to overweight health care in my portfolio and i think you still want to be overweight into 2020. the political rhetoric is less bad and that's a good thing. might even be good we'll have to see who actually wins the election. the bottom line is these stocks they are not that expensive even given november was the best sector in the market >> the very fact we got these two other bills funding and usmca progressing, does that make you think that the impeachment hearing to come is not a market risk because the core functions of government are

still happening? >> i don't think it's as much of a risk what's important and the reason why we had multiple expansion this year is because we're checking off the boxes of all the unknowns that's good. we had a nice year in the marketplace. we don't have that many unknown next year. we have the election but not as many as this year. that's why i don't think you get more multiple expansion from here even though we have very low interest rates it will depend on global growth and earnings that's the bottom line what i'm looking for anyway >> after the break yields on the ten year treasury note hitting a four month high. we'll discuss the outlook for rates and the fed with jeff sherman. later tesla trading at its highest level ever climbing towards the 420 level. if you missed the rally is it too late to jump in now. here's a quick check on our data tracker

existing home sales fell 1.7%. initial jobless claims fell by 18,000 last week to 234,000. "closing bell" will be back right after this at fidelity, online u.s. stocks and etfs are commission-free. and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk ♪ ♪ ♪ everything your trip needs for everyone you love.

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just about 48 minutes left of trade today we'll send it over to mike santoli. he has today's market dashboard. >> steph mentioned this earlier the yield curve investors suddenly untroubled by that curve. we'll plot that out for you in a second in the line of fireworks tesla, always in the crossfire between bulls and bears. a perfect world. is that what we're in now for investors? maybe some investors guesting into the too much of a good mood right now. and every which way but loose, job market tight see if that's changing based on the recent data. first take a look at three no ten year treasury yield curve. if you remember when it's below zero when it's negative the ten year yield is below three month yield that's known to be a

signal of potential recession to come this is a traditional indicator the fed has identified this. the he question right now is whether this was a very brief and very shallow kind of stay in negative territory for this curve. it really did start the clock ticking towards a recession. the curve fixed itself with fed going on hold and yields going up we had an inflation scare and expectations are recovering. it seems this is in a pretty comfortable shape. we'll see if people think that signal in late summer was significant on a forward going basis. not sure if that's the case. stock market implication equal rated financial sector etf it has the same weighting. clicking to just barely, maybe a few cents he below an all time high this was your all time high from early 2018 that's a crooked line. we're not quite up to it basically back almost to where it was at that point probably

going to need some yield help. a big break out there on the equal weighted financials. >> bigger break out if i draw the line like that >> mike, thanks very much. steph, what are you thinking about that kind of indicator we got from the bond market as of late >> it's important. shows there's confidence obviously. bust i think what makes me a little nervous is everybody is on the financial service band wagon. they are cheap offer great yields capital is good. management teams are very disciplined and all that and benefit from a better economy for sure it feels like it's a little bit one sided at this moment they could take the pause. i like the sector. >> let's continue discussion jeff sherman yoings joins us no his 2020 vision. jeff, thanks very much for joining us what's your take on the chances of recession in the next 12 to

18 months? >> first of all, i'm not running for of but thanks for considering me to your real question there -- >> it's a wide-open field. >> yeah it's wide-open field and i don't think my name belongs in that hat but, you know, when you start to look what's going on in the fixed income market i heard mike say something about the he deflationary scare more importantly what we had was a growth scare it's been concentrated in the manufacturing sector and we've seen some signs there may be some rebounds starting in that data still looks relatively poor but there are some signs of life in there. when you look at the growth outlook for 2020, and just, for instance take how fourth quarter gdp has been trending. gdp now, started off as a very, very low growth rate coming in the quarter and now back on what's been trend since the financial crisis about 2.3% for the fourth quarter so it turn out that the growth story remains in tact. some may be attributed to the

fed's behavior their reaction function within the marketplace and cutting rates still working its way through the economy. right now we're seeing a pickup not just in growth but also in inflation. i know people focus on the fed's measure of inflation, their core pc e number but when i look across spectrum of other measures of core inflation we're seeing other things that's definitely north of 2% investors need to think about the idea of not asset place inflation but maybe actually traditional inflation makes a come back in 2020. jeff, you know this has been a pretty good year if you're looking at your portfolio, want to do some management going into 2020 is it start to trim some winners and plow that money into some underperformers or will those winners keep winning next year, these big tech names >> when you look across, there has been a lot of momentum this year, akoscross asset classes.

in 2018 almost no asset class as a broad sector had positive rates of return. this year we're seeing north of 90% of those assets are now generating positive returns and very strong returns. i think when investors think about the turn of the calendar year unlike last year where we had the challenges of the fed, we had the balance sheet unwind that was causing problems and stresses within the marketplace and really a fed that wasn't paying attention to he some of that economic data you had just the opposite now you have a bit of a tail wind there. a tail wind should not imply complacency. what we're looking at here it's hard the to find things down in 2019 that really scream a buy. you mentioned things underperform there are sectors in the bond market that lagged and can still benefit from a strong economy. that's what we've really been doing this year is trimming those winners that have been successful in the credit markets and really looking at those parts of the fixed income market

which had been somewhat laggards all beit a strong rate of return specifically that has to do with the securitized market go ahead >> on the inflation issue do you see commodity price inflation next year or do you see it coming more from wages >> well, it's really come from core inflation and now you're starting to see the rebound in commodity prices i think the opec meet is one that really got oil to respond where there was significant production cuts that really helped bring in that support level for the oil market but what i'm looking at really is if he we are doing this phase one trade deal and we're talk about no more trade conflict, we're actually getting piece within the trade markets the industrial metals are things that could see some rebound. you saw that recently with copper prices. you guys may know we follow the copper to gold ratio as a way of thinking about the direction of the treasury yield market and you're seeing that really start

to go upward too so when i think about the inflation i think it's definitely been there in core most of the year you're seeing the commodities no longer be a detractor from headline inflation and as we go into next year he they will actually be a positive contributor to inflation using the kind of models we look at for inflation and they do get whipped around by commodity prices we see next year's inflation rate be by 2% for all of 2020. the commodity sector is one that has been beaten down and investors loathe it and poised to rebound simply on the trade rhetoric >> i want to ask about the rates in europe. i'm sure you noticed the swedish central bank reversed its negative rates to back to zero do you think christine lagarde will react will treasures track that if we saw a rise in yields

>> the bank moving back to zero rate is a monumental moment out there in the rates market with central banks. the bank saying we see no longer a benefit to negative yield overnight lending rates and boost that yield rate. i hope missoula gard lagarde hae fortitude to do something here it's been a big drag on banking and insurance sector globally. when you talk about the amount of negative yielding securities out there, a bad business model. i hope missoula garden has that fortitude to get off this negative 50 basis point rate you would see i think the swiss follow suit. let's get back to actually having at least zero yields and hopefully positive yields on the front of the curve i think as i said at the beginning, you nailed it that if there is pressure on european rates, which i think

there would be under that scenario, you got to expect the u.s. rate market to fall in lock step i don't think there's a place of safety to hide in the u.s. although we have higher yields, if rates are rising in euro land it will be something different here we moved in lock step to the down side in 2019 and that could be another harbinger why yields should go up in 2020 >> jeff, thanks so much for joining us great seeing you >> thank you coming up bank of america out with a new street high target on microsoft. we'll tell you why the firm says it's a top pick for 2020 later nike gearing up for earnings after the close as the stock sets at new highs. we'll break down the key things to watch "closing bell" back in a couple. at fidelity, online u.s. stocks and etfs are commission-free.

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welcome back time to get "word on the street". bank of america raising its price target on microsoft to $200 a share from $162 that's the highest price target strengthen the official believstock is up % so significant upgrade for bank of america who always has been long on the stock for a while. barclays upgrading cisco raising the price target to 53 from 47

horsepower a nice jump off that back 2.5%. >> baird calling alphabet the other powerhouse noting the tech giants influences one-third of ecommerce volumes and estimates more widespread adoption of transactional ads could provide $9 billion in annual revenue by 2025 shares of alphabet only marginally higher. it's an interesting note talking about google, ecommerce and shopping and the potential opportunity there along with the ad revenue >> google is a very interesting story because they have a lot of places where they can win. one area that's very underappreciated at google is cloud. they have a new head of cloud. they've been making acquisitions quietly. small. tuck in. but a lot of them. he's been given the green light and a blank check to grow this business i think that's where you're really going to see the excitement see how we got so excited over microsoft and azure and aws.

these guys are a distant third player and it won't take much for them to play catch up. >> microsoft call is a proper upgrade not playing catch up, strong performance upgrade and they kind of bullish on all the business areas do you look at the multiples and start to think this is getting a bit stretched. i think the pe is starting to look too stretched even if they knock the ball out of the park >> out of the microsoft call today or the cisco call, i like the cisco call much better that 3% dividend deal. and that would be the one i would add the to i own both but cisco is the one more compelling. >> cisco up by 2.5%. we're on record close watch here on wall street coming up your last chance trade. s . should you beat on elon musk

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driving the action stephen mnuchkin gives new details about china trade deal job less claims ticking lower. home sales missed the market and real estate leading the charge in the s&p we're up 100 points on the dow it's now that time in the show when we go to sue herera for a news update. hello, everyone. here's what's happening. a glitch at the federal reserve on wednesday delayed direct deposits and other financial transactions at banks across the u.s. the fed says the technicians

have since resolved tissue but did apologize to the banks for any inconvenience. a chinese national accused of trespassing at mar-a-lago denied knowing the that president trump owned the resort and uses it regularly. she entered court in fort lauderdale the judge setting bond at $2,000 while ordering her to stay away from the property. more cases of vaping related illnesses have been reported as of december 17th the cdc says there were 2,506 cases of lung injuries that's an increase of 97 from last week. at least 54 deaths have been reported in some 27 states and take a look at that. tourists visiting northern finland enjoyed a stunning display of the northern lights they braved freezing temperatures and gathered around a camp fire as the sky was illuminated by green lights. it lasted about nine hours it's gorgeous.

>> that really is a stunning display. >> gorgeous. so cool. >> long way to go and would be cool >> i saw it when i was in northern rush. it's beautiful i'll see you next hour >> i thought you were going say see you up there >> let's go. let's think it road. >> sue, thank you as always. we'll see you next hour as you said let's sends it over to mike for the second installment of today's dashboard. >> tesla has spent its entire history as a public company in the line of fire look how the street sentiment towards this name breaks down as the stock pushes towards record highs. pretty much doesn't get any more evenly split for this for any stock. one-third, one-third, one-third, buy, hold, sell. i think it's 13 buys, 10 holds, 11 sell. something like that. right now you see that the stock itself has blasted right through

the consensus price target which is this white line this is really a momentum move it's a squeeze of various sorts. 20% of the float was sold short at the most recent report. clearly this is a big momentum move but if it falls apart, if it really fails at the upper end of this range it's not because the investing establishment is all in love with tesla still very polarized those who look financially doesn't work speaking of financially look at one measure of valuation very hard to look at historical valuation based on earning for this company because, of course, it has not had a full year of earnings this includes net debt expected sales for the next year it's come down guess what they started having sales even as the stock went up now it's starting to tick up even though, you know, we don't know if we can meet those earnings targets off of this sales base next year

clearly not buying this because the numbers tell you it's financially kind of sound at this point at these earnings level. >> the median sales you told us yesterday was two times. >> in the overall market >> yeah, wasn't it >> i think it is around there, actually, because the s&p 500 is about 2.5. >> okay. got it thank you very much, mike. we want to stick with tesla. the stock has surged more than 57% since the company reported a surprise profit on october 23rd. today's move helping it close in on ceo's musk goal of 220 per share. remember that famous tweet here to debate whether tesla has more room to run is ross gerber and not everyone is in love with tesla. there's some division on the street craig i'll start with you. we see this nice record number here you don't think this will last

what do you think of the tesla >> so it's a tough day to be a bear with a stock at new highs, right? the reality is, you know, tesla is trading on hopes and dreams right now and i'm not a weath weathervane. the expectations from china is too high competition is coming. china will be a great market for them but the number for our 2020 is more like 50,000 units not 150,000 units and i think that things are getting pretty frothy up here. does deserve to be a $250 stock. >> why has it done so well as of late >> everything craig said is false. i don't know where he gets his numbers. he pulls them out of his weathervane. first of all sales will go up by 40% to 50% next year because china is coming online and

coming on faster than what anybody thought. >> you can't say somebody is wrong about a forecast nor next year you don't know >> put me on in a year we'll see. >> you might end up being right but you can't be guaranteed to suggest you are right. >> i don't offer guarantees, i just offer past performance and i've been pretty clear about this company i know more about this company than any analyst on the street and that's been proven correct i know what's happening in china. this person does not what is happening is amazing we got a car with much higher margins selling to a much bigger market of people who love elon musk and love tesla and what we're seeing a much more efficient factory producing at a much lower cost. this is a huge gold mine potential for tesla over the next decade to be the leading ev seller in the chinese market and i think discounting that would be one of the biggest mistakes

an investor could make >> craig, your response? >> you know, i don't typically respond to attacks what i would point out, ev's were down in china it's about a million unit market this year. versus two last year or close to two. the reality is most of those evs have very different characters than what we would consider evs on the road in north america those are cass that don't have the same compliance burden that north american or european evs have so they are much lower in content. not a direct comp for tesla. so, really, 10% on a half a million units is a fair comp that's my 50,000 unit number your guest can read what i wrote about china earlier this year. we said we're positive we timed it right. we met with several auto manufacturers there.

several other former gm and other auto executives. the reality is what will play will play. we'll know by the end of next year but i think the expectations now are really, really frothy, and it's a high hurdle to get over >> so, ross, you have done multiple trips to china yourself and what have you learned. >> i have people sitting outside the chinese factory who tell me every day what's happening there. so i don't even have to go you know, once again, you know, i caution analysts who think they understand this company because i don't think they just have the type of resources the tesla community is putting behind getting information i've never seen a more passionate group of people than tesla shareholders and owners and they are doing a wonderful service helping me and my firm get the most current information out of everything that tesla is doing on the ground. so we have a wonderful network of people. in fact the chinese factory is already able to produce 50,000

cars a year as of now. so, you know, it's already happening. they've already delivered their first cars >> we're out of time then, gents. thank you both tesla, always the one -- even more divisive than impeachment, i think, tesla genuinely. it divides opinion where do you stand >> i said it's a cult stock. either believe in the total addressable market and this management team. that's a big belief. but it comes down to valuation to me. it's hard to get around that that's one thing -- we know it's a great product. we know that it is growing not my name. >> it's a cult stock >> absolutely. >> we got about 20-minute left to go here before the "closing bell" sound. we're on record close watch. coming up next your last chance

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about 16 minutes left in this trading session today here's a check on the "closing bell" big board. at the top three major averages on pace for record close at the bottom the biggest dow leaders, cisco, 3m and intel nike had a fresh high. that stock fractionally higher for the day. we'll hear more very soon when they report their results. >> time for your last chance trade. 15 minutes left of the session >> mondelz a low beta name. strong brand that should lead to mid-single digit growth in organic. they are having a restructuring program ongoing. upside to margins. i do like this management team

very much. a play on em as well because 30% of their totals come from em regions. you think the dollar is peakish that will help they monetize their coffee business could get a couple of billion dollars for that like this company. nice barbell to some of the industrials and higher beta names in my portfolio. >> to what extent is this being bought by you because your walmarts and costcos are getting too expensive. >> costco is trading 34 times, walmart is not nearly as expensive. it's up there too. i was surprised when i was doing the homework a couple of weeks ago it was trading at 21 times that's still rich but, again, you get a nice yield, great story, great products, you do get this em kick >> are you shifting? you still like your walmart and costco >> i've been trimming walmart. i'm holding on to costco there we go.

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commercial free of all the action snake santoli is here to break down the crucial moments and today stephanie link is here as well as we stand with just over 10 minutes left over 100 points. set for record closes. let's kick things off on news that iac is spinning off match group. >> imagine ia cbot of those companies trading. spinning off 80% of match. the separation expected to be completed in the second quarter of next year match group is the company's seventh and spun off expedia and ticketmaster iac owns majority stake in home services which it will consider options for once this match transaction is complete. back to you. mike, the market loves this.

both sides of the deal >> it's kinds of what you get when you buy iac they grow. they take them public. the unifying factor with all these companies and trip adviser, ticketmaster, these lead generation engines. they have very good economics if they get to be a preferred source of that lead generation lendingtree. all that stuff the formula has been pretty successful so far. >> former uber ceo quickly selling off his shares of the company. >> reporter: quietly and quickly uber lock up expired six weeks ago. since then he sold off over 90% of the stake of the company he founded. he sold $400 million worth that brings his gain to $2.4 billion. it makes kalanick the biggest

seller of uber shares. biggest buyers are goldman sachs and tpg. co-founder has sold some but still holds more than $2 billion worth staying company. the other ceo upped his stake by several million dollars. back to you. the thing for this, i just wonder, is whether him getting fired or ousted was the best thing that ever happened to him. any other founder would have to hold on to their shares forever even if they have a 20 year tenure and retired, the day they start selling attracts attention. he's managed to liquidate a huge amount not to mention the billion dollar payment he got to give up his voting reits opinion he's had an amazing opportunity. >> i just one day in the market of not bad news on uber or lyft for that matter. i understand why the stock can't

move you have to get through these lock ups now this this is a huge announcement. then it just doesn't give me any confidence to step in and want to buy it. >> i do see there's a way to spin this as saying now we know that somebody has been leaning on this stock who didn't care what price he was getting for it as he tried to sell. his cost basis is zero he wasn't going to stop selling if the stock price was down. you have to soak up more supply but right now it's almost in a weird way you could say this helps explain the weakness >> it's clearly not a vote of confidence but it doesn't have to be a vote of no confidence at the same time as many argument that are legitimate for why he might -- >> i don't want to influence this volume of selling had on this stock but still >> uber down again a little bit today. let's go to chipotle it's testing out a new restaurant design. indicate rogers has the story for us >> reporter: chipotle announcing its testing out now store maps

to help digital growth the company is testing out walk up windows for digital pick up shelves. also continuing to roll out it's chipotle lanes in stores allowing customers to pick up digital owners via drive through. new formats will be tested in chicago, cincinnati and two locations in phoenix digital growth was 88% this stock super90% year-to-date the digital story is to thank for a lot of the big gains the company has seen this year back to you. after the bell we'll get earnings from nike we have what to watch. >> reporter: growth in greater china will be in focus when nike reports after the bell despite trade tensions and a slowing china economy. last inquiry greater china sales rose 27% driven by demand for footwear and apparel

also been increasing its footprint across the country which analysts say has been helpful in strengthening its brand with the chinese millennial audience. expectations are high going into today tease report the stock is at a record high up about 35% so far this year it is underperforming its key rival adidas in 2019 thank you so much for that steph, are expectations too high or have they got form of beating high expectation. >> it's up 6%. trading 29 times forward estimates. a bit rich i think expectations are quite high they will have a good quarter. what will they do in china for sure, how much momentum they are seeing in north america, 5% growth there and gross margins. gross margins grew 155 basis points last quarter. if they do better than 25 i think people will follow that.

but that's a number that will be careful lie watched. >> we got under five minutes, over four minutes left to trade. moody's has downgraded boeing's credit rating due to the 737 max crisis phil lebeau has more for us. >> reporter: the most interesting thing for boeing is the decision to halt 737 max production, a decision that president trump wanted a little bit insight in, into that decision when he called ceo on sunday that phone call not a lengthy one but an update from ceo to the president on the 737 max he told president trump look this is a temporary production halt there are no layoffs being planned. remember, just last week the head of the faa told us there's no timeline for approval of this plane. could happen in the first month or two but, again, that's purely conjecture if boeing and the faa can complete all the tests that still need to be finished before the plane can be approved. this production halt, guys,

takes effect in january. back to you. phil, thanks so much the stephanie where do you stand on the stock >> i think i'm the lone bull on this name. >> how are you with management you've been through a number of times where they've give earn guidance and you come out of the worse of this story and back to the lows >> it's frustrating. hasn't been handled well at all. i do think the ceo will keep his job at least until they get the certification and get these planes up and running. that's the biggest question mark when they do, everybody will breathe a sigh of relief and when the stock can do well the last two days the news has come out and the stock rallied on the news. it's very volatile i'm staying patient. i think they get this plane back going. when they do the stock price will be higher >> we're almost ready for the close bell to sound. >> brett has been reasonably okay

look at new highs versus new lows this is consistently been strong in the forward locations far out when you have high swapping new lows, pretty good. that's whatever. eight or nine to one the nasdaq 100 against the banks over the last six months, they are almost exactly the same amount right now it hasn't been just one kind of market i think that's significant that it's basically not a zero sum game happening right now with this rally >> let's get a check on bonds with rick santelli >> the data points were very good today but that didn't stop look at the intraday for tens. down side pressure pushing yields up we hit 195 now drifting as you see on the one week chart from the same levels mid-190s entire curve, twos, fires, tens and 30s down one basis point july this is why everybody was so excited for a while at 195 we took off that november high

he is could be said for bunds. they closed right on it flirting with a four month high we're up 4.7% on the week and still have one section left. >> reporter: we don't mark new records opinion interestingly the nasdaq 100 hun100, 40% of i stocks are in correction communications joining chips at all time highs facebook not quite at an all time high still not taking out its 2018 high. but giving a boost to logic on information it considered buying the chip maker micron also providing boost also hitting an all thyme as it says it sees a bottom in chips in the next quarter over to bob. >> reporter: four to three advancing to declining stocks. nice move up in terms of advance decline line some market leaders are looking tired at this point. amazing one for the banks. jpmorgan and some other names like goldman sachs probably run out of steam here after a good

run. same with industrials. caterpillar has had a good run and united technology also down a little bit today some of the energy stocks all above 60, exxon, chevron also down there's the "closing bell" we are at new highs. dow jon dow jones industrial average over 28,000. s&p closing above 3,200. thank you if you're just joining us welcome to the "closing bell". i'm wilfred frost. >> i'm courtney regan along with mike santoli >> let's check in on where we closed record highs once again for all three of the major averages. the dow closing up by half of 1% s&p just behind that up 0.4% nasdaq led the charge today up 0.7% three record highs once again, led high today by the real estate sect jobs bottom was utilities and energy >> we're also gearing up for

nike earnings. dow component reporting soon we have panel of all-star analysts to break down the results when we get them joining to talk us about the market day, stephanie link is still with us. she's joined by jack manly global market strategist at jpmorgan asset management. mike, we'll give the first comment as usual, s&p did close above 3,200. is that a significant psychological mark >> the round numbers -- i don't think 3,200 necessarily was drobd a very stiff test. a lot of the patterns that are formed on this rally since october folks have been looking for whatever reason for target to buy 1% up from here basically is an account from magnitude of decline and the recovery it shows you in the absence of news which really there was not much relevant news that could be driving the market up by half a percent today, you just had the seasonal tail wind along with the industry would call it

equityizing cash put cash in the market not to be left behind. it works until it doesn't. the question is the bull case too over believed in the short term or will people get too upbeat going into next wear. maybe. right now trend is strong. >> the mood today rallying to the close is encouraging volume is not too bad. vix down a little bit. >> everything is lining up in the proper way i just think the question is how much is too much you haven't had a sizable pull back in some weeks right now and i do think it's one of those things you have to be aware of not to say you change your strategy but it should not surprise me right now if some random thing comes along and knocks it off course for a little while >> feels like we're in a different spot this december than last december a lot of our fears have been subsided, whether it's in washington, d.c. or other wise do you think we're being a bit too complacent >> i think what's most important

to be here is while we've seen some good news coming out in terms of trade negotiations last week, in terms of the uk parliamentary elections last week, we're not out of the woods just yet here. it's safe to say the worse is probably behind us but these are one steps in a large multi-step process. there's more to do out there and i do think markets are at risk of being too optimistic. >> how optimistic are you for next year if we don't get the earnings growth. the is that a much larger swing? >> it will stall out whether we go down i'm not sure. i just want to focus on what happened today for half a minute it's interesting today was much more of a defensive feel, much more of a growth feel versus the cyclicals. it's noteworthy. like mike said there wasn't a lot of news out there and all of a sudden people are basically cashing their chips in things that have been working

it will be interesting to me until the end of the year inrotation continues >> mike, two days now of apple underperformance relative to the other big tech stocks. it sums up that kind of positive high >> without a doubt positive grind you sort of buy the marquis names. most are pagt. at 280 apple doesn't owe you anything at this point in the short term it certainly is a positive it's hanging in there. again, i do think you want to get into a period where there's more back and forth action as opposed to this upside air pocket in a very strong pre-holiday take >> apple traded with the value group, right so you can see why it also is lagging today as well. >> largest stock in the s&p value. >> treasury secretary steven nu mnuchkin appeared on cnbc giving new details. >> i'm very confident. it's going through what i

consider to be a technical, legal scrub, and we'll be releasing the document and signing it in the beginning of january. >> jack, to your point about global risks falling a little bit out there. how important is this one getting over the line in january with some ink on the paper >> the timing isn't important. but this is really good news for the first time in a long time we're seeing concrete evidence of progress being made. i mean i think we have to remember this is a phase one deal which means there are other phases that will be coming alongside it what's important here is that it sets the attorney next year which is to say that positive outcomes are possible and perhaps even profitable and one of the biggest risks on the table is now greatly diminished. >> as a global market strategist as you look into 2020 would you look at other markets beyond the u.s. that have underperformed over this last year or is u.s. and equities here really the best place to put your monetay n

a portfolio? >> i think next year we could see strong performance in international markets. the worse is behind us we're seeing manufacturing activity turn around most recent numbers were not particularly supportive. brexit news was encouraging. this trade deal is encouraging at the end of the day as long as all this uncertainty persists and i don't think it will go anywhere international markets will underperform relative to u.s. while next year may be a better year for international investing it won't be a 2017 type year and investors should still focus mostly right here in the u.s >> is january now shaping up to be quite tougher for equities, more room for disappointment than positive surprise >> maybe whipsawing. it is a month where you typically see the reversal at least in the short term of what has been working you sell winners to buy losers it's the january effect where you have beaten small stocks

that do recover and stocks that have won and people wanting to sell them because of guesting in to a new tax year. it does set up that new way. that being said i don't believe we're borrowing future returns not the way the market works market trends in certain directions if the trend is positive the next sell off won't be the big one. i agree with jack. positive outcomes are possible when negative outcomes are in front of everybody's face people say you have to look through them you have to be aware those are the times to be buy. when positive is in front of us not always clear sailing >> sec chair has been pushing rules that might make it easier to go public with a little less regulation now the sec wants to broaden the number of people who have access to private equity, another front on this effort by them in most cases you must be a

credited investor earning an individual income over $200,000 or combined $300,000 if married. also you must have $1 million in assets excluding one owes home sec is interested in expanding that definition of an accredited investor to people who may not meet those financial qualifications but they may be knowledgeable based on their businesslike being in a hedge fund or holder of a series 7 or another license elsewhere. the sec is not changing these rules yet. they are requesting comments on the proposal this request was passed 3-2 by the sec commissioners. both democrats dissented saying they were concerned about fraud. back to you. >> bob, this would then potentially lead for it to be easier for those private individuals to invest directly in these companies or for a process which we know has been happening alongside in the background lately, easier to have direct listings for

example? >> no, that's not what they are talking about. they are talking about being an accredited investor. in private not going public, in private companies today you have to have, be able to show a million dollars in investments, not including your home or $300,000 a year in annual income for two years if you're a married couple they are proposing extending that and not just having financial guidelines but instead you might be able to say well i have a series 7 exam, i don't have a million dollars but i would be a qualified individual based on that understanding. it's a little less defined, it's a little fuzzier the way they are trying to do it. they will get some push back on this they did from the democrats already. you have to give them credit for expanding the idea of allowing people to invest in private equity when so much someone tied up in private equity it worries them more and more money is concentrated in a smaller group of people.

>> bob thank you stephanie what do you make of that it would be nice to expand the market of available investors. i don't know if these new ideas are the right way to do it >> seems very vague. or opaque is the better word as it is now private investing is that. so does it help it or not? i'm not 100% sure. there are a lot of question marks. i don't know what the timing is. when do we expect to get some kind of resolution on this >> jack, what do you think about private market valuations more broadly and whether the things we've seen this year, wework, et cetera, are a warning sign for a bubble that's about to burst and could have ripple effects across the economy. >> we're in a world right now that's awash in ultracheap capital. and i think there's a possibility to your point of some bubbles arising in a situation like that. you see a record amount of dry powder on the sidelines, private

equity valuations approaching record highs but i think more broadly speaking we look for -- we're seeing public markets not going to be returning what they've done in the past because we're living in a slower growth world. investors are going to want to have access to private markets if they can and i think that from that perspective this sec potential change in regulations is a welcomed one from my perspective. >> jack, thank you for being here with us today and stephanie thank you for joining us as well >> we're just moments away from nike's earnings report we'll break it down with a time of analysts when close bell returns in 90 seconds. cr eated by apple, so it's simple and transparent with a new level of privacy and security. it lives here and here- on your iphone, and it will save you 6% on holiday gifts at apple; like iphone, apple watch, airpods pro and so much more.

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and all your dreams take flight. lease the glc 300 suv for $439 a month with credit toward your first month's payment at the mercedes-benz winter event. welcome back let's send it over to mike for third installment of today's dashboard. >> we've just been talking about whether investors are getting a little bit too happy, too convinced of the bullish case. it is a perfect world? we have a weekly look at american association of retail investors survey break down of bulls versus bears. not determinative of which way the market goes. we're above 40% bulls. not too surprising given the stock market at an all time high that's a ceiling for most of the last couple of years bulls in a mirror image pretty much down towards the bottom clearly people have gotten the idea the market is in better shape and not a lot of doubt out there for markets to feed on any

more take a look at this alternative measure which is called the fear and greed index. it's got multiple inputs a lot of market base stuff options trading in the high yield spread things like that as well as surveys. this got to 90 today it doesn't get a lot higher. actually in 2017 well before the actual market peak in january of 2018, so it's not always synced up when the market has a pull back but if one of your bullish arguments for next year is nobody loves this market a lot of people will pile in people like the market already at least to some degree. >> i don't know when the survey was taken but how much is this phase one trade deal impacting sentiment. >> certainly for the poll it was taken as of through tuesday. absolutely it would have covered that period when we got phase one. that's exactly when that survey tends to respond not only when the market does well but there's an obvious story per hine why it's doing well and the headlines start to clear up so

that's why i think it's got that >> one of the arguments this first half of this year there's no alternative type point for stocks and included in that was the international outlook was so poor that's not quite as strong an argument it's also not just a strong argument asset class wise. >> when you consider that there's still been a steady demand for yields even at these levels if you look at corporate debt. doesn't seem as if people are really giving up that idea if yields come up they will find buyers for that. >> thanks so much. coming up next we'll dig deeper into nike's earnings when they come out we'll dig into them and we'll be discussing what to expect with an analyst as well plus your smartphone is a much bigger privacy problem than you might think. coming up the reporter behind a new investigation explains just how closely your phone is spying on you

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we're back nike numbers are out >> reporter: a big beat on nike's bottom line 70 cents versus estimate of 58

cents. revenue came above the estimate. revenue coming in at 1.85 billion up 23% but a slower pace of growth the last quarter when greater china sales rose by 27%, but still double digit growth in the country. other regions latin america up 14%. gross margins came in at 44% the company did talk about the incremental tariffs in north america having a weight on margins. the stock is down 2% perhaps on slower pace of growth it's witnessing in greater china. back to you. thank you very much. we'll dif ve into nike in a moment >> reporter: president trump's replacement for nafta has enough votes in the house of representatives to pass. currently there are 192 democratic yeas and 191 republican yeas notable this deal that was neeshd by

republican administration has secured more democratic votes currently than republican votes in the house it will need to be passed by the senate and then signed by president trump. senate majority leader mitch mcconnell said he wouldn't take it up on the senate floor until early next year but a major policy victory for trump administration with the usmca having enough votes to pass the house of representatives thank you very much. we're going turn back to any key. earnings out moments ago beating on the top and bottom line but the stock dipping on a gross margin miss. joining us to break down those numbers, our senior research analyst at susquehanna and david schwartz an analyst at morningstar. sam i'll turn to you gross margin is up 20 basis points to 44%. >> they did say there would be more margin pressure in the quarter slightly more than they anticipated. your first conversation about china sounds like china of better than people thought

they were expecting a little bit of decel >> david here, they talk about average selling price increase as well as expansion but higher product cost due primarily to those north american tariffs does that surprise you did you work that through in your model? >> i think that's a very good number my number was at 44.1% 44.0 is close. i think they had some one time issues in the quarter including the tariffs and possibly the demonstrations in hong kong and other issues in china that may have had a small impact on the grors mar gross margin >> overall clearly everything is still going very right for this company. is there a question just to where the stock had got to and the valuation? is that why it's slipping? >> it's slipping a little bit because it's not perfect they don't give you guidance in the press release. we'll hear what they have to say. they talked about picking up 50

to 75 bits of gross margin for the year that's probably still active because you have the tariffs coming down and not see 4b come out and the dollar is getting weaker again we could see more gross margin improvement in the back half of the year and into fiscal '21 i think it looks like all systems go here still. >> david, it looks here like north america total sales up 5%. is that -- i mean gosh underarmour has been having trouble in north america 5% is better than a negative number how does that play in your thesis >> i think 5% is a good number that's market growth or a little bit above market growth for the active wear market right now although nike struggles a little bit in the at leisure area where they don't do quite as well as companies like lululemon, that clearly shows the performance

area where nike is very strong is coming back from some difficult years the last few years. >> mike, what's the position overall from analysts on the stock? >> it certainly is positive. about three quarters of the street is recommending it. as high as 80 a few years ago. it's not out of line with how the company is performing and how the stock has done net positive but because it's this consensus winner in this group. also, if you were to look at footwear and apparel, bundle those together in a subindustry nike has a lot more clarity in terms of its strategy and end markets than traditional pair well companies one of the reasons it hits that premium. >> speaking of strategy this is the last conference call we have a new ceo coming in january 13th what are your expectations for the strategy going forward >> they've been talking about a lot of digital first strategy, consumer direct and also that's their always how they partnered with the retail partners as

well you know, as i wrote some time ago mark parker has a phenomenal brand in sight and instinct and the new ceo has great digital instinct and the reason mark will stay for a couple more years and work with him to help meld all that. mark recognized digital is the way to go. but he doesn't have the instinct there that the new ceo has i think it's all looking pretty good right now >> we'll leave it, jae sam and david thank you for joining us you probably assume your smartphone tracks you to some extent but a shocking new investigation reveals just how precisely your phone is spying on you the reporter behind that probe joins us next. >> find out what's at stake for disney, the skywalker saga is coming to a close. why is that? is it because people love filling out forms?

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welcome back here's a look at the "closing bell" board at the top of the major averages closing record highs all three of them up about half a percent. sector leaders were real estate, communication services and technology only two sectors earned the day in the red as you can see just fractionally so the utilities and energy sectors >> now time for cnbc news update with sue herera. good afternoon >> good afternoon. here's what's happening at this hour, everyone

house minority leader kevin mccarthy calling the house impeachment of president trump the weakest, fastest and thinnest impeachment in u.s. history. he also took aim at nancy pelosi for not committing to sending the impeachment articles to the senate >> she's admitting defeat by not sending it, by refusing to send impeachment over she knows the outcome is not good. she knows the facts are not there. there's no basis for it. at the end of the day the american public needs to move on >> former afghanistan hostage was found not guilty on all 19 assault charges. he was canadian and had been accused of assaulting his american wife after the couple returned to canada in 2017 they had spent the past five years as prisoners of extremists linked total ban new york city officials announcing they have reached a settlement with starbucks over the company's paid sick leave. they said starbucks violated the

law by making ailing workers find substitutes or face possible discipline. starbucks says it changed its policy and agreed to pay over $150,000 in restitution to employees. you are up to date that's the news update that hour thanks so much now the "new york times" opinion team out with a new report dealing just how little privacy smartphone users actually have using a data set given to them the team was able the to review and track the moments of more than 12 million americans in major cities across the country. the data revealed everything from where people went for job interviews to where they attended religious service for more let's bring in one of the writers behind the report, charlie warzel very good afternoon to you congratulations on a huge piece of work here >> thanks for having me. i appreciate it. >> so, just give us a quick

outline for those who haven't read the article what you dug into here. the extent to which location data from phones is being collected and amused >> what we were given was this large trove of data from over 12 million phones in america in a number of cities over a, about a six month time period in 2016-2017 and we had a 50 billion individual location pings. very large data largest set ever been leaked of this type of information. and what it really showed was, you know, the scope and the scale of this kind of tracking, and the industry that we obtained this from, it is sort of an industry that works as a bit of a middleman

you may give a weather application or a coupon app or something like that, access to your location so you can see things that are nearby that's something you consented to and agreed to but some of these companies then turn around and have a secondary business repackaging and selling that to other data broker and other middlemen. there's this whole industry around trading this information from these third-party apps. that's where things become kind of murky with the issue of consent. you may have agreed to give your information to one group but not another. once it's gone it's completely gone we wanted to show the risks involved with that and the granularity done >> no, no, the data we can't figure out who you are you have very clear examples no you can do exactly that. >> yeah.

that was sort of the proof of concept. we're not trying to invade anyone's privacy ourselves we made sure to get consent from anyone who we did identify there are plenty of people who, obviously, you know, privacy we obviously chose to respect in that but, yes this data is allowed to be collected because precisely because they say it's safe and secure and it's anonymous. not in many cases anonymous. if you live in a single family home, for instance very easy to go back through public records and find an address and link that to the other place you are most of the time which is work or say a gym so using, you know, work and your home address and some other digital breadcrumbs things you leave around the internet, social media posts very easy to go and be anomnized. >> he we talked about privacy with companies like facebook where a customer's data might be used more than the customer realized even if anestheticed

the box that says they consent other companies like, for example, apple, try and differentate their image to say they never do that and this debate has never really gone as far as the telecom providers to what extent if someone owns an apple smartphone and has a verizon or t-mobile or sprint contract those companies usually not in this debate culpable because location data is so inherently linked with the phone and the network which they are connected. >> sure. this report specifically is, as i said earlier focused on these third-party apps we believe that's almost the lowest hanging fruit, if you will, because they are these middlemen. as you mentioned this is a real issue on every level of sort of technology stack, right. this is a telecom issue. we know there's been reporting from other outlets showing bounlty hunters were able to get

ahold of this information from telecom companies who were selling it i believe that's patched up a little this information is being collected at this device level someone like apple has a real issue on their hands with the app store because a lot of these third-party apps have other code embedded in them that's sending this information out and apple, you know, wants to be a company that prioritizes privacy but so many apps on this app store, so much going on that it's very difficult. i think until we see more transparency in this industry, until we he see congress come out with concrete regulations for these companies, you're going to have to assume that some portion of you is always being tracked and that's being stored somewhere and it could potentially some day somewhere somehow be vulnerable. >> i think that was an excellent way to end it and your final line in the place greatest trick technology companies ever played

is to convince society to surveil itself we got a news alert on biogen shares of biogen popping here in extended trade on an announcement of a $5 billion stock buy back and addition to the buy back that made back in march of 2019. it comes amid some new data from goldman sachs which shows buy back spending slowed 18% to $151 billion during the second quarter and the firm anticipates that slow down to continue but biogen here buying back more of its stock. it's up by about 1% in extended trade. back to you. still ahead here on the close bell, jobless claims coming in worse than execute find out if that's a warning sign for the economy and the market sniend out how new york's most exclusive and expensive address is breinrerd akg cos.

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welcome back to the "closing bell". let's sends it over to mike santoli. >> every which way but loose reference to a clint eastwood

movie. this is the only one that co-standard an orangutan this is a very long term chart unemployment claims, four week moving verage. always kind of perks up as we say hide of a recession. right now what we've seen it's flat lined at historical loss. right now not giving you a signal perhaps it's bottoming not been a very define uptrend in claims so therefore not a rise in layoffs or anything like that we can define. look at the shorter term chart just to get a look at how that bottoming process is appearing and, you know, you have to look right here obviously very low print right in the turn of last year is that an uptrend is that starting to base and go higher that's the question. we want to northern this every day. coming off very low levels and other job market measures are

still strong but maybe a leading indicator. >> we'll keep our eye on that. up next new york's annuity building we'll go behind the secretive condo and look who lives there and why it's so popular and why the superrich cannot get enough of it. >> coming up on "fast money," tom lee will give his 2020 playbook "closing bell" will be back after this (soft music)

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new york's annuity building

has done no marketing and no listings but somehow has become a hot spot for the superrich robert frank is here to explain. >> it's known as 220 central park south 70 store limestone and glass tower the home the end of the top 20 sales in new york just this year. hedge funder closed on a penthouse that followed ken griffin's purchase of four floors for $238 million. that was the most expensive home ever sold in america neighbors include sting and his wife they paid 66 million for their unit and a california hardware magnet paid 61 million. by time the last few units sell out the building is expected to top $3 billion you can get in through renting three bedroom being offered for $59,000 a month.

>> fascinating the numbers when you come on in the last year we talk about the high end luxury, taking a pull back is this tactic they've employed super high end of this building not experience any sort of pull back or are the price a little lower than we expect >> hit a set attributes everyone wanted rare building right on central park nobody can build in front of you, in front park robert a. m. stern favorite architect of the new york wealthy. toft of the top amenities. saltwater pool private restaurant once ken griffin went in wealthy follow each other. everyone wanted in this building they didn't have to do any marketing. part of the appeal was that it was so private and secretive only the really rich knew about it >> in terms of central park south is that the most desirable place in new york. has that always between place or only one of a handful of places that stand out

>> price wise that u-shaped is the beach front of central park. >> pretty impressive thank you. up next tackling the student debt crisis. new asset class is emerging for investors that could help students avoid taking out major loans. the details are ahead. >> box office buds disney's latest "star wars" film hitting theaters tonight we'll hit what at stake when close bell returns

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another check on shares of nike coming off their hours low on the back of earns still down about eighth of a percent. now private student loan debt stands at $102 billion with 1.4 million brothers new asset class is emerging that professes to help alleviate the student debt crisis. students agree to pay a percentage of their income for a set number of years after graduation here's how it works.

very good afternoon to you explain how the asset class works. the student has their tuition paid for, for them and off the back of that they then promise to pay what a certain percentage for a number of years but no debt attached to them. >> it's not at that loan, not debt where an investor pays student tuition in lieu of a private student loan and gets a certain percentage of their income major difference between this and a loan there's a minimum income threshold below which the students are not required to make payments. they go into deferment if you're not making above 40,000 you're not make payments. there's a pre-determined cap so it's progressive in the sense higher earners will pay more than lower earners but everybody is subject to the repayment cap. unlike a student loan which can

go on for sferngs eight, nierngs ten times so what you borrow >> although no set debt with interest paid against it, does the sort of prerogative they owe money back stay with them until they get that job until 30, 40,000 whatever it is, even if a decade later. >> it's different than a loan in that in isa you need to make a certain number of payments after that you are done. and it's typically less than seven years. whether you make those -- the -- you can either stop paying the isa by hitting the number of payments or repayment cap. higher earners might repay in a few years if you make 1,007,000 salaries like the technology schools we deal with and others will just make the 24 payments and it will be less -- have paid less tuition the first time in the u.s. we are connecting the price of education to its value >> and so how does it work currently as far as your clients? what schools are currently using

this and it's available to what type of students. >> so about 40 schools in the u.s. offer isa about a dozen on this platform they come in every few months to get liquidity for the isa contracts they created this is not just colleges though like purdue university has a high profile program university of utah solar college in new jersey has a program on the platform. almost everybody in the solar program has ha job offer before going into the i.t. programs it's well suited to the isa. but the vocational skills market in the country has been ignored for decades and industrial skill labor has been on the decline. part of the reason is there is no federal student loans to go to vocational schools, welding school or teasel mechanic training we have is a's like at advanced welding school in louisiana. american training centers in ohio where students come in with great job opportunities, a ticket to the middle class

with financing whereas today there is no federal student loans to do the vocational schools. >> just quickly, one final question, you say in the notes that you can make investors into that asset class 10 to 15% return how is that possible if it is not then taking advantage one way or another of somebody who is unable to afford going to school in their own right? >> so the schools on our platform -- we don't pay retail for tuition. we buy at a discount and the schools on the platform have shared risk. they also own the isa. the school is able to say the students the better we do -- we are investing you the better you do the better we do. the schools retain risk and where part of the upside in the performances comes from. >> edlyeisa preponderate thank you for being with us. >> we have news on the breaking funding bill >> courtney that's right they've got the votes in the united states senate to pass the second

of two massive spending bills that they are passing today. you see the senate floor there they haven't gavelled it down. but the vote is overwhelming in favor of the bill right now. this means there will be no government shutdown likely because president trump has signalled that he is going to sign these two bills, the spending bills moving through congress this we can total $1.4 trillion in spending. there is a lot in there too much to detail here but a massive increase in defense spending and military members for pay. raising the tobacco buying age nationally to 21 also gutting some of the taxes that fund the affordable care act or obamacare as it's known a lot of spending in there all of it coming over here to the white house we can expect the president to sign it before tomorrow which means that they will avert that government shutdown as lopping as he signs it tomorrow everything will be fine, guys. >> eamon thank you very much for that. >> up next on the "closing bell" the key inthgs to watch as we head to a new trading day. he wanted someone super quiet.

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back to looking ahead. the democratic debate kicking off tonight, 8:00 p.m. eastern time jane wells standing by to give us a preview but first the latest stwarps

film hits theaters tonight julia boorts within the preview. >> i'm in the basement of the el capitan theater in hollywood overnight a movie marathon of all the "star wars" films leading up to the launch of the rise of kai walker pulling out all the stops with the evolution of the storm trooper, the costumes behind me. com score projects the rise of sky walker brings in at least $175 million of the north american box office. both previous films in the trail g topping 220 million process. but $175 million would be in the top dozen opening weekends of all-time unlike the arrive reviews the last two drew. this has a 58% rating on rotten tomato we have to see what fans think. >> julia thank you very much we're switching gears. joe biden is picking up support from wall street investors

marc lassry and blare ee front meanwhile the debate of 2019 just hours away. jane has a preview. >> a brand-new nbc/wall street journal nbc news who will. joe biden holding a lead second place bernie sanders. but real clear politics has sanders leading in california. he did campaign early this week and leads in carbon hand look at this the president is way out in front sanders has 28 million on hand biden down at 9 million. these debates help fuel fund raising. are they talking about impeachment or avoid it? are they talking about the man not in the room michael bloomberg? and are they talking about california, the greatest contributor to national gdp but rocked by a homeless crisis the lysetskyi i have never seen. amy klobuchar a at a homeless event today. >> thank you for the ve view of the debate

pivoting back to broader markets. record closes a good rally into the close on top. >> absolutely, the market keeps essentially punishing people who were trying to be patient and get in at lower prices that's what bull markets tend to do especially when all the tail nds seasonal and otherwise are in favor tomorrow an expiration you are seeing talk perhaps that this is the kind of relentless persistent rally that might soon just sort of like run out of steam and get to the end point but i don't think that changes the overall trend of where we're headed >> i was going to ask how important tomorrow is as the last friday before the christmas week when things get quieter with folks taking a vacation. >> i have a feeling it's people saying it's time to essentially do whatever we are going to do the remainder of theier tomorrow that has been a positive force here because all the systematic trading strategies that tend to say we are taking x exposure based how solid the market looks

that money has been rotating into the market. >> checking on nike as well. decent quarter, clearly tough setup. it's been down 2% plus now down less. >> after the call oft. people find another reason to like it. we'll see if it happens. >> and giving us guidance in there too. that does it for "closing bell." >> "fast money" starts right now. yes, it does live fl are from the nasdaq market site in times cold war square this is "fast money. i'm brian sufficiently your traders on the desk are pete najarian. brian kelly, dan nathan and tim seymour. tonight on fast, stop us if you heard this before. another one for the record books. stocks surging to you guessed it, all-time highs again what is really behind this amazing run? we get answers plus who ever said that breaking up is hard to do >> kneel sadaka. >> match dumped and shares soar. that got us thinking what other stocks could benefit from breakin