>> my thanks to my awesome panel this morning. thank rachel, mike murphy, tony, great to see you, have a great holiday. merry christmas. >> merry christmas. >> merry christmas. maria: that will do it for us. here is "varney & company" and stuart, take it away. stuart: thank you very much indeed. we'll see you shortly. thanks. whoa, what a wait to cap off a tumultuous year. 20,000 on the dow it looks like we might get there. the close yesterday was 25 points away, could hit the big number right at the opening bell today. all right, got that. now, step back a little. look back at a remarkable year. hillary clinton was expected to win the presidency, right up to election day. she led in the polls and then, donald trump won. immediately, the trump stock market rally began and as his conservative cabinet emerged and his growth plan took shape,

the market rally kept going on going. janet yellen raised interest rates, who cares, the market kept going. china flexed its muscle, terror struck in america and europe, the market did not blink. so, here we are, 25 points from 20k on top of this the most explosive rally added 1.8 trillion dollars to our national wealth and that's being spread around to well over 100 million americans. as we've said many times, sit back, enjoy your front row seat. history is unfolding. "varney & company" is about to begin. ♪ ♪ jingle bell, jingle bell rock ♪ ♪ jingle bell swing and jingle

bells ring ♪ >> i'm whining about the music. i'm sorry, can you have some real christmasy christian music? can we do that? my producer says, don't start. we're having fun. okay, all right. let's have fun. four days until christmas, we're closing in on dow 20k so we're playing some jingle bell, whatever. now, the market has been on fire since mr. trump won the election. sit back and watch it go this morning. we've got to update the situation in berlin. the christmas market attack. adam shapiro is going to tell us that there is still a manhunt for the suspect. >> yes, and they actually have a potential suspect. this man is a tunisian immigrant, an asylum seeker and he left some i.d. information inside the truck which had been hijacked and they killed the truck driver. so the german authorities are looking for that man. the papers indicate that he was from a town in tunisia, born in

about 1992. stuart: okay. they still haven't got him? >> they have not arrested him. that's interesting. >> clearly, he's dangerous. stuart: yes, armed, dangerous, a mass killer and they haven't got him. >> he's also part of the asylum. stuart: now, that's part of the he was part of the asylum seekers, bad news for angela merkel. >> it is, right after the attack she said let' hope it's not an asylum seeker. the right wing in germany are all over her for bringing them into the country. stuart: i think the central is all over her. >> it could be pivotal for her reelection. stuart: armed, dangerous, a mass killer. got it. president obama blocks off shore driller in large parts of

the arctic ocean, and the rule right before mr. trump is in inaugurated and it says it's in perpetuity that mr. trump will need to overturn it? >> permanent in terms of taking hundreds of millions of off shore acres which probably hold 8, 9, trillion-- billion barrels of oil and trillions cubic feet of natural gas, enormous natural resources off limits in perpetuity and never go and drill there and the bill can only be overturned by 60 votes in the congress which i don't think that republicans will get that. stuart: that's outrageous. >> it is, it's another in a series of sort of last minute back door urgent measures by president obama to make sure that something is left of his administration. and i say that with all due respect the truth is most of what he's done on the environment is going to be overturned so this is kind of

like, i'm going to show you that i can leave something behind and this is stupid. it's a land mine planted for the incoming trump administration. that's what's going to happen. >> the russians are already going into the arctic, so he just handed over all of this to the russians. >> we don't know 10 years from now, 20 years from now, we'll need to develop those resources. this is a problematic thing to have done. stuart: i hope this is going to be the inma part of the entire program today. we're on 20k watch. we're watching for it. this is clearly what could be a very historic day. i think we're right now, we're about 25 points away from 20k. what you're looking at is the futures market, the little green arrow pointing to a modest gain for the market when we open up in 25 minutes time. jeff sica is here, part of the all-star coverage of the market move to 20,000. welcome back to the program and

good to see you. >> welcome back. >> why are people. we've been hovering around 99 within striking distance of 20k for days on end. why this pause before we get to 20k? are people worried you hit 20k and the algorithms kick in and everybody sells. >> you have two people, the type of people who want to be at the party when it hits 20,000 and you have people who have been at the party and ready to go home and they're using 20,000 as their reason to sell. so there's that conflict going on right now, and i think it's very-- i mean, to me, it's very important to be enthusiastic about what's happening, but it's very important to look at the fact that the next leg up is going to require seeing some of these policies that everybody's so enthusiastic about start to work. stuart: now, here is my question. a lot of our viewers are looking in and saying, oh, gee, should i put some more money into the stock market right now

just as it hits this high, near 20,000, put money in now? 'cause a lot of them have got to make that decision on january 1st, where does their 401(k) money go? there's a big influx of money and january 1st, where do they put it? so give them some advice. >> well, they shouldn't. stuart: they should not put it in the market. >> if they're not it it at this point, in the market, because a lot of what they call window dressing, the funders managers, they doesn't want to be out of the stocks that do well. at this time of the year they want to make sure for the end of the year they're able to show that they own the top performers. now, the regular investors that are not in this or aren't in this or aren't in this as much as they think they ought to be in it should really think twice, but think about this, a 6% move and a 9% move from the election, there's always going to be a pause. so, maybe investors should take

some time and let there be a pause and then maybe start to deploy capital. how is that? >> jeff is trying to calm me down and i'm gung-ho to hit that market hard. 20,000 here we come. liz peek, jeff says, hold back a minute. >> there are some sectors that are attractive. stuart: don't give me that. >> generally speaking should we be going into the market? i'm optimistic. stuart: address it, should we get in yes or no and you say? >> mr. and mrs. smith are getting in and that's who is driving this market is the retail investor has really been come intoing-- coming into this market and you're ahead of the institutions trying to figure it out, but i think, look, i'm an optimist. i think we've got a lot of power behind the economy, a lot of untapped resources and i don't just mean oil and gas. i mean labor that's not at work, factory utization is low.

>> we've got a fancy graphic we have a fortune creating and we can't use it unless we hit 20,000. >> oh, rats, that's a good reason. stuart: look at the price of oil. where is it? it has no relevance whatsoever, i don't believe to the stock market today, but it's reached 53 bucks a barrel. how about fedex? it's going to be down today, down quite sharply, off about $5. they've got higher costs and that's hitting their profit margins. look at nike. that's going to go up a little bit and it's a dow stock, remember? it's getting a boost from its basketball business. this i don't understand, but adam, you're going to sort it out. >> they're saying at that basketball is back. they had revenue up 6.4%, 8.18 billion. profit 842 million, but they face more competition from adidias or adidias? >> i say adidias. >> and i'll say adidias

and it was up tremendously and capturing market share against nike, but under amour just signed a big deal with the nfl. so nike is actually down year to date. the stock is down. stuart: and worst performer on the dow. >> they're not giving a key on where they're going. stuart: jeff curry is with under amour? >> i believe he is, steph curry. and jordan brand-- >> all right, nike is going to be up. >> at the opening bell. stuart: it's going up and that might help the dow. yes, we are on 20k watch. the opening bell minutes away. but we've got other stories for you, let's see we're only 25 points from 20k and we're watching this obviously very closely and got the graphic redd to go, check this out. father jonathan morris frequent guest on the program meeting with mike pence and henry kissinger. do you think that father john will tell us what they were talking about?

probably not. he'll be on the show 11 eastern. we're following developments in berlin. the suspect is still on the loose. remember, christmas is this weekend, new years is coming up and donald trump's inauguration less than a month away. these are all potential soft targets in america. how about this? right outside mexico city, an explosion at an outdoor fireworks market. 31 people dead, 72 hurt. the explosion is not being linked to terrorism. watch this. achoo! (snap) achoo! (snap) achoo! achoo! (snap) (snap) achoo! achoo! feel a cold coming on? zicam cold remedy nasal swabs shorten colds with a snap,

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>> all right. i want to remind everybody, the close yesterday was what? 25 points away from dow 20,000. this is a very big deal. the opening bell is in 15 minutes. let's see, if we hit the big number when the bell rings at 9:30.

right now breaking news for you from berlin, germany. >> police are searching a migrant shelter at emerick near the netherlands. they're searching for the guy and haven't got him. >> a tunisian asylum seeker. stuart: bringing in rod wheeler. we're facing christmas, new year's eve, and the inauguration. mass celebrations by americans. i don't know how you can protect all of those people in all of those venues with some guy with a truck or a car. >> you're exactly right. i can tell you here in the united states police ramped up security significantly and so-called soft targets. we have to be concerned with the soft target. some viewers may say what is a soft target. a soft target is one of the areas you wouldn't normally think a terrorist group would

want to attack, a shopping mall, a church, a mosque, like that. we're ramping up our security there for the inauguration. stuart: wait a second, you say ramping up the security, i've got it. does that mean whopping great concrete barriers. >> no. stuart: people, all cars, all traffic excluded from vast areas of d.c., for example, in the inauguration? >> right, that's a good question. the answer is no, we can't do that. i mean, the area is too widespread. when i say ramping up security what i specifically mean, stuart, we increase the number of police presence in these areas. as a matter of fact for the inauguration, there's going to be well over 100 police agencies represented right here in the d.c. area, they have certain areas that they're responsible for, so that's what i mean by ramping up. here is the other thing i was about to mention. when we talk about the soft targets, such as the christmas markets or shopping malls, you know, you're going to see an increased police presence and you already see that and we look at what happened over in

nigeria with the terrorist group boca haram. they went into a shopping mall and slaughtered dozens of people and ever since then we've decided to look for closely at the soft targets. so we know that it's possible that, you know, a group could come in a do these things, but at the same time we have to be very vigilant and rely on citizens to let us know whatever they see. stuart: last one, rod, why is it i still-- well, that we still hear about jihadi messages on twitter and social media? why? why haven't we shut them down? >> yes, it's very difficult to shut them down and here is why. when you go on social media or anything on the internet, you know, you could be in another country and that kind of information, that kind of propaganda is filtered through so it's difficult to shut them down. they're getting messages out one way or another. you know what? i think that's what inspired individuals like this person we saw over in berlin and even what we saw in the united states with the boston bombers. they're inspired by groups like isis and that's why i think,

you know, listening to donald trump, our president-elect, i think he's going to be more focused and put the resources that we need behind shutting these people down, finding out who these people are and locking them up. stuart: rod wheeler in d.c., thank you for joining us, see you later. president obama is offering advice to his successor, donald trump, and it's about executive orders. adam, what is the president telling the president-elect about executive orders. >> layoff the executive orders. stuart: he said that. >> do as i say, not as i do. he was in an interview with the npr going through the legislative process a better in part because it's harder to undo. back in 2014, the president said, i've got a pen and i've got a phone. stuart: liz peek looks unhappy. >> well, really, talk about a lack of self-awareness. look, i think obama is actually coming face-to-face with the fact that much of his legacy is now basically in the hands of donald trump. why? because he didn't go through the legislative process, but the truth is many of us think

he never tried, didn't engage with congress, didn't push for, basically concensus building in congress or in the country, for that matter. so, you know what? i mean, you reap what you sew. stuart: you reap what you sew. go the that. we're still on 20k watch. here is where the dough closed 25 points away, 26 if you look at the number from 20,000, we could hit that magic number right at the opening bell. i tell you now that futures are pointing a little higher. first this. mtv putting this video out on new year resolutions for white guys. a lot of people aren't happy about this. could it be a knock on donald trump? just watch this for a minute. >> you know nobody's perfect. >>, but honestly, you could do a little better in 2017. >> some of you guys do a great job. some of you don't. >> please, 'cause 2016 bad, 2017 can't be worse than that because this is bad.

generosity is its own form of power.

you can handle being a mom for half an hour. i'm in all the way. is that understood? i don't know what she's up to, but it's not good. can't the world be my noodles and butter? get your mind out of the gutter. mornings are for coffee and contemplation. that was a really profound observation. you got a mean case of the detox blues. don't start a war you know you're going to lose. finally you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. >> dear viewers, let's not forget that it was november 22nd that the dow broke through 19,000. today is december the 21st when we may break through 20,000. by the way, in that time frame,

only five stocks have accounted for half of the dow's massive rally. here they are, huge green arrows all around. goldman sachs, and then we have united health and travelers, way, way up, just since the election. boeing and home depot way, way up just since the election. now, i've got another number for you, try this, 1.8 trillion dollars, that's how much all stocks in the u.s. have gained in value since the election. art laffer is with us from nashville, tennessee. all right, art. the left says this isn't fair. this 1.8 trillion it's all going to the 1%, it's the rich who will benefit from this. it's not fair, it's wrong. what says art laffer? >> well, art laffer says i think it's part of what markets do, stuart and they make those decisions, not i. and i don't know how i could reverse those decisions, but let me just say that i do not want to make the rich poor. i do not. i want to make the poor richer.

i want to raise the bottom, but one thing about this dow, if i can, i don't hear anyone talking about, is this huge increase in wealth in the u.s. compare that to the deficit. and compare that to the national debt. you know, with reagan, stuart, i think the wealth of the u.s. went up by 17 trillion even though the national debt went up by several trillion, a couple trillion. the assets went up way more than the debt did and that's what you really want to have in a country like ours, i think we're well on the road to just a spectacular eight years. stuart: hold on a second, art. liz, look, isn't it obvious, anybody with a corporate pension plan, a 401(k), an ira, college savings, personal savings, personal investment accounts, 100 million americans way more than that actually have a piece of this stock market action? >> yeah, i mean, one of the great untold stories in the last eight years is basically pension plans in particular are being clobbered because they're not earning the returning that

they are expected to earn. for example, yesterday was the story in california where some pensioners who worked for a city in california took a 60% cut in their retirement benefits. this is really devastating. stuart: yes. >> so the answer is that's widespread and markets and bonds and so forth begin to return more to the pension funds and so this is for everybody's benefit. >> that was our story and i got bad news for public pensions even with incredible gain on the stock market, calpers will not earn enough to cover the shortfall. >> it's terrible. >> the pensions are terrible. stuart: art, people have a piece of the rally. >> they have a large piece. i because just was up in kentucky, their pension fund is 41% funded. the 50th worst in the nation. what's said here is true, the

private pensions, the public pensions, the situation, this is the most wonderful story ever told and how anyone could spin this to be bad is just the grinch is alive and well if they can spin this as being bad. and it's up 30 trillion. >> if you're a great grandfather, yes, you are. >> i am, i am. [laughter] >> what did you have for breakfast this morning? because you've got life and spirit like i've never seen. >> oh, my goodness, i had to rush to the studio because of time differences. i really hope the united states goes like russia and has one time zone for the whole country so we all know where we are at each time. stuart: all right, we've got less than three minutes to go before the opening bell rings on wall street. it's wednesday morning, it's december 21st. this could be a historic day. weclosed yesterday by only 25 points-- 25 and change away from 20,000. you could see, you could see that magic number hit very,

very quickly at 9:30 this morning. as we run up to the opening bell, let me introduce to you, does this sound like sgt. pepper? to you the cast of charactering performing at 9:30. everybody looks toward the camera, joining us, adam shapiro, liz peek, maria bartiromo, jeff sica, dan and art laffer will stay with us. does anybody here doubt-- put your hand up before you shout out, does anybody here doubt that we will hit 20,000 today? i've got-- what? maria bartiromo? wait, wait, wait. put me on camera, put me on camera, maria bartiromo has graciously decided that she will deign to be with us at 9:30, the lady who said that the dow would go to 20,000. you said on election day and say the dow will go straight up and now your raise your hand. >> i'm not changing my opinion on this market.

there's a strong bid for this market and i think it goes higher than that's based on fundamentals, the economic plan coming from the trump administration is powerful, but i think that round numbers represent resistance and there's no reason why we can't just back and fill a little until we hit 20,000. look, it's just a number. i mean, we're going to hit it, obviously, of course we're going to hit it, but it doesn't necessarily happen today. that's all i'm saying. [laughter] >> you-- >> it doesn't matter anyway. stuart: such a hole you dug. well, there's 50 seconds to go before we open. maria: okay. stuart: oh, i hope we hit 20,000. maria: i stretched my neck out, there you go. stuart: you did. all right. when, if we hit 20,000 i'm going around the block. do we go straight up from there, another fresh leg to the rally. liz peek? >> yes. stuart: yes, we do. art laffer fresh leg to the rally when we hit 20,000? >> i think we do, sure do. stuart: jeff sica, probably not. >> no, no, we're going to pull

back. stuart: dan, the voice of the commodity market in chicago, do we go on another leg up if we hit 20,000 today? he didn't hear me, didn't hear me. okay, the bell is ringing and that means we're about to start trading on this could be historic day. bang! here we go, it's 9:30. we're off and running and i hear some cheering on the dow. maria, go back to your show. your fault. we're down 13, 14 points. 19,960. 955. now, up-- wait, wait, here we go. look at that, down only 7 keep your eye on the board, ladies and gentlemen, keep your eye on that board. down 5, down 5, down 5. come on, come on! i can do this only so long. 30 seconds into the show. that's the opening of trading. 7 points down. okay. all right. 10 points down, maria, you can leave now. [laughter] >> stuart, you know this

market a going higher, come on, it's a very strong market and a lot of people want to own the market. stuart: i'm told that there are two dow stocks where have still not opened, that could make the difference between the modest downside move and maybe an upside move and when they're open we'll tell you, down 6. here we go, i just feel it, feel some momentum. maria: is nike open yet? could be nike. >> nike is open. stuart: nike is open and accounting for some part of what would be a gain. down 10 points. okay. well, i guess we better just look at that market and go around the block and see what's wrong. what is-- >> i just spoke to my favorite trader on wall street and he says i think we might hit it today. i said oops, i just said we won't hit it, but we'll see. [laughter] . stuart: there is something internal to the market about a resistance. i mean, people see this big number coming and they sell before you get there. and how the market works. maria: and we're up 8% since election night at some point

people are saying, i don't want to get greedy, let me take profits here and i'll come back to it. >> plus, we're looking at the dow, which is only a small number of stocks and basically one or two could have bad earnings or guidance and-- >> only down 2. >> it's the show me the money aspect. the trump administration, they have to deliver, we have to get tax reform and regulation reform and hasn't happened yet. stuart: look to the future with some confidence that some of that is going to-- >> mitch mcconnell. maria: only 27 points away, you would think it's easy. stuart: all right, charles payne joining us from his radio studio right now. are we going to hit 20,000 today, charles? >> i think we will, i think the last hour of trading could take us over the top. listen, we've got to digest the fed. i don't know that this is real resistance yet. we've had a huge move and i love it. i love when it stalls, i love the opportunity for anybody that's profitable to get out.

i see every single-- fewer and fewer people take the bait. stuart: i tell you this, i'm not prepared to wait for the closing hour of this. [laughter] we've got two and a half hours on the show and now we've gone up. you see? we're starting to move. >> i tell you you should come on my show and we'll talk about it and celebrate it on "making money" tonight. stuart: that's a nice promo for your show, what about mine? three minutes in the trading session, 3 1/2 up on the dow at 19,977. just over 20 points to go to get to 20,000. we've got the graphic, it's ready to go. [laughter] >> can't wait to see it. stuart: spent serious money on it, it's a horse race, up 7, look at it, look at it. maria: at least you've got the graphic. stuart: microsoft, at least it's a dow stock i will benefit from. okay, everybody. if you want to get into the market, jeff, i know you'd say watch out. is there a stock or an industry that you really like that you

would buy right now? >> well, i think technology has not really participated in this market. i think stocks like amazon at this point to me it's-- i can't quite understand why technology hasn't benefitted more, so if you have to buy, and again, you've got to be very cautious, i could go for the technology right now. stuart: technology stocks, liz, what do you say? >> banks and technology and by the way i saw numbers yesterday that the christmas sales look like they're going to be decent. for amazon, for example, that should be big news, possibly also, weirdly, retailers, because they have been so beaten up and they're struggling like mad. if they have a good christmas, that's going to have fallout. stuart: art laffer likes the market and says it's going to go higher. what would you buy? >> banking, mousing, sicklcycli, and that's going to be a market unless trump trips and i don't think that will happen. trump will do a good job and

have an expansion, with interest rates rising that's great for financials. stuart: we're up 4 points, 19, 979 right now. and dan, i hope you can hear me now, i want to know is there an industry or a company that you like that you would buy right now, before we get to 20,000? >> absolutely. i'd buy the auto industry in particular gm and ford. neither of those stocks have captured the rally and their sales have stalled a little bit, but extraordinarily low p.e.'s are pretty solid right now so i would look at those two. stuart: you'd look to the auto industry, they have not participated in the rally at all. in fact, they're down. >> not a bit. that's one of the reasons-- you look at the p.e. on ford, the dividend it pays, it's a quality stock and one of these days this thing is going to catch up. stuart: we were generous there. the express p.e. was used and-- because we want to keep the holiday spirit high. [laughter] no buzzer even though he did

break the rules. nicole come in and tell me the dow 30 winners, please. nicole: we know it's not the bank stocks, you can see clearly the banks are not participating at all today. taking a cue from europe. j.p. morgan and goldman sachs and the like are to the down side. the winners on the dow, nike, boeing, united health and exxon. yesterday as we approached that 20,000 mark, traders like art cashin noting that oil pulled back and when oil started to pull back and come off its earlier highs, that stopped the dow from its momentum. just now we came within one point of yesterday's high, so, first, the first leg will be to break through yesterday's high and to the upside. the second point, we're 19 sessions from when we hit dow 19,000 on november 22nd. that would then be faster to get to the 20,000 mark than

when we went from 10,000 to 11,000 and maria bartiromo remembers that one well, back in '09. that was 24 sessions so we're going to see if we can try and beat that out. why don't we make two records. stuart: look, we've got this pause as we go heading towards 20,000, if the algorithm? do you know about this internal market working far more than i do, is this the computer trades saying we're getting close to 20, sell? don: . maria: i think you make a good point. this is a holiday week ahead of christmas and volume is going to slow down. as volume slows down, algorithms make it easier for the markets to move without resistance. in that regard we see it inching towards the move. make no mistake, even though 20,000 is close in reach, it's not that close in some people's mind because it creates resistance. i would look at the growth story here, growth stock, that's the growth plan coming out of the trump administration and includes technology certainly. you look at unloved groups, health care has not been loved

although united health, the insurance is doing better than the out and out health care. stuart: do you have have an algorithm, jeff? >> yes. >> it's important to realize that the algorithms that played this momentum, the minute the momentum shifts, you're going to see a lot of the programs kick in and start to liquidate. stuart: what does that mean? the moment that the momentum shifts? does that mean you could have an avalanche of selling all of a sudden or an avalanche of buyer? >> a lot of these algorithms are based solely on the amount of momentum that's going into the buying and the momentum is driving stock prices up so there's not really a lot of attention being paid to the fundamentals. in some cases. when that recertifiesserverses g to see a little bit more of an avalanche effect and more relevant for investors to pick their spots to get in the market. stuart: a lot of our viewers are going to be angry and confused and heard about the

market is going straight up and trump rally and growth next year and profits are going up next year and yet, we can't quite get to 20,000. [laughter] the producer said it's my fault. maria: and look, by any look, this is a victory. up 8% since election night and seeing 17 record highs on the dow jones industrial average in six weeks. down six points, victory. >> and the russell 2000 is up 15%, which is, you know, a much broader-- yeah, it's a huge run for smaller companies in our country. stuart: i want to be on television in america on a historic day when we hit 20,000, come on! >> the effect of the strong dollar is going to become very relevant in earnings and i know people are excited ap-- and believe me, i'm so excited. i'll did back flips in this studio when we get tax cuts. maria: really? oh, boy.

>> i'll do cartwheels. the earnings rule the market and i think that earnings are going to be better. we have a strong dollar. anytime we've had setbacks in the big multinationals they've always blamed the stronger dollar so i think it's a good thing. i think a strong dollar is a good thing, but we don't know what the direct impact is. maria: by the way, that's exactly what liz said the russell 2000 doing well. domestic companies and smaller names better than the global. stuart: the dow 30 stocks are moving lower than there are moving higher. art laffer come in, please, and put some spirit into the market. help, help it, please. >> didn't you say that we were going to get way above 20,000 as the 2017 rolls on? >> oh, i think so, yes. in fact, i look at this, what i do, stuart, my algorithm, if you will, i look at national income and product profits. i capitalize them by the long band yield and compare that to the s&p 500. all of this after tax, of course. and when you look at that

number there's a huge gap between what prices could be, the s&p could be, and capitalize economic profits and i see that gap closing dramatically with a much stronger stock market over the next four or five years. stuart: not good enough, art. >> remember, it was a strong dollar under reagan as well. a very strong dollar. and none of less, we still had a great stock market, great economy, and just a super time. we'll see that again. stuart: you run out of steam there, art, the market down 10, 12, 13 points all the way back to 19, 961. >> stuart, because you said you wanted to be on tv and they're going to wait until tomorrow to do it for you. that's the problem. [laughter] >> don't say that, please. nicole, what have you got for me? you're on the floor of exchange. nicole: no doubt. when you look at the board. you can see the market breadth is on the negative side with decliners leading advancers.

because of the light volume. we had the quadruple witching and expiration friday. pretty much a lot of the hedge funds and mutual funds are done. now we have some light volume which really brings some volatility or tepidness to the markets. you don't have the big moves. and heard some of the traders talking about headline driven market and that brings me to the next pieces of headlines we're seeing. 10 a.m. we're getting existing home sales and tomorrow, gdp numbers, growth, right? and also durable goods numbers, so those could be headline-driven ideas that could move us either to the upside or to the down side. stuart: well, we've got oil coming out at 10:30 as well. >> and oil. stuart: the supply situation could affect the market. i think existing home sales at 10:00, we're 18 minutes away, that could move the market, too, depending which way it actually moves. let me throw this one out, let's suppose we do not hit 20,000 today. that will be a third day of stall right before 20,000. could that set off an avalanche of selling?

>> it could because i think there could be a lot of people that that acknowledge that 20,000 was a short-term peak in the market. and one thing that has to be recognized here, there's a lot of people in the market as there's practically no bond market to invest in. a lot of people that haven't been in the markets much at all and they'll be mor more temperamental. >> and yesterday, the guest said he's in cash. stuart: mike murphy. >> why are you in cash? i'm waiting for the dip. a lot of people are waiting for the dip and think the market is ahead of itself. >> that means there's cash on the sidelines. maria: the bottom line, there's a bid to the market and a lot of optimism about the economic plan and what it's going to do to earnings and at some point it's a show-me market. we have to see what happens with the economic plans and how soon they can get the tax cut

and roll back of regulations there. at the same time the market is going higher. >> it's no big deal that it's down 6 points. if we don't hit 20,000 it's no big deal either. stuart: it's a big deal to me! if we don't hit it before then, i'm-- >> don't say it. >> i've got facebook down, twitter down, google down $5. i don't see much move in the technology stocks. jeff? >> well, yeah. [laughter] . >> they haven't participated and they're still not participating, which to me is one of the reasons why you can't be overly confident in the market that has been driven by technology stocks that aren't participating in this leg. >> but i think that's-- that's exactly why i'm optimistic because there are big sectors like the financials, a huge component on the dow and energy which basically have not done anything for a long time. the financials fobbing --

financial stocks, steeper yield curve the fact that the government doesn't hate them anymore possibly. these are incredible turn around. >> i have a different view on financials. first of all, donald trump is not the president of europe and there's a bank-- he has influenced a lot of what's going on in europe, but there's a banking situation going on in europe. stuart: don't tell me. >> actually italy. stuart: don't tell me banco monthe depesci, however you pronounce it, don't tell me that's affecting the market in america? >> i think it's affecting the financials. this market believes that ignorance is bliss so they're not paying attention to the european banking system at all, but the european banking system is going to become problematic and there's a lot of dependence between u.s. and europe

institutions, there will be an impact. i can nt say how big it's going to be, but it's going to be big enough to slow some of the growth in u.s. institutions. that's my opinion. stuart: dan, where you trade commodities there in chicago, is it rather quiet compared to what's going on in the stock market? actually it's also rather quiet. what's the situation in chicago? tell me. >> no, it's very quiet right now. d u're in a holiday week so a there's not a whole lot of activity. no news out there to really impact the market today. so i think we're going to see this through the balance of the year. stuart: is any political development or the terror development, is that having any impact on the market. maria: no, they're looking at fundamentals and earnings growth promises and not the terrorism, usually you don't get the market on terrorism. stuart: we've gone an enormous distance, 1600 on the dow industrials. maria: 8%. stuart: 8%, right.

we're up 15% on the smaller cap russell 2000 and an explosive move, i understand maybe there's a pause required here, i just wish it wasn't this morning. maria: when you're counting on it. stuart: 17 points from dow 20,000 and i've got my ratings and you talked it down from the get-go. maria: i didn't talk it down. stuart: i'm shocked. art laffer have you got life back yet to enthuse back into this market, please? >> unfortunately, i don't. i'm trying to give the boost i possibly could, but i think you're going to get it tomorrow, stuart. stuart: tomorrow? okay. all right. we're down 5. 19, 968 is where we are, can you show me the dow 30? that gives you a pretty good view of the overall market. look at that. much of this is in the red. maria: oil is up. stuart: oil stocks are up. last time we went to charles payne who is doing a radio

show, the market bounced up a little bit so let's go to him now again. [laughter] charles, give me a bounce! >> here we go, are you ready for the bounce? oil is up because inventories are down, at least the inventory number overnight at just 10:30 and we'll get another inventory. demand we need to see demand from oil. it's a global commodity, but one thing we're not talking about, china may have to match donald trump dollar for dollar or dollar to waun, if you wants to give anyone credit, they're the ones who built the high speed rails and they built a dam that tilted the earth's access and we told them a lot of those and so did australia. we didn't talk enough about the idea that donald trump by having a pro growth policy is going to force other nations to also have a pro growth policy and that will help things like

oil, which by the way i know people sometimes watch and they get upset. charles why do you want my gas prices to be? you know what? if your gas price is 30, 40, 50 krens higher and we create 100 billions in jobs in this countries, it's worth it. it is amazing, it's energy independence, it's job creation, it's great job creation, so, i like that you're talking about oil that may help us. 3:00 looking for the buy program to kick in. stuart:that doesn't help me and didn't help the market. >> i tried my best. maria: i think that we should check the transportation average. the transports have been rocking since the election because of the infrastructure play within the transports and as we look at the dow jones transportation average, we're seeing a little bit of an impact of that move in oil prices. when the dow transports and the dow jones industrial average are both higher in record territory, this goes back to the oldest thing in the book and that is dow theory, this is what the technicians look at

because it's, when you look at the companies that make the products, and going up, and as well as the companies that transport the companies going up, that tells you the economy is stronger. stuart: you're very lucky that we've abandoned the buzzer. maria: what did i say. stuart: transports. mari maria: transportation average, companies that deliver the products, fedex. stuart: do you know what the producer just said [buzzer] >> the producer said, sit up, you're spoiling the shot. we're down 5 points, maybe there will be a difference at 10:00 eastern time and ten minutes away when we get the numbers on existing home sales. that's the most important number in the housing industry i do believe because that's what realtors are looking for, a good number, with-- if we get a good number, lots of homes being sold, jeff. does that put the market up? >> yeah, i think it does, because it's a sign of confidence. yeah, i mean, it's a sign of confidence so if we get

confidence, that's a very good sign. stuart: that's the number coming up at 10:00. at 10:30 the oil number. if there's a drawdown and use ago lot of oil and the price goes up, is that good for the stock market? >> yeah, again, it's confidence. this is all about confidence now. the next leg is determined by how much confidence there is. stuart: any other numbers coming out? there's one more, i can't remember what it was. we've got housing numbers, oil numbers and there was one more and i can't remember what it was. $53 on ail at this moment and the technology stocks are still not participating, as the-- >> not even microsoft? >> microsoft is down 20 cents. google it down 7. amazon down 3. facebook down 60 cents and twitter back to $17 per share. apple is-- go. >> one thing we're not talking about much, it's not just the u.s. where growth is being accelerating, it's also around the world and in the context of low inflation, i mean, there's been all of this focus on trying to get inflation numbers

up, but what, you know, when you go back to the days, hal c c ceo-- h halceon days, and interest rates are going up and prices are not. yes, even an oil price increase is not going to jam through enormous wages. i think we'll see some inflation this year, but that's considered a positive and certainly, at this point, it's very under control. so a lot of things are really very positive. it's not just trump's activities, it's kind of around the world you see a little bit of momentum, really in the economy. stuart: 22 minutes into the trading session, the market has paused just shy of 20,000. there's another big story going on and that's terror in germany, an update. >> this is a disturbing issue, the tunisian suspect they're looking for in berlin, for the berlin attack, apparently he had been under investigation, under terror investigation prior to the attack. the state interior minister

says the suspect could not be deported because tunisia, remember, he came from tunisia, challenged the suspect's status as a tunisian citizen. the germany authorities were investigating this guy before the attack and they tried to deport him and they couldn't because tunisia would not acknowledge his citizenship. >> it's a kind of snafu commonplace in europe. there was a story about how eu countries are not coordinating their capabilities in fighting terror, they're sort of hapless and we've seen it over and over again. france looked inept, belgium looks inept and germany, everybody thought was sort of the best-run country in europe, hobbled by these eu rules and regulations which is a reason why england wanted out of the eu. stuart: a sidebar story, the authorities are swamped. they don't have the staff and manpower to follow the people they'd like to follow. >> part of the question they

have to look at how did the person come in, through greece, there italy and how did he finally get to germany. stuart: and what's angela merkel going to do. >> lose the election. maria: she wants to have the burke ban in place. that's what she said a couple of weeks ago, she wants the burqa ban. stuart: let's go to the new york stock exchange, nicole has something for us, the markets is on pause. nicole: the market is on pause. there are certain sectors that move the market and that would be energy, also technology and financials. those often happen to be the three types of sectors that move the market, however, you only have one of the three with up arrows today. that's only energy. you can see energy is higher today. you see names such chesapeake up 2%. murphy. southwestern up 4%. if you looked at the financials and looked at technology, put telecom in there, too, those are all letter. so it's very hard to break out

and soar to the upside without at least the financials and/or technology, it's hard to do it just energy alone. the other point i will make that's favorable for some of the big multi-nationals is that the dollar has pulled back a little bit off the 14-year highs and that's one of the favorable developments for some of those big names that we know. stuart: maybe it's a situation, everyone, where nobody wants to go first. nobody wants to jump in and buy aggressively, carrier is over the top of 20,000, because the first person in might be getting really hurt when they start selling when it hits 20,000. maria: there's also a vacuum of news the next couple of weeks, volume is going to slow down, christmas week. i have a few catalysts in january, in addition to the trump agenda. january, a lot of moves in technology expected. january 6th the december jobs report, earnings for the fourth quarter beginning january 16th, the health care conference at j.p. morgan most well attended conference ever, january 9th

and then the ecb meeting and inauguration on january 20th. a lot of catalysts early january. not so much the end of the year. stuart: but there's a lot of stuff, a lot would point toward growth, improving, quickening. maria: positive for sure. >> positive things. maria, thank you, indeed. art laffer, walk me up to these housing numbers at 10:00. if they're strong, that's a very good indicator of growth. i suspect that's a plus for the stock market currently, what say you? >> it sure is. the one i really watch very carefully is new home sales. that's really, of all the housing numbers, that's the one you want to watch a because that hits the economic growth. one thing we haven't mentioned, stuart, if i can say, remember when japan had a higher corporate tax than we do, they have cut their corporate tax dramatically the last four or five years. britain has cut its corporate tax. the u.s. once again is lagging behind the rest of the world and if maria is correct, and we do get a good agenda with a corporate tax cut that's really

serious, i think that will really push us up in the market. stuart: but the money is pouring into america, isn't it? i mean, we've got-- >> sure is. stuart: we've got a strong dollar and foreigners bring their money to america and put it into dollars and a currency gain, a huge plus. >> it's a wonderful plus for america. which would you rather have, capital lined up at your borders trying to get into your country or out of your country. everyone in the rest of the world and here believes the u.s. is the growth story for the next five years and that's why they're trying to invest in america, why the dollar is strong and why the trade balance is going to get worse not because the trade balance is bad, it's not. the capital surplus means that the trade balance is going to be negative. it's a wonderful sign for the u.s. stuart: did you say earlier, not today, but a couple of weeks ago, that we will ultimately get well above 20,000? you did say that, didn't you? >> i did say that and it's true. if you look back in the reagan-clinton boom, stock

price ins real terms up 770% over a 16-year period. i mean, that's enormous, stuart. and we could easily do that now because barack obama is even worse than jimmy carter if that's-- that's hard to imagine, but he is. but trump just needs to do the economic agenda correctly and i think he will. i agree with maria, i think with larry kudlow and steve moore and other advisors in there i think he's going to do a great job. stuart: would you take me back to 1980, was it maybe 1981, early '82. i remember the dow industrials bottoming in one of those two years at around 770. . >> it was august 14th, 1982, stuart, to be exact and you're exactly correct, it was 770. you know, if you look at the prior, what is it, 16 years or 17 years, the market was down 7% per annum real terms, and all of a sudden the skies opened and sun shone forth and

clinton was a great president that followed very much on the heels of ronald reagan. we had a dip there with george herbert walker bush, but went through until 1990ing i mean, until 2000, it was a spectacular period, 18 years of boom and stock market appreciation and i don't see why we don't have it again. the conditions are exactly right. it just, it's up to trump and that team and i think they're going to do it. stuart: we are now 50 odd seconds away from 10:00 eastern time, we'll get the existing home sales number, that will be a headline, a very important number in the housing industry and maybe an important number for the stock market. currently we're stalled, down 10, 15 points. we've been that way for the last half hour, since the opening bell rang. at 10:00 maybe we'll see a modest blip. 30 seconds to go. in that time i'm going to introduce james freeman, a wall street journal guy, very good economist, writes opinion pieces for the wall street

journal. this is the trump rally. is it going to continue beyond 20,000 if we get there? >> i think the next drive up to 20,000 and beyond is if the president-elect appoints as the chairman of his council of economic advisors somebody like your guest, art laffer, somebody like larry kudlow, steve moore. that's what's kind of missing here. we've seen this run-up. it's premised on the promise of lower taxes and regulation and yet, so far the key economic jobs have gone to people who seem very competent, but are not known as champions for growth. stuart: that would make the difference, do you think? >> i think-- >> the appointment of somebody like larry kudlow, art laffer would make the difference. the number. >> strongly monthly reading since february 2007. 5.61 million for existing home sales and this was the strongest sales pace in nearly a decade. stuart: let me explain that as

i understand it, that we are selling 5.61 million homes on an annualized basis. >> yes. stuart: and that's the strongest month had i reading-- monthly reading in how long. >> the strongest since 2007. stuart: and art laffer can you explain that? this is a strong housing number. >> the lord is giving you a buying opportunity, stuart, before it takes off and all of your viewers should take this a wonderful opportunity to buy now so they can experience the boom in asset values. how is that for putting a positive spin on it. stuart: let me give you the other number, i think you're about to do. >> up year over year 15.4%. don't forget people were getting in because they knew that interest rates were going up and want today lock in lower mortgages. stuart: the 15% gain of number of houses sold year over year is a whopping gain. that's strength in the economy. >> watch new housing sales,

that's the key and usually follows existing home sales, but new housing sales is where you get the jobs. output employment, production. it's a net number. remember on this housing sales number it's also a housing purchase number so it's housing sales and purchases. these are existing homes, stuart. we need new homes to add to the stock and that's where the big whack comes to economic growth. stuart: why do we have this good news? it steams like good news to me, and the market's gone down a little bit more. jeff? >> well, i think because we are expecting three interest rate increases so i think this number's-- i think it's a great number. i've anticipated a number like this one, but the problem is, with three interest rate increases, people are going to do a lot of buying now. that's the bottom line and mortgage rates have gone up a lot. stuart: so the federal reserve becomes more aggressive on the sign of strength in the economy, more aggressive in raising rates. bad for the market, is that the argument here? >> no. stuart: wait a second, art, you're saying that's not the

argument? >> no, we have' got to have a lot higher interest rate. the 10 year tips yield is the unit of capital over the next ten years, if we get that tips yield up to 2 1/2, 31/2, 4 1/2% you will never have a boom and 10-year bond yield has to go somewhere 4 1/2 and 6 1/2%. that's got to happen for a boom too occur and for the asset values to go up. stuart: these are the best real estate numbers since the year 2000. >> isn't that wonderful? >> yeah, but the market is down. >> i think we may be seeing the phenomenon that a lot of the critics of the policy have been saying for years when you hold the rates at rock bottom lows, people figure, well, they can always borrow tomorrow, they can always borrow next year and you may see now, actually, the opposite of what they predict as rates rise moderately, not just businesses, but individuals start borrowing and implementing the plans that they've been putting off because they know that rates

are probably going higher. stuart: look, if rates are probably going higher and maybe there's a bigger move in rates than we were thinking before we got the housing numbers. >> shall much bigger. stuart: i would have thought the bank stocks would have gone up. they've been going up on the expectation of higher interest rates. if you can show me the screen with the banking issues, let's see if they come back at all after the strong housing numbers. we're still down 15 points. no, they've not. bank stocks are still down. so, i'm not sure what's going on here. good news on housing, interest rates likely to rise, but bank stocks still suffering and the was just a few minutes ago, down 17 points. anybody got good explanations? james freeman, you're in the hot seat now. >> certainly they've gained since the election, but taking a breather here, this is pure speculation. news today you look at wells

fargo and people are scratching their head on the stress test process and why they're getting sanctioned. that might be a bit of a modest downer. this is pure speculation. stuart: jeff. >> the bottom line, we're an international banking scenario, and europe, european banks, especially the banking system in italy, which right now is on the verge of collapse, is very weak and interconnected with u.s. banks. the u.s. banks are going to have a very, very difficult time shaking off whatever losses or whatever fallback they're going to have from any potential collapses there. on a day i thought we'll get 20,000. instead i'm thinking of the bank in trouble in italy why we're down 14 points. this is a dead stop.

we have con get crane trumpets. for you we hit 20,000 and we are not even close. we tell everybody to get out there and buy. it might happen. i can't remember a day when the market has been stalled in such a very narrow -- >> we have had days when the market has been flat. people made a lot of money. some investors are not greedy. >> keep in mind the mindset of a trader -- a trader doesn't consider a gain until he sells, until he takes that gain. some investors, some of the funds will want nobody these stocks.

but a lot of the traders want to see the by sell and the profits. these guys are out there and they will want to show off. >> it, their pal gore rhythms. let somebody else go first. that's what they are doing. art laffer, i can hear you in the background. what do you say? >> i think some people are waiting for next year's taxes to realize the capital gains. there may be some timing issues going on. but this is a solid market and there is someone out there who just doesn't like you and doesn't want it to go over 20,000 on your watch. are you waiting for tomorrow, maria? stuart: maria left us. now we are down 10 points, 9

points. all right. mercedes schlapp is with us. conservative republican. welcome to the show, mercedes. >> i haven't seen you this excited in i don't know how long. i guess trump won. stuart: since brexit. >> that's right. let's talk politics for a minute. we are getting close to 20,000. but i want to talk to you about what president obama did yesterday banning drilling in much of the arctic ocean and off the eastern seaboard of the united states. banning it permanently. what say you? >> i'm not surprised at all. this is president obama's continue sewell war on energy production in the united states. he decided to move on a law that calls the outer continental

shelf lands of 1953 that allows the president to take out certain of these lands and not allow for leasing these lands for oil drilling. i think for the most part we are seeing obama is basically in the last days that he has that he seals in his environmental legacy. with that being said. donald trump will have to face certain legal challenges to undo what the president has put forward in these areas of the arctic ocean. stuart: am i right that it probably needs an acts of congress to reverse the president's decision on drilling in the atlantic and the eastern seaboard. >> we would need congressional action and you could see a case in the federal courts. there will be steps that will need to be taken to undo what president obama has done. this staff is pretty confident that they were able to secure these lands to insure there

isn't oil drilling in these areas of the arctic sea. so it will be tricky for donald trump, but again they will need to have whether it be legislative action, it could end up in the courts. but this is where president obama is hoping to make the changes and make lasting changes in environmental policy, and most importantly in american energy production. stuart: mercedes you know what's going on. i read a report that president-elect trump is going to work through the christmas holiday. do you know anything about that? >> i wouldn't be surprised. donald trump -- i can tell you the man has endless energy. he expects a lot from his team, and they really have a very aggressive agenda moving forward into january. we have seen one of the most

active pre-presidents of our lifetime. once he was elected he moved forward on the carrier issue. he has been talking to corporations to help them stay in america. that's why you are seeing the market psychology so positive. there is no question the dow will hit 20,000. >> mercedes, this is fascinating. we have been on the air for 41 minutes. we have been surrounded by financial specialists all of whom told us we'll get to 20,000. you say we'll get to 20,000, and bingo the market did pick up a little bit. will you please stay with us because we are banking on you. >> it's your christmas gift, stuart. charles schumer who how leads the minority party in the senate has fired the senate democratic

media center staffers. almost all of them have been fired. some of them have decades of service to that organization. almost all of them have been fired. >> they should have fired chuck humaner a long time ago along with nancy pelosi. this is not about the staff. this is about the messengers and the liberal message they don't want to change direction. they are disconnected from americans and the plight of the american people throughout the country, many of them who decided this time around they were going to back donald trump. stuart: are they going to put congressman keith ellison in the top spot? >> i believe tom perez, who is obama's labor secretary, i can

see the obama types lining up behind perez. he will make the argument he can reach the work class because he was an advocate for the minimum wage and a lot of these regulations they would argue benefit the working class. i think ellison who is a controversial figure, though backed by bernie sanders, it will be a fascinating race to watch, and it will dictate the direction of the democratic party, which way they are going to go. at the end of the day both of them will be advocating for liberal policies, not middle of the road * policies which i think at the end of the day will not attract americans to become members of the democratic party. stuart: james freeman is with us. what do you make of this tussle at the top for control of the democratic party itself?

>> i think perez is the call here. i can't believe they want to go with ellison to make it that extreme. but the firing of the press staff by chuck schumer is interesting. did they say what about james comey and the russians, what about fake news? stuart: while we have you, would you like to make any comment on professor paul krugman, a "new york times" columnist who on the day of the election gleefully suggested the stock market would crash and it would not recover. >> obviously we have seen how wrong he is in many things. we have seen the tax and regulatory reforms driving this rally. we have seen the mercedes effect. but also if you are talking about why we have a little bit

of a wet blanket, we talked about the oil rule. there is also a new obama rule limiting coal production. so it's this kind of reminder right now, there is still another month and he's doing a lot of midnight regulations. this is a signal -- as we look at the margin investor, kind of optimism. obama is saying i'm not done yet and i'll be regulating. stuart: the stock market is still on hold. however, there are developments in the other big story, that is the terror attack in berlin, germany. >> they identified a suspect in this, they found identity papers within the cap of the hijacked truck. but now they are saying that the tunisian suspect who was an asylum seeker was already under investigation by terror investigators in germany prior

to the attack. they tried to deport this individual back to tunisia, but the tunisian government challenged his status as a citizen and therefore the germans were not able to deport him. stuart: what a mess. we have ollie north with us who is qualified to talk about this. ollie, the suspect was on the radar screen, they wanted to send him back to tunisia, couldn't do it. what a mess. >> they kind of asked for it when you think about it. the report tells you what's wrong in the european union. he probably arrived in germany last year. and if the reporting is right, he was applying for citizenship and residence -- for asylum and

residency. and i think it will cost angela merkel her job. it shows you how dangerous a similar policy would be here. jihadis don't need to hijack a plane anymore. all they have to do is hijack a truck. it makes you wonder what your golfer-in-chief was thinking. you * i wan -- stuart: you are saying this could cost angela merkel her job. i think it goes further than that. i think this situation with terror in europe and the importation of muslim migrants, i think it will split the european union and end it. >> i agree with that. it's probably not going to happen next month. but the breakup of the e.u.

which began with brexit, this whole thing is proof that you cannot have an unelected government that is multi-national representing the people of europe. they voted consistently except in one case, austria, where they will replace that kind of thinking. they are saying we are nationalists, it's our country. we are not going to do this. and it shows you how utopian the clinton-kerry foreign policy was. that we are safer today than we were 8 years ago. stuart: i want to get your opinion on protecting christmas, new year and the inaugural celebrations, bearing in mind this truck attack in germany. let me go back to the stock market. still on hold. jeff seeker is with us.

we are down 10 points. we have been this way for half an hour. not yet at 20,000. >> people are using the 0,000 mark as a reason to sell today with all the uncertainty that there is. you have this tug-of-war between the people who want to be at the party when it hits 20,000 and the people who want to be out of the market and take their gains. you are going to have that in slow volume markets today. stuart: there are a lot of people who say if you hit 0,000, then we are off to the races. >> you need the catalyst and the catalyst has got to be earnings. earnings will be a question. as good as the economy can get, earnings will be a question. stuart: charles payne is with us. we have positive news on the housing market at the top of the 10:00 hour. and nothing happened on the stock market, explain it. >> i think smart folks are out

there praying that these people sell. there is not a real tug-of-war right now. the buyers are sitting back waiting, sell, please, make the stocks, i want to buy cheaper. i think as the session goes on you get a little bit of a drip to the up side. i think the dominoes fall and we get a literally into the close. the existing home sales numbers. i go back to last week and that home builder sentiment. buyer traffic expanded for the first time since july of 2005. people are just now kicking the tires. remember carly simon said "anticipation." be cool, stuart, it's going to happen. stuart: carly simon, i do remember her. we'll get back to you shortly. ollie north, come back in, please. we have this truck driven straight into a crowd of people in berlin.

that's a terror attack. you can't ban cars and trucks. you can't do that. here in america, i suspect we are very vulnerable. what say you? >> we are less vulnerable than europe. when we travels around in those refugee camps, you are talking about millions of refugees. over a million in germany alone. we don't have quite that problem yet. it may happen if mr. obamacareies out his threat. we have 300 to 500 we believe have gone over and now come back, having signed up to fight with isis. many of them are disheartened. what's napping europe today is the consequence in most cases of refugees who have been there for some time. they found their way around, and they realize they can gone into a supermarket and pick up a

knife, you can steal a truck and kill the driver. the bottom line is we don't have quite the vulnerability in spite of the vulnerabilities. i'm going to be at one of those inaugural balls and i want to make sure the government is safe as well. stuart: there are huge concrete barriers going up in parts of new york city. they are going to keep cars and trucks out of the times square area. i think there will be other areas of the city which will have the barriers put up. i hate to see that, because that's us having to respond to the vulnerability in which we find ourselves. >> it's the new world disorder. our kids will grow up in a different country than you and i our young weres will have to deal with these things for the rest our lives. this administration knows you

cannot lead from behind. number three, diplomacy had to be backed up by force. and finally the words peace through strength still work and that's why the market will get over 20k. mark my words. stuart: you know what you are talking about, that's good stuff. take us back to the floor of the new york stock exchange. right in the middle of the action. nicole, what have you got? reporter: people are talking about a little bit of a pullback because how high we have run up. we now it's run up since donald trump was elected to be our president november. i will give you the number that the s & p 500 is trading 17 times expected earnings for the year ahead. that's well above the 10-year average of 14. so is the market too frothy and

will they bid them higher? the path of least resistance has been to the up side. some people try to get in on that ahead of january so christmas-new year's week is generally to the upside. here fills my last upside. i said a head shine-driven market early in the show. a drawdown, with that you can see crude move higher. that could bring a little bit of optimism to the market. we are six minutes away from that. stu report s & p is 17 times earnings. that's a rich reading if ever i saw one. what say you? >> i don't think it is. if you look at the s & p.

spirit was basically flat for 16 years. when you look at what happened to the national income and profits, when you look at the prospect for tax cuts and economic growth and a new america, deregulation, capital spejtds on infrastructure. i think the s & p should be much higher than it currently is. that's what i think. i think you will see that over the next four or five years. you will be very, very happy with your markets. guess what, folks. we are going to take a commercial break. yes, we are. we have blown through the loss in the last half-hour thinking we would get to 20,000, but we didn't. but believe me if we've hit 20,000 in that commercial break we'll break back in again. that is a promise.

>>

[♪] stuart: you are listening to genuine christian christmas music. none of this plastic holiday stuff. no, we sing these songs. this is christmas. where else are you going to get that except at varney and company *. merry christmas everyone. we have been stalled with a

minus 14, minus 15 virtually all day long. we were hoping to go gung-ho but it hasn't happened yet. we are at 19,959. some numbers on the supply of oil and how much of it we are using. that could affect the stock market and will probably affect the price of oil. have we got the numbers yet? we are down 1 points on the dow. what have we got? >> 2.2 billion. barrels. stuart: so the price of oil is falling a little. so we are not using as much oil. we are building it up in storage. so down goes the price, and i have not seen any impact on the stock market thus far.

we had another number at the top of the hour that was existing home sales. the strongest since the year 2000. we are selling existing homes at a rate of 5.6 million per year. that is a strong number. but that did not bring the stock market to the 20,000 mark. look where we are. one hour into the trading session we are still right there, minus 15. i have never seen a market on pause so precisely on pause for so long. scott shelby is with us. i don't want you to comment necessarily on the price or supply of oil. i want you to comment on the stock market. what's going on it's been down 14-15 points for exactly an hour. i have never seen that before. >> i watched the show yesterday and early today it's a holiday market and there is a big

looming round number we are talking about. so it's the to-and-fro of whether we are going to get there. we need a reason to get there. it can't be to go through it just because we have to go through it. >> are we going to get there? >> it might not be today. but we'll get there. i know you want to do it while you are on air. at the end of the day -- >> a lot of people hanging back think figure it does go above 20,000 and immediately there is a huge selloff and everybody walks away from the market, is that what's holding people back? >> it's very, very psychological right now. but you can remind everybody if you want the high he year since 1929 you would be a very wealthy person right now. if you want to put the money to work, put it to work.

but we'll need a little bit of a reason. stuart: what about president obama who banned permanently drilling for oil in the eastern arctic and the eastern seaboard in the united states. >> i would prefer that he worry more about his economic policy. we don't have an economic policy. we have only had the central banks. we need to get the economy going. with full employment we only grow at 2%. there are a lot of people affected by the environment around the world. and it can't be just us. but we can affect our economic policy and he dropped the ball there. stuart: merry christmas to you and yours. we'll be seeing you very soon.

i can't believe it. we are still down 15, 1 points. i'm very disappointed. we went on the air saying we are going to get to 20,000. we are not there yet. james freeman, you are laughing. why? >> the day is short. so there is still time here to pull out the dow 20k hat and drop the balloons. but we are at a home where we had the big runup based on expectations of what donald trump is going to do. so it makes sense the next move higher has got to be about reality. it has got to be about delivering. whether companies delivering surprising big earnings reports or president trump delivering the tax and regulatory relief people are expecting. i think it's key that he bring someone like an art laffer or larry kudlow.

if he wants to keep his promises he has to deliver that growth and those conditions for growth that pulled the market up nearly to 20,000. stuart: oil is at $53 a barrel and industrials are down. our next guest is steve hilton, a favorite guest on this program. he was with us during brexit. he got that right. he was with us during the election, november 8. welcome back. good to see you. you worked for brexit. you wanted the brits to leave the european union. then you came here and you wanted donald trump elected, right? >> exactly. stuart: this is the stock market trump rally. >> what matters is what under lies it. why is this happening? there is con fir dense and optimism about things that will affect the real economy.

real people of the lives. supported by a republican congress. think of unified government behind a pro growth agenda which is likely if all goes well, to lead to higher job growth, higher income growth, more people spending, companies want to go invest. that positive cycle is what people are anticipating and that's great news for everybody. >> the value of stocks has gone up by 8.6 trillion just sense election day. 100 million americans will take a piece much that stock market action. >> the fact that people resnodged this way, the markets are responding in this way, shows the pent-up frustration with the lack of the pro growth policies. >> you are now living in california. you are a technology entrepreneur, you are running your own company. >> yes.

stuart: do you feel that burst of enthusiasm. is that what you are seeing in california of all places? >> i wouldn't say enthusiasm is california's reaction to the election. what's interesting about that, and i was talking about this last week. there is incredible schizophrenia in california, he specially among the tech comments. they are all into the democrats shoveling money to hillary clinton and other democratic cats. but when it comes to businesses they are the most ruth best free market capitalists and they want government to get out of their way and stop interfering with their plans for innovation, they want the tax on their overseas income cut so they can bring their money back from overseas. but they can't cope publicly with the notion of a republican in office.

stuart: apple employees were very critical of tim cook because he went to the technology summit, then he had a private meeting with president-elect trump. it got to the point where tim cook had to respond and defend himself and almost apologize for meeting with the president-elect. is that how bad it is in california? >> a senior executive at or calt oracle resigned, a seen yoarm position, in protest of that political action. nothing to do with business pore it's pure -- stuart: at ibm some employees got a petition asking the ceo, hey, don't take any government contracts because that is a connection to the trump administration. that's how bad it is. >> it is.

but what under lights it is nothing to -- what under lies it, it's the traditional environmental and social issues. it's a cultural resistance to trump and republicans. and it's been going on long before trump. this is not a trump phenomenon, this has been the case for years ever since i have been living there. they can't bring themselves to support republicans. stuart: do you like america? >> i love america. i can't tell you how lucky i feel to be here. it's -- one story, because i have a political tech company. i went to to both conventions. i took my two young boys with me. in philadelphia i took them to the national constitution center, which is an amazing place. there is a wonderful story told, a performance, the story of

america, the declaration of independence and the constitution. it's so moving it reminded me about why i love this country and what it stands for and how lucky i feel to be here. stuart: are you staying? >> i have got a green card. i'm work on the citizenship. i'm waiting in line as i should. stuart: in stark contrast it's what's going on in europe. i'm talking about the whole atmosphere in europe, the way they organize the economy, the way they organize their politics, i'm so far away from that, i'm so far towards america, and i think you are, too. what really -- europe, the e.u., we shouldn't talk about the individual countries, great countries and great people, the e.u. that runs it, is this old-fashioned technocratic, bureaucratic approach to things.

the complete opposite of what's going on in california in terms of the tech companies reinventing the way things work and putting power in people's hands. that's where the future is. the e.u. represents the polled fashioned way of doing things. stuart: i don't see five years from now the european iewn glont same shape the's in now. i think it's going to break up. >> i think that would and great thing. but one thing to work for would be to retain the good part of it which is the common market which is wear it was originally called. when the u.k. joined it, it was called the common market. it was free trade. that's it. strur then they wanted to centralize the money and centralize laws and centralize

all rules and regulations run by this vast bureaucracy in brussels. >> that's a good thing. stay there for a second, steve. i want to get back to the stock market. we are still down 13, 14, 15 points. i have never seen a time like this when you are on pause for such a flat line for so long. >> we are still waiting on that earnings news. that may be a new signal from president trump could be cause for optimism. stuart: first you said we have to wait for the housing numbers. we got them and nothing happened. then you have to wait for the oil number, we got it and nothing happened. now we have to wait for earnings news next year? >> i would urge anyone who is thinking about that oil numbers, investors have gotten into the

habit of looking at rising oil supply as a bad thing because they are looking at the earnings of energy companies. it's a good thing for most of america to have cheap energy. i would urge investors to look at that. >> what have you got to ad, adam? >> i don't think we'll hit 20,000 before the end of the year. i think there is too much resistance. i think we'll hit it eventually. i think the administration will say show us where the money is. nicole, what have you got? reporter: i almost want to say nothing. i made 500 points about dow 20,000. i almost want to stick with the almost 20,000. this is the hat, the dow almost 20,000. we have a box of the 0,000 hats.

we are not allowed to open them because of superstitious reasons. even though we had a drawdown, also in the gas inventories, and crude oil inventories and that moved us slower on oil. we are not getting it. so we have to keep wearing the dow almost 20,000. i would like to say it's coming by the end of the year. can you go with that? and i'm only repeating what the market experts said. i don't make projections. stuart: i'm quoting some big tech companies. i have amazon down $2 at 7.8. i have got facebook and microsoft down a fraction.

the big tech companies are not doing that much. steve hilton is still here. he's a tech guy. he knows what he's talking about. why is it these big technology companies have not recovered to the level they were at before the election? >> the real world indicator that would give any confidence hasn't changed there. i don't think -- stuart: aren't we going to buy more i phones and software? >> you have got to look at each one differently. each company -- there is a different set of constraints. i have got regulatory issues affecting them. with apple there is a question mark what's going to happen in terms of manufacturing. each one has a slightly different set of circumstances. >> can you ever see the day when apple manufactures its product like an iphone in america? >> i believe trump will make it

happen. i think they would love to. and i think there is a deal to be done there in the sense he could -- trump can do things to try and make -- to correct the up season toughs around that that they can respond to. if you look at what happens with apple in other countries. both these big markets that unless you build your factories here we are going to put 100% tariff on your product. they did that. doubled the price. so you saw a gray market of people going to florida and buying i phones and selling them to brazil. oh apple did the deal. and they built the pack triin brazil and india, and that's what they did. it may be certain smaller parts of the business. but they would like to do it and trump is likely to make it happen. stuart: james freeman, do you

think that could happen, iphones built in america? >> most of the value is in the intellectual property. so it's not important for the uflt s. economy that they build them here, and there wouldn't be that jobs necessarily in the united states fit was a modern iphone factory. i think you are going to see a lot of manufacturing coming back to the u.s. or growing in the u.s. that's what we haven't had is the new businesses if we get these reforms. people said manufacturing will never happen again in the u.s. let's run the experiment with a 15 or 20% corporate tax rate and with a smaller regulatory footprint we have now. something significantly less than the $2 trillion a year it's costing us. all of a sudden other things could become more comkal. >> a quick point on that. you are right about the actual specific jobs impact. but think of the symbolic

impact, how it would make americans feel if that change happened. it would have a huge symbolic effect. stuart: i'm looking at the market. look at that level. 19,957. at this level, the value of all stocks in america has gone up 1.86 trillion dollars just since the election. the left is saying that's not fair. the 1%, they are going to get all of this benefit from the stock market rally. we will bring in donna shea. before you say it, i'm going to say it, god bless you and god bless america. >> god bless you and god bless america. i do have a new title. my new title is diversity coalition liaison for the

president's inaugural committee. stuart: what do you make of this? the left is critical of the stock market rally which we are covering on the ground only the very rich benefit from a stock market rally. we are trying to point out that well over 100 million americans have a piece of the stock market action. what say you? >> i would say the same. you know, when our investors and stocks and all those types of things are up and they are happy, we are happy. so i think that the left is just sour grapes of the loss of the election. but donald trump has brought our stock market up. he brought up the morale of the business and businesses and is vestors into you are nation. and that's what we need. we needed that boost and we got it. i think they should enjoy the ride.

and i think we all will. charles: did you hear senator charles human were fired most of the staffers in the senate democratic media center? some of them have decades of experience with that organization. all of them. what do you think of that? >> i'll tell you this, if he's made the decision to fire -- in this country you have got to remember, in politics and stuff like that, there is no promises, there is no guarantee of anything. and so what i would say is this. the democratic party should have fired everybody as far as i'm concerned, because they left the american people behind. they did not take care of the poor, they did not take care of the middle class, they did not keep their promises. and he should fire himself because he was part of that fiasco that left the american people hurting and hopeless. and so basically right now the democratic party, they have to start from scratch.

they have got to get back to people otherwise they will continue to lose and continue to fire people. stuart: i don't know if you are an investor or not, but if you were, which stocks would you buy on the market? can you tell me? >> is president-elect donald trump telling me to buy. whatever he tells me to buy, that's what i'm going to buy. my family and i put everything behind him to be president-elect. he's a born winner. i know we are boy coting pepsi right now. -- we are boycotting pepsi. i think i would invest in apple in the tech companies definitely. stuart: why? >> because i believe with the president-elect saying he's going to drop that tax down from

35 to 15%. they are going to come back home and it will be a great morale, a push to buy american. i would want to be on the ground floor of that. that's how it starts. when people get on board and start buying, you can go from having $100 to $1 million in your account depends on the appetite of the nation and the appetite of buyers. i think with donald j. trump coming into office. definitely. stuart: you are bullish on donald trump. >> i don't play around with my president-elect. he has fought through wars spiritual and physical. he has fought from being disrespect and treated like an animal.

main supreme media not giving him fair coverage. you can't do anything. once you get behind somebody like donald j. trump you cannot be a faint hearted person. you have got to go for the gusto. that's the type of type of person he is and the people behind him, his supports, including you, mr. stuart. we go for the gulls to. wd go for the -- gofor the gustr president-elect. are you going to the inauguration? stuart: i have not been invited and i don't know what my plans are. >> you have got to go. we are on facebook with the trump inaugural and twitter for the trump inaugural. there is the website. go on and see what the festivities are. it's time for us as a nation to get behind this president-elect

and vice president-elect like never before. you have got to come. stuart: so kay, i'll see what i can do for you. >> so kay, god bless you. stu very we just hit the low of the day on the market. that would be a 21-point loss. 55 as we speak. that puts us 43 points away from dow 20,000. he's finished with his radio show. his name is charles payne. charles: can we get her to do the free game thing at the jets games? they may win one. stuart: what time do we go for a break? 56? are we going for a break. 2 minutes to the break. you have time to answer a question.

i can't remember seeing a time when the stock market stayed in this extremely narrow bands for an hour. what's going on? charles: you are watching it too closely. we have had times this year when we have gone into weird kinds of lulls. we just have to news out that took steam out of one of the potential leadership groups. the market needs a catalyst. it a big psychological. home builders typically aren't the kind of stocks that lead the stock market higher. let people take profits and let them get back to moving up to the upside. a lot of these donald trump stocks that made the big moves the last two weeks kinds of gave a little bit back. they are on the move again,

including the financials. i think they will be so kay. stuart: what would and catalyst that would get this thing straight up. charles: earnings. tomorrow goldman sachs. unfortunately the big boys are so late which is our benefit. if we are already in there, it's beautiful. they are upgrading the stocks that made huge moves. stuart: james freeman, is there a buying opportunities right now? >> i would like to see donald trump deliver. but assuming he does, this will be a buy market opportunity. >> i agree. stuart: thank you very much. there will be much more on thi program.

they thought trump was so outrageous and different that he was bound to cause a crash. and then trump one. they push the policy that would grow the economy. full of people with hands on business experience. immediately the stock market took off. and we are now looking at the most explosive rally in a generation.

$1.8trillion has been added to the national wealth. the experts, the pundits the left they all give back their stock market gains. oh no, the hypocrisy knows no bounds. stay right there this is bernie and company. we are celebrating wealth creation. our third hour is about to begin. welcome. hooray carrie.

okay i like it. thank you. always on until christmas. that's what we want. were not there yet. the price of oil is down not much. i want to bring in key fitzgerald money strategist. why had we not hit it. we had been there all morning long. what's going on. >> it is so close i can't stand it. i would love to have this. but here is a thing they are reassessing what's next. don't forget the market is not rear looking mechanism. that's why we've seen i would see the shift to potential. but they are seen can we get

past 20,000. it's what happens next is what were thinking about this morning. is it the same opinion. where we going here. we've seen it go up astonishingly. a lot of people think get to 20,000 and maybe we will go up some more. somewhere. where'd you go on this one. >> i think we will touch 20,000. and then the real rally starts. what do they need to own. let me get this right. then the real rally begins. we have already seen a $1.8 trillion run up in the value of all the stocks. do you think there's more to come. no question. this reminds me of the 1950s. we have a gradual interest rate rises. it is going to go into quality

companies. as bad as it's been people had forgotten that there is a lot of good companies and good growth. people need that growth because that's how they get wealthy. the stock market is going to go up and it's going to go up big. the stock market will go up in big somewhere. i'm looking for doubt 25,000. not today. -- dow 25,000. i didn't get something over the next few years that is possible. it is not about the central banks and all that stuff. they buy stocks directly. it was about rear awakening. the existing home numbers we saw today. it is justified. the fundamentals of this rally. they will be more comfortable buying it. and you will have people

buying this work it rocket for the right reasons. i know that we ask you to come up with one or two stocks that you would buy it now give me those two stocks. we were looking at $50 oil right now. it makes a technology that serves the sector. it's $50 a barrel. it's going to make it. one of the largest pharmaceutical drugs of all-time. they buy companies. the second stock please. i've got it. i justseen this on the street. we've a breaking with a breaking news department here from adam. the prime minister has have

his first conversation with president-elect trump. his very supportive of the keystone pipeline project. the united states takes a step back from tackling climate change that could create an extraordinary opportunity for canada. if america takes a step back from climate policies then that is a wonderful opportunity for canada and it can export the oils. it goes down to the gulf. he put in legislation with barack obama yesterday with the atlantic drilling. it sounds like he is going out of both sides of his mouth here. now we saw carless over the weekend. we do know that business people around the world who

were opposed to donald trump have come to their sentences. -- come to their senses. >> global warming was a big deal during the election over any point over the past year. and then suddenly they were so stupid to focus on climate change. where the market still on hold. we been on the air for two hours. we had been holding right there as a loss of 15, 1617 points. the figures come out at the top of the 10:00 hour. they were very strong. i am actually very impressed with this. fedex is down it is weighing

on the markets. they mixed and gave mixed guidance. with inventory numbers take it there. and yet the market has not collapse. i love to see it hold above 19950. let the folks who want to sell get them out. make a few things a little bit cheaper and then bam. that's the way i like to see it. if you want another historic moment i do. >> do you know how much money we spent on the graphic for 20,000. this way we could have been celebrating already. we had breaking news i think this is on the berlin terror act. the man who is the suspect he has six different names he has three different national holidays and he should be considered armed and

dangerous. we learned this morning they have discovered identity papers in the height jack truck cap. he is a tunisian national who was an asylum seeker in germany and they tried to deport them because they were investigating him already. he has three claimed nationalities. is a good time to bring him in. here we have a suspect who has been on the loose for the better part of today's now. they can't find him. he's armed and dangerous. for legal reasons they can get him back to his country. and now they can't find him. what's going on in europe with anti- terror drive. >> he didn't have proper identity papers as odd is that without both -- most people.

he spent a fair amount of time up in the northwest part of germany close to the netherlands with the asylum camps he has got supporters and friends and he is using that support structure right now to either go underground or try to get out of dodge which i don't think he well. he has a fairly good base of support that he can count on. the german authorities are extremely good at this head been overwhelmed particularly over the past year and a half and the resources we talk about here with them doing investigations in every state of the union. as tenfold that in germany where they are just absolutely stretched to the limit. mike, there's a reluctance to call it islamic terror. >> a reluctance not on my part there is that reluctance to

jump in and say it's terror. in the left says that if we did that if we were jumping right in and calling it islamic terror we are doing what isis wants us to do. that would be dividing the muslim community. what you say about this. a lot of the muslim community not to tear in the u.s. but around the globe have been supportive. we had been making inroads with the community in terms of building relationships and contacts. they understand. where the ones that act as if were completely filled with angst if we talk about this. the rest of the world things were moronic in this behavior. people are offended or some people are offended by referring to them more people are offended by being blown up. we does have to be more pragmatic about this.

the germans themselves had already walked the dog back. then they came back and said we don't want to be disparaging to tunisia. here at home. c1 here comes christmas, new year and investigation. a the investigation. a couple of hundred of yards away. trucks and cars can't get through. we are taking defensive measures. i hate to see it and i know it's necessary but i hate to see it because it makes me feel like the terrorist guys had one. how do you see it quacks. >> we have to understand that there is an element of islam whatever we want to call it they don't want to negotiate with us. they don't want to coexist as people talk about. they want to destroy our way of life.

i'm not a rocket scientist everybody knows that but everybody i'm just stating the facts. we have to deal to deal with that problem at the same time as maintaining our security but maintaining our fabric of life. we had been doing this for a long time now and i know people are weary of it. they're tired of it. the reality is is not going away. he can take back and we will will take back syria in large portions from isis. but that problem is not going away. we will be dealing with islamic extremism certainly in our lifetime. it's not leaving. >> merry christmas to you. while said. good luck. have you seen this christmas market. >> these christmas markets are really popular.

it's one of the most famous in all of europe. they had 100-foot pine tree but no decorations. dip to keep it like that just in case they need to take it down. in fact the tram stops have been stopped temporarily many stops before you even get there. it's a europe totally divided and almost at war with itself. i can't imagine that. thank you charles. take a break from this. i want to show you something that is a rare and rare and it's a beautiful image. the first snowfall in the sahara desert for nearly 40 years. it is in the atlas mountains on the northern edge of the desert. snow was last seen there in 1979. there it is as of now. in this picture father

jonathan morris here he is here with us later this hour. what were they talking about and will he tell us. we are four days from christmas. will we get the 20k before then. come on santa stay with us and give us something like 20,000. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.

c1 it's been a long time since i've seen a market just flatline like this one today. he came in expecting that we would hit at least dow 20,000. we had been down 14 or 15 points however look at this level. 19,960. at that level this entire stock market has gained

$1.86 trillion in value since the election. the left hates this. only the 1% benefit. let's bring in a democrat to enter that charge. i am a former clinton pollster. the left a is saying come on it's not fair it always benefits the rich. >> i am a free-market democrat. i may will be a dinosaur. let's be clear the democratic party used to stand for capitalism. lots of americans even middle income for working americans own stock through their 4o1k or pension. this is good news for all

americans. we are one nation. or not democrats or republicans we are all americans we want donald trump to succeed because he is a u.s. president not the republican president it's true. >> in this country we all stand for that. i want donald trump to succeed. we all do. i think there are a good many leftists. what i would have to harp on is that this country is under siege we must pull together and not attack the left but the seat in encourage the left to join in a broad effort. you've obviously seen the reaction. that is why i'm pushing back

on something hopefully you agree with. of course i agree. anybody in your party who believes passionately in the success of donald trump is that will be it. they don't. i know it would be better for america if we all focused focus on the greatness of america as we approach christmas and what we can do to fight this. in the chinese taking away our influence in asia. so what is your party doing and seriously considering at the top of the democratic national convention. >> we have a committee to look at russian hacking. he should not be the dnc chairman. we should talk about what were

doing on a bipartisan basis in the senate to keep america strong and free. see mike bill clinton blamed angry white males. >> he said he doesn't know much one thing he does not is how to get angry white men to vote for him. in 1996 and 95 and even 94 when i worked on bill clinton's reelection always focus on angry white working-class voters especially men. they were moderate working-class americans and moderate to conservative working-class americans. and look what happened. you totally forgot the focus and lost the party focused on

identity politics and they lost as a result. we need inclusive one nation politics which is what makes this country great. rather than focusing on what's right. i'm somebody who really doesn't believe in america first. hopefully the democrats and indeed all americans will learn from this. i'm giving you a platform to address your fellow democrats and tell them where they went wrong and how they can go right by supporting prosperity in america. i support our president president donald trump to promote prosperity and our influence being restored overseas. i stand with that and the terror in turkey and in berlin especially. i hope you will join me in welcoming and prayed that the next administration has the

success for all americans we are seeking. you had been beating me up over the democrats and i would much rather talk about what is right with america than what is wrong with the political party that is in decline. i want to see the mail that you get. you make any time anytime i'm on with you i get great mail. please do. it's my pleasure. thank you for coming on. >> we are still looking at the market. can you believe this. we're still down 15 points. we had been down 15 points for about two hours now and this is a near 20,000 index. what is going on. >> they are waiting. there is something that has to move.

there is to traders out two traders out there that is cooking up a plan. we need something to lose. it's always good to take. there we go. isn't this all about algorithm. they have an algorithm that tells them what to buy or when to buy. and it goes and instant in a second. if it says buy it buys. that is what is going on. everybody is reluctant to jump in right before 20,000 thinking if we hit 20,000 everybody cells. people forget it is still humans that drive it. they can't make those decisions yet.

the human input is very important in here. and that's what we need. we need a couple of traders to decide nevermind what everybody else is doing. that means let's go now. stuart: do you think it will really take off after 20,000. >> we will have a little bit of a selling that's normal. they had been created. there will be some buy low sell high mentality. but that's normal. that is a celebration. the fact that we have not caved in this morning it suggests to me that there's still a lot of money waiting. and that's when the real money starts. thank you so much for joining us. it's not happened yet. we had 33 minutes left on this program. but were only down 12. our next guest met with vice president-elect mike pence and henry kissinger. you can see the picture right

here. they are meeting those two esteemed gentlemen. he's with us now on the set. >> welcome. there is a bigger things in life than that. if to make a $20,000 donation of my choice. i tell you what if it goes to 20,000 on this program and we have 33 minutes left i will make a substantial i will make a donation to your church which is a worthy cause indeed. now the market is coming up. see mike what were you doing and that meeting with the governor pence i think as any pastor would do if you are in spite of -- and invited to speak with any of that. on a purely personal level.

it was mike pence not henry kissinger. he was next in line. but you were invited in to speak with the vice president-elect. it was a personal pastoral conversation. if you were to take a position in the ministration and i'm not suggesting that you do that but if you did we would lose another guest on this program. do you know how many guests we have lost who joined the cabinet. >> i'm not joining any cabinet. what job you like if you wanted one. i'm in the wrong profession of it. what you make of the trump presidency so far as a christian as a priest and you look at what he is doing and how he is doing it would you pass on the spiritual judgment.

there is a judgment on the process so far as i christian. >> holy were making a transition from campaigning to governance. certainly i was critical of some of the things that donald trump said ended in the campaign i think he would recognize that he said things that maybe he shouldn't had or wouldn't have said. but he's now going to be our president. and we have to give him a chance number one we have to speak our mind in our opinion on important issues. i will continue to do that for the sake of doing that. recognize that he's the one in charge. and i can spend all of my time complaining. i will try to work together with whoever is in charge. he is a shock to the system. when i say that. the way the man speaks and he addresses a crowd off prompter

frequently the way he relates to the crowd and what he says in the tweets in the language he uses is really completely different. he is himself. my hope for example something he's been very tough on right from the beginning about mexico coming over and all of that either party the republicans or democrats have done anything for immigrants over the last 16 years. there has been nothing. it is dangerous. i made the trek over. illegally. it was a terrible experience. that is something a safe order is a very interesting way of looking at it. it's not just a wall to keep them out. it's a barrier of some sort. in making sure that there are doors.

he wasn't talking about that before. there will be thousands coming through these doors. that's called illegal immigration. don't be the best thing ever. also once they get over here they live in terrible circumstances and they work so hard that is another thing i hope you can fix in this administration. to do in a very distinguished way spect and the in the fact that we have taken advantage of workers and not punishing the businesses that are hiring them. let's give them a chance and let's give them advice and help as much as we can in order to make america stronger. stuart: i've taken a position about the terror in europe that the judeo-christian world is under attack. i think that was particularly obvious when the christmas market was attacked directly in berlin nearly two days

ago. my coming on too strong when i say christianity is under attack and i want a more muscular response to it. we already know what the ideology is. they are seeking to kill people who are infidels. if you could do it at a christmas market even better. if you can do it at a church there was an attack against christianity. there would be happy to talk them. they're be happy to attack other muslims that are there. this is not just a crazy guy who happened to choose the christmas market. >> i would like to see those people who speak for christians the christian leadership and what it may be.

speak more forcefully to islam and not exactly knock it off. isn't working. what you're doings utterly wrong i don't know anybody that stood up and said that forcefully. >> pope francis has talked about it from the beginning. we before anybody was talking certainly not our administration we before they were talking about using force. come together internationally. use force if necessary because these people this is an on drop -- on just aggressor. sometimes it is necessary. you mentioned the beginning at 20,000. what you didn't say what date that would be. if it hits 20,000 tomorrow or the next day i'm there in your show.

if it hits 20,000 today you had 26 and half minutes to go. you realize i will give you a donation anyway. >> merry christmas. thank you very much for being here. i want to bring in now david rubin. he is the founder of the israel fund. welcome back to the program. you're a your start. it's great to see you again. it's good to be with you. can i ask about america's investor to israel that we would like to move the embassy said it will cost american lives. where do you stand on the

server. >> i think since trump was elected i would hope that there is going to be a turn of direction for about 40 years we had been getting the exact same story from the american administration we have to have the palestinian state. even though we know it. we are to pretend to pretend is not the capital of israel. the fact is that it has been the capital for over 3,000 years and it's time that israel got the same respect that fidel castro in europe. could he at least you at least recognized jerusalem as the capital. that is a cradle of civilization. >> is mister trump popular in

israel. very popular. he got about 80% of the vote among israelis who had dual citizenship and have the right to vote in the united states. i would like to ask you about the christmas market attack in berlin. i had been very strong on this program saying that it is in fact the judeo-christian world that is under attack and i would like to see a more muscular response to it. how do you feel about that sir? >> i agree with you wholeheartedly. i don't know how many of your viewers have ever heard of the terrorist organization baptist jihad. i'm sure they haven't because there is no such terrorist organization. judaism christianity are rooted in the tradition which believes in love your neighbor as yourself. that is the highest preset. but in islam the highest

preset is jihad. what they call the unbelievers which has been pointed out includes jews and christians in the mosques around the world when they do that. they say first were going to get the people and then the sunday people. they know exactly what they're talking about. and sometimes they're more explicit. and of course means the christians in their eyes. >> have you seen a lot of european jews leaving europe. >> there has been a slight increase unfortunately jews are stiffnecked people and don't move so quickly when they see that something is not right. i'm very concerned about the situation in europe the calls

for sharia law. the terrorism is increasing every day. and i'm concerned. concerned for the christians as well. the situation is very bad and i see the rise of the parties on the right the anti- immigration parties and frankly if i was living in those countries i would be voting for them also. i was a pleasure. thank you very much for joining us. i wish you the best wishes of the season. >> i can say to you merry christmas and you can say happy hanukkah but please do not say happy holidays. happy hanukkah. >> we are down ten points now on the dow industrial. were up 26 points dow 20,000. never down nine points. come on in.

the chaplain investment joining us now. the conventional view on this program has been that we will touch 20,000 at some point and then we might take off for a really big rally all over again. what does mr. petoskey say. i don't disagree at all. we will probably go over 20,000. but anybody who thinks we will go much higher from there is ignoring all basic investment principles. it's all about earnings. if i gave you something that was worth a hundred dollars today and sent to you it's can be worth a hundred $20,000 down the road but not right at this moment would you take it at a hundred dollars today of course not. because most likely going lower from here. that's as can happen. the market is 20% overvalued based on earnings are not the

only way you will look at this. the earnings and interest rates. there is no justified reason to say that it's good to go a lot higher after 20,000. >> would you change your mind if the corporate earnings and profitlooked to be gaining a lot of ground in the very early part of next year. >> if they did absolutely. you hit on it perfectly. that's not the case. and earnings don't turn around quickly with big companies and those are the companies that move the market. it is and can happen. you can hope for it and wish for but this market is not to go a lot higher from here. hold on a second. i know you have some stock picks and i'm going to get them shortly. have to deal with other things for a moment. mtv avenue video new year's resolutions for white guys. we will play you the video next.

they even call out fox news. wearing a santa suit define gravity. the video has received 2.8 million views on youtube. and that is spectacular had to say. better yet today on my show. back in a moment.

we had been hitting so close again and again to dow 20,000. we did get some existing home sales numbers. lets down 19,963. what is keeping us from dow 20,000. now here's something that drove us to that 20,000 mark from 19,000. and you can see the performance up 30%. travelers more than 10%. and here are two names in the that had dragged down the

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stuart: there are developments in the christmas market attack adam what you have. the german authorities are offering a 100,000-dollar euro

bounty for any information that leads to the rest of the suspect they had identified a suspect who left an idaho document the cap of the truck he hijacked. they have determined this man was under investigation before the attack by terror investigators in germany. he is tunisian. he is an asylum seeker in germany. the government he had six alias and claims three nationalities. stuart: and he still hasn't been caught. we've another example of what you might call the martin economy. a new report that said 40% of millenials are living with relatives that is a record number. the popular guest on the program. that will be larry. i find that astonishing number.

that's 20 somethings. living with mom or dad or other relatives. >> the good news is i don't live in my parents basement. it is the obama economy. this is the first president to preside over an economy that of the have at least 3% in a given it's what he has. and 3% of 1 million jobs to the length of the economy. if he stayed on the golf course. would have 7 million more jobs. it has been awful which is why donald trump one. so easy to live with relatives. stuart: it's kind of easy i can understand why someone do that and then still vote for hillary clinton. >> it is easy but most people would not want to do that.

they still don't get the connection between the things that obama has done whether it's the stimulus or obama care or raising taxes on the middle class in the hundred million dollars each year he has unleashed on the backs of job creators in terms of regulation and climate change. most kids do not put the two of them together. the very policies of the man that you pull the lever for that's causing you to live in your parents basement. stuart: they put out a white guy resolutions video. new year's resolutions for white men. watch this for a second. >> try to recognize that america was great for anyone who wasn't a white guy. can we just agree that black lives matter is not the opposite. there's no need to over come like it appeared comes were

born with blue skin. they were born blue. >> of course she cares about black issues. >> i'm talking to you fox news. stuart: here we are at fox news. i have my reaction to this but i want to hear yours. >> one of them that you did play is a black eye saint just because you have black friends doesn't mean you can't be racist. the whole subtext of this video is that white men remain racist. there is nothing you can do or say you are still racist it just in your bones. what's fascinating about this is that there was a pole in 2013 blacks, hispanics and whites were all asks of those groups which was of most racist. all three said blacks. now, i defy mtv giving black people resolutions of how they could be less racist towards white people.

that would be armageddon. mtv's routings --dash ratings by about a third. i think that will fail. we always loved having you on the show. we wish you a merry christmas sir. we will see you again soon. his stock picks are coming up. we will get to edit in a moment. first right outside mexico city explosion a big one at an outdoor fireworks market. thirty-one people are dead 71 people injured. it's not been linked to terrorism. just watch this.

stuart: new information on the terror attack. the man has been identified and we have a picture. his name is anis a. the german authorities are offering a 100,000 euro reward for any information that leads to his capture. he is considered to be bind in armed. and remember they have the opportunity to deport this man.

they had been investigating him long before the terror attacks they were unable to deport him because of some kind of paperwork problem or the tunisian government refusing to acknowledge him. >> is a mess. now all morning long we had been waiting to see if we can get there. we are down 20 points. we are still down 20 points. now add, earlier you have said that there is not good to be another big rally if we had 20,000 after that we probably come down. give two stocks into companies that you say find out because they're not going to go down facebook has been a favorite stock for a long time. it has real earnings. and potential all around the world. and it does have all of the fundamentals that you need to have a stock price go higher and is led by earnings.

that is my number one pick. >> i have become addicted to netflix i don't know if it's because i love off i been wi-fi i've been married a long time i don't know what it is. i use it all the time and people that i talk to our all talking about netflix shows. the earnings are there. have a little bit of a question with net neutrality but i think it will soar in 2017. >> you picked facebook and netflix. the technology sector has not done well after the election but nowhere near as gun is more industrial stocks. so you are predicated facebook and that solely on the bigger profits down the road. it's a good point you make. they were already suppressed because of regulations and rules around these companies. they will be lifted so you're

asking today this is what i would be buying today. the other stocks have moved up. i will be shorting in a big way goldman sachs right now. it's not because i'm a former morgan guy. give you a quick idea of where you think facebook is good to go. 118 now. where does it go from here. 160. >> you have that contention right there. it was a day i would hope it would hit 20,000. it doesn't look like we will do it on this show. as you can see everyone where a 19,956 we've been down 15 to 20 points almost all day long. i can't remember a time where has been so static for so long back in a moment.

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>> that lovely baby there is a when crafting your tuesday morning, seven pounds, two ounces. mom and baby are doing well. welcome to the world coming to a when you're great to see you arrive. our time is that good neocon it is yours. trent is to recommend thank you very much. investors say they are increasingly convinced, but there are those who say only bad things can come of a trunk presidency in a month and even talking up impeachment. for now, let's get market watches. why many on the left are not giving up on this issue of taking down donald trump. in this case before the guy even assumes office in what is the goal? >> yeah, it is pretty comical. if you look at