look at a company like service now, the next salesforce. company's at a $50 billion market cap growing 30% and what they do basically is take laborious processes -- kristina: i'm going to cut you off. thank you so much. you guys did it. liz claman, over to you. lots of information just in the last seconds. liz: we are doing who wore it best thing. i'm giving it to you. kristina: thank you, liz. liz: thank you. have a good weekend. as we head into this final hour of trade on a wildly busy friday, it's almost like markets are saying not beware friday the 13th but beware the fine print. markets are well off their highs. the dow had been up more than 100 points. we are just up eight at the moment, maybe because the man at the helm of trade team usa just revealed it is quote, not all smooth sailing ahead. trade representative robert lighthizer admitting in the last hour quote, this is very hard

stuff. the chinese are very tough negotiators. but the big take-away, president trump canceling the new tariffs on $160 billion worth of chinese imports like cell phones, electronics and toys that were set to go into effect on sunday right before the week before christmas. team trump also reducing import taxes on about $112 billion worth of goods. the chinese finally came out a few hours ago to confirm they have agreed to buy, this is important, $40 billion worth of american agriculture products. so far, the papering as they call it is a mystery. nothing written down on paper. volumes of purchases not specified. how much soy, how much corn? will that match or best what the chinese were buying before the trade war? the president says either way, the phase one deal will juice economic growth. does that mean that the next move you see in interest rates, meaning borrowing rates, might just be a little higher?

in a fox business exclusive, federal reserve vice-chair richard clarida giving "the claman countdown" his only interview post-wednesday's meeting. we will ask what about 2021? not 2020. what's going to happen in '21 and if growth is so muscular, will the fed need to hike rates? fed vice chair clarida on that and so much more, plus the magenta man did wear the t-mobile official color in court but did it warm up his chances of that merger with sprint? less than an hour to the closing bell. let's start "the claman countdown." liz: breaking news. forgive me for looking down. i have to keep looking at the tape, meaning the breaking news, because we have details of this phase one trade deal continually trickling in every 20 minutes or so. we can tell you this, mark your calendars, the administration says the plan to have an

official signing of this phase one deal will be the first week in january. now, it is still not crystal clear exactly what will be signed, but the u.s. trade representative says china has made a firm commitment to buy an additional $32 billion in u.s. agricultural goods over the next two years. we were told $40 billion. we shall see. soy futures, soybeans, popping on the news initially by more than 2%, but then they lost about a percent of that at the moment and i don't know if we can put that up for the moment, but we did see commodities start to rally pretty much last night, and now what you see is soybeans have pulled back. they are up 1%. why? before you pop the champagne about the news, keep in mind that before the trade war began, u.s. soybean export sales to china from the u.s. clocked in at 35 million tons per year. that of course dropped substantially since tariffs went into effect, and now we are waiting to see the number. what will they buy now?

if it does not match or best that on the screen, then this may look like basically the needle hasn't moved. all right. the trade war was on fed chairman jerome powell's mind wednesday as he wrapped up the last meeting of 2019. he unanimously along with the fomc, his crew there, agreeing to keep interest rates unchanged and signaled it would keep them on hold through 2020. but he was sure to make clear that it was the u.s./china trade talks that had the world holding its collective breath. now that phase one is ready to be signed and the dow, mark it here, up 2.75 points, what direction will borrowing rates eventually take? here in a fox business exclusive, the number two man at the federal reserve, fomc vice chairman richard clarida. thank you for being here. through your lens at the federal reserve, how does this phase one trade deal look to you? >> well, it's too soon. what i would say is any reduction of uncertainty is a good thing. i think uncertainty about trade

policy has been a factor in the economy and so any resolution of that uncertainty, assuming it's a good deal, is obviously a positive for the economic outlook. liz: powell, as we had mentioned, the chairman of the federal reserve, had said that it was not usmca or any other trade tensions that mattered to the markets and to the economy, everybody was watching this trade deal with china. now the president is saying that it will add markedly, even just this phase one deal, to gross domestic product, meaning growth here in the united states. could you say that phase one from what you can see here will add to gdp? >> well again, it's too soon to tell and i don't know what the details are. liz: is that part of the problem? that we don't know the actual details? >> well, again, i think this is obviously a negotiation. it looks like it's going in a positive direction, but more broadly, what we said is that global developments more broadly have been something we have been monitoring. you have had a global slowdown this year, emerging markets have been slowing down, there is

muted inflation pressure. there isn't one thing we are focusing on. liz: can you characterize the economy for us? >> the economy is in a good place. we have the strongest labor market in 50 years. we have solid growth and our baseline outlook for the economy is more of the same in 2020. liz: why do you say good versus great? i look at this and i check metrics, i deal in facts only. it looks great, at least here in the united states. >> well, again, you have very solid growth of around 2%. different views on what the underlying trend growth is. but again, going into next year, i think we have a favorable outlook for the economy. liz: we just got a great november jobs report, 266,000, then we got this kind of disappointing retail sales number this morning, november retail sales missed. they were definitely light. they came in at up .2%. the expectation was a gain of .5%. do you see any signs, vice chair

clarida, of the consumer pulling back? >> we really do not. in fact, i have said and i believe the u.s. consumer has never been in better shape in my professional career. liz: really. >> in aggregate, we have a high savings rate, consumers have been delevering, the unemployment rate is low. obviously it's 300 million people in the economy but on average, in the aggregate, the consumer's in great shape. liz: okay. so we have interest rates for all of next year, according to the fed chair, at 1.5% to 1.75%. we also saw this. this of course means that borrowing costs will remain incredibly low. borrowing to get a mortgage on a home, to get a car loan, anything like that, we saw the credit card debt is now at a ten-year high. does that worry you? do you look at that and say you know what, that's disconcerting, that's worrisome, or i'm okay with that? >> well, if you look at overall household debt, you have to look not just at credit cards but mortgages and all the rest. actually, debt to income ratios have been falling really for the last decade.

the u.s. consumer has been delevering and of course, debt service payments are lower, lower rates. so the u.s. consumer in the aggregate's in very good shape. liz: we had heard just months ago there's a recession coming, the yield curve inversion. what dissipated all those fears so quickly to get us to the point where we see the sun shining now on the u.s. economy? >> well, at the time i thought those fears were overblown. i thought the fundamentals in the economy were strong. i would point out that under chair powell's leadership we put in place some adjustments in policy this summer. it will take time for the full effects but we think policy's in a good place and it's been providing support to the economy through that tough stretch this summer. liz: well then, yeah, so three interest rate cuts over the past year. the fed now says nothing for 2020. that, if you interpret it through a political aperture, indicates that leading up to the 2020 election, the fed is going to stay out of it.

when the minutes from wednesday's meeting come out in a couple of weeks, will we see the word election year at all in there? you guys don't want to be politicized. >> you absolutely will not because it simply does not come up in the meeting. liz: election year, anything like let's not get arm twisted? >> as you mentioned, we put in place these adjustments in the face of this inverted yield curve. you had the ism index below 50. you had declining inflation expectations. we were just doing textbook monetary policy to provide some support for the economy in the face of these global slowdown and muted inflation pressure. liz: you've got to talk about president trump, when we are talking about the we don't mention election year, et cetera, but the president tried to tweet talk the federal reserve into much lower rates. in fact, he even pined for negative interest rates. are negative interest rates appropriate right now? >> well, i think what the record shows is that the countries that have negative interest rates in europe and japan are really

lagging behind the u.s. negative interest rates are a symptom of an underlying problem and challenge. strong and growing economies and robust economies are not operating with negative rates. so we don't want to be in a situation where that's a factor. i should point out, at our meeting in november, we discussed negative rates and as the minutes showed, no one around that table of 17 had any particular support for the idea. liz: if the u.s. economy moderately weakened in 2020, would that make it appropriate to bring us to negative interest rates? >> well, that's not something i would foresee. not at all. liz: okay. >> no. liz: last time you and i spoke, the federal reserve had nine quarter point rate cut arrows in the quiver. meaning these are weapons that you can use to battle things like an economic slowdown. that was in july. now we only have six quarter point rate cuts. is that enough if we ran into some real tough trouble? >> well, that's a good point.

i think our focus since i did your show and then is really, let's put in place a policy that keeps us out of that situation. we thought it was better to put in place some insurance against those outcomes than to wait. you are right that we are operating now in a world, not just in the u.s. but globally, of lower rates and that means central banks will have some less ammunition. but we think we are in a good place right now. liz: can i talk about the fed balance sheet? we aren't going to get too wonky. we will speak in regular language here. >> it's friday the 13th. liz: the fed balance sheet has gone from 3.8 trillion to 4.07 trillion, meaning albeit slightly, it is expanding. expansion rate of about 28%. chairman powell has said that the asset repurchases that he was going to start a couple of months ago because you guys stopped selling off the balance sheet and bringing it down, it was a little bloated, that that was not quantitative easing or stimulative move. how is it not, if the balance

sheet is expanding? >> liz, it's a very good point. what the chair has indicated is that in these operations, we are buying t-bills, very short maturity, three-month government obligations. quantitative easing under the past at the fed has been to buy mortgages, ten-year treasuries, to lower long-term yields. we really have just been providing liquidity to the financial system. this was in response to those dislocations in the repomarket in september. this is going to result in an increase in our balance sheet but not through -- just by buying t-bills which is the way central banks traditionally increase their balance sheet. liz: so could i ask when that's going to end? >> we said we would expect the process of accumulating t-bills at the current pace to end sometime in the second quarter of next year. liz: okay. the repo market, i don't want to get too wonky but this is a very short-term overnight lending market that showed some very serious stress i believe in

september. the fed started pouring money in there and now i see they are pouring about $75 billion december 31st through january 2nd so that if anybody is desperate for cash for year end tax payments, et cetera, it will be there. i guess my question is, is that going to be enough if there is suddenly a run and people desperately need some cash? >> first of all, let me just say that that will not happen. we will put in place what we need to to provide the liquidity at year end. the markets are functioning well with the plan that we announced in october that we have in place. it's been well known that this market does tend to get a little bit moving in year end and so we are providing this liquidity but we will adjust the parameters as we need to avoid any problem in implementing our policy. liz: my sources are telling me that early next year, the fed will talk about altering in some way, shape or form, its long-standing framework, how it looks at things like interest rates, how it looks at communicating forward-looking

sentiment. i want to just whip through some questions. will there be press conferences after every fed meeting next year? >> that is certainly the plan. i can't foresee that changing. liz: how about forward rate guidance? will you change that at all? >> forward guidance has been a tool that the fed has used for a number of years. it's certainly in our toolkit. i don't see us taking it out of the toolkit. that will depend on individual circumstance. liz: perhaps more importantly, when the next financial crisis comes, will the fed change or alter the way, the speed at which it did its bond buy? >> again, what we have said is that as needed, all the tools in the toolkit will be deployed as needed. obviously individual circumstances will dictate the timing and the sequencing, but certainly we are going to use our full arsenal of tools in the next downturn. liz: last question. we would be remiss if we didn't bring up the former federal reserve chair paul volcker who died on sunday at age 92. his legacy, because he slayed stagflation. >> i got to tell you, it puts

chills, paul volcker is my hero. i have an autographed picture in my office. i had the chance to meet him and work with him 20 years ago. he's truly a giant of 20th century economic policy. one of the top two or three economic policy men of the last hundred years. absolutely will be missed. an incredible individual of integrity, honor. it was a privilege to have a chance to work with him. liz: richard clarida, vice chair of the federal reserve, happy holidays. thank you for joining us. he says it's the strongest consumer atmosphere he's seen in his professional life. richard clarida. we are coming right back. the dow still really kind of straddling the flat line, up five points. we have so much more ahead. we will check a whole bunch of metrics and stocks you might own. don't go away. >>i'm searching for info on options trading, and look, it feels like i'm just wasting time. wasted time is wasted opportunity. >>exactly. that's why td ameritrade designed a first-of-its-kind, personalized education center. see, you just

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liz: all right. i want to put something into perspective here. while it appears the markets are just slightly above the unchanged line, listen to this. any gain for the s&p 500 and the nasdaq will be the second all-time record for both of them in a row. the dow, it's up four points, only needs 32 points to the upside to hit a record of its own. take a look at the s&p 500's rally so far this year. we will stretch it out, 2019, up more than 26%, currently up about .75 so we're flat at 3169. question is, just how much more room does the major average have to run next year? according to btig analyst julian emanuel, the investment bank is forecast i forecasting 3450 for the s&p by the end of 2020, which by the way, is one of the most bullish forecasts on wall street. according to emanuel, quote, it's shocking that it's the most

bullish forecast on the street and that that leads him to believe he's probably too low. to our traders. all right, gentlemen, what's the over/under on the s&p 500 of 3450 by the end of 2020? taking into account what vice chair of the federal reserve richard clarida just said that the economy's in great shape, well, he said good, i pushed him on great, and the u.s. consumer is about as strong as he's ever seen them. matt? >> we had 25% gains this year so what's 10%? not even half that. it could be a lowball estimate but the concerns are not for the first half of 2020. everyone knows it's the second half. that all is predicated on the election. i don't think anyone's going to make a forecast going out past maybe the first two quarters. as you said, the consumer is great, the economy looks good. if we get some kind of phase two deal started, you know, that's all nice tail winds for this market. liz: chris, what do you think? what's your over/under? >> it's 8% from today's high.

historical rate of return, everybody knows it's been pounded into our head it's 10%. the thing is, the past three years we have averaged over 20%. i think that's why earlier this year, people were saying oh, we might have a recession, we are due for a crackback. so as long as we don't have some bolt out of the blue, i don't see why 8% is -- it's very doable. liz: i've got to tell you, phil, the interview we just did with richard clarida is taking over the wires. there's a flash storm here on the wires. they particularly focus on the fact that he said the u.s. consumer is in great shape in the aggregate. >> he absolutely is correct. it is amazing, it was a great interview because he hit the nail on the head. that's why we have been so bullish here. chris robinson i know has been a bull, i have been a bull, and it's because of what we are seeing on the consumer front. these are the best of times for people. you've got low gasoline prices, historically low unemployment, better job prospects, rising wages. what more could you ask for?

it's kind of funny, you feel bad for elizabeth warren, got to look beyond all that, got to try to find the dark cloud in the silver lining. believe me, we have a silver lining, we have gold lining. economy is doing great. liz: before we wrap this up, just when we all say that, we do have to do our investors a service and say the what-ifs. what if there is some stumbling block on the path to phase one and the signing of it by liu he, the chinese trade minister and robert lighthizer, our trade minister? >> we got a lot of information here. we got different kind of numbers going all over the place. whether it's a two-year deal for the ag products or if we are going to get this deal done in the next two weeks, is it going to be after, how long is it going to take. there's still a lot to be worked out, certainly. you get a day when you have brexit definitely a possibility now, you have impeachment trials, they look like they are going to go full head of steam,

and all that and the market's pretty calm. looks good. liz: dow's up 9, s&p straddling the flat line. russell 2000 down 10,000 points, now up 15. thank you very much. have a good weekend. oil closed above $60 a barrel. slightly below that in the aftermarket but big move for crude. uber trying to get back on the road across the pond. we have 37 minutes before the closing bell rings. the dow stands at 28,141. the ride hailing leader submitting an appeal to regain its london taxi license which was pulled last month due to what regulators said was a pattern of failures on both safety and security. uber's down just about a quarter of a percent intraday, adding to the 3% loss it's seen since its latest row with the british capital. this as uber's biggest competitor lyft looks to race into uncharted territory.

the new lane lyft is pulling into that could leave rental giants avis and hertz in the dust. all that and so much more coming up. cologuard:

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liz: we've got to look at lyft stock. and hertz. why the two together? well, lyft is up about half a percent, hertz right now, you could call it flat, but let's take a look at the chart that would compare the two since lyft went public. hertz has started to move slightly lower. lyft has had a struggle, too, but why are we comparing a ride sharing service to a rental car company? lyft is apparently looking to muscle in and disrupt the rental car business, launching a new rental service that will debut in los angeles and san francisco. it will charge local market rates for gasoline and include no mileage limits. to susan li live in the newsroom for all the details.

you have been in touch with lyft. what have they said? susan: i think the message to the markets is that we need to diversify our business away from just being a pure ride hailing company and trying to get back up to the offer, the share price of $72 apiece back during its ipo. also to get to profitability as well because they say outside of taxes and costs and depreciation, they will be there by the year 2021. so if you live in the bay area in los angeles, you are one of the first to enjoy this new service being offered on the app. it's really the touch of a button and it's great for business travelers and those that want to skip the counter. it comes with some benefits, going for $35 a day, for the full weekend it's around $149 and you're right, unlimited mileage. also, you get gas at market prices rgs n prices, not with a markup as you do with the rental car companies. lyft for its part saw i would

say an up day in a flat market. it had the impact of hurting the rental car companies, yesterday down 5% and 6% for the likes of hertz and company. now, it's interesting this dynamic, this ecosphere because these rental car companies like hertz have been trying to survive with the slowdown in their business, thanks to lyft and uber, by trying to sell these cars and rent these cars over to lyft and uber drivers, so it's kind of an interesting correlated ecosphere they all live in. liz: i will tell you something, one of the biggest pains is to take the time once you have landed after a long flight to go schlep and get your rental car. if you can disrupt that, be very interesting. susan, thank you very much. 31 minutes before the closing bell rings. not keeping up with the kardashians. the $600 million deal with kylie jenner and kylie cosmetics with coty is not putting a pretty face on that stock. that and more in today's fox business brief. i got to ask you guys the

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and the parent company of michael jordan's favorite brand being torn apart. hanes being downgraded to underperform, the brand could find itself in the loser column in 2020 as sales momentum slows in the u.s. despite keeping up with the kardashians, coty having an ugly day after a price set by wells fargo [ inaudible ] but the $600 million purchase of the cosmetics brand not enough to get wells off the sideline. the brokerage maintaining an equal weight on coty shares. up nearly 71% year to date. up next, economic heavyweights telling you whether phase one will push the u.s. economy into a new stratosphere and their take on vice chairman richard clarida telling liz moments ago what he thinks of the trade deal. "the claman countdown" will be right back.

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liz: everybody was watching this trade deal with china. now the president is saying that it will add markedly, even just this phase one deal, to gross domestic product, meaning growth here in the united states. could you say that phase one from what you can see here will add to gdp? >> well, again, it's too soon to tell and i don't know what the details show. liz: is that part of the problem, that we don't know the actual details? >> well, again, i think this is obviously a negotiation. it looks like it's going in a positive direction, but more broadly, what we have said is that global developments more broadly have been something we have been monitoring. you have had a global slowdown this year. emerging markets have been slowing down. there are muted inflation pressures so it's not just any one thing we are focusing on.

liz: vice chairman of the federal reserve, the number two guy at the fed, richard clarida, telling "the claman countdown" moments ago he really needs to see the fine print of phase one before declaring whether it has the power to spur economic growth here in the u.s. but he categorically said that the signing will eliminate uncertainty, and it's not the only impediment to the economy nearing the finish line. look at our race cars, usmca, the u.s. mexico canada trade deal all but done. the vote is next week in the house. prime minister boris johnson, who campaigned for brexit, put victory in the bag in the election yesterday, and the federal reserve announcing that rates will stay unchanged for next year, along with the china trade phase one deal completed. not signed, but completed. is it smooth sailing ahead? or are there a few clouds on the horizon? we bring in two top economists. our next guest is one of the most respected macro economics advisers to the fed.

grant thornton chief economist dianne swonk with us live along with milken institute chief economist bill lee. dianne, i will speak with you first. give me your initial thoughts on the breaking news of the trade deal. >> well, we still don't know. the good news is there seems to be some kind of mini deal out there, likely over two years. the chinese have been pretty reluctant to commit to exactly what they will be buying in agricultural exports, but i think it is good news if we roll back some tariffs from september 1st and alleviate the fear factor associated with the next tranche of tariffs which were scheduled for december 15th, on sunday. so that would be good news for the u.s. consumer, allowing the u.s. consumer to play the outlet that it has played even as the manufacturing sector has struggled with what will continue to be tariffs in 2020. liz: yeah. i mean, the sunday tariffs are not going to happen. they are kaput. the president said we are not going to do that, we won't slap them on china. but bill, give me your thoughts

on this, and that's got to be a positive, is it not? >> let me summarize everything that dianne just said by saying that all central banks around the world are sighing a collective sigh of relief because the uncertainty around trade is being alleviated and this forward momentum, not just in the trade talks but also with brexit and collectively, all the uncertainty around the world that's been stifling central banks stimulative easing policies is now being relieved. that's where the real progress is being shown. liz: dianne, you had said that you foresaw a recession next year. do you still see that now? >> i was worried about a recession if we continued on the track we were on in trade wars. it was really contingent on the trade war escalating, de-escalation is a positive. we will get through 2020 as long as we hit the pause button. i think it's really important to underscore that this does not eliminate additional tariffs and does not eliminate the entire uncertainty, but it alleviates it. agree 100% with bill on that. this is the main reason the federal reserve cut rates in

2019. i do think the fed will cut again next year and that's because as good as rich said the economy is, i know jay powell also pointed out that he would like to see a little more heat in the labor market and that means higher wage growth and acceleration in wage growth. i think they will need to cut rates one more time to get that acceleration that we need, as good as things are, there is still some places in the labor market that aren't as good as the 1990s boom and i think they would like a repeat of that. liz: bill, do you agree with that? even though the fed says no moves in 2020, dianne says you know what, we may still see another cut and to me, i'm thinking if things are so great, lower rates are for emergencies, are they not? >> actually, i would agree with everything dianne said up to the point of the next rate cut, because there's no executive out here that says the cost of capital is too high and they need to do more investment. what central banks are trying to do is say we got back to growth and if anything disastrous happens, we stand ready to do whatever it takes.

but what we should expect over the next year or so is how well the chinese perform to their promises. the test case that phase one has given us is the opportunity to see the chinese live up to their words. that's really what's in the air right now. that's what everyone is keeping their eye on. liz: we are keeping our eye on the dow which is up 18. we need to see a gain of 32 to have another record. records abound. dianne, bill, we are cutting it there. thank you so much. we really appreciate you coming on. we are coming right back. it looks like a record for the s&p and the nasdaq. any gain and we've got the confetti coming. stay with us.

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trade deal with china or simply confused? we are hearing from our charlie brady up in the newsroom that the dow has crossed the unchanged line 163 times, sort of desperate for some details here. charlie gasparino is here now with new information on why this might be a cautionary tale rather than a fairy tale. >> so is wall street. did they sign this thing yet? liz: montno, no, no. it will be signed in january by lighthizer and liu he. >> what? there's a thing? liz: there's a thing. it's called phase one. >> who signed what? liz: nothing has been actually signed. >> there's no thing. liz: well. >> is there a -- liz: waiting on the thing. >> is there a piece of paper? liz: yeah. >> it says phase one? liz: close to 80 pages, as i understand it. leather-bound. >> there's people signing it? liz: there will be people signing it. >> will be? liz: i'm not in the room. >> i'm just saying, i will say this, whether it's schwab ameritrade, whether it's china trade, do not say something's a done deal until you see it in

writing. liz: agreed. i agree. that is cautious. >> because a lot can happen between, particularly with the chinese. you know, with deals, it's boards of directors that are semi-rational. the chinese could tomorrow look at this and say we don't like that, oh, our interpreters thought you said x but you really said y, we don't like that. then the thing starts to unravel. i would just be real careful. that's kind of what the street is working off of, my read from talking to investors and traders. they don't like the fact that it's not signed. they don't like -- there's not much detail here. you know, details are kind of scant exactly where this moves the ball forward. the notion that it's phase one, that means how many more phases we going to get? liz: here's what i want to see. the soybean purchases, don't let your eyes glaze over. >> i'm always interested in soybeans. liz: we were exporting 35 to 39

million -- yeah, okay. >> tons? liz: yeah. million tons, before the trade war. >> all right. liz: what are they -- i need to see apples and apples. >> that's what the street is saying. liz: that or more. then we've got a really strong deal versus a dud deal. >> on the positive side, we should point out it does -- it means that we are not at war with them. liz: 100%. as richard clarida said it gets rid of some of the uncertainty. >> that's a really good thing but let's be clear here. let's take out the vocabulary done deal until you see signed documents. trust me. it's worth it on both corporate deals and on trade deals. we should point out -- liz: what about the t-mobile done deal? >> well, that's the whole thing. you know, they signed off, justice department says yes and all of a sudden it's being sued in federal court which it is by the state ags of new york and california. john legere did a great job, i thought. liz: in court. >> everybody that's been in that court. liz: the magenta man. he wore a magenta tie.

oh, my god. >> i think he did a good job. i think he did a good job saying listen, the status quo needs to change. the status quo is simply this. if you want sprint to be by itself, it's not going to survive, which it won't, by the way. it's not strong enough. it's not going to engage in price competition. if you want them to survive, you should do this deal, they get stronger with us, i will compete with the other side, with verizon at & t on price, and i think the judge, who is a clinton appointee, not exactly a fan of the trump administration, you look at some of his past rulings, just verbally seemed to agree. he raised issues with the government's estimates on how getting rid of sprint as a fourth carrier is going to really affect price competition when they're not competing that much. he kind of raised the issue. you know, in the background is dish, whether dish will be that fourth carrier the government says it is, and you know, i will say this.

charlie ergen's testimony, my view, more than my view, everybody's view that's watching this, is key. he's the head of dish. okay? if he steps up and says i'm going to do x, y and z, it's going to be hard to vote against this deal. if you are the judge. liz: just a few points away, i believe about eight points away from an all-time record for the dow. >> why does it say agreement? i didn't say that. liz: listen, peloton is up 2.25 -- >> why is it saying they reached an agreement? we don't know that. here's what they say. we can say they say they reached an agreement. liz: i agree with you. we don't know what's going to happen. the weekend is long. charlie, thank you very much. charlie gasparino. we'll be right back.

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session friday the 13th, the markets are within inches of record closes, particularly the s&p which is just slightly negative. you could call it flat but there's still a red arrow and we are oh, now it's up a penny and then we've got the nasdac up 15 points the dow just lost a bunch of it but it's still up about 2.5 points. all right for the week it's green on the screen dow, s&p and nasdac look to clock gains on the week let's go to gerri willis on the floor, for some of the weeks big winners and losers gerri: liz after i said don't forget it's friday the 13th that might explain some of the weird happenings in the market but the dow winners, amex got a price target hike, cisco their business models are changing so it appeals to small companies like amazon and microsoft, caterpillar higher on optimism about trade deal, dow losers boeing and 3 m, boeing of course we saw the deliveries, down for november and american airlines is taking 737 max jet off their schedule through april. those were the two big headlines

there. the 3 m, ubs is cutting that stock, to sell from neutral. so taking a look at nasdac now three chip companies leading the nasdac, western digital, sky works, micron, take a look at those. nice performance across-the-board, sky works also got bank of america slapping a buy rating on that stock. nasdac losers whose surprised here is facebook, the federal trade commission with an injunction to stop facebook from integrating its what'sapp instagram and facebook app so closely together. workday, another stock doing poorly here as well. back to you. liz: but i'm looking at this peloton, gerri up 2% with quite a mild ride. thank you so much. have a good weekend. let us bring in eric marshall, we talked about the dow, nasdac, s&p let's talk small caps and the russel. because i want our viewers to

know that year-to-date the smaller names are up 21%. that would have been a real winning bet, have you done it? but what do you feel that small caps are misspriced and what do you mean by that? >> well although small caps are up, they are still lagging the broader market and they have been now for the last four or five years, and actually, small cap through the end of the last quarter, were like at their 16- year record, as far as the divergence between the s&p 500 and the russel 2000 it was like over 10 percentage points and that's only happened three other times, and in each of those previous types the last one was 1989 you actually saw small caps catch up in the next 12 months, so although small caps have done well here in the fourth quarter, we do think that there is further to run into next year. liz: well look we're past

pumpkin and apple picking time as we head into the end of december, but you still feel that there are some names that are right for the pickings so we've got your little or . and picks here, cleveland cliffs and tower semiconductor, what's the common thread? >> yeah, both of these companies are companies that have company-specific catalysts going on and in the case of cleveland cliffs, they are in a situation where the stock has been sold off here on their acquisition of ak steel. when we peel back the onion there, we think that that acquisition will be highly accretive to cleveland over the next two to three years and we could see significant upside based on the type of cash flow that they've said they can generate, something like 900 million of cash flow, we think the stock could trade at $ 14, if they're able to achieve the numbers they laid out at the time of the acquisition. and tower semiconductor is a company that is really coming

out of the bottom of the semiconductors. liz: it's great to see you eric, thank you so much. folks it appears we will definitely have a record close for the nasdac, maybe too close to sell for the s&p. have a great weekend. melissa: ending the week in the green, major averages hitting record highs as phase i of the trade deal between the world's two largest economies is completed. the dow, is ending in positive territory, we've been seeing it flip back and forth looks like it's up three points. i'm melissa francis. >> i'm deirdre deirdre bolton in for connell mcshane, this is after the bell, for the s&p 500 fighting to close at an all-time high the nasdac hitting the mark for the second day in a row if you're counting 23rd of the year of course we have fox business team coverage for you, gerri willis on the floor of the new york stock exchange, edward lawrence at the white house, hillary vaughn on the ground in d.c., edward we start with