for "nightly business report," i'm mike santoli at the new york stock exchange. >>> nike gets hit ontock downgrade and that is where we begin tonight's market focus. bank of america, merrill lynch to underperform, essentially a sell down from neutral, citing an increase in competition from companies like adidas and under armo armour. the bank/ed its price target to $46 down from $55, saying it's not convinced nike has innovative products in its pipeline. to 50.18. >>> cost cuts helped turn a profit with results exceeding estimates. the company said its refer knew grew. williams' shares finished the day down more than 1.5% at 29.to 20. >>> southern company topped profit expectations thanks to higher retail revenue and strong performance in a company subsidy area. southern saw its revenue rise. shares rose 87 cents to $51.57. >>> pharmaceutical distributor, cardinal health, said drug pricing pressures caused profit to fall but still results managed to surpass estimates. the company posted higher than expected sales. however, cardinal cut its earnings outlook for the year, citing short

mike santoli runs through some of the deeply discounted groups. >> 2016 has turned out pretty nicely for wall street with the average u.s. stock gaining more than 10%. that hasn't stopped the annual ritual of searching for the most beaten down sectors to play for a dramatic comeback in the new year. it's difficult to buck the market tide. buying stocks that have suffered extreme declines over a prolonged period can offer spring-loaded gains in years to come. a good example from the past year, coal stocks had lost some 80% over four years entering 2016. so far this year, coal stocks as a group have more than doubled. in hunting for such potential comeback plays, investors can start with sectors down more than 50% from their highs over two or more years. one group that now meets these conditions is specialty pharmaceutical stocks. makers of generic drugs have seen their shares drop by 50% to 80% since early 2015 on a litany of concerns over drug pricing and regulatory threats. names such as endo international, and mylan now trade at unusually depressed valuations. the pricing and polic

mike santoli. appreciate your time as well. all right. so what do you buy then? if you think this rally is based on fundamentals, that clearly makes the case that you think you can keep going. where do you want to be? >> well, one point that we haven't talked about yet, which relates to margins as stephanie suggested, is who can raise price? we're talking about costs going up if they're labor costs, and there are commodity costs that have gone up. remember, we're in an environment where we haven't seen inflation for a decade. now we're going to see a little bit of inflation, and there are definitely going to be winners and losers there. people who can raise some prices. whether it's on a consumer product, like netflix or apple or if ups can raise their prices, or commodity companies can raise their prices to miners, and we're going to start to see that in the next six months. particularly in areas where there has been deflation in pricing, and i think that's a factor in the market. >> this notion that, okay, you've had this great rotation from out of favor sector

mike santoli takes a look. >> by crossing before the 19,000 mark for the first time ever, the dow jonesndustrial average has exceeded most wall street forecasts made even a few months ago. yet as investors assess the meaning of this landmark it's worth remembering 1,000 dow points are not what they used to be. since the dow first hit the 18,000 level amounts to a 5.5% gain and took the dow two years to advance this modest distance after first reaching 18,000 in late december 2014. for an extreme comparison, after first reaching 10,000 in march of 1999, the dow added its next 1,000 points in only five weeks, at a time when 1,000 points equalled a 10% jump. during the 23 months since its first trip, the dow dropped below 15,500 after the federal reserve raised interest rates, oil prices collapsed and the chinese currency plunged. the bounceback from the february market lows came as the fed eased back on its rehiking plan. oil prices rebounded and the credit markets calmed down. on a fundamental level, it's no great surprise that the dow has taken a relatively long time to make its latest

for "nightly business report," i'm mike santoli. >> so can stocks extend their gains?oe durand is ceo of united capital. that's the question on the table, joe. can they? >> absolutely can. you have two big things that are affecting us today. one, what do we think is going to happen with the trump administration. if you end up -- if he passes only one thing, which is reducing corporate taxes, that has a huge impact on earnings. and they have companies to reinvest. if this one thing happens, it has a huge impact on future earnings growth and obviously that is very good for stocks. the second thing that's not to be ignored is the timing. we have got a time this week in particular, but also from here to year-end, typically a very good time to be invested, especially when the market has done better than 5% but not as well as 20%. i think you've got a nice tailwind here. again, you're going to see some volatility. we've got maybe too much of a trump lift since he got elected. so we'll see some volatility. but a lot of reasons to be quite optimistic. >> i don't want to be the

mike santoli is here joining us along with ubs director of floor operations art cashin.s, we've got mnunchin/ross and opec with the headlines officially crossing, 1.2 million barrels a day effective january. do you believe this is actually happening? >> i believe that that's what they're going to announce. whether it sticks or not is a completely different thing. 1.2 million a day. half of that will come from opec, half of that from the non-opec sources. we'll have to see what the russians actually do about it. we have a history over the last two years of these phenomenal short squeezes in the pits and they tend to overtread very heavily. so, i think that's where we are right now. we're a little bit ahead of ourselves. in my preopening comments, i had said the s&p would face some resistance at 22.12 to 22.15. we got up to 22.14 and stopped, so i think that's going to wrap things up. you may try it again today, but i think the riskance may hold. >> it's hard to deny the relief rally of 9% in crude. what devil is in the details for that agreement? what sticking point do yo

. >> and i'm mike santoli, i know who marlin pranen? i used to know who he is anyway. >> you want to share? >> a wieldeilderness tv guy. >> we hope bill is home having chicken soup. >> president-elect trump making his big administration nominations and announcing his picks for national security adviser, attorney general nca director today. we have all the details. >> meanwhile, stocks are giving back their early gains today, but it's been quite a week for the bulls with stock inflow levels not seen in nearly two years. we'll discuss whether the record trump rally has come too far too fast. >> trump has promised to roll back regulations but would that eliminate rules? >> we begin with the president-elect's new leadership appointments. john harwood has the very latest. >> kelly, we've got some action today on the transition front. three hardline appointments by president-elect donald trump. first of all, jeff sessions, the senator from alabama, to be the attorney general of the united states. jeff sessions is someone who was -- his views

i'm kelly evans along with joe kernen and mike santoli. let's look at equity futures after this record breaking session we had yesterday. the dow poised to open higher another 37 points. 17 higher for the nasdaq. s&p implied to open three points hire. just can't stop these moves, i guess. let's check out interest rates. ten year note they are a little below 2.3%. a level we'll keep an eye on. >> oil prices building on yesterday's gains. we have that opec meeting coming november 30th. a little bit of a hint and expectations that maybe there will be discipline on supply. brent crude ochgapproaching $50 barrel. global equities were in rally mode. picking up on yesterday's strength in the u.s. we saw basically across the board strength not quite a 1% move but you did have to the upside as well. >> i don't know if we'll see those boards. i saw shanghai. that's almost 3300. remember that was the one that we were worried about, breaking under 3000. i guess i one energy to some extent. i would think that if it was demand related i would be bullish

i'm kelly evans along with joe kernen and mike santoli. look at equity futures after this record breaking session we had yesterday. the dow poised to open higher another 37 points. 17 higher for the nasdaq. s&p implied to open three points hire. just can't stop these moves, i guess. let's check out interest rates. ten year note they are a little below 2.3%. a level we'll keep an eye on. >> oil prices building on yesterday's gains. we have that opec meeting coming november 30th. a little bit of a hint and expectations that maybe there will be discipline on supply. brent crude ochgapproaching $50

. >> along with our own mike santoli as we watch the dow tick above 19,000 for the first time. yesterday, of course, all four major indexes hit closing and intraday highs. what does this all mean? >> the path of least resistance is higher? this is how the market trades literally when the paft path of least resistance is higher. it's drifting higher. i think that happens around round numbers. i look at dow 19,000, all the caveats about how it's only 30 stocks, 1,000 points on the dow is literally not what it used to be. the most impressive thing was it was at 15,5 in february. we ft. first hit 18,000 at the end of december 2014. so over two years, you're up about 5.5%, point to point. why is that? corporate earnings flattened out for two years, going on three years. now you're getting more of an energetic push on this reflation period. >> fund futures hit 100.2% for december. now the market is coming to grips with the fact we will get a rate hike in december and market could keep going up when we do. >> absolutely. i do think -- you know, there's this old saying i like to point

i'm carl quintanilla with david faber and mike santoli at the new york stock exchange.n taking place. got some m&a, fed speak returns, a lot of information this week, dow up 28 points having hit all-time high in the first few minutes. >>> road map this morning starts with the markets of course. as you see stocks continue that trump rally. the dow hits an all-time high marching towards 19,000. how far can the bulls run? >> plus, trump transition picking up steam, new appointments, a "60 minutes" interview and campaign meeting with nigel farage. we'll speak with one of trump's advisor advisors. >> and we're going to hear from former fdic chair sheila bair and get her take on banks and deregulation under president trump. >>> two well known boutiques joining forces. kate kelly is here with more on that. >> good morning, carl. interesting news out of new york and houston, perella to combine with houston based investment bank known for energy practice. they'll combine into one firm with total $12 billion under assets in management, more than 650 employees across multiple citi

i'm sara eisen along with david faber and mike santoli. here at post nine at the new york stock exchange. carl has the day off. let's take a look at where we are on the markets. another record day for the major averages. the dow is up a quarter of a percent or 50 points, which means a record high. s&p 500 up 0.2 and the nasdaq little changed. wti crude though off about 1.25%. 47.36 ahead of the big opec meeting next wednesday. >> let's get to our road map this morning, and it starts with, well, where else of course, holiday retail and the pulse of black friday. we're going to take you around the country and as well to retailers bottom line. >> plus, markets in the trump rally, the dow and s&p as i just mentioned making all-time highs. sectors and stocks to watch for the rest of the year. >>> and speaking of the president-elect, a transition day for commerce and a fight to keep a carrier plant in indiana comments, we'll have more on those negotiations. >>> but we start with retail. many stores already opened yesterday on thanksgiving day, b

with us, mike fort, mike santoli at post 9. breaking news, obviously, the markets holding relatively steady following that surprise donald trump victory last night. dow futures had been pointing to a loss of about 800 points at session lows. that would have been the biggest point loss for the dow in its history, but clearly not coming to fruition. we're up 31 right now. we're awaiting comments from hillary clinton, expected to make her first public statement since trump secured those key 270 electoral votes earlier this morning. we expect to see the secretary at the lectern at any moment. we'll bring those comments to you live. we're also expecting comments from house speaker paul ryan in wisconsin at 11:15 eastern time, when he comes to the stage. we'll take those comments live. obviously, the markets are the big story this morning. it was shaping up to be a wild ride, but it's a lot more muted. we've got you covered on all fronts. bob pisani, let's go to you. >> the only thing everybody was not expecting was a flat open, and

. >> and i'm mike santoli, i know who marlin pranen?u want to share? >> a wieldeilderness tv guy. >>

mike santoli.e back, the death of former cuban president fidel castro opening the door for president tru president-elect trump -- take a look at where stocks are trading at this hour. dow within a narrow range but down 46 points. a lot more "squawk on the street" is after the break. at'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade sometino big deal.shing my gums bleed. but my hygienist said, it is a big deal. go pro with crest pro health gum protection. it helps prevent gum bleeding by targeting harmful bacteria on your gums. left untreated, these symptoms could lead to more serious problems including tooth loss. gum crisis averted. >>> the death of former cuban president fidel castro leaving the door open fo

talk about a feel to the market, has that quasi euphoric kind of, like, today i think if you ask mike santolit up, which was much earlier than i did, and said to him, is it going to be enough, he said absolutely. you had that feel, as soon as the market opened it was up and not going to close down unless something bad happens. i would say that theme holds until the end of the year, which is -- it will -- things will go higher as long as something bad doesn't happen. i can't say what that bad thing might be. >> sure, you never can, but you know that's the kind of risk around the corner. chris, you were saying your clients are asking you can this rally continue? what are you advising of? >> absolutely. one thing i need to -- i think we need to stop calling this a trump rally and call it a certainty rally. there is a lot of uncertainty heading into the election. that's why everybody is sitting on the sidelines. and what we're seeing is just some confidence in the market, consumer confidence numbers, we're seeing just money moving around and reallocating itself. so to apps eanswer the question th

. >> and i'm mike santoli.. >> that's amazing. >> as we say, the major averages all on track to close at new highs today. energy leading with tech and utilities not far behind. >> and the small caps are playing a role. the russell 2000 is seeing the longest winning streak in 12

. >> and i'm mike santoli. they were in unison. >> that's amazing. >> as we say, the major averages all on track to close at new highs today. energy leading with tech and utilities not far behind. >> and the small caps are playing a role. the russell 2000 is seeing the longest winning streak in 12 years, but the russell is underperforming today. >> it is. nonetheless, the dow is now up 5% from november. that's the fifth best monthly performance for the blue chip index in the last five years. >> and stocks are continuing to surge in the wake of donald trump's presidential victory. investors are bidding a lower tax environment will be good for stocks. coming up, we'll speak exclusively to the man in charge of writing tax laws for the house, congressman tom brady. and we'll talk about the potential cabinet picks as conflicts of interest rise for the president-elect and his real estate empire. outside of trump tower, ayman is the there, we thought we would have results by now? >> reporter: the door has been spinnin

mike santoli joins us at post nine covering a bunch of angles over what we've seen the past two weekswhat is it sometimes you say the cliches fit. >> yeah. >> what does that mean? >> i think in this case the whole path of least resistance seems to be up. people seem to be rotating out of safety out of bonds into stocks. and i think we're in this comfort zone along a few fronts. at least this explains why we got here in stocks. which means inflation going from too low but not yet too high. oil is not collapsing, but it's also not near the old highs. everything seems to be in that period where, you know, rates, i think, as well. 2.35 on the 10-year only seems high because we were at 1.36 a few months ago. it's not otherwise high. so i think you had warren buffett say until the 30-year gets to 4%, stocks seem to be a better deal. well, we're just over 3%. so until all this falls apart or until you have some disorderly selloffs in the bond market, i think everything can be okay for a little while. >> you are obviously on guard for things getting bubbly as you put it. >> yeah. >> but you s

i'm david faber along with kayla tausche and mike santoli.e from post nine at the new york stock exchange. carl quintanilla and sara eisen both off today. let's get a look at the markets and oil. we're up on both. the s&p at this point up about 0.31% and wti having quite a good day with 1.7% move higher. in the meantime, for reserve chair janet yellen getting ready to testify on capitol hill before congress's joint economic committee. steve liesman joins us now to fill us in on what we can expect. steve. >> good morning, david. janet yellen testimony just a few minutes from now, she's going to use some of her most definitive language yet to signal a coming rate hike saying one could be, quote, appropriate relatively soon. she repeats the words from the fed's most recent policy statement that the case for rate hike has strengthened. and she adds a new warning about the dangers of delaying a rate hike. the market judges a nearly 90% chance of a rate hike in december. and yellen's comments seem to backup that conviction. the fed chair said they

i'm mike santoli. do you hitting 19,000 today for first time ever.e will look whether it is a sell signal for investor or if there's an opportunity to make money. >> a big day. dow hit a record close five times since election day. s&p up 2.7% since trump's win, two weeks ago. only two other newly elected presidents saw a big gain following their election and they are ronald reagan and richard nixon. is it for the next four years or not? coming up. >> latest from trump tower and the president-elect's transition team and why some of the biggest names in technology may not be happy trump is taking the trans-pacific partnership trade deal off the table right now. >> plus a new report says amazon wants to live stream sports for prime members. we will break down what it could mean for espn, yahoo! twitter and others. it is a nice thought, keep it going. >> keep you pretty relaxed, that song. >> let's get to the market records. you're tracking the action of the stock exchange for us. bertha is up. first to you, the dow is running at 19 k. >> reporter: it to

with us, mike fort, mike santoli at post 9., obviously, the markets holding relatively steady following that surprise donald trump victory last night. dow futures had been pointing to a loss of about 800 points at session lows. that would have been the biggest point loss for the dow in its history, but clearly not coming to fruition. we're up 31 right now. we're awaiting comments from hillary clinton, expected to make her first public statement since trump secured those key 270 electoral votes earlier this morning. we expect to see the secretary at the lectern at any moment. we'll bring those comments to you live. we're also expecting comments from house speaker paul ryan in wisconsin at

i'm david faber with sara eisen and mike santoli and we are live from the new york stock exchange.th off today. markets close

i'm joe kernen along with michelle caruso-cabrera and mike santoli.our are about where they were, improved maybe a little. down 13 now on the dow indicated less than 3 on the s&p and the nasdaq continues to diverge. first it was weaker than the rest, now it's kind of been playing catch-up and it's up about 1.5points. >>> here's what's happening at this hour. james bullard leaning towards supporting a rate hike. bullard says the real question is where it will go next year. he's one of six fed officials will public appearances today. >>> amazon is about to roll out its amazon prime video service in 200 new countries according to "the wall street journal." right now it's available only in the u.s., the uk, germany, austria, and japan. following netflix around the world, i guess. >>> meanwhile, gap shares under pressure in premarket trading. the apparel retailer did see after the close but saw its seventh straight quarter of sales. you see the stocks giving back. >>> switching gears to politics. president-elect donald trump has offered michael flynn the j

mike. good stuff. see you next hour. michael santoli. let's get to our "closing bell" exchange as we wrap things up for the week. peter costa from empire standing by and we have rick santelli checking in from chicago. it's happened twice this year. the market got brexit wrong and got this election wrong. the way the market has responded has been a 180 here. >> this is beyond brexit. this is the most -- i have never seen this in 36 years of being down on wall street where everyone got it wrong and the media got it wrong with donald trump. the investors got it wrong with the way the market was going to react if trump won. it just seems like i don't really know if there is an explanation. i can try to figure it out. i think a lot of people believed a lot of the hype about the market was going to sell off but in reality if people are going to invest they are going to invest in the next administration. what is his belief? he is looking at rebuilding the infrastructure of this country. he is looking to build jobs with infrastructure improvemen

joining the panel to talk about the market we have cnbc pro columnist michael santoli and joining us jeff davis. mikeoday sort of flat on the major averages but beneath that the story of sector performance and under performance energy got crushed. >> energy was the outliar. i think the past two days you have actually seen the market kind of turn around and digest outside sector moves that we had. the overall market hovering right at those old highs. it reminds me a lot of the way we stood three weeks after post-brexit low. the market turned side ways with different groups. a little bit overbought. a little ahead perhaps but i think the market is kind of hanging in there and retaining most gains for now. >> let's put this on the record now. the nasdaq had an intraday all-time high. bertha coombs with that. >> the nasdaq performing strong today and really on the back of a quartet of large cap stocks that hit all-time highs. charter and comcast, our parent companies shares hitting all-time high today. some relief there that at&t's pricing on screening services of directv is competitive with cable prices

santoli along with ralph. for more on today's market action fast money trader guy adami. mikelback today, a lot of people saying the trump rally was just built on hope and it is over. >> didn't take great plays really. happened fairly low amount of drama. i do think it is a logical place for the market to flatten out. you had some short term investor sentiment measures getting happy. it's not the decisive factor but the fact that people rebound. you would be selling stocks to buy bonds. you see that activity. the russell 2000 was on a bit of a ridiculous tear. so all of this stuff is at work plus you have big stuff happening, opec meeting, italian referendum. to me a logical pause. >> would you try to trade oil ahead of the opec meeting? >> no. you know exactly what i'm talking about, bill. i know you know. sara sara eisen is making one of these faces. playing the role with the transports. if you look at transports. >> is that a sports thing? >> there is a real potential for double fop you go back to heisman. in terms of trading oil ahead of this i will say that oil volatility

santoli along with susan ox. steve grasso joining us as soon as he is done on the close. mike supposed to be the nasdaq. now the dow is at a record high. >> i think the guys were just talking about bill and bob you had areas of the market that really got super stretched. everyone rushed to price in certain policy assumptions. i think he did see moderation there and didn't see small caps and winning huge. i also was i think it is positive to see the emerging markets up 2% today. that was down 7.5% or so, 8% in the prior week. i don't think you want to see the u.s. market prosper to the exclusion of other things. i think it is a healthier market but we are not just trying to guess about policy impact and we are talking about is the consumer in good shape. >> and how about the retail sales number? the monthly was up 0.8. the core was up 0.6. grocery was solid. department stores were weak. consumer overall message was good. >> to what mike is saying i think there is uncertainty. people are guessing. there is a lot of speculation about what is going to happen with the market. i thi

santoli. and for more on today's market action we are joined by fast money trader guy adami. mikeere are we? yesterday's rally on top of today's. what does that signal about what happens tomorrow? >> i think the market has obviously been incrementally taking back some of the losses of the prior nine-day losing streak when it looks to be in more doubt. you can see we are matching right up. i think thearket is pricing in what the probability suggests is the outcome. we are basically trading where we were october 11. we thought we were in this range and nothing was going to disturb it. i think we are back there and probably if it goes as the market expects we have another rally attempt tomorrow. >> in terms of politics before the fbi new letter to congress and the trump started surging again. >> there was a bit of a scare to get this trump shock. we are taking back that probability. >> i grew up believing while none of us knows what is going to happen that is until the brexit vote happened and the market missed the polls ahead of time. all bets are off. the level of complacency is at

santoli. also paul nicky. fast money trader steve grasso will join us here shortly once he is off the floor. mikeesn't bode well to have a streak like this. >> it has been pretty oppressive. at first it seemed like just a little bit of nervousness, buyers stepping back. now people decide to hedge. this is not people saying get me out of the market. it is we don't know what is going to come. then you have things like facebook. i think it scares people out of the big shocks. it's like why am i going to step in when it seems like it is such an extreme scenario? a lot of people have been looking for some opportunity to get these conditions to some kind of oversold extreme which could say we are due to a strong balance attempt. >> with lowest close since july 5 you can look at it as a chance to go back several months. >> you can say that. to what mike was saying we have been seeing news on earnings. average stock is down over half a percent. the beat rate is better than prior quarters. people are just selling. when you look at it there is this concern over the election but keep in mind, too, economic

santoli. along with stephanie lee, and for more on today's market action, "fast money" trader tim seymore stops by as well, mikee strength especially in the s&p and nasdaq today. >> it was pretty sturdy yib even below the surface. the dow made it look like kind of a nothing day, but actually about two-thirds of all stocks up, the average stock up about half a percent. so i do think it's probably somewhat encouraging. i think sentiment is the thing to watch right now. watch for it to get a little bit too ebollient. i don't think it's a full-on change, except with the possible exception of the bank stocks. >> i think it's about the chase, about seasonality, and we're awaiting fiscal stimulation. but i think you're seeing a little bit of the chase in a variety of different sectors. but the data was good today, right? the initial claims and the housing data, and that actually is what turned around our rate picture. and once our rates turned, the financials turned and those have been the leaders and they continue to be the leader. >> the housing data starts for single family homes was the best in nine years. just a

santoli. let's bring in jimmy pete, economic policy analyst for the american enterprise institute, cnbc contributor, and alan gail. as an investor, you heard mikeand what he had to say. how much of this 4%, 5% run, it has been 20 some days, how much of that is the election and how much of that is let's buy ahead of an expected growth in the economy? >> well, mike did a great job of outlining what is going on. we have been overweight equities prior to the election in the allocation strategies that i manage, and the reason for that is that the macro environment has been improving. job growth has been good, we saw the case-shiller numbers come out, shows that consumer balance sheets are strengthening. another number that came out this morning, consumer confidence, was also higher. again, it is very important to point out that turn in corporate profits. i think that means we'll get better cap x pending into 2017. so you've got a favorable macro climate to begin with, so we were overweight stocks, and then you throw in the rotation after the election, and the fact that we could get some legitimate fiscal stimulus that a lot of people on the street h