sherwin-williams, parker hannifin, keycorp and cliffs natural resources. i have no idea who wins the big game tonight, but i also don't really care, not because i'm not interested in baseball. i used to be a vendor selling ice cream at veterans stadium in philly. i threw out the first pitch last year against the diamondbacks. mike schmidt's my hero. it's that i like both the cubs and the indians because they're both underdogs like my teams from philly, so it's very hard choose which city will win when it comes to the stocks of their largest companies in terms of business. chicago beats cleveland by a mile, and i'm going to tell you why. maybe you'll learn something about stocks through this. let's go head to head like a pitching duel. first, the two big dogs, the aces. eaton versus walgreens. when the chicago-based walgreens last reported it delivered a very strong number and management made it clear they felt confident the regulators would let them buy rite aid, a sometime next year. i like that. it would be fantastic for shareholders. but even if the rit

we look at names like keycorp, silicon valley bank, the holding company, svd financial and bank of thewe're recommending. liz: let's put those up instead of usual suspects. those three are you believe are the next plays. can i assume that you feel that the bank names, at least the big rally here is a little overdone now? >> well they could have more to run. i tell you things we're watching and things talked about. what is talked about finally after six years we can take another look at dodd-frank and see what might not be working in that bill. remember even representative frank it might be changed and could be changed in certain areas. so if we get some of those roll backs in terms of limits like 50 billion in assets, when you get more regulation, if you roll that back, if we also get possibly higher interest rates and if we also get he any tax raw changes, those could be good things for the banking industry, especially for those 250 billion and under. liz: because they got killed and got swept in with the massive hammer-like regulations on major names like jpmorgans. you don't want to

i highlight keycorp. i thought those were good. i thought they had the best growth, best net interest margins of the companies in my purview. bb & t was no slouch either. the only disappointment in the whole group came from wells fargo, which not only had a really lack luster quarter, but is now regarded as the most i'm grateful that my charitable trust owns shares in citigroup, but i'm absolutely horrified that it has a big position in wells fargo, which has really hurt. still we've told actionalertsplus.com subscribers that wells fargo can thrive if the fed raises interest rates. of the soft financials, you had to be impressed with visa, mastercard, and american express. all of them were much better than i was looking for and their stocks remain reasonably valued. the second group that's performed really well this earnings season, the social, mobile, and cloud stocks, including google, facebook, and amazon. more on them later. you know what? i went over some of these quarters this weekend. adobe was really good. workday was good.

keycorp is only trading at half of where it was in 2007 before the great recession. i could easily argue it's a much better bank now. citigroup, which just boosted its monster buyback by $1.75 billion, giving it $12.2 billion in fire power to buy stock, isn't back where it was in july of 2015. yet since then, citi has cleaned up its balance sheet, boosted the earnings power, and gotten its tangible book value up to 64. that means that every dollar that citi spends on the stock down here at 55, admittedly up from 47 before the election, is the company is supposed to earn $5.17 next year, but i think it can earn substantially more than that if it keeps buying back stock, especially if we get a couple rate hikes. it seems likely. how can these banks be ahead of themselves when they're nowhere near where they used to be even as we're facing an easing of regulation, rate hikes instead of rate cuts, and the possibility of ending expensive litigation and compliance costs that are pure negatives from a bottom line perspective? the group is not a sell. it's a buy. or how abou

huntington and keycorp. percent as well on track for its first negative day over the last four, sara. back over to you guys. >> a little caution after that big rally. dom, thanks. quick news alert for you out of europe. the british supreme court has ruled that the recent article 50 ruling can be appealed. remember, that ruling said that a parliamentary vote was necessary to kick off the so-called brexit talks, invoking article 50. uk stocks jumped to session highs following this ruling. the british pound actually lost some of its earlier gains. the bottom line is this, the high court is now going back and forth over the legality of whether parliament needs to be able to vote on triggering those brexit talks. they're in uncharted territory after the country voted by a majority to leave the eu. we'll watch these markets closely. >>> now let's get over to rick santelli in chicago with a very special guest. rick. >> thank you, sara. i'd like to welcome my special election day guest, wilbur ross. wilbur, thank yo

so the whole new high list, 50 or 60 on the s&p, are all financials as you see here, keycorp., morganey, market savvy guys on your financial team, what's not to like about financials? a long list of why they're moving on the upside today. energy down about 3% in the last two days on what looks now like we might have a deal. all up rather notably double digits. these are dramatic outperformers and had been underperformers in the last few days. housing a little on the weak side. i think this is due to some discussions about perhaps, perhaps maybe they'll make some mortgage interest deduction. this is an old chestnut debating for 25 years. i doubt very much you'll see anything dramatic at the top, but there you see some of the stocks on the downside a bit today. major indices in november, you got to go back five years to see the russell 2000 up 11% in any month at all. the s&p more modest gains, but that's simply because financials and industrial gains were offset by declines in consumer staples and utilities and some of the big tech stocks that were on the downside. financials got to go

the leaders today, you've got charles schwab, regions financial, keycorp all up, bank stocks helpinge sector higher with the spider s&p banking etf, that ticker kbe, and the regional bank etf, ticker kre, both gaining over 2% as well in early trading. those etfs on track for their best day since early august, david. back over to you guys. >>> all right, thank you very much. the s&p up 1.73%, dom. now let's get over to rick santelli at the cme group in chicago. he's got "the santelli exchange." good morning, rick. >> good morning. david. i like to welcome my special guest the day before the election, ex-governor of indiana and current president of purdue university, mitch daniels. thank you for taking the time, sir. >> good being back, rick. >> quickly, two issues considering your resume i would like to speak to are debt and education. on the first, a lot of campaigning whether in 2012 or currently, the biggest drop in the federal deficit in percentage terms ever, that is true, sir. but 2009 at 1.4, '10, '11, and '12 all over a trillion, the story isn't the percentage drop. the story

yesterday, take a look at more, baird, bank of america, fifth third, capital one, bernstein fifth third, keycorpions, morgan stanley doing some downgrades, guggenheim doing downgrades. this is very natural when these stocks move double digits in six or seven days. yes, deregulation is nice. yes, corporate tax reform is nice. yes, higher rates is nice, but we don't know much about any of this where it's going to end. we just don't have much information. it's all moving on some vague ideas that at some point it's stopping and that's exactly what's happening right now. a lot's been said about lowe's disappointing numbers below expectations. their comps 2.7%, half of what home depot comps are. you see lowe's down here, home depot was down yesterday on some concerns about potential higher interest rates, maybe that's justified. maybe not. let me point out a couple things about why we're getting this under performance between lowe's and home depot. some good notes out this morning on this. number one is their less exposure to the pro market for lowe's here. pro is 30%, less market share gains and appl

the money centered banks are at new highs essentially, and all of the big regionals, your zions, keycorpame thing we saw on thursday and friday. a lot of optimistic talk over the weekend about growth prospects, things changing. ed hyman at isi, similar comments to a lot of people saying trump's victory was a game changer. very bullish on the economy of china thinking perhaps china's gdp could accelerate to 9% in 2017 from 6%. that was a bit of an eye opener for me. and you heard carl and jim talking about the earnings situation. earnings stronger than expected. q-4 numbers not coming down as much. and the brexit exit -- brexit risks, excuse me, receding there. now, mr. trump on "60 minutes" yesterday did say he was going to build a wall. who's the beneficiary of that? there's a couple of companies. look at flir, they do thermal imaging systems. build systems allow you to watch people in the dark trying to get anywhere, move across borders or around in houses, that stock's at a two-year high. we've been talking last week about infrastructure stocks. there are other names that are out ther

morgan, morgan stanley, zions, regions financial and keycorp.o the reflation trade is basically you're going out of internet, media and tech stocks and some telecom, interest rate sensitive. and you're going into energy, and materials, and industrials and banks. call it a reflation trade, whatever you want. there's another way to look at it. put up the second full screen. you can go out of low volatility names, out of consumer staples for example and going into growth names, going into financials, energies and industrials. there's actually a way to look at this at an etf structure. you put up low volatility etf, it's called the sphb, against the high beta etf called splv, and you get very interesting trade. in the last couple of days that high beta, there's that white one, has been notably outperforming here. that's energy, health care, financials and some tech. low volatility staples. you see the markets already moving in that direction. we see some infrastructure stocks hit new highs as well here like ingersoll rand and martin marietta also hi