mike santoli takes a closer look. >> reporter: the current bull market in stocks is old by historical standards, but at the moment refuses to act its age. the market run that began in march 2009 is nearing its eighth bir birthday. in recent months and particularly since the election of donald trump, the sector is doing best resemble the usual leaders of a bull market just getting started. smaller, riskier stocks surged ahead of big stable ones. economically sensitive industries such as railroads, autos, motels and banks are among the biggest winners lately. and very few of the older market advance have emerged. these include very high valuations, overheated investment fads or rampant speculation among smaller investors. so what explains the youthful behavior of such a mature bull market? face value, the rapid shift toward more sick california faster moving stocks on jobs, spending and business spending. along with optimism about possible tax cuts, fiscal spending and deregulation under a president trump. some market-watchers also argue the bull market is not truly as old as it looks.

for "nightly business report," i'm mike santoli at the new york stock exchange. >>> elsewhere, deutscheank could settle with department of justice this week. and at least according to reuters, the amount they settle for could be less than the $14 billion originally reported. this settlement, of course, relates to the sale of toxic mortgage debt that con contributed to the 2008 financial crisis. back in september, there were reports that surfaced that deutsche bank could face that $14 billion penalty and it prompted the bank to deny speculation that it needed any bailout from the german government. >>> the head of the international monetary fund has been found guilty on criminal charges linked to the misuse of public funds. the case is linked to christine la lagarde. the judge did not impose a fine or sentence. experts say that may allow her to keep her position. but the organization's board will have the final say. >>> a hedge fund founder and other executives were charged today with defrauding investors, making it one of the largest alleged scams since bernie madoff's ponzi scheme. and

mike santoli was tracking the ups and downs for us. we're going to walk through some of the market's biggest trends and events. good to see you, mike, as always. >> hi, sue. you as well. >> all right, first, the worst start to the year ever. i still remember that, thinking, whoa, this is going to be a rough one. what triggered the decline? >> you know, it was really several hostile trends coming together at the beginning of the year. oil prices were collapsing, as you mentioned there, going below $30 a barrel, really to levels nobody saw, and it happened in a hurry. that destabilized lots of other markets, for example the market for corporate bonds was carried down by that. at the same time, there was a fear of a steep chinese economic slowdown and global industrial production was coming down at a fast pace. so, essentially, all this suggested to investors that the risks of a recession here and across the world were really rising at a time when we actually thought the economy was going to be on decent footing. so, all of that did feed o

for "nightly business report," i'm mike santoli. >>> and before we go, here is another look at whereket stands. the dow notched its 17th record close since the election, rising 91 points to 19,974. the nasdaq to an all-time high. the s&p 500 up 8, just shy of its own record. >> it will be inching across the finish line. >> or limping. one of the two. that's "nightly business report" for tonight. i'm sue herera. thanks for joining us. >> i'm bill griffith. have a great evening, everybody. see you tomorrow. >>> "nightly business report" funded in part by hss. >>> our value principles are patient first, and we want to deliver the highest quality care. >> the goal of creating and sustaining value is all about putting the patient at the center of the equation. >> the purpose of this organization is to help people get back to what they need and love to do. [opening bells] ♪ all: ♪ we wish you a merry christmas ♪ ♪ we wish you a merry christmas ♪ ♪ we wish you a merry christmas ♪

mike santoli takes a look. >> reporter: no ceo would ever likely enjoy an incoming president trying totate how a business should be run. but the current generation of corporate leaders is perhaps uniquely out of step with president-elect trump's approach to production, trade and capital investment. for the most part, today's ceos are globalists, climbing to the top job by creating global supply chains and pushing to maximize open trade relationships. they have also come of age in an era of constant productivity enhancement aimed at minimizing labor costs. in the current economic expansion, labor shared economy has remained depressed compared to the long historical trend. on the financial side, most ceos have a bias toward sending excess cash to shareholders in the form of share buybacks and dividends. all of these ceo priorities run counter to trump's push to have companies make more products in the united states for the american workers. his threat to punitive tariffs and promised incentives to plow cash into new domestic projects. some corporate consultant liken the challenge to the

mike santoli has his pick. surprise market story of 2016.ou're watching "worldwide exchange" on cnbc. we'll be right back. his, the stuffhat maers? stak are so gh, the stuf youreaers? how you solvehis? you don't. you paner with firm that ses vernmes ane fortun500, and, can deliver insight person to person, on what matters to y. an stanley >>> good morning. trump rally, can the dow extend its seven week win streak in the final trading sessions of 2016? >>. >>> wall street agenda. consumer and housing set to dominate today's conversation. >>> today's top trending stories including a very fit list of the most downloaded apps. it's tuesday, december 27th, 2016. you're watching "worldwide exchange" on cnbc. ♪ >>> good morning and welcome back to "worldwide exchange" on cnbc. i'm sara eisen alongside michael santoli who is in for wilfred frost. earlier i said happy monday. it's tuesday. >> that's how people feel. >> it's also the last week of 2016. so all week we're playing the top songs of the year. >> that was only from this year. >> only from t

mike santoli, back down to you. the professor makes a good point in terms of the retail professor getting in. could hedge funds, though, in today's market be the retail investor ofie yesteryear? >> on paper the environment should be relatively target-rich for hedge funds right now. they're losing capital. obviously, they have big withdrawals. they're not in a good position to be as opportunistic as you might hope them to be, but i do think if you look at this rally, it's not been about every stock of the same percent. it's been biforcation, winners versus losers. i don't think that just having that on paper means it's actually going to be a formula for success. i don't know that that's really going to be the storyline into next year. i really do think that the more this rally is purely about a trump rally, is purely about policy expectations, maybe the weaker the fundamental case for it is to be honest with you. i think you want this to be -- we were pent up over two years and going flat. we need to go higher. it sh

may be talking about all the reasons we're going to be hitting dow 20,000 and i'll be turning to mike santoliill give you endless amounts of statistics on that. i did happen to look at the dow this morning, mike. >> yes. >> you'd be happy to know united health care one of the best performers, caterpillar. goldman sachs has come from well behind to put up a stellar year as has j.p. morgan. all contributing. >> that's right. >> to what will be that approach. >> and those are the industrys that have done very well. also the higher priced stocks have done well. so there's a lot of focus when you get to these landmarks on construction of the dow and the specifics of which stocks move it more and less and kind of the antiquated version of it. i pulled up a ten-year chart of the dow and s&p and just so happens they are in precise lockstep over that span of time. they give to and fro, but right now you're in a kind of market that's pretty good for the dow. it's large cap, it's value, it's industrial, it's financial. >> i wonder whether if we do hit that milestone we suddenly see a bit of rotation. be

mike santoli. let's talk more about the round number curse with us is jeff hersh, editor in chief of the stock traders almanac. is there such a curse, do you think? do you think the round numbers provide a ceiling? >> i think michael hit on it with the base ten levels being very difficult to clear, 20,000, doesn't seem as difficult to us right now. >> nothing to worry about until 100? >> i think we have some things to worry about other than that. profit taking, but i think the most important part is the strength is -- we have seen that. we have a rally after a new party gets into power. we have some progrowth policies coming in, potential government functional ty brings my old forecast into play from 2010 i put out there. >> what is that number? >> 38,000 . >> dow 38,000. >> i want to make sure our audience. >> by 2025. >> maybe makes it more believable than it was back in may 2010 when the dow was around -- >> by 2025? >> that's what the title of the back was. >> to brian's earlier point, easier a

also with us from the nyse senior markets commentator mike santoli. i am tired of people saying dow 20k does not matter. >> it's down 20 thou. not dow 20k. 20 thou because it rhymes with dow. dow 20 thou. >> all right. >> whatever you want to call it. whatever you want to call it. >> okay.

mike santoli said signals point to green even if you do see pauses and pullbacks like we saw in yesterday'session. he's looking at credit conditions and shows a bullish picture. >> it's behind risk on sentiment longer term question as we push into 2017 is this rise in yields going to be a positive factor for gdp growth and inflation or something that derails risk sentiment in a way we thought it would have done six months ago. but for now momentum is certainly towards buying risk. >> one big test is the fed. that brings us to today's economic agenda. fed begins that two day policy meeting. we have to wait until tomorrow for the big decision, 2:00 p.m. interest rate decision. also on the agenda the. mfib releases its small business optic. and import and export prices are out. and a reminder on tomorrow's fed meeting, tomorrow will be the full shebang. coroner nbc will be all over pinpoint to politics donald trump will be naming his choice for secretary of state finally today. the president-elect taking to twitter to tease that announcement. he's expected to pick exxonmobil ceo rex tillerson

with me at post 9, kelly evans and mike santoli. good morning to both of you.l and jon have the day off. join us today, elevation partners co-founder robert, tech and markets. we start with oir top toir, russian president vladimir putin responding to the obama administration's decision to expel russian diplomats and impose sanctions on two of the country's intelligence agencies. our john harwood is live in washington with the latest on that. john? >> we've heard from president obama yesterday. we heard this morning from vladimir putin saying he was not going to engage in a tit for tat response. now it's up to president-elect donald trump who conceded last night he's going to accept a u.s. intelligence briefing on this issue which he has dismissed in the past. >> after he talks to them and i think they're going to be overwhelmingly certain of their evidence, he's either got to come out and acknowledge that this did happen and that it's a problem for american democracy, not just for secretary clinton, or he's going to have to come out and far more dramatically th

with me at post 9, mike santoli and kelly evans. karla and jon have the morning off. we start with the markets on this thursday. the trump rally taking a bit of a step back as we continue to hover more than 100 points below dow 20,000. the blue chip index coming off its second triple-digit loss since the election. major averages are fractionally in the red, mike. the s&p down less than one point, ritch etting stuff here. >> yeah. >> struggling to tread some water. we've been doing that for about two weeks. it reminds me of in august and september we had that really strong rally on the post brexit reaction and the market sort of flattened out near its highs. we ended up kind of going down about 3% i think high to low. wasn't a big, dramatic move but after a while when you lose those thrusters pushing you up, the market starts to rethink the levels and maybe we're in one of those phases. who knows? we have year end and obviously the anticipation of an inauguration, a new wrinkle. >> is this profit-taking or window dressing? what what activity is happening? >> profit-tak

with me at the new york stonge at post 9, brian sullivan and mike santoli. both for joining us. carl and jon have the morning off. we have news from the trump transition and john harwood. >> we've just had the transition call with the incoming white house press secretary, sean spicer. he said that donald trump around 4:00 today is going to have an economic development announcement that will be good for american workers. didn't specify what it is, said he wants to keep everyone guessing. don't know if it's something like the deal that he engineered with carrier to try to preserve some jobs that were headed for mexico or a new investment. of course, he met with the softbank president who pledged $50 billion investment in the united states. don't know what it's going to be, but we will bring it to you when it happens later this afternoon, guys. >> and of course, it is a little bit more, john, than two weeks before we are expected to learn about what the president-elect will do with his own businesses. you mention that this will likely have to do with a company

i'm david faber along with sara eisen and mike santoli. let's give you a look at futures on this opening of the day of the week. most european markets also back from the holiday break, although i believe the uk closed for a bank holiday. there you see the markets that were open. more or less in the green this morning. the ten-year note yield, price was down a bit if i recall. there we are on the yield there, around 2.56 with crude up yet again. we've also got some breaking economic data. the latest s&p case showing home price reports out. prices registering 5.6% year-over-year gain and that was up from a 5.4% gain in september. so sequentially an increase there. let's get to our road map. >> and it begins with the march to dow 20,000. with just four trading sessions left, will the dow hit the milestone by the end of the year? >>> and president-elect donald trump announcing plans to dissolve the trump foundation ahead of inauguration day, plus tweeting about the market rally and holiday spending. we'll give you all the latest. >>> plus reta

we know you'll be here all day, mike santoli with the dow. and we are at 19,900, just about 100 points away, carl, from 20,000. >>> meanwhile the president-elect nominating exxonmobil's ceo rex tillerson as secretary of state. john harwood is outside trump tower with more on that. good morning, john. >> reporter: good morning, carl. first of all, there's something unpredictable every single day here at trump tower and we just had one. a new example, which was that kanye west came to trump tower, met with donald trump, came down into the lobby after the meeting and they had a nice embrace and hug there. kanye west, of course, recently hospitalized, now out. and that was a moment we didn't expect to see in the campaign. however, it was not as big a hug as donald trump this morning gave to the fossil fuel industry, big oil and to the values that he expressed during the campaign. we expect him shortly to nominate rick perry, former governor of texas, as his energy secretary, somebody very close to the oil industry himself. but he has formally nom

. >> our mike santoli was reminding everybody how some of the overseas markets have done. the european markets have performed better than the u.s. market. >> europe is cheaper than the u.s. market, but europe has issues. >> they have issues but with mario draghi beginning the tapering program today is that a signal that maybe they're on the mend to begin with? >> i think you cannot strategically not saying i'm y buying europe, but buy individual names that play to themes. nestle is a name that makes sense to mep about for somebody like siemens or the old asa brown braver ra. you can take out a shotgun but not just buying europe. >> jeff sauk from raymond james joining us today. the dow up 59 points. >> then after the bell we'll be going live to trump tower where reports are circulating about the nomination of a new labor secretary. you're watching cnbc. s my headq. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i

mike santoli, our resident baseball expert, says, this is like a hitter achieving their 3,000th hit,kay? it's a milestone in the career. just another hit, but a milestone in a career, and then you have to take stock and wonder, what happens from here on out. >> look, i thought i was coming to a party. and this is the third time in the last couple of weeks i thought i had an opportunity. and i don't think i'm going to get my hat today. but i think it increases the animal spirits. and yeah, it's an important event. it kind of marks how far we've come. we've come a long way. but look at the crisis we've come through. i'm excited about it. and -- but i know there's a pretty big economic divide between rhetoric and policy and we'll have to get there. >> excuse me, i'm going over here for -- you go ahead. i'll see yo uh guys later. >> david and david, so you were just talking about growth prospects for 2016. the question now is, how much is priced in and how strong really are they going to be? especially if they don't deliver corporate tax overall, maybe until the back half of the year. >>

i'm carl quintanilla with sara eisen, mike santoli at post nine of the new york stock exchange.aber is off today. don't let the markets fool you, are getting some moves a lot centered around research but whatever works, dow's up 37 right now just shy of 19,900. s&p up 4.5 to 2262. >>> our road map for the hour begins with that stubborn path to dow 20,000. one sector falling behind, retail, during what should be one of the busiest times of the year for that sector. we'll talk to a technical analyst on which levels to watch. >>> a closer look at trump's infrastructure plan, one company getting a big boost, u.s. concrete. the shares have soared 30% since the election. the ceo's coming up. >>> and imf chief, christine lagarde found guilty of negligence during her time as finance minister. we'll have details on this developing story later this hour. >>> let's start with the markets rally mode since the fed's rate hike last week, the dow closing in here again on 20k. we're just a little over 100 points away. there's still investor skepticism though about 2017. joining us now to discus

i'm david faber along with sara eisen and mike santoli.e live from the new york stock exchange. carl quintanilla has the morning off. let's give you a look at the futures -- futures, that was last hour. we actually have an open market. you can see we are down less than 0.25%. that had been sort of the low for the morning for the s&p, the nasdaq also in the red and we have crude oil rallying a bit. >> our road map for the hour begins with a march to 20,000 after the dow tapered off from its all-time highs, will we reach that historic number in 2017? our market experts will weigh in. >> names familiar to our viewers, carl icahn and peter navarro have been tapped by president-elect to serve as advisors. we're going to break down what that means for this administration. >>> and donald trump meeting with the ceos of boeing and lockheed martin yesterday to bring aircraft costs down. we will speak to retired u.s. army colonel jack jacobs for his insight on the defense industry. but first, we've got more economic data breaking at this hour. rick s

i'm carl quintanilla with sara eisen, mike santoli at the new york stock exchange. faber has the day off. we're down about 12 points trading a little more messy this morning as we see some rotation, goldman the laggard on the index today. we have some breaking news this morning, some charges being filed as federal prosecutors gather in new york. dominic chu at headquarters has that for us. dom. >> -- securities fraud later on this afternoon at about noon preet bharara, u.s. attorney in new york, is going to basically go through a press conference talking about these charges. it involves the new york state common retirement fund and one of its fixed income directors and portfolio managers in the allegations being put forth it's alleged that this particular fixed income portfolio manager took bribes in the form of lavish entertainment in order to steer business allegedly to two different broker dealers. the people on the other side of that trade, or the people executing these trades, debra kelly, which worked for broker dealer number one they talked about, and then gr

. >> mike santoli joining us for the watch.e are glued to that dow chart and we got awfully close. so what are you watching? >> look, you're obviously watching the industrials within the industrials. it's been a very dow centric rally just because of the fact that we have been privileging these cyclical stocks that do power the dow. i think it acts as a reminder of how far the market has come. it's not just about some kind of milestone that you tag, it's a little more like we were at 1 155 -- the narrative is based on things that might or maight not happen next year. >> why does it seem, mike, like levels like this are tortured experiences? people are point to obvious ones, the nasdaq 5000, dow 10k. oil at 100, remember that? >> you spent very little time above 100 and spent four years hugging that line. i don't know if there's one of those observational effects. the s&p had a really hard time with 2100. it just didn't get as much attention because 2100 doesn't roll off the tongue. it's not that round a number. >> brian, just t

i'm david faber along with sara eisen, wilfred frost and mike santoli.e're live from the new york stock exchange on this last trading day of the year. jim and carl are off today. i think everybody will be back on tuesday. let's give you a look at futures here. >> not me. >> not you. all right. eisen's out but everybody else is back. there we are. looking for an up open this morning. european markets have tended towards looking positive, as you see right there. you know, not obviously huge moves, but up nonetheless. the ten-year note yield let's take a look at where we stand right now in what has been of course one of the bigger stories towards the end of this year, but price moving up a tiny bit lately with the yield map 2.481. there you see wti. let's get to our roadmap this morning. and it starts with that geopolitical news. russia's holding off on retaliation. president vladimir putin responding to u.s. sanctions in the wake of alleged election hacking. >> futures indicating a higher open on this final trading day of 2016. we'll look back at the best

i'm david faber along with sara eisen, wilfred frost and mike santoli. we're live from the new york stock exchange. jim and carl continue to have this week off like so many of you out there right now watching us, most likely. if you look at futures this morning of course it's thursday. we've got two more days. we backed well off from dow 20,000, but that won't stop us from talking about it, will it? european markets you ask, well, let's answer that. give you a look. uk also open again. of course hadn't been -- well, it was yesterday, not the day before. you can see they add spain and italy in the control room just to make me happy. thank you very much. down let's call it almost across the board other than italy. 10-year note yield hanging right in there right around 2.5, up a little bit in price. and there's a look at wti. >>> our roadmap for the hour begins with president-elect trump taking credit for the 8,000 new jobs coming to the u.s. workforce. will other companies follow suit? >>> and as we drift further away from that dow 20,000 target, we look a

i'm david faber along with sara eisen, wilfred frost and mike santoli. york stock exchange on this last trading day of the year. jim and carl are off today. i think everybody will be back on tuesday. let's give you a look at futures here. >> not me. >> not you. all right. eisen's out but everybody else is back. there we are. looking for an up open this morning. european markets have tended towards looking positive, as you see right there. you know, not obviously huge

mike santoli is joining us.specifically is -- that's your name, what specifically is the santa claus rally? when is it supposed to start? >> traditionally, it's the final week of the year. if you look at the stock traders almanac, that period of where it is bellweather, that is a test. january is going to be a bit soft. >> if we're going to have a santa claus week this week. >> yes, we are discussing it being a santa claus rally. >> we were sort of in the middle of it. >> there's a rigid definition of it that is not yet started. >> oh, got it. because i saw it on another competing news service there there may not be a santa claus rally. i thought, there's already been one. >> the back half of december is where you get the seasonal strength as well. so all this stuff is in the mix. and i would be pointing out in a cnbc pro piece right now, basically the setup going into january is somewhat similar. if you look to last year, we were up 4% to 5% fourth quarter gdp. and if you look at the lead up to a weak january,

i am david faber along with, let me check here, we got sara eisen, wilfred frost and mike santoli, we'restock exchange. jim and carl have the day off. look at futures we're going to get ever closer to dow 20,000 it would appear at least at the open with the look there at where we are before we start trading, about a half hour from

mike santoli said is that nice defensive move coming after the news they will cut the 777 production rate. what they are doing with the 777 is going from seven per month down to five per month starting in august of next year. what's interesting is that new production schedule of five per month that includes the anticipation that the iran sale which includes 30 trip777s go through. if we don't see a new order you could see further pressure on that production schedule. take a look at shares of boeing and this is the most interesting chart. remember right after donald trump tweeted out about the cost of air force one the stock took a big hit and it has come back. this is since the election. right the end there you saw it drop down in the last week. it made everything up by tends of the week and don't move higher yesterday after hours. >> in terms of air force one and the political head winds, unlike some of the other defense contractors and i only say that because boeing's business is a mix between commercial -- in terms of the divide there how does that break down? >> commercial is big

the reason we didn't hit 20,000 last week is because mike san to santoli said he was off on holiday, but now it's allowed to hit 20,000 this week. >>> the latest on the electoral college meeting today is going on, let's go to tracie potts with more. >> reporter: the russian hacking is hanging over this election. all eyes are on the electoral college vote today. this afternoon 538 electors gather in state capitals across america to cast official votes for president. donald trump's chief of staff claims some have been intimidated and harassed. >> we've got electors that are receiving 200,000 e-mails. >> reporter: the director of national intelligence denied a request from some electors for a briefing on russian hacking before they vote. there's been no evidence connecting hacking to trump, but hillary clinton's campaign chair is still raising questions. >> what did trump inc. know and when did they know it? were they in touch with the russians? >> the conversations never happened. >> reporter: top democrats and republicans on capitol hill want a special senate committee to investigate.

i'm carl quintanilla with mike santo santoli, david faber at the new york stock exchange.rom now sara eisen will sit down with the ceo of energy giant exelon and ceo of fed ex fred smith. in the meantime industrials, s&p, nasdaq, russell. >> we've got some economic data crossing the tape. let's get to rick santelli with the numbers for us. rick. >> absolutely, on october home sale inventories on a month over month basis exactly as expected down 0.4, no revision. if we look at the alternative to this on the sale side, it's up much more. it's a good thing, double actually, up 1.4, and we double last month which was up 2 now stands it up 4. the money ball, everybody wants to see how confidence was effected. this is all post election. this is preliminary moved from 93.8. remember -- i'm sorry, yeah, moved from 93.8 up to 98 even. that is indeed something interesting to ponder. if you look at current conditions, they move from 107.3 to 112.1. these are both solid numbers. on the inflation side no real surprises actually, they both backed away a bit, 2.3 on one year down from 2.

michael santoli, we have many mikes here. what do you think about this rally? >> if we didn't have this sort of interesting but sort of arbitrary round number on the dow i think you would be saying new highs across the board in the big cap indexes. the nasdaq out performing. you had rotation into groups that maybe lagged in november. we are kind of coming away with why didn't we have oomph. you have to have context here. i think it is really obvious there is not a lot of urgent selling. the selling kind of rotates from group to group. some rest and some take on the lead. i don't think you can assail the condition of the rally except to say it looks stretched. you have to have a pullback before too long and sentiment must be getting ahead. >> i see you are saying you are buying the laggards including tech and health care, utilities had a great day. >> last week it was all about the banks and industrials and energy to some extent. of course, the russell. what i noticed last week was the skill if you will on the iwm puts was at a six-year low. 2010 row have to go

mike, you've got a five-second thought? >> retail sales fed, and dow 20,000. >> thank you for joining us. michael santoli. that does it for "closing bell." "fast money" begins now. ♪ money money money money >>> breaking news, america keeps getting richer in the stock market. the dow 90 points away from 20,000, more than 100 points today. what a run since the election. all the major indices closing at a new record high with the nasdaq the biggest winner up 12%. so the dow approaching 20,000 and stocks at a record. if you missed out on this rally like so many of you have and waiting for the pullback, what can you do right now? are there stocks you can put pressure money to work in? >> i think 20,000 is a big deal. people wake up and say, wait a second. here is dow 20,000, what's going on. >> it's a number that will force people to look at the market, maybe for the first time in quite some time. so if nothing else, it gets people's eyeballs on the market. to answer your question, i still think there are sectors. and health care has been underloved for a number of different reasons, all of which make sense. b

santoli. also with us cnbc contributor heather. good to have you both with us. mike, it was so clear when we were in rally mode what the story was. financials were driving. changing a little bit day to day. what is the story now? >> it is a slow unspooling of a lot of those moves. markets really just holding steady. today could not have been much more balanced. 50% of stocks are up. the average stock in the s&p almost dead flat. the market is going to hold the value for a moment. if i am wanting to be bullish we say hovering near the highs and burning off the overbought conditions and maybe setting up for something good. not a lot of catalyst that you can see certainly ahead of year end. right after that i think it is a noisy period to figure out just how much of that rally into five weeks after the election used up good news. >> a lot of those companies and financials led the way were worst performers today. home depot and others were a little bit better on the upside. the question again is you have this huge wave as everybody has been talking about pension selling.

panel we have cnbc senior markets commentator michael santoli along with evan newmark and steve grasso will join us off the floor momentarily. mike, another mid day session. we start off quiet and then ramp into the close. >> it has been pretty relentless. that pattern where it opens in a quiet way but firm and below the surface is strong. i think every day we go up and every day longer that this rally persists is really more of a measure of how under exposed the stocks are or how defensive people were going into the phase. we have people who say i would rather own stocks than not. the market is running pretty hot. it has gone almost vertical. it is good that it is rotating around different groups. some leaders are different. you have to be aware that sentiment is building up and fear of missing out is driving things as much as it is sober. >> that is another theme. going back to what you are saying health care stocks down. pfizer were among best performers. it has had a great week and is one of the best performers on the dow. the major averages dow, s&p and nasdaq up five consecutive trading days. just kind of a fun sentiment. >

santoli. we have jim bianco, the president of bianco research joining us, steve leaseman, and cnbc fast money trader, tim seymo seymour. mike, people have been saying, did they miss the rally? can they get in? now we have a pullback. >> you have half a percentage to get in if you really care to. i do think, though, just the contacts. the stock market as we've been talking about lab stretched. it's sprinting higher almost without a break for a while. this is a pretty big excuse, i think. a big rally in the dow on the incremental turn by janet yellen makes a lot of sense you would back away. incompete i think a lot of investors didn't think they owned enough but now it's enough for now. >> the flip side of the stronger dollar, people usually say, well, you want the companies that don't have exposure. they certainly don't have it like the big cap. it does seem like this was kind of -- where they were sort of lumping everything together, it's a risk off-broadway kind of move. mr. bianco. >> i'm sorry. i think you're right about the small cap stocks, but whenever you have a fed meeting like this, you have to be careful analyzing

santoli. cnbc fast money trader and kevin o'leary who just launched a new etf today focussed on high quality small cap and low volatility dividend paying companies. that's a mouthful, kevin. welcome, everybody. mikel us what you think about the markets as we close out the year. >> obviously, kind of finishing with a wimper. very quilt. i think the story for the year is definitely just the market's resilien resilience becoming battle tested. i do think that the way we finish the year does reflect to some degree people feeling as if we have come a long way in a short period of time even though we were flat for two years and the muscle memory of january, are we in for something a little more turbulent? you see the vix inching above 14. people bracing perhaps for a little bit of a storm. >> other mike, do you agree? >> well, i think it is interesting. a lot of investors right now are facing very long time bull market and they are worried that it might be a little bit stretched here. valuations obviously a little bit elevated. that optimism might be justifying some of that. that might spell maybe 10% bater earnings for the s&p. >> kevin o'leary as you look back on the year we were talking about the po