phil lebeau.rump's tweets tie into a conversation we've been having on the president-elect's relationship with business leaders in the united states. former metronic ceo bill george who once served in the defense department early in his career. we were going to talk carrier and utx. here we have another example of what some are calling intervention in private enterprise. is that how you see it? >> absolutely. trump is showing he's going to be an activist president. still six weeks away from being inaugurated. we've never seen anything like this in a president-elect. he is going to make his point and go after individual companies. this is sending shock waves through the business community and a lot of business leaders are just trying to stay under the radar. couple of weeks ago, we saw jim immelt and mark fields try to get out of in front of it so they could stay out of that line of fire. now i think leaders are saying i think i'll not say anything, keep out of it. we heard earlier in your show bei

phil lebeau is covering the story for us. he's in chicago. good to see you, phil, as always.how does this deal get done, and is it unusual for a president-elect to do something like this? >> reporter: it is unusual. how many times have you seen people running for office, whether it's president, governor, senator, whatever it might be, and they say, we're going to keep your jobs here and in the end they really don't keep the jobs there? we don't know the specific details or at least we don't know many of them regarding why the trump administration was able to convince carrier to keep that plant in indiana. but if you read between the lines, it's pretty clear that united technology, the parent of carrier, which has $6.5 billion in federal contracts, mostly with the defense department, they didn't want to start off the new administration, start off a relationship on the wrong foot. so that's part of this. a statement issued today by carrier, you know, they don't get into details, but they issue some platitudes in terms of how they're able to see things eye-to-eye with the trump

phil lebeau reports. >> reporter: president-elect donald trump soaked up the applause from workers as he walked onstage at a carrier furnace plant in indianapolis, after promising as a candidate to keep the plant from closing and shipping jobs to mexico, trump and his team worked out a deal with carrier's parent, united technologies, to keep the plant open. >> united technologies and carrier stepped it up. and now they're keeping actually the number is over 1100 people, which is so great. >> reporter: the carrier jobs deal calls for one of two plants in indiana to stay open, preserving more than a thousand jobs. but a carrier facility in huntington, indiana, will still close as planned, he thougelimi 700 jobs. the company will get 7$700 million in tax breaks. the company stays in the good graces of the trump administration. as for the workers who feared losing their jobs, a sense of relief. >> it was shocking. it seemed surreal, phones going off and people telling me our jobs are being saved. it was just crazy. it was just surreal. >> they didn't start clapping, they started talking a

reporter phil lebeau explains why. >> reporter: don't call them beaters.ow america rolls. >> if it breaks down, then i need to go to the next, but i'm keeping my cars for a long time. >> as long as they run, the life of the vehicle, it's okay with me. >> basically if it's not working, i'll get a new car. until them i'll keep this. gets me where it needs to go. >> the age of autos in america has been growing and averages 11.6 a year. why? with new vehicles selling at a higher price they are taking off longer to pay or their cars and truck. that owned their cars almost seven years, three times longer than back in 2009. the fact that the vehicle is technologically better these days, that certainly allows them to hang on to it as long mass they need to because of the economic factors. >> all of this is good news for the auto industry. autoparts stars cash in on poem replacing brakes, spark plugs and other components in old cars, and if the owners aren't doing it themselves, they are taking their cars in for service which means new car dealers have more opportu

phil lebeau has more. >> reporter: admit it.ou don't like spending a lot of time at an airport, between long security lines and growing crowds, most of us just want to get on a plane and get out of town but a new survey shows people are actually happy with their airport experience. >> the airports are improving themselves. the improvements they had in hand and on the drawing boards before 9/11 back in 2001 were kind of put on hold because of a lot of security concerns and just other things at the airports were having to do to accommodate new security regulations, and so those plans are now being actually carried out. >> reporter: new restaurants, shops and spruced-up terminals are becoming more common at airports. according to j.d. power, portland, tampa, orlando and miami have the highest satisfaction scores. by comparison, some of america's oldest airports are rated as the worst. that includes new york laguardia, newark liberty, philadelphia and chicago o'hare. those airports face greater congestion as they add flights and mil

phil lebeau has more. >> reporter: admit it. you don't like spending a lot of time at an airport. between long security lines is growing crowds, most of us want to get on a plane and get out of town. but a new survey shows people are actually happier with their airport experience. >> the airports are improving themselves. those improvements they had in hand and on the drawing boards before 9/11 back in 2001 were kind of put on hold because of a lot of security concerns and other things that the airports were having to do to accommodate new security regulations. so those plans are now being actually carried out. >> reporter: new restaurants, shops, and spruced-up terminals are becoming more common at airports. according to jd power, portland, tampa, las vegas, orlando and miami have the highest satisfaction scores. by comparison, some of america's oldest airports are rated as the worst. that includes new york la guardia, newark liberty, philadelphia, and chicago o'hare. those airports face greater congestion as they add flights, and millions of travelers put extra strain on old ter

and now as phil lebeau reports, we're getting some fresh analysis on how much that would drive up autoosts and possibly hurt the auto economy. >> reporter: mexican auto plants are running at a record pace. since 2009, the number of cars and trucks built south of the border has soared, and will soon top 4 million. with almost half of those being shipped up to the u.s. that bothers donald trump. and he wants automakers to build more in the u.s. even threatening to slap a 35% tax on mexican-made vehicles. what would happen if the president-elect did that? the center for automotive research estimates the cost of the average vehicle built in mexico would jump almost $6500, which would lead to almost a half million fewer vehicles being sold in the u.s., and potentially the loss of 6700 auto industry jobs. >> once donald trump takes a look at the numbers, he will find a way out of -- to wiggle out of this unfortunate campaign promise. >> reporter: with u.s. assembly lines already running close to capacity, automakers are unlikely to put up new plants in the u.s. instead, they would likely bui

phil lebeau, "nightly business report," chicago. >> used cars are better than they've ever been.he reliability so much better. >> and the technology is there, too. that does it for "nightly business report" tonight. i'm sue herera, thanks for joining us. >> thanks from me, as well. i'm tyler mathisen, have a great evening, everybody. and we'll see you back here tomorrow night. [dramatic music] ♪ [rustling]

phil lebeau, "nightly business report," chicago. >> used cars are better than they've ever been.he reliability so much better. >> and the technology is there, too. that does it for "nightly business report" tonight. i'm sue herera, thanks for joining us. >> thanks from me, as well. i'm tyler mathisen, have a great evening, everybody. and we'll see you back here tomorrow night. >>> a kqed television production. >> it's sort of like old fisherman's wharf. it reminds me of old san francisco. >> and you'd be a little bit like jean valjean, with the teeth, whatever. >> and worth the calories, the cholesterol, and the heart attack you might have. >> it's like an adventure, you know? you gotta put on your miner's helmet. >> it reminds me of oatmeal with a touch of wet dog. >> i did. inhaled it. >> p

phil lebeau, "nightly business report," new york. >>> by the way, the boeing 777 is one of the modelshat iran is buying, and late today, boeing said that it's cutting production of that plane, starting next year. it also said that it plans to increase its dividend by 30%, and authorized a new $14 billion stock buyback program. >>> donald trump is widening his attack on defense contractors. today the president-elect took aim at lockheed martin's f-35 fighter jet program, calling the cost, quote, out of control. that sent shares of the company lower by about 2.5%. morgan brennan takes a look at the controversial fighter jets. >> reporter: defense stocks beaten down today as the future leader of the free world again took to twitter. this time, president-elect donald trump targeted lockheed martin, lambasting the f-35 program for, quote, out of control costs and warning that, quote, billions of dollars can and will be saved on military purchases once he takes office. lockheed martin responded with a lengthy reply saying the company understands concerns about affordability and welcomes the

phil lebeau will tell us exactly what that means. il. >> i mean, what happens -- trump -- [ no audio ] you got it! what do you think? if you're going to wish, wish big at the lexus december to remember sales event get up to $2500 customer cash on select 2016 and 2017 models for these terms. see your lexus dealer. >>> welcome back. they say one man's trash is another man's treasure. that's exactly what is happening in the auto industry this year. cnbc's phil lebeau is in chicago with more. hi, phil. >> hi, melissa. used auto sales on a record pace for this year. you might be saying, how many can they sell? well, they're selling way more used vehicles than new vehicles. new vehicles, $17.5 million this year. we're on pace to see almost 41 million used vehicle sales this year. in the third quarter, the average price for a used vehicle, a little over $19,000. it's up about $400 compared to the same time a year ago. and the buyers are the ones who have the top credit ratings. they're buying more of the used vehicles. in fact, that's the bi

thanks so much, our phil lebeau.'ll have a lot more of this coming up with ambassador nicholas burns. in the meantime joining us exclusively this morning with his outlook for next yore and trump's impact on the markets is goldman sachs chief equity strategist, david kostin. good to have you back. real quickly, are you starting to think how to build that into a model, these outlying political tweets that target a company? >> well, in aggregate if we think about the market, the idea of lower taxes, the changes in the repatriation rules, bringing cash back to the united states, repurchasing shares, less regulation, those will have a larger aggregate impact on an individual basis that can have an impact on a particular company. broadly speaking, it is the general theme of the market to focus on the hope, the opportunity set of higher corresponde corporate earnings. so our forks for operating earnings per share for 2017 is $116. most portfolio managers prefer to look at an adjusted measure and that's about $123. so start

phil lebeau all over that story. of the great attributes of alaska airlines as it's grown over the last couple of decades habits a niche carrier with great customer service. it's now the fifth largest carrier in the u.s. so can it maintain that great customer service? we'll talk about that when "fast money" returns. matters. ond both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t. >>> alaska air becoming a major player in the airline industry after completing a merger with virgin america. cnbc's phil lebeau has got the latest. >> reporter: melissa, they wrapped up that merger to officially close this morning and now alaska air with virgin air as part of its system and the brand will go away, just alaska. the fi

phil lebeau is live at the insulation in indianapolis. phil. >> tyler, we are in the carrier plant, but not on the plant floor and there are about 200 employees that have now been ushered into this area. there's a stage that's set up where donald trump will be appearing later on this afternoon. here are some details about the deal arrangeded between united technologies and the trump administration. there are one of two plants that will be staying open. the plant i'm in now, saving more than 1,000 jobs. a second plant, also owned by carrier in huntington, indiana. 700 b jobs there. that's being shut down. that's going way. those jobs are still going to mexico. carrier and united technologies getting $7 million in tax breaks from the state of indiana over the next ten years. this deal has some in the area wondering about other manufacturing jobs that will with be leaving. we show you this stock chart from rxn. they have a bearings plant not far from here. like lily moving production to mexico. it has not returned our phone call. the manageme

phil lebeau in chicago with the very latest. and we mentioned the differences between the two companies and it is worth noting, the two companies have really performed very differently since the president-elect actually tweeted about the costs of these various programs. when he tweeted about air force one, saying that the costs were out of control. boeing is since up by about 4%. lockheed martin down since trump tweeted about the f-35 fighter program. how do we assess the impact of this negotiation on the defense stocks? >> on the defense stocks. you brought it up with phil. in terms of -- the f-35 is far more important to lockheed martin than air force one is to boeing. boeing's ceo says how important it is to him. let's face it. in terms of revenues, boeing is $100 billion in revenue this year. give or take. we're talking about a few percentage points in terms of what they're going to do. in my opinion, you sort of let boeing off the hook easy. if you read between the lines, that's what he's telling you. boeing trades at 16 ti

phil lebeau just having spoken with on live television in a scrum mary barra.e have about ten minutes to go before the bell rings. s&p higher by about ten points. the nasdaq is higher, as well. speaking of the nasdaq, tech stocks have under performed since the election. we will look at whether there are potential buying opportunities in that space. >>> still holding gains. there is the nasdaq at the bottom up 21 points. joining us now to talk about investing in technology during this trump rally and what is ahead for apple is kevin landis, guys, good to have you. jim, i will start with you. this week you dropped a note that said five reasons apple stock can trade higher in 2017. why don't you give us number one or two reasons why. >> the number one reason why we are talking very near term is we think the iphone 8 launching september next year will create a super cycle. this will be a big cycle with the new iphone and form factor display, faster processor. we think that will help out near term. longer term we see apple wood or the opportunity for apple to grow i

let's bring in phil lebeau. >> i like that pun right there, john. we're talking about the automakers. this is a sector back in 2009 when the dow was first starting to move, you might have thought maybe these guys could get some juice as auto sales improve. gm, ford, issues with the ignition switch and sector that tends to move early in the auto cycle not relative to the stock investment cycle but the auto cycle. look at auto sales, annual auto sales going back to 2011, that's when you start to see the acceleration auto sales. back in '11 and '12, since then people tend not to be invested in auto stocks since the end of the cycle. one exception in terms of which automakers have performed or outperformed, dow jones industrial average take a look at shares of tesla, june of 2010. kind of meandered around. i remember it was $20 with the stock price and, boom, then it took off. now it's up 983% since it went public in 2010. jim cramer gets asked this question all the time. it's hard to explain but the people invested in it, they love it whether or not th

and of course checking in with phil lebeau. here are the headlines, ceos of boeing and lock heeled martin meeting with donald trump right now. thank you for watching "power lunch." >> yeah, "closing bell" starts right now. >> he, everybody. welcome into the "closing bell." >> i'm bill griffeth. we have dusted off -- the doubt is still within a striking distance of that key 20,000 mark. nike and boeing it's pfizer, merck and goldman sachs that are the lag guards among today's trade. we've see if the dow with hit that round number.

phil lebeau.espite the president-elect's attacks on the steelworkers union and the criticism of companies moving jobs in production overseas, u.s. steel ceo mario longy thinks trump's proposed economic policies are bullish for u.s. growth. this is what he said yesterday. >> i think what you will see is an acceleration of the investments that we are going to make. we already started to do some things but when you see in the near future improvement to the tax laws, improvements to regulation, those two things by themselves may be a significant driver to what we're going to do. and you add to that, you just heard joan secretaries elect ross and the secretary of the treasury, they are validating that sustainably we can grow at at least 3.5%. and in that environment we're going to be able to do significantly more. >> on the phone to respond, united steelworkers international president leo gerard. thanks for your time. >> good to be on with you. >> it seems like you have a president-elect working toward

and of course checking in with phil lebeau. here are the headlines, ceos of boeing and lock heeled martin meeting with donald trump right now. thank you for watching "power lunch." >> yeah, "closing bell" starts right now. >> he, everybody. welcome into the "closing bell." >> i'm bill griffeth. we have dusted off -- the doubt is still within a striking distance of that key 20,000 mark. nike and boeing it's pfizer, merck and goldman sachs that are the lag guards among today's trade. we've see if the dow with hit that round number. we'll look at whether this is the time to sell your winners before year end. >> nike was leading the way yesterday, so it looks family. investors having pours money into straight -- will join us with the own etf picks and whether those are still a good idea. >> plus luxury watching, cokay, prostitutes, no, not an episode of mad men. s we have all lower details. let's bosch bob pa sani is tracking down for the big board. bertha coombs is at the nasdaq where it's trying to get to a record high. a leading

phil lebeau joins us from indianapolis. let's trade this.s what's good for workers also good for the stocks? >> i think believe it's good for the stocks. when president obama game into power, there was a public outcry about compensation, about pay, about risk. he came in and warned those ceos, if you google it. now there's a public outcry about business moving across borders. president-elect trump is coming in and doing the same thing. i do think it's good for business. >> why is it good for business? he basically said american companies are not going to let their jobs go overseas. we don't know the details of that, and every situation could be different. to say that's good for business i think is absurd. >> did he make a deal with them? he didn't just warn them and gulf an ultimatum and say we're not going to give you anything. they're big boys, sitting at the table, they came to an agreement, it worked for them and works for american workers. >> no question, between tax incentives and the government working with companies. i do think there

our phil lebeau joins us from indianapolis with more. ning, phil. >> reporter: good morning, carl. this is a victory lap for president-elect donald trump and vice president-elect mike pence who remains governor of indiana. and played a role in his deal to keep the carrier plant here in indianapolis. here's the deal as we know it, and there's still a number of details that need to be determined. first of all, we're talking about two plants, they're both staying open. well, we know for sure this one here in indianapolis is staying open. there's one not far away, some debate about whether or not that will close and those jobs will ship to mexico. more than 1,000 jobs have been saved. those workers will stay here in indiana. $700,000 in incentives from the state of indiana. by the way, there are reports that incentive package not a whole lot different than what mike pence when he was governor of indiana was offering carrier earlier this year when they rejected that deal. he did broker this deal to keep the plant here in indianapolis. but keep

phil lebeau, "nightly business report," chicago. >>> well, as the defense department comes under pressureo keep costs in check, the pentagon suppressed a study to find ways to cut $125 billion in waste. the "washington post" reports the study was buried amid fears congress would use the findings as a reason to cut the pentagon's budget. among other things, the data showed that almost a quarter of the defense budget is spent on back office business operations. eamon javers has been following the story for us from washington. eamon, what else was in the study today? >> hi, tyler. this was the lead of the "washington post" this morning. and bob woodward of woodward and bernstein fame is why this story is getting attention and because of the details you rattled off. this was the defense business board, experts brought in by the department of defense to analyze what was going on in terms of the back office employment, all the functions and accounting and business development functions of the pentagon that don't necessarily relate to fighting wars. one of the things they found in addition to th

phil lebeau, what is happening. >> we have yet to hear from the air force.r force. remember, this is an air force contract with boeing to build the pair of 747s that will be the next generation of air force ones. the air force says we are still conducting risk reduction activities with boeing to inform the engineering and manufacturing development contract negotiations that will define the capabilities and cost. we have budgeted $2.7 billion for the fiscal year 2017 future years defense program for research, development, test and evaluation but expect this number to change as the program matures with the completion of the risk reduction activities. a lot of terms there that you often hear with military contracts, risk reduction, trying to work in terms of bringing costs down. the fact remains, guys, historically military contracts are never under budget. it is rare that they come under budget and they often are well over budget. it is that message that donald trump hit on this morning that is resonating with some people. >> i heard robert frank earlier sayin

our phil lebeau is here. he's been running through the numbers on this one. find? >> and this is fresh data, sara, that we have obtained from the center for automotive research. and this data basically looks at what would happen if nafta goes away. and you're looking at all of these vehicles that are built in mexico and then imported to the u.s. by the way, 1.8 million vehicles were built in mexico at plants in mexico and then imported to the u.s. in 2015. if nafta ends, a lot of people say, well, yeah, you build them here in the united states. huh-uh, that is unlikely to happen. according to the center for automotive research, it's estimating that because of higher costs and because you would see production shift about 450,000 fewer vehicles would be sold annually here in the united states. and the implied loss in terms of jobs at automakers and plants here in the united states, remember plants that supply parts and other things to those vehicles in mexico, would be about 6,700 jobs. again, that's from the center for automotive research. if nafta ends, what

i'm phil lebeau with breaking news regarding volkswagen. agreeing to a settlement regarding 3.0 liter diesel engine vehicles here in the united states. about 80,000 of them. the company has agreed that it will be offering compensation for those owners of those vehicles. remember, these are vehicles separate from the 480,000 2.0 liter settlement we saw a couple of months ago. we don't have a final price tag as far as how much the settlement will cost the company. it is expected to add, the estimate is they would add another billion dollars to the growing tab that volkswagen has faced regarding the diesel emission scandal here in the united states. back to you. >> all right, thank you very much, phil lebeau. time for the good, the bad and the ugly. we hit the good here. shares of fred's are up sharply. gain of 87%. buying 865 rite-aid stores. on to the bad, in the staples sector, general mills down 3%. the company reporting profits that fell short of estimates, revenue weaker than expected due to weaker sales of brands like yoplait and progre

phil lebeau joins us with that. >> wasn't just the tweet.the fact that donald trump, we have seen him tweet over the last month or so, since he was elected. but we haven't heard him come out and publicly blast a company, well, that changed this morning after he sent out that tweet. he had this to say in the lobby of trump tower about boeing. >> the plane is totally out of control. it is going to be over $4 billion, it is for air force one program. and i think it is ridiculous. i think boeing is doing a little bit of a number. we want boeing to make a lot of money, but not that much money. okay, thank you. >> so what are the numbers regarding the new air force one budget? by the way, it is for two 747s to be built while officially the air force one budget is $2.7 billion for the first two years of the program. again, that's even before it is built. the government accounting office has an estimate of $3.2 billion when it is all said and done. that's an estimate from last year. boeing in response to the criticisms from the president-elect says

morgan brennan has the latest on trump and lockheed martin and phil lebeau who is with us here, he looks at whether trump could threaten boeing's $16.6 billion deal to sell planes to iran. >> the f-35 joint strike fighter program is the costliest weapon system in history estimated price tag nearly $400 billion almost double the original budget. president-elect trump called the costs out of control and warned that billions of dollars can and will be saved on military and other purchases once he takes office. in response lockheed martin saying it understands the importance of affordability. all of this as the first two f-35 were delivered to israel earlier today. lockheed derives about 20% of annual revenue from this program. it is about 17% of sales which plies about a third of the plane. this is a huge 16-year program. it involves more than 1,200 companyinizecluding united technologies. operations in 45 states, eight partner nations which helped fund the r&d for the system. for that reason analysts do not expect major changes soon. lockheed is negotiating future contracts for the planes

tariffs on stuff made in mexico is suggesting implicitly that somehow those jobs will move here and phil lebeauaccording to those in the auto industry that will not happen. phil is right, right, bob? >> well, look, first of all, you cannot -- if you're going to increase tariffs, you can't increase them just on mexico. one reason why nafta was a boon to the u.s. auto industry is because we were getting killed by the japanese. and nafta permitted some of the costs to be diluted, especially for tier one and tier two suppliers. and if we slap any kind of large tariff on mexico productions, it will simply be -- as phil pointed out, he forgot to mention japan, japan would once again inundate the american market with cars. and, look, trump is a reasonable, good analytical businessman. once he takes an earnest look at the pluses and minuses of dealing with nafta, sees what the impact on american jobs and, by the way, a lot of the mexican assembled units contain a very, very vast majority of u.s. made mechanical components like engines and transmissions that are exported from the united states. and we a

phil lebeau has some news for us on hyundai. phil. >> scott, the ceo of hyundai usa, dave zwl ukowski who has been in the job the last two years, has been removed as ceo of the company. he is out after failing to meet internal sales goals. we've reached out to hyundai for a comment. the company declines the comment. what's interesting is when you look at hyundai sales in the u.s. this year, up 2.1%. the market overall basically flat, so hyundai, which is not growing as quickly as it has been in the past, but is still growing sales, has decided that's not good enough, and they have removed dave zukowski as hyundai ceo. he has been on the job the last couple of years. back to you. >> phil, thanks so much for that. i apologize for interrupting you. >> i was going to say if you think adidas is eating their lunch completely, then you're not looking at dtc. it's direct to consumer. that's their box stores. up 25% in total revenues. their dot.comup 46%. >> market share take, though, before. >> same store sales up 11%. i would say it's n

our phil lebeau in chicago watching boeing. now have had a dow all-time high today, s&p just joining it a few moments ago. president-elect donald trump made "time" magazine person of the year this morning, and speaking on the "today" show he commented on the stock market, trade and boeing. take a listen. >> i think the planes are too expensive. i spoke to a very good man yesterday, the head of boeing, terrific guy. and we're going to work it out. but you do know that's what i'm here for, i'm going to negotiate prices. the planes are too expensive, and we're going to get the prices down. and if we don't get the prices down, we're not going to order them. we're going to stay with what we have. >> you mentioned the head of boeing that you spoke to, your comments about boeing -- by the way, shortly after you made those comments the market value of boeing dropped about a billion dollars in a matter of minutes before rebounding later in the day, but your comments on boeing came just a short while after an article came out where the c

phil lebeau is on site there in indianapolis. a real feel good day there. >> absolutely. if you thought this was just a victory lap for donald trump and mike pence to celebrate the fact that they saved 1,100 jobs here in indiana, there was also a lot of campaigning and messages sent in terms of business in america. i call it the carrot and stick approach. if you are a company we are going to lower taxes and regulation. you not going to think about wanting to leave. the stick? if you do decide to leave we are going to make it tough for you at the border. we will make it tough for you in a number of ways and you better think twice before you think about moving your plant. did you catch at the end where he said it won't only be me contacting companies we have other people on the team contacting companies. you can bet that resonated with ceos and boards for companies who either made plans to move operations to mexico or are thinking about it because the message has been sent that donald trump plans to be very proactive in terms of keeping companies here in the united states.

back to you. >> phil lebeau, thank you very much for the outlook.e dow taking a pause here from its record setting rally, we'll send it to you, carl, for "squawk alley." >> good morning. it's 8:00 a.m. at twitter headquarters out west and 11:00 a.m. on wall street and "squawk alley" is live. ♪ >>> good wednesday morning. welcome to "squawk alley." our top story this morning once again, dow 20k farther away this morning as we're back to 19,950. joining us to talk about the rally at large, valuation and sentiment, robert shiller is the professor of economics at ye

. >> that's for sure, phil, thanks so much, our phil lebeau speaking with mary barra in the last hour or so. that does it for "closing bell." thank you for joining us here. "fast money" begins right now. >>> oh, it was so close. dow 20,000. you could almost taste it. coming within 50 points of that magical barrier. dow closing up today 60 points, not enough to hit that milestone just yet. do dow 20 k will have to wait. will banks continue to lead the way or will another group of stocks carry us over the $20,000 line? hello, guy. >> welcome. can we clap for her? >> great to be here, thank you. >> the answer to the question is yes, financials continue to lead. i'm not going to submit i've been some raging bull on financials. i will say this. people say they've run too far, too fast. if you look at a chart, maybe. what people aren't looking at is the fact that in 2007, a lot of these financials were trading over two times book. i don't think we're getting there for you. but at 1.7, 1.8 times book, for example goldman sachs, which is currently 1.3, just to it there, 1.8, consider a $300 s

back to you. >> thanks so much, phil lebeau. i'll take it from there.till to come on "squawk alley," forget wall street. why main street's new enemy might be silicon valley. henry blodget and jeff richards weigh in. and house speaker paul ryan is expected to make his weekly comments at the bottom of the hour. we'll take you there live. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. keeping the power lines clear,my job to protect public safety, while also protecting the environment. the natural world is a beautiful thing, the work that we do helps us protect it. public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. we want to keep the power on for our customers. we want to keep our community safe. this is our community, this is where

phil lebeau, thanks.ee you, paul, happy holidays and merry christmas. >> same here. >> autos are important. we talk about those. you know what we haven't talked about is -- you want to just once again say you were right about -- you know, should we book that guy? mike lindell? my pillow. >> my pillow. i've been using the my pillow. let me tell you, using it the past week, unbelievable. it's not feathery. >> so much better. >> it somehow holds your head perfectly -- >> you're discovering this, but i told you -- >> i know you did. you see it on an infomercial. >> what do you do with the free pillow you get? >> i would use two pillows and put the my pillow on top. you don't have to flip it. it doesn't get too hot or too cold. it is just nice. >> it's not hard. >> it takes a little -- you have to get used to it. it's not normal. it doesn't just feel like a pillow you'd lie on in a hotel or something. >> are you sure you're not getting kickbacks? >> i'm not. but this my pillow thing is a real thing. i've been