lets get to rick santelli and get the santelli exchange at the cme., carl, and thank you i really do think it's all going to be growth advantage usa i think that many of the things that we are seeing now driving the markets, and especially tax policy reforms that will ultimately very soon be signed into law, there's a lot of discussion as to how much is built in and there's big debate there. i'm sure, first of all, it's impossible to know if there's a correct answer here. some but i think the real advantage to tax reform is going to be experienced in realtime as time moves on i think that's something not to underestimate. keep in mind, anybody who's watched bitcoin, you know, i made a bet about a month and a half ago when the futures were coming and it was a silly bet. at the time i think the dow was at the 23,000 handle i bet somebody the dow would reach 25,000 before bitcoin did. the reason for my thinking was that i think markets bring a certain form of religion and we have seen that with regard to bitcoin. the same could be said for the cost of ca

and santelli exchange good morning, rick. >> good morning, carl. when i woke up this morning, the first market i look at lately it's overseas sovereign market, spain, germany, what is the credit standard for eu, shots, two-year boones out on the ten-year i notice the yields close to 30 violation on intraday in and of itself isn't huge. we've had several in the last few days if you go back i think we're splitting pays points here but i do believe around 8th of september traded maybe 29.about and the most recent drops have been 29.5, 29.7 but it doesn't matter on the intraday. remember the roller coaster. lots of markets are like roller coasters maybe bitcoin is like one direction, more like a report, but the thing about roller coasters is you have to get on and off at the same place or after it stops and closes are more important to that end let's go to a ten-year bund chart. there you can see the red line is 30 basis points we haven't settled below it. i believe the exact date is like the 26th of june, so somewhere in june. we can call it roughly s

with the santelli exchange, rick?, thank you and good morning. listen, before we get to the meat of this, as i look at the board i see 245 and i'm telling you what, trading floors is still cool places, might not have as many people, but they have a lot of people and a lot of people are concerned how markets end up at the end of the year, and that change is huge. we could always argue about intraday volatility, but it's about closes and 245 is where we closed last year look at this chart, 240 area is key, as was the low 230s, but as you open it up to march, you should notice a couple of things march made the high for the year, 263 high yield, but also notice to the right a bit, in october was a settlement actually about one basis point higher than what we closed last year you have that data in october, but everything else ended pretty much in march. january, february, march, spent some time with higher yields, lower prices after that, one session, until potentially today. this is still intraday but i guess the point is

rick santelli with the santelli exchange >> good morning, michelle. thank you.y in-person guest, patrick flynn portfolio manager. just the guy i want on a day like today all right. we look up at the board, and yes, maybe today's ism nonmanufacturing was a little less than expected, but for the most part, would you agree that the data has been pretty good? >> overall, the u.s. economic data has been good we're expecting the fed to raise rates next week. we think that that could result in some upwards rate pressure. we think the fair value of the ten-year is around 2.70. we think it's going to be hard to break out much above that because of the strong international demand for yields. >> which is part two of the equation you have the strong economy, domestic, even globally to some extent then you have all the issues of negative yielding securities, questionable central bankers in japan and europe that brings in a whole raft of international buyers >> exactly, and that's what we have seen continuously we have seen short rates going up, but long rates staying pretty

shawn turner and rick santelli. shawn turner and rick santelli. up your doctor before all planned medical or dental procedures and before starting xarelto® about any conditions, such as kidney, liver, or bleeding problems. you've got to learn all you can... ...to help protect yourself from dvt and pe blood clots. talk to your doctor about xarelto®. there's more to know. test test test. >>> president obama is opening up about his life after the white house. one on one interview with his pal the newly engaged prince harry. this was obama's first interview since leaving office. he met with harry in september but the interview just aired today on the bbc. obama talked about having more time on his hands, but he also appreciated about how leaders should use social media responsibly. >> the question i think really has to do with how do we harness this technology in a way that allows a multiplicity of voices, allows a diversity of views, but doesn't lead to a bulkization of our society, but rather continues to promote ways of finding common ground. and i

and get the santelli exchange.ou know, correlations correlations are the big deal, and i think it's going to be an even bigger deal in 2018 why? i think we've learned a lot of lessons. first of all, if you look at a two-day chart, just to pick a random dpafrm, there were new stories on friday that were not true you see the markets recovered and moved. do you see any difference in the two-day boon of course, not, but it's bigger than the ross route story friday it's the notion that we see boon yields drifting and having a hard time getting above 40 and drifting back towards 30 the ten-year note yield, on the other hand, keeps making a beeline towards higher yields. we're now around 205 and, granted, it isn't a huge move, but it may be the beginning of something to pay attention to. you want to see another example? let's look at stocks let's look at a stock chart of the dow jones starting september 1st, and we all know it's been a historic run here as we go through these handles, 22, 23,000, 24,000 25,000 is not all

david faber, back to you >> thank you, rick santelli.on fortt and get a look at what's coming up on "squawk alley. jon. >> from bitcoin to media acquisitions to tax changes. a lot in the water for tech in 2018 we'll take a look at what it means for the future leinupn quk o"saw aly. i think we should do that meeting tomorrow. well wait. what did you think about her? it's definitely a new idea, but there's no business track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies see it- and see it through-with digital. i just finished months of chemo. but i don't want to talk about months. i want to talk about years. treatments have gotten better, so... i'm hoping for good years a

and the santelli exchange rick >> i'll tell you, it's been an interesting day.icago pmi best since march of '11, very strong. but also had a trade deficit that was the biggest deficit since march of 2015. those seem a little bit at odds, and when you figure in the dollar index, now holding at 92 handle, settle at 102, so it's off substantially for 2017 at a time where our central bank is snugging up rates, reducing balance sheet, albeit very slowly, and i'm not sure reducing is the word, just adding to it more slowly, but these are significant. if you look at the ecb's announcement of curtailing some of their buying as of 2018, although once again still doing an awful lot of it, get bit complicated. now, i want you to look at a 20-year chart of the dollar index. it had a nice little pop around 14, but other than that it really has been kind of a bit of a dog, so to speak if you look at the trade deficit, it has mostly been getting to be a bigger deficit what i find interesting is putting the two charts together. let's go to the white board. black is the dollar i

step-by-step options trading support from td ameritrade let's get over to the cme for rick santelli andlli exchange rick >> thank you there's a lot of things going on these days that merit talking about, especially as they accelerate going into year end, and what i'm specifically talking about is how the long end of the sovereign rate market globally has changed you know it used to be that the q to the relative value trade was mostly buyers because central banks were promotingthe type of policies, of course, that brought rates down through much of their own activity to try to create the wealth effect in the equity markets well, things are changing. relative value trade has many more characters in it, tax reform our federal reserve bring out the mop. grant, there's still a lot of puddles around and the balance sheets are big and they have raised rates and indeed they have started the taper europe is further behind, although in 2018 they will troy to reduce the balance sheet, but the long and the shore of it is that we've all been looking for the critical mass to flip meaning many look at

we'll have those details coming up but first, rick santelli, what have you got for us? >> well, as i look up, i see 246 in tens which is close to unchanged, but i think the key is think small i think think small is going to reap big profits we'll talk about that after e eak.th you can't predict the market. but through good times and bad... ...at t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. >>> here is what is ahead. a massive way of outflows hitting the american stock market what will that mean for the markets as we head into the new year plus traders listing their best bi

live in cape canaveral when "squawk alley" returns >>> first, rick santelli, what are you watching today watching all the various markets moving in lieu of tomorrow's rate increase that's perceived to be happening around 2:15 eastern, but we're also looking at rubberband see the way that one broke we're going to talk about that after the break. no matter how the markets change... at t. rowe price... our disciplined approach remains. global markets may be uncertain... but you can feel confident in our investment experience around the world. call us or your advisor... t. rowe price. invest with confidence. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. >>> i'm scott walker coming up top of the hour on "halftime report" today. go big or go home. why betting on blue chip stocks might be the best bet for your money. plus, which of the best video game stocks have the most upside, and a major new development in the first in, first out fight we've been telling you about. the senat

there with the santelli exchange hi again, rick >> hi and thank you, mike.now, 105, that's a big number today, and i think it's really an important big number it gives us a glimpse into so many different areas of the marketplace. how did i get 105? first of all, it's a percent 105% it marks the performance of ten-year bund yields they settle at 21 at the end of '16, they are currently trading at 43, which means they are up 22 basis points on the year. up 105%.105% it probably goes a long way into why i've said for many years whether it's the vix or interest rates. it's dangerous to use percentages. they often paint the picture that's not very accurate i think that's why politicians love to use percentages in statistics think reform on tax policy in particular the flat yield curve you know, i think it's probably one of the biggest items of 2017 along with the steep performance and a positive version, of course, with regard to equity markets, and it's not just in the u.s. it's global. not the flat curve part. that's fairly unique to the united states. i think

and get the santelli exchange hey, rick. >> hey, carl you know, if we look at the last couple of monthsat we started to see, of course, is that we're going to have a handoff with regard to our central bank head and that's going to happen next year. path seems to be clear removal of stimulus, we could debate whether it started too late, whether it's going too slow, but you know what, you've got to give a double thumbs up it's not easy. it's not easy, central bankers if they go down the wrong road in their loss, i don't see them saying, oh, we did something wrong. the stability that central banks supposedly bring to the table means many times they have to stay on a course and when they veer off because they don't think it's working, they have to do it quite slowly this morning i had former ecb president john claude trichet and the topic was differences between things, relationships. we talked about taxes. i'd like to look at that whole topic in a different light feedback loops you know, after the crisis we had, in my opinion, many negative feedback loops, inversions, calibration of tax po

thank you very much. >>> let's head back out to chicago now, the cme, rick santelli and his santellihange hi, rick >> hi and thanks, mike we just covered that "b," above average three-year note auction tentatively coming up on top of the one, that will be 20 billion. the number for october wasn't anything special, but it was it was a whisker under 6 million job openings i believe it was 5,996,000 the reason it's important is because it's a really lofty level. now look at the chart. this goes back this series of data points isn't that old, started in december of 2000, but the real point i want to go through is that last month also at a 6 million handle, but it was higher to 6,177,000, which means it is now the new all-time high. it's never been that high, and even though 5,996,000 received for october is the strongest going back just several months since may when it was 5.7 million, these are still terrific numbers, and i can go over separations and quids, but the point is the real number to watch for the next several years continues to be participation rates because i think job openi

. >> santelli is gone at 5:00. after that. >> the face of papa john stepping down after his controversial remarks about the nfl. looking at the premarket, the dow did avoid the first three-day losing streak in a few months, savings rate today a decade low 2.9 decade low 2.9 "squawk on the well, it's earnings season decade low 2.9 "squawk on the once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? in a moment. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. >>> john schnader is sftepping down he'll be replaced with steve richie a notable backlash

rick santelli is there with his santelli exchange. hi, rick. >> reporter: listen.'s look at some charts and start all these charts september 2017 let's look at two-year note. they basically from that point in time to right now, they are up about 60 basis points 3s, up about 57 basis points look at the five-year chart. up about 52. seven years, up about 41 ten years, up 33 there's your flattening curve. of course, short maturity yields are up long maturity yields. everybody is talking about that and the federal reserve. there's so much more to this story. let's consider how many rate hikes have we had from zero to 25 we've had five march of 2017, july of '17 and december of 17, and here's where it gets interesting. i would pick september, right. the last hike we had was december 13th. prior to that you had to go back six month so why all of a sudden in december, and what does it mean predicting where the yield curve is going to be and trying to predict the flat fling is really much more art than science consider how unequitable, you know, 60 basis points and that's,

now to the bond pits we go joined by rick santelli.od morning, david real quickly on bitcoin, i've seen a lot of new contracts open since the latd 70s and futures, not many rise to the type of success of a gold future foreign exchange or interest rates, but one thing is for sure, the first couple of days is always fascination. you want to watch the volume and open interest figures after a month to see what turns from fascination to dedication and it's all about those day traders and speculators that find the contract fascinating we'll get a glimpse of how deep that is. one week of tens as you see on the screen, they are pretty much side ways and tight range. if you open to a one-month chart, 2.32 to 2.40 on a closing basis. oversees there's a difference. one week of bunds has a much more downward sloped line there in terms of the way it's trading. the slope and if you look at a june 15th so mid june of bunds, toying with levels that haven't closed since that period of time and 29 seems to be the boundary. let's flip it to the dollar in

rick santelli at the cme dow up 105, off slightly from the opening highs.et top trading" with jim in a moment. don't go away. zar: one of our investors was in his late 50s right in the heart of the financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor. ♪ ♪ ♪ ♪ what we do every night is like something out of a strange dream. except that the next morning... it all makes sense. fedex powers global commerce with vast, far-reaching networks... deep knowledge of industries... and, yes... maybe a little magic. ♪ >>> time for jim and "stop trading. >> i want to talk about a name, waste management here you go, this is what happens. waste management boos

i really appreciate it david faber, back to you. >> thank you, rick santelli. fortt and get a look at what's coming up on "squawk alley." >> david, one hour, three stocks, three big earnings moves. we've got the ceos of stitch fix, red hat and different areas, three diffentre moves we'll dig into all that coming up on "squawk alley. i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. >>> welcome back to "squawk on the street." markets mixed as they are set to push the tax cut over the finish line despite the recent uptrend the group of stocks up 4% over past three months you've got names like philip morris, altria, campbell among those pushing lower. philip morris down 2% in the wake of reuters report revealing

rick santelli? one went the other both month over month and year over year. are we supposed to decipher this that's what we're going to talk about after the break. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. wow! record time.s. at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. get ready, because we're helping leading companies see it- and see it through-with digital. relatively stable. tuned 2% what's more, x food, x energy, maybe x verizon, x electronics series did he funding for product development. she, of course, is the co-founder of "huffington post" and board member at uber good to have you back. >> great to be with you. >> the series of names you have really built a move

. >> bob pisani, thank you >>> let's join rick santelli at the cme group. >> morning, david.ek it's been. as i look at the board at 179, two years are up, one on the day, four on the week. ten-year at 239. up two on the day, up five on the week a correlation is changing. this is something you really need to ask yourself we've been in this one world, one market for quite a long time primarily due to the activity of central banks. but things are starting to change a bit look at the intraday of tens one week of tens gives you a better picture you see that thinly traded run-up we're filling that in and holding. it's significant to know that 244.5, 245 is where we settled last year and 233 is the average price for the year those are two levels we could see a lot november the last month of trading looking at one week of booms this is my correlation the next start will really explain it this is a mid-april of this year chart of our ten-year minus the european ten-year, the bund. it's at the highest since april of this year why is that important? because the fact that bund is moving

. >> thank you let's get to the bonds rick santelli. good morning, rick. >> good morning. so many fascinating things a lined here look at the board and see 236 yield on 10s that also happened to be where they closed yesterday and last friday. you look at the board and see 276 and 30 where they closed yesterday and last friday. go into the year end big numbers are in the rearview mirror now it's numerology and many think horsepower that could be the biggest variable for part of the curve and what's going on in europe the rest of the curve plenty of volatilely on the numbers you see on the right side but nice elevated as i reference we came off the low 230s yesterday. now if you look at early november chart of the long end, it's fascinating, even though unchanged, you see the drift to it 30 year has been a bit spongy probably because highest yield to international purchases but here's one nice thing, you would think you would want to put a 30 year chart or ten year chart sorry with boones. but what actually tracks way better is 30s in boones as you see on the chart starting

for his santelli exchange. >> thanks, mike.come my guest all the way out there in warm arizona, yra harris thanks for taking the time >> thanks, rick. thanks for having me, and happy new year to everybody. thank you. >> listen. you always meld politics and market together in a unique way. 2018 should have a lot of politics snap elections in italy, a weekend merkel party with respect to how she's going to proceed long in the tooth run in terms of leading the country how will politics affect the markets, equities, and mario draghi and the security markets in your opinion for next year? >> i think the important thing is going to be europe. europe is going to be a major focus in 2018. i know we have congressional elections in the u.s., but right now, we have merkel three months after the election who has not been able to form a government and the longer this stays out there, the greater negotiating partner of martin schultz and the sbd, so they're looking to exact more and more europe so this is going to be interesting. of course,

david faber, back to you >> thank you, rick rick santelli.er now to john forth, get a look at what's coming up on "squawk alley." john >> bob peck, head of internet investment banking at credit sweeps is going to join us to talk about the outlook for 2018 in tech. when you think about what's happening in media, what's happening with m & a, no better time to dig in that's coming up on "squawk alley" mary had a little lamb whose fleece was white as snow. but after an electrical fire from faulty wiring, mary's vintage clothing and designer shoe collection were ruined. luckily, the geico insurance agency had recently helped mary with renters insurance, and she got a totally fab replacement wardrobe at bloomingdale's. mary was inspired to start her own fashion line, exclusively for little lambs. visit geico.com and see how affordable renters insurance can be. >>> welcome back to "squawk on the street," i'm dominic chu markets are starting to lose momentum here after setting record highs across the major indexes yesterday. tech and telecoms among t

. >> let's get to rick santelli at the cme. good morning, rick. >> good morning, carl.scinating day at 8:30 eastern, even though the data was coming in sporadically, what we saw -- sporadically, i mean me trying to pick it off the boards up 2.2 year over year on headline was hot the core was only up one tenth and the following chart i think is what was most talked about after i walked off this platform and tried to get traders' assessment of the numbers, this is a year-to-date chart and i think it speaks by myself. how the markets reacted, no yields, we clicked off very close to 185, then lost it ten-year was within striking s distance of unchanged. it's now down to 238 boone yields, similar. right back down, 29, 30. finally, the dollar index. granted, the dollar index isn't down a lot but it's down from a very key level it's going to lose that 94 handle again traders paying close attention to that. along with obviously today's potential quarter point hike seems to be built in to janet yellen's press conference. we had the last big number in the form of payrolls now we'

carl, jim, david, back to you. >> rick santelli in chicago.n we come back, former white house chief technology officer, aneesh chopra will join us the dow needs another 70 points for a record high. but for the time being, holding on to a 69-point gain. back after a break ♪ (news anchor) downtown traffic is still bad. expect massive delays. (news anchor 2) all lanes on highway 50 remain closed at this hour. (news anchor 3) the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year. for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts, over the course of the week, to about 10 pounds of carbon dioxide. growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt.

the name to remember. >>> welcome back late get over now to the cme and rick santelli for the santellihey, rick. >> thanks, wolf. like to welcome one of the last guests of the year that will be reserved for tomorrow i'm going to call you ab it makes things easier. as i look at the market, we're not making new highs but we're darn close all the equity markets have had great runs especially late in the year what's going on with hyg the atf is barely up on the year versus the lqd or the mub which is munis the spreads on the barclay spread they're well behaved. what's the deal? >> we seemed starting the fourth quarter high yelled spreads being pretty range bound not participating. it's two things. the first is tax reform. we're sorting out what some of the deductibility issues are. >> treated much differently. >> the market is sorting that out. the second thing with some of the earnings for big issuers in the telecom space and health care space they disappoint. there's fundamental risk going on but your point that this equity high yield divergence will continue the next year because of whe

let's get to rick santelli and get the santelli exchange.ck. >> good morning and thanks carl. i'd like to welcome my guest, david, thanks for taking the time >> good to be here >> you know, i think even when there's erroneous news stories that move the market or ultimately the vote that the senate had that passed their portion as it sits of tax policy, the markets seem to be chugging ahead through it all. what did you learn from the way the market acted friday and the way it's trading today >> i think friday's activity is just a perfect example of trading politics, trading headlines, and having a knee-jerk reaction oh, they've stalled on the vote, but i think today is probably the more, let's say, realistic or more directional play we're getting this tax bill done, and i think that the markets are responding the way they are going to continue to respond, at least for a little while, and friday to me is kind of a blip on the screen, a reaction to a headline >> got ya. now, with regard to 2018, there's so many questions. we know that our fed,

with the santelli exchange >> thank you, michelle i would like to welcome peter book var, always anng guest. thanks for taking the time >> thank you >> so this morning, i looked at boon yields, i looked at shots yields both are moving lower, but the boon really exemplifies the notion that we're teamed with other sovereigns on a relative value trade, and they're moving lower. they could have the lowest yield close in darn close to six months your thought on the boons, your thought on sovereign long end around the globe going into year end, peter >> what's most interesting is that each day that now passes into year end, we get one day closer to the ecb cutting their purchases in half. just to quickly quantify, the ecb has been buying seven times the net issuance of european government seven times. that's why they have been able to collapse european yields. now they're dramatically stepping their foot off that pedal, and it's ironic that yields are back to their recent lows heading into that event the market to me is no longer discounting. it's very reactive i wouldn't be surprised if

back to you. >> all right, rick santelli, thank you very much., you know, as we continue to report on these headlines coming out, prosecutors and mike flynn himself, let's get back to eamon javers with more eamon? >> john, we now have a statement from ty cobb, the president's attorney handling the special counsel matter for him i want to read you a statement saying, "today michael flynn, former national security adviser at the white house for 25 days during the trump administration and former obama administration official offered a guilty plea of making a false statement to the fbi. the false statement involved mirrored false statements to white house officials, which resulted in his resignation in february of this year. nothing about the guilty plea or the charge implicates anyone other than mr. flynn the conclusion of this phase of the special counsel's work demonstrates again that the special counsel is moving with all deliberate speed and clears the way for a prompt and reasonable conclusion. couple of takeaways now from the president's lawye

joins us with the santelli exchange.rning. and thank you, david like to welcome my first guest after the holiday, andy brenner. thanks for taking the time today. >> rick, thanks for having me. always a pleasure, buddy >> so as you pointed out in your most recent writing, there's reamy only two days, wednesday and thursday, where we have full capacity shortened sessions on friday for many markets. of course, marketsts were closed yesterday. is there going to be action in any of the markets specifically on the treasury side as we close out 2017 that you see in your technical or fundamental crystal ball >> you pointed out midway, you have been talking about it for six months, we tend to close near the previous year's close you know, last year, we closed at 244.5 we're at 247 now the difference is this year, you know, the two years at 190 was 119 at the beginning of the year we had a flattening, and you have been saying it for a long time you should take a victory lap. >> thank you for that, andy. you know what. it's funny y

santelli?nd of reasserted themselves over the course of the week that one monday stomachen, we thought it was going to be of a consequence. open en the opened up with a sugar h on monday. now it inched its way back it seems as if just the seasonal strength maybe is going to don'n monday is going to be -- overall, as you guys were talking about, bill, the general backdrop remains undisturbed in terms of the fundamentals and also just the resilience of the tape >> we think we got everything figured at right now, haven't -- taxes making progress -- >> all good which usually means it's going to end up bad i would say the only thing that does concern me is something we talked about for weeks now, santoli wrote a very good piece, i would advise those of you to go to the cnbc website to read it. >> wow, you want something. >> well, it's the flat yield curve and mike told me, again, if you read it, not to worry about that so you shouldn't worry about -- >> not yet. >> not yet so that's the only thing t

allison deans, founder of aa deans advisory, and rick santelli at the cme. it's good to have you all with us grasso, you want to give us your take on bitcoin mania? since we just had this conversation. >> sure. so i think, you know, you play all around and somewhere in the middle it's -- can you could have said it was a bubble at $1,000, d$5,000, $10,000, $15,000. does it have room to trade higher when you look at -- to the professor's point, leaving off that spot, it does add credibility that it's actually an entity that's worth at least looking at or tradeable when you're able to trade futures now you can short it so now you get another side, so you get both people who never had access to trade it, never thought about trading it their bylaws said they couldn't trade it now it trades in futures they're able to trade on the long side and able to short it now. so i do believe the more people educate themselves, it probably moves higher from here. >> allison, talk to me about markets. anything other than bitcoin. >> seriously >> i'm such an old-fashioned value

carl, back to you. >> rick, thank you very much, rick santelli.n we come back, former direct tv ceo mike white will joining us and react to the disney/fox deal dow record high up led by boeing and disney, back in a minute ♪ ♪ ♪ ♪ what we do every night is like something out of a strange dream. except that the next morning... it all makes sense. fedex powers global commerce with vast, far-reaching networks... deep knowledge of industries... and, yes... maybe a little magic. ♪ jack and jill went up the hill to fetch a pail of water. all because of a burst water pipe in their house that ruined the hardwood floors in their kitchen. luckily the geico insurance agency had helped them with homeowners insurance and the inside of their house was repaired and floors replaced. jack and jill no longer have to fetch water. they now fetch sugar-free vanilla lattes with almond milk. call geico and see how affordable homeowners insurance can be. >>> disney/fox, a big story this morning, obviously let's bring in the former chairman and ceo of directv, michael whit

the santelli says one of the main centers or percent chinta virtual emotions. that we meet up with psychologists that his client chris markel. yeah that's not cool is a woman her and traumatized by his experience and. afraid of. the approach sounds like science fiction instead of using real therapists and this is like avatars explode veteran psyches. but is not ready to back his feelings to a machine. the former marine enlisted at the age of seventeen. his missions led him to iraq and afghanistan. vets i think it's hard to relay the experiences of work to other people if they haven't been there so it's a it's a deeply personal thing that's most people who actually do combat don't talk about it the ones who were time they were in combat talk about all the time but it's very hard to bring up something that was. really emotionally shaking shaping your life and to express it as somebody who won't understand who doesn't understand the situation they weren't there they were getting shot at they don't understand why we would shoot somebody else it's not a natural reac

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. >>> let's hop over to the cme group and get the santelli exchange with rick santelli.rl like to welcome my first day of the fed two-day meeting guest, bob heller thanks for taking the time >> good morning. >> good morning. well, first of all, let's start at the top what are your thoughts on tomorrow's fed decision and of course press conference? what do you think we'll see? what do you think we'll hear >> well, everybody has agreed that there will be a quarter percent increase as far as the conference is concerned, everybody will try to ask the outgoing chairman what the new chairman will be doing, and in addition, offer her many congratulations on her successful four-year term. >> now, when it comes to raising rates, there was a time not long ago where bank profitability, the complexion of the yield curve, all of these things were highly correlated. but now when you look at banks, they have a lot of floating liabilities and exposure matched with their assets. credit card debt is 1 to 1 with regard to increases in rates mortgages are susceptible, and savers seem to get

in a few moments good luck topping yesterday's show >>> let's get to the regulated group and the santellinge. >> good morning. thank you. like to welcome my guest, tim kaine from hoover institution. thanks for taking the time good to be here. >> let's start out with the obvious. it was jobs friday you had a chance to peruse the data, seasonally adjusted and than seasonally adjusted any observations >> this is as good as it gets. we have the lowest unemployment rate in 17 years, 4.1% normally we would say that is overheating, but there's no signs of recession or high inflation. i would point out it's holiday season, it seems like we're in the middle of a holiday party, everything is great, but who is paying for it? there's still a lot of deficit and federal reserve dstimulus making things look good. >> you wrote a commentary that i enjoyed reading. redefining winners and losers on taxes. the one question that jumps into my mind, why does it need to be redefined as it currently sits >> there's a narrow view, every article you read says who wins from tax reform? who loses from tax reform. wh

rick santelli yesterday was talking about 2.44, we have not seen that in a long time i'm not sure what attribute it to. we have the new tax stuff. a couple of changes. not huge, but interesting changes. that's it. >> nice one. joe, we'll see squawk squawk coming up in eight minutes time. we're back in a couple minutes ♪ ♪ ♪ ♪ what we do every night is like something out of a strange dream. except that the next morning... it all makes sense. fedex powers global commerce with vast, far-reaching networks... deep knowledge of industries... and, yes... maybe a little magic. ♪ >>> eight hours to go until the fed makes its final decision of the year joining us is michelle girard from natwest markets good morning >> good morning. >> the markets are confident of this 25 basis point rate hike. so what do we expect for next year do we get a move of the market closer to the fed or the fed closer to the market >> it's interesting that 15 -- 2015 and 2016, of course it was the fed moving to the markets. 2017 was the first year that the fed actually delivered on what they told you they were going to

bob pisani is at the new york stock exchange rick santelli tracking it all at the cme.u first. >> i think tyler, let's take a look at the s&p. we're up and we're up for a good reason because the market and the market friendly answered the three questions that they care most about the market does number one, on future rate hikes, that's number one we had three back in september and it looks like for 2018 and it looks like we've got three now. that's the most important thing the market wanted to hear. number two, the economic projections. we got a bump up in 2018 and 3.9% unemployment and 3.5% gdp and the whole inflation debate here declined outright and staying below 2% and acknowledging that once again and that's certainly market friendly overall, and you've got the core cpi this morning that was a below expectation, and you put that all together, generally those are market friendly and we are up probably three points on the s&p over where we were before we started. as for the press conference, everyone wants to hear from yellen about her grade and i want to hear her gr

we've talked to rick santelli a lot about this, rob, so how do you have confidence in that call given that despite all of the reasons we could all outline the dollar is still weak >> well, i mean, jack kind of laid out a good case with the repatriation the last time it happened, 300 trillion, you know, we saw a dollar increase and now we can get five times that. so, plus the fed, the fed, just the fed raising rates should begin to nudge the dollar up, as jack said, if repatriation causes the dollar to rise, then maybe they're less aggressive. we have a lot of forces i think that are going to be pushing the dollar up, and just because it hasn't happened yet doesn't mean it won't happen as we go into 2018 >> and before we go, jack, short term rates have been going up as well, part of this flattening of the yield curve, we hit 190 in the two year and kind of stuck there. are you guys talking about much higher yields in the near term yet? stock market could be in trouble. >> all right very good. thank you, guys. >> thank you >> thanks, bill. >> see you later >>> dare i say it? happy new y

rick santelli at the cme in chicago is with us this is an expiration day, peter, what are you expecting to happen here? >> going to be some huge volumes. we already checked a lot of the major 2345i78 names and going t very large -- you know, people look at that and at the end of the day the market could be up 190 points and look at 2.5 billion shares trading on the nyse, 8 million or 9 billion overall. they're going to think there was some major meltup. the reality is, you know, 70% of that volume is going to be on the close. so, i mean, it's a strong day, everything's been pretty strong. what's been going on in washington you know i'm not a big fan of basing an investment on any politician, but this is, you know, we can't fight this storm. >> yeah. >> charlie, what are your sort of main things on the dashboard here is it the tax bill you know, is it other aspects, you know, things coming out of washington here as we start looking into 2018? what is it >> the good news is, there's a lot of things that are all pointing in the same positive direction. by the way, this idea that tax cuts a

one of the provisions they're considering in the tax code. >> rick santelli, i can't imagine you disagree with the discussion that's been going on up here about if the government shut down, who would really care when it comes to the investing community? >> reporter: well, i mean, listens it listen, it's fun for the media, fun for the politicos. always stories about coupons not coming and defaults. i completely agree with our guests you know, it's a kabuki dance. everybody is really figuring it out. on the issue of the marketplace, it does have one little itty bitty effect sometimes, and it has, watch the one-month bill auctions. you know, there's a little volatility in that regard. i think that today's stock market actually made a difference in bond trading and it's going to be interesting to see how it pans out. earlier today, the close for the bunds continued to mark clo closed -- we saw the long end reverse a little bit as the stock markets regain their sea legs it's going to be interesting as we go into year end, who's going to win the battle of interest rates is it going to be the ec

. >>> let's get to the bond pits this morning rick santelli at the cme in chicago.ood morning, rick >> good morning, carl. you know, the treasury complex is pretty tightly compressed and if you laook at one week of tens, there's a downward slide to it, if you open up the chart tee to early october, you want to see the high-yield charge. happens to be the sent m for 2015 at 227. we're sort of playing as we test that lower end of the range, and while that's going on, part of the reason it's going on is what's going on in bunds one week of bunds, looks very similar to one week of tens, until you open it up to a june start. there you see that is now closing at the lowest level since about the third week in june dollar index through all of this is actually trying to mount a bit of a rally, as you see on the one-week chart, getting up to around 93.80, just shy of 94. but when you open up the chart here for a little bit more macro view let's start it out in august what you see there is that we've been higher. as a matter of fact, thing range on that chart is 91.5 roughly t

in the meantime let's get the santelli exchange. hey, rick. >> good morning, carl.w, i had pat flynn on, portfolio manager, likes to really pay attention to the noninvestment grade high yield, and our conversation this morning was fascinating. nothing that you viewers haven't heard me talk about many times, that there's two huge opposing forces going on with respect to u.s. interest rates. one force is, of course, the fact that our economy is backing up a couple of quarters in a row. it's acting pretty well. today's data aside, even though non-manufacturing wasn't as powerful as it was last month with that 60 handle, 61 to be exact, it was still a good number, so there's a group of investors that lock at the improving economy and they lean towards the sell side. then you go to the international group, and they look around, and they see negative interest rates through much of europe, negative interest rates throughout much of japan they see central bankers, especially in japan, still pedal to the metal and they look at our interest rates and theirs, and it's an easy