expected but the street zoomed in on the disappointing outlook. the gints for the current quarter. but keep in mind you're still in the money over 12 months. up 100%. one of the best 2014 performers on the s&p. a little steam coming out of the momentum play. >> have a great weekend. >> thank you for joining us today, as well. bye. >> a pleasure. >> welcome to "the closing bell." i'm kelly evans back at new york stock exchange. we were up 175 points thereabouts at the highs. currently off those levels trying to see if the dow closes above 17,800 first time. >> bank of japan cut interest rates overnight. mario draghi implemented the first phase of quantitative easing plan. we had two things going for us this morning and we aren't doing so well right now comparatively.

>> that's right. several sessions adding points and adding eight. talking about the effect of the stimulus and people at the same time talking about as a currency race to the bottom. round number five or six i think we are on. >> expiration day, too. may be complications. art cashin saying the bias so far to the upside and could change. >> the dow up half a percent and the s&p 500 sitting at a level unbelievable, 2061. a lot of forecasts coming into the year closing at 2014 was aggressive. now the nasdaq up about 9 and underperformer on the session hovering around 4711. >> less than 300 points away from nasdaq 5000, too. getting there. let's talk about it in the closing bell exchange. with us this friday, hank smith, john wilson, peter chicini,

christine short and rick s santelli in chicago. the sugar rush didn't last long for the markets. what happened, do you think? >> well, you know, first of all, keep in mind, we have had a sugar rush going on and we pretty much cut the pattern with regard to quantitative easing and not surprising that, you know, the european markets did a bit better but i do think that embedded in that is a very interesting notion. i talked about it a great length today that capital flows potentially into the underdogs like the european economy and underdogs referring the state of the economy from a true fundamental vantage point is going to get outweighed by the liquidity so the capital flows could be moving out of the u.s. and various sectors. i don't know that anybody is anticipated that. it could do things but the fixed income market looks like the

effect early on but it's not. it looks to close between 230 and 238 in 10s and the 30-year bond up to 32 days between 303 and 310 and breaking under that range. so i think maybe it might have siphoned off on the equity side a bit and looking at the spread relationship at 14-year wides of a boon and a 10-year. >> unbelievable some of the levels of the european bonds. >> let me correct something i said. i'm sure there were people yelling at the television screen when i said that the bank of japan cut rates. it was the people's bank of china. >> we knew what you meant. >> you knew that but it didn't come out of my mouth. we want that to be right. >> could have a lot to do with the bank of japan. . if you're an asian economy and reacting to the yen and you have to wonder maybe korea or india might have to start thinking

about a similar policy. john wilson, what do you think about the moves overnight we saw in central bank land and where it leaves the u.s. semihere? >> well, we are fiat positive on the u.s. economy but when you think of people talk about with the fed potentially moving rates next year, the common line is that's a good thing because it means that the economy's better. i think the converse is also true which is the bank of china not cutting rates in china because everything is rosy. they have a slowing growth problem and trying to react to that. >> christine, you were mindful of the multinationals reporting earnings this past cycle and saying they were concerned about the slowdown in europe. are you taking comfort or do you think they will take comfort from the actions of mario draghi this morning, as well? >> yeah. that's true. the concern of 25% of s&p 500 companies that reported at this point have said europe was a biggest concern and you have to remember about 10% of s&p 500

sales comes from europe so i certainly find solace in the fact that something is happening. i think the big question mark is, is it too little too late? will it work the same way as the u.s. and i think companies take solace in this going into 2015 and takes time to come into effect but seeing, you know, big names such as johnson & johnson, cola cola among those that said europe is weakening and a weaker picture for the fourth quarter, look at today's move and be sort of positive about the economy going forward. >> i wonder we put up the chart and have people take a look at what's happening here and we hit kind of a milestone. s&p capital iq saying the estimate of third quarter results, hitting $30 a share. >> when you add up all the s&p 500 stocks, they earned an aggregate of $30 a share. >> exactly. a steady march as you can see since the recession. two components to where it's

trading. hank smith and then there's the multiple on top of that. both of those are in expansion mode and do you think they'll continue next year? >> well, look. i don't know how much more multiple expansion we're going to get. you could make the argument that you could get maybe another point or two of multiple expansion given the low level of interest rates and inflation. but i do buy into the fact that the u.s. economy's growth rate accelerating, perhaps to the 3% range. that means corporate profits are going to inch up maybe to high single digit levels and that adds up to a good year we think next year for the market. on top of that, you have always had positive returns one year after midterm elections since world war ii, positive returns with years ending in 5 going back to 1835. >> the 5 again. >> the 5 indicator. >> and the third year of a presidential cycle's a good one so -- no reason not to be

bullish. >> peter, if i read your notes properly, you're a little skeptical of the rallies here lately. you don't think the technicals are confirming this market here, right? >> yeah. well, you know, we sort of got ahead of the selloff in october by noting that nyse cumulative advance decline diverging of s&p price. and we're actually seeing similar divergences in breadth right now, continuing in the s&p breadth. s&p breadth itself. a divergence of russell breadth and price. >> fewer stocks are going up than down. more stocks going down as the averages going higher here. >> correct. participation is flagging. put it that way. >> what do you think is going on here? are we setting ourselves up for a top here? >> well, i very much think so right here. and i think today's actually pretty interest day from a

technical standpoint and seems on a lot of charts including russell and the s&p into very important resistance levels so from a technical standpoint, the way of the volatility surface looks, i see a steep skew with market tops. i'm not all that bullish on earnings next year. margins already at 10% on the s&p. that's very close to historical highs. i'm a mean reversion guy. i think in cycle that is will tend to revert and moreover in terms of election cycles and 5-year cycles and the other things, if the causeality isn't there, then perhap this is's just really strong coincidence that we go back and look at the data and make it fit the reality. >> wow. >> rick, how much further can the dollar move go and what's the implication for the u.s. economy? do you think it's an equivalent of tightening of monetary policy? >> i think i stick with my baseline forecast that if you want to know how high the

dollar's going to go, just look at the yen and the euro. and i think in the euro's case in particular there's more room. i think when it comes to the yen and china, i think you need to start looking at the way their two currencies core late and sticking with the 120 level and the dollar-yen with resistance so i think that the biggest part of the 12-plus percent depression yags of 2014 thus far is close to the biggest number to see for the rest of the year. >> you know, peter just threw out there one of the least bullish forecasts that i think we have heard in quite a while here. >> that's true. >> hank, christine, who wants to take the other side of the trade right now? he laid down the gauntlet, he's drawn a line in the sand for the market at this point. >> i won't take the other side. i'll say i think the multiple is more problems than the earnings. i think earnings, we think, are set up to do quite well moving

into next year but you started the segment talking about the market is complete lly focused d the journey is qe-3 is over and turning the language to be about rate hikes and i think that is a problem for the multiple. >> what are you buying here? what's attractive to you? >> sure. lock. i think the market's been giving you an opportunity and a couple sectors with that big selloff back in october. industrials where you had almost a bear market type of selloff so you can buy names like united technologies, like eaton, like general electric. that have -- that aren't at the 52-week highs that will benefit if we're right about an economy accelerating and particularly if europe picks up with some quantitative easing and you're getting paid a better than bond-like dividend yield so you're getting paid while you wait. that's a nice combination. >> all right. got to go at this point, folks.

they all for joining us. have a great holiday, as well. see you later. >> thank you. mega terrell is covering the moves for us with something of a faded rally, meg. >> hey, bill. we begin with dow chemical, the company agreed to add four independent directors to the board as part of an agreement with the third point hedge fund avoiding a proxy battle and trading up 2.3% and caterpillar higher, as well. steeple began coverage with buy rating. now trading up about 3.7% and petrobras is on the rebound. dow jones citing the brazilian media saying the top con tenners are market friendly. trading up about 12% on the flip side, aruba networks, falling after the revenue guidance below street views. the stock trading down about 13%. and we end with intel losing ground after clsa downgraded the

stock a day after the investors' meeting saying guidance for growth was too optimistic. back the you guys. >> all right. thank you. and that caterpillar rally helping the markets. dow up about 82. still looks like we're going to go out on a strong neote here. >> and it was the bank of china's surprise rate cut that fueled the early rally today. will china's move slow down what our fed might do when it comes to raising our interest rates? steve liesman and chief economist mark zandi taking that topic when we come back here. speaking of the fed, rhode island senator jack reed wants to make the head of the new york fed a presidential appointee subject to senate approval and speaks with us exclusively coming up. don't go anywhere. (trader vo) i search.

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plus signs today. in part maybe large part to the easing that occurred that we had the interest rate cut by the people's bank of china overnight, the quantitative easing by the ecb this morning

and our market was up 176 points on the dow but we're well off that high and record territory for the dow and the s&p and the nasdaq's at a 14 1/2-year high right now. stocks initially jumped on the news of that. first the china rate cut. first cut in over two years. was our federal reserve paying attention? >> well, will janet yellen raise rates? joining us is mark zandi with our very own steve liesman. steve, why don't you begin here? >> well, let me start with some news we got. citi sending out a note saying that they've pushed ahead their date for hiking interest rates from september 2015 and they were already late and now they're in december. so i think there's an effect of what we're seeing and hard to know because other central banks are easing further or because of concern about global economic weakness? we're starting to hear that.

i think the way to think about this is the fed is okay walking point on patrol but it doesn't want to be too far ahead of the rest of the squad. they were ahead coming to easing and i think they'll be ahead coming to tightening and not too far ahead. >> mark, what do you think? janet yellen said it's data dependent when they'll start to raise interest rates. but the question now is, whose data are we talking about, ours or europe's and asia's? >> i think it is ours. you know, i think it is all about the u.s. job market. if we continue to create jobs at the current pace, 225,000 per month, labor market will tighten rapidly and start getting substantive wage growth and then i think that matters. that's the catalyst for a rate hike and i think june is much more likely than december and events overseas matter but they have to have big moves overseas before they matter in a significant way to our economy and to monetary policy so i think it's all about our

economy, much less overseas. >> i'm glad you raise this issue of wages, the one everybody's watching closely and perhaps now another wrinkle. i want you to listen to what jason furman had to say yesterday on this topic of the president's move of immigration and some believe will keep wages down. i asked the chairman of the council of economic advisers. take a listen. >> is it probable in the near term to depress wages on the low end of the labor market? >> no, i don't believe this would happen. we did a massive experiment on this. it increased the labor force by 7% in miami with low-skilled workers. economists didn't find an adverse effect on wages of workers there. if anything, they went up as the new people helped the economy complimented the work. >> mark, do you agree with that view if anything this would be a net positive for wages or will

it at least near term put downside pressure on that part of the labor market? >> no. i think he is exactly right. most of the executive action that was taken last night by the president centers around helping to promote the immigration of more skilled highly educated workers and they're going to be entrepreneurs, innovators by risk takers from their country to our country and more jobs and more demand. no. i don't think it depresses wages. longer run, immigration is critically vital to our long term growth. if we don't have immigration and more immigration and highly skilled immigrants, the growth prospects dim. take a look at japan and europe. a big difference of going on there and here is significant immigration. >> what do you think, steve? >> i think that's right. if i'm not mistaken, most of the people affected by this probably already working in an illegal fashion or some fashion not on the books and i don't think

that's a net addition to supply to the labor market here but i wanted to disagree with something mark said and i know this is against the theory here. i believe that americans want to work and want to work in greater numbers than they're working now. mark, i could see this strong job growth continue with an extended period of -- without wage gains. we have been sitting here calling for the wage gains year after year and we have been wrong and maybe it's time to give up the ghost on this. i think there's a vast and vaster pool of labor slack than those worried of wage gains are willing to admit. i think the participation rate is lower than it should be and will be and i also think the millions of long-term unemployed and i believe these people come back to the workforce they will exert downward pressure on wages. >> mark? >> yeah, no. reasonable debate. i mean, i do think there's still considerable slack in the labor market and a reason is you have people that stepped out of the

workforce and will step back in with more job opportunity and wage prospects do begin to pick up. right now, best guesstimate says 1% to 1.5% of the labor force and assuming stronger growth and absorb it over the next year or year and a half and starting to see signs of wage pressure and, you know, i'll take a bet, steve. next spring, let's pick the month of may, by the month of may i -- we'll concur that there's been a definitive acceleration of wage growth and feel it in the labor market. >> you can feel it? >> i'd be happy to lose that bet. >> i can feel it. >> steak dinner on the other end of it. buying or receiving. >> with a good bottle of wine. >> big on corn bdogs on this show. >> time to update. a little class on the show, griffith. >> those are classy. in brooklyn. >> the original premise before you go. you seem to suggest even with

that kind of wage growth we would not see the fed raise rates sooner than later because of overseas, as well? >> that's a part of it. i think janet yellen wants to run the economy hot an i think that's something that is a matter of judgment, whether or not she can end up allowing that to happen, i think she wants to do catch up in wages. we have had wages running below productictivit productivity, inflation. zero to negative over a period of time and a pickup recently and inflation's come down and i think janet yellen would like to have workers be able to have time to fake up what's lost and not inflationary. there's pressure and people screaming. the fed behind the curve and yellen will say, exactly. >> all right. we'll see. >> thanks, guys. >> thank you both very much. have a good weekend. >> steve, we're sending you a corndog. >> with them, if you use the grey poupon mustard, it can be a

classy dish. >> 40 minutes to go. and 82 points higher on the dow where we stand. look at that. just barely back above -- i shouldn't say back, only today we're trading here. 17,800. that level keeping an eye on and the s&p adds almost 10 points on the session. just as we're getting used to gasoline under $3 a gallon in many parts of the country, will opec cut production next week when they meet? plus, a new way to invest in china, exchange traded fund manager talking up a new china etf focusing on bonds and who should be invested in this right now? we'll talk about that coming up. stay tuned. mpetition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities

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west texas intermediate crude back above $75 a barrel today, in part, fears of opec cutting production next week in the meeting. jackie deangelis has that story for us. >> that's right. a wait an see approach and a pop on wti today and nothing major. two big catalysts traders watching next week, the first is on monday when there's a self-imposed deadline for nuclear talks with iran to finally settle. traders are looking forward to say if we have an agreement here oil could come back on the marketplace and then see prices continue to decline from there. and then you have the opec meeting on thursday. everybody watching that one

while we're eating turkey and then looking for opec not to cut supply and may cut it at this point. that's what the market is thinking. a very small amount. take that in context. producing 30 million barrels a day and shows that maybe some of the members of opec with more influence on the american me believes especially saudi arabia. that's significant. bottom line, could be a light come volume holiday week but crude could be volatile. back over to you. >> yeah. we expect that. looking forward to that meeting and dramatic. thank you. will opec actually cut oil production next week? let's ask chad brown and peter amandio. welcome to you both. chad, do you expect cuts at the meeting next week? >> i'll tell you why they won't cut it. because they have the issue of the sunni of shiite iran issue and they shouldn't because they have u.s. market tons heels right now.

see the counts go down. the corporate board rooms are stagnant and a reason they shouldn't and won't cut it. >> peter, what do you talk about on the floor? >> they have been talking about lower prices and i would assume talking about lower prices so they could get rid of their competition, such as north american shale and canadian producers and cost is higher and get rid of the high cost production. >> you don't think they will eater? >> i don't think there's going to be a cut. i think they want to see lower prices to get the competition out of the market. >> there's announcement, peter, next week they don't cut, what do you think the price of oil does? >> fall a couple dollars. one of the things we were seeing today is option premiums very soft which are insurance in the beginning of the day. as we got near the close, all of

a sudden puts, the right to get short, got very high telling me that they're already fearful of a gap open lower. >> this is fascinating maybe showing how soft the oil market is right now. how much further could the price of oil fall? >> i said on the show last time 75 is a 100. you have an issue of russians against the saudis. you have opec who's been delivering 8 million barrels to the u.s. historically and now 3. they're not cutting production. they're going to hope the u.s. sits on the rigs and u.s. from 1,900 rigs at these prices and flowing the oil and in very good shape with the u.s. stagnant over two quarters. >> talk about that impact will be on the booming shale industry here in the united states and up in canada. they're going to have to deal

with lower prices because the cost of production is so high relative to the pries right now. do we see consolidation or what do you think will happen? >> a big m & a strategy in 2015. a rig count down 10% to 15%. the corporate boards in america can't allocate costs of drilling when they don't know the prices in three quarters an endoing that the beginning of the year, see corporate boards out in all allaying. there's still meaningful production but not the rate of 2014. >> that seems like that's happening anyway, peter. a final question is how much does this opec meeting and opec itself matter to the course of oil prices and production in this country in the months ahead? >> i think it means a lot but if you were looking at the different producers, i think what you have to look at by the companies is who's hedging? who protected themselves? who protected the shareholders?

>> continental said they won't hedge the prices and it's a fascinating week next week. >> yes, it will be. good stuff. hey, guys, thank you. appreciate it. >> you're welcome. >> thanks for joining us today. >> thank you. >> appreciate it. 30 minutes to go here. we are off the highs of the session. we had big jumps and the dow up almost 170 points higher and come off the level and holding up here with half an hour to go up 90 points and record highs. >> you' is question right now. is the u.s. economy booming? we're not kidding. somebody here is joining us here shortly thinks we are ignoring the signs of an economic boom. we'll take his case next an we want to know if you think we're in a boom. some people are already voting. click on cnbc.com/vote, cast your vote as we talk about it when we come back. senator jack reed, his proposal on making the fed head

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seeing more truth in the market. this is an expiration day. futures and options off the board on the close today and might get volatility and volume. dow up 96 points right now. both in record territory and the nasdaq is up 15 points. >> yeah, the dow starting to flirt with 18,000 mark. is this a sign that the economy is booming? before the break, we asked what you thought on this. polls are open right now. cnbc.com/vote. let us know if you think the economy is, in fact, booming. >> while you're multitasking there, let's talk about this with steve englander and says there's a decent chance that the economy is booming right now.

derrick kinny, meanwhile srks a bit skeptical of that call. so, steve, make the case. describe the booming economy you think may be underway right now. >> three factors that put the risk to the upside. first, even though the u.s. economy's off perceived being a fragile flower, over the last 18 months we had the taper tantrum, the government slowdown, the worst winter since the ice age. u.s. economy's doing just fine showing no signs of any kind of slowing. second factor -- >> go ahead. >> and indications of whether it's filly fed, the pace of leading indicators is picking up, the way investment is going, full-time jobs are growing, these are indications we haven't seen since -- of cycle highs and not in a long time. and very, very briefly, just that oil prices down.

tremendous global liquidity. they do it because they're weak. no way we needed it right now and the benefit of it anyway. >> derrick, do you think the economy is strong but not that strong or take issue with the whole idea? >> yeah, kelly, let's cut to the chase. i think of investors think that the market is red hot and the economy's red hot they're in a big disappointment. we are far away from booming right now. if we are, we need to redefine booming right now. kelly, it's a tale of two streets. wall street and main street. wall street is teetering on 18,000 on the dow. things look very good there. but on main street, we got concern, worry, nervousness of the average person, their personal economy is not reaping the benefit of this economy right now. i don't think the numbers substantiate a booming economy at all and further to that point, concern about geo police call issues and a lot of countries right now around the world in bad shape and if it affects our country that could drag our economy down, as well.

>> well, no. but derrick -- >> i can't say booming right now. >> listen. but i'll go back to steve on this and curious of your reaction but is it possible it's because the world is doing so poorly it's masking the strength of the u.s.? >> honestly, could be enhancing it. >> there's a possibility of that. >> steve first. >> 1998, '99 or what we saw was the asia crisis which everyone thought was going to be catastrophic. in fact, the u.s. came out of it very, very well. we are not that exposed an economy. the global growth could drop by 2 percentage points and would beoff set by the $20 price in the drop of oil in terms of u.s. activity. >> derrick, it doesn't feel like a boom but looking at the benchmark measurements. unemployment below 6%. the aggregate earnings of the s&p 500 index for the third quarter at a record of $30 a share. i mean, those are some pretty

impressive numbers right now, aren't they? >> yeah, bill. i think when you say the economy, is the economy good right now? >> y yes. is it booming? the case is out. when i talk to retail consumers in dallas, we want to see consistency for the long haul. how long will this boom potential last? and i think we want the look at a couple things. when you think about the debt this country has, there's a lot of issues dragging the economy down right now and people are questioning is our economy truly standing on its own and not just the fed supporting it? good spot? yes. booming right now i think is a stretch for most people. >> fair enough. steve, one of the interesting points came up in conversation with greg yesterday is this idea that contrary of what happens in your typical or previous cycles in this one the u.s. economy and payroll growth and these things seem to be gaining momentum instead of losing that momentum.

if that's the case, is it possible that to your point of the boom, the index up for almost 6% analyzed year to date are telling us that actually we're going to continue to see the economy picking up? is that somebody that anybody anticipates? is it possible? >> not priced into the fixed income market and the commentary you hear. i would agree. last thing to add is that we have never been in this far in the cycle. it's not like this is an old business cycle by any means. >> boom may be a word that's going to get a lot of attention but, you know, we have a good economy on our hands, steve, so why aren't inflation expectations higher right now? we have f we have a boom going, typically you would think that would connote the kind of consumption that would lead to higher prices and not seeing right now in the aggregate. >> look. you know, what we're seeing is

conflation expectations come down. i looked at michigan yesterday. we're getting a lot of impulses of abroad and i think mainly through the dollar and food and energy but it doesn't look like the internally that the domestic value added prices, wages are not falling but picking up slowly. prices are not falling. they seem -- they keep the margins. not a sign of an economy of a shortfall. >> we have been -- >> let me real add. >> hang on a second. let me point out the viewers agree with you, as a matter of fact. we have been conducting an unscientific poll. people choose to vote. not the other way around. 69% of them, 70% now say they don't believe the u.s. economy is booming and that goes back to the feel indicator right now. you know? some of the numbers may suggest that we're doing very well and doesn't feel that way for some

reason. why is that? >> bill, that's exactly the point. the numbers may show one thing but how the consumer, makes up two thirds of the economy, feels is what dictates the progress of spending their money. the holiday season is a great barometer of this. feeling good about the job, making the house payment, that's better barometer of their economy. booming, no. good, yes. we need to see it for several quarter it is really say the economy is on the uptick. the bottom line is that you and i and the average consumer feel like they can't save money, that's a problem right now. fear and doubt and we don't need that in the economy. >> derrick, steven, thank you both this hour. really appreciate it. >> a pleasure. >> provocative thought there. 18 minutes left in the trading session. the dow up 92 points. any positive close there pretty much is an all-time high. same thing for the s&p up 10 points right now. >> look. we could go out with a triple digit gain after all. since the october bottom, this

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wild market swings took us to the lowest levels for equities. >> meg terrell has a look at when's turning into a rather historic rally since the lows in october. right, meg? >> that's right. s&p 500 touched a six-month low on october 15th. since then, up 13%. led by industrials, health care and tech. all posting gains of 11.8% or more. this rebound is the fourth we have seen this year and the largest. taking a welcome at the numbers, buy the dip mentality holds true with each of the pullbacks turning into buying opportunities and market bounced back more than it fell. first decline, financials, consumer discretionary and then the market rebounded 9% led by materials and energy. second, health care and financial stock that is led a drop of 4% in a week before tech, energy and health care were the big winners on the way back up. third pullback with utilities

and telecom leading the way back and then the last and biggest pullback saw a drop of 10%. today 6 out of 10 s&p sectors at new 52-week highs. back the you guys. >> meg, thank you very much. see you later. heading towards the close, you said this on the air? >> yeah. we could have a triple digit day here when we go out. we were at 99 and change. >> it is expiration day and could get more volatility in the close here. the dow and s&p in record territory right now. later, a new way to invest in china if you want to. exchange traded fund manager with a bond etf saying it's less risky than u.s. bonds. really? we'll examine that claim after the bell. stay tuned.

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tn minutes left in the trading session on a friday. the dow up 87 points. was up 176 on the open. we'll talk about that in a moment. the dow and s&p trading in record territory right now. joining me, we got dave darst

and steve. working on the november beard. >> not working on it. >> not coming in. why didn't we hold on to those gains. european markets up 2% this morning. >> yep. >> finished very strong. we are not. what happened? >> i'm going to throw out technical things here. we are getting a little top pi. the index to watch here is not s&p or dow but the russell 2000. >> russell 2000, okay. >> experienced a double top this year. we look at march at 1213. we look at what we did over the summer. getting back to the highs of november, pierce that and shoot through that, then we'll challenge that top and right now that's worrying sign. >> dragging the market. >> the russell led since 2013 and will lead us down. keep an eye on the level especially next week. >> should we be encouraged or worried about this rate cut in china overnight, david? >> good thing, bill.

very, very happy to see japan do it a week ago. >> right. >> china coming. european central bank beginning to broad out the scheme of asset purchases. i think the big number this week was the philadelphia fed index that came in. >> strongest in 20 years? >> 40.8, tremendous number. so i think you can look and take heart of china paying attention. if they let it drip, so for them to come down to a 560, they took the lending rate down by 40 basis points, deposit rate down by 25 basis points. so you basically see them paying attention. you got europe, china, japan paying attention. all of that plays out very well. going to keith's point, 80% of the s&p 500 stocks are above their 50-day moving average and another indicator of toppishness to the market. and you can expect the market to come in here a little bit and a very good time to add some

stocks in. medtronic, abbott, johnson & johnson. >> i'm thinking you're not adding. >> no. i'm neutral on the market all the way around. the counter balance point to the top piness and the russell 2000 is fundament things in the marketplace we tell you that money should flow into the smaller cap stocks and most notab notably, the stronger economic data here in the u.s. and the strong dollar and only see that and money flow into companies that predominantly do business here in the u.s. opposed to large multinationals like apple and coke and ibm and the fundamental case for it. >> we have been talking earlier about how s&p capital iq points out first time the aggregate earnings for the standard & poor's hit $35 a shir. >> that's right. >> expected to be 31 something for the fourth quarter of this year. so earnings don't seem to be a problem at least right now. >> well, they don't. but still, i think the market is

driven by so much more than just pure earnings and this is the great debate that's raged now for the last two years. and a lot of things affect my decision making on that. most notably, central banks take action, the market pops on that. tend to stay up. so those are some of the things to combat with. it's very difficult right now to digest the information. that's one of the things you are pointing out. >> we'll come back and talk about more with these guys and closing countdown and coming in a little bit. the dow up 80 points here in the close and after the bell, democratic senator jack reed talks with kelly about his bill to make the new york fed president a presidential apint tee just like the fed chairman is. something to subject to senate approval. find out if he's getting pushback and who from.

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and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to make business easier? get the one that can connect to the systems that you already have. today there's a new way to work. and it's made with ibm. about three minutes left here. a review of what happened. by the way, you are hearing cheers and boos and things going on. we have a rivalry commemorated on the close today. it's the football rivalry between lehigh and lafayette college. they met in football 150 years ago and the big game is tomorrow at yankee stadium. we have alumni of both schools here and been a loud, raucous time. let me tell you. the rally started in china with

the rate cut there and in europe, you saw a huge move there. the german index, the stock market was up 2.6%. our market started a big rally this morning and 2% would have been a big gain but as much as we started the rally this morning, it fell, lost steam right away and we've been kind of meandering toward the close with the dow up 76. next week, the price of oil, opec meets on thursday. the talk is maybe they could cut production but as you heard from those traders we talked to last hour the expectation is that they will not cut production and let prices continue to fall and prices were higher today up 1% back above $76. david? >> this is a very good thing, bill. a $50 billion tax cut. >> with oil coming down. >> like this. >> and gasoline prices. >> personal income and consumption. durable goods orders. you get the case sheller price.

consumer confidence. a detailed look at the economy. i think this is a taylor swift market. shake it off. shake it off. shake it off. >> well done. i mean, not that we have any great insights of opec's thinking. they could cut production and protect their price or leave production where it is and then take it out on the shale producers in the united states. >> i'm the cynic on the story. i'm number two of what you described. i think they're manipulating the price. wouldn't surprise me. we don't have oil as oversold inside of our work. >> how much lower? >> $70 and below easily and, listen, if opec turns on the spi gots more and get out of the way that will happen. >> i'm with him on this. >> we are at the point now where lower oil prices are helping. >> very, very helpful. john f. kennedy, we miss you.

ken cramer, jim cramer's father, we miss you. >> for sure. thank you. have a great weekend and holiday if we don't see you before thanksgiving. going out with the gains. 83-point gape on the dow and the s&p for record highs on this day commemorating that 150-year-old rivalry between lehigh and lafayette. have a good weekend, everybody. hour number two of "closing bell" with kelly evans. >> thank you, bill. welcome to "the closing bell" and mascots this afternoon. i'm kelly evans. another strong week for wall street and dow. trying to add 100 points falling shy of that level going out with a gain, still, of about 88. up half a percent and the s&p 500 adding 10 points and, yes, these are record closing highs and look at that, the dow closing above 17, 800 for the first time. the nasdaq meanwhile still trying to make another go back up towards 5,000. it was the laggard of the session today up about a quarter

of 1%. let's bring in the panel now. recap the week. look ahead to next week. zachary carabel with kayla. nath nathan bachrach and what did we learn today? >> the market will go up with quantitative easing somewhere in the world and china is quantitative easing the way we know it. cheap money. in europe, the hope of quantitative easing and here qe for quality earnings. because our corporations are doing fabulous. it's qe all around the world. you have to pick your terms. by the way, i won't believe they're doing quantitative easing in germany until i see mario draghi come out with angela merkel saying i'm in favor of it, too. otherwise he's a financial pinnochio. >> zachary, do you agree? >> we live in a world of ample,

ample liquidity and my thought is if the fed contracts, this is more of massive pockets looking for places to go. and then that's true for years. that doesn't mean that the market's are bolstered for years and just means that the stuff -- the receding tide is nowhere in the cards. i mean, you will have potentially the scandinavian countries, sweden, who knows what they'll do? >> kayla, your money on lafayette or lehigh? >> i have to just go ahead and say that i'm not familiar with the rivalry. >> i'm sure a correlation of -- >> probably a graduate of one of the schools. no doubt that the central banks pushed the market higher today. every head attributed the reason for the u.s. markets to rally. thinking of the gains, you have energy and materials up today and obviously part of that has to do with oil prices rising slightly. and the china rate cut but when you look at the last year, those are the two worst performing

sectors and even though we're seeing gains today, you can't lose sight of the fact that as well as weakening china economy has bigger circumstances for the economy than just today's comments. >> exactly. ross, should people be buying the bounce across the space and buying china or should they be looking to the prouder picture of what kayla laid out and the downside of the trades to go? >> we're not buying china or oil at this point because i do think that china has a lot more to do to stimulate the economy and has to do with the corruption they're cracking down on causing a lot less spending in china and we went to see how that plays out. >> how much lower for oil? >> i mean, you know, just looking at supply and demand, i say it could go $10 lower. i'm a stock guy an i look at it

as the average consumer is getting a ton of money in the pocket to spend. every dollar oil lower, more money that we have to spend supporting our economy. we want to be in the u.s. markets. we're the best market in the world. >> retail names, too, here? what do you want to buy then? >> i don't buy too many retail stocks. i don't like the business. but you guys know, i'm an apple guy. you know? how many times can i tell you this? up 17% since the last time i was on the show. they're going to have the best christmas of anybody. we like video games and the movie business right now with disney and imax. the entertainment business and travel. i actually looked at an airline the other day, believe it or not and might even invest in one. >> so airplanes are the new retail. >> exactly. virgin america, a great company. they destroy the competition. i have to say they're the leader in the category. they just went public. >> very nice cabin lighting. if you're -- i would say on

ross's point that the consumer aspect of lower energy prices is frequently talked about as a one to one, if you spend less money in the tank, more to buy lattes are gifts. it doesn't always work that way and there's not as much of a correlation as we think but for companies of airlines and industrial companies. >> why not? >> it's not shown up. it's been talked about. >> you spend it. that's what americans do. >> i tell you where i like it. i like retail. as we survey 1,000 people across the country with a simply money xavier university survey. first off, people are satisfied with their pay which goes contrary to -- >> they are? >> yeah. feeling better than they have, all-time high. and job security and the job environment are also at highs and you'll find a willingness to overspend this holiday season. greater than before. meantime, macy's, our hometown team in cincinnati going out in the third quarter of a small inventory.

i think you might see retail finding themselves able to command much higher prices and learn something from the airlines as we get towards christmas. shop early. >> hang on. "fast money" trader steve grasso is joining us fresh off the floor. steve, is this rally today, the volume seeing anything to do with the volume expiration? >> of course. that's the bulk of the volume. china interest rate cut got the bid underneath all those energy stocks. industrials. so the materials names, the big thing, though, kelly, opec meeting next week. that's going to be the big fork in the road for all energy related stocks. and most people are not waiting, you know, not holding their breath waiting for the cut of opec. >> i'm wondering, steve, we're closed for thanksgiving holiday here, how are people positioning for it? >> actually covering short-term into this rally in energy. obviously, a lot of m & an

activity with the service names, that was the catalyst for a lot of people to start covering. many of their shorts so beaten up but you're going to see that data, half data after thanksgiving, usually light volume day. but, you know, i could see that being a busier day than most, obviously, on the heels of opec meeting. >> black friday, too, zach. >> steve, are people positioning for $65 oil by the end of the year? where are the bets going? >> i speak to as you know a lot of energy specific funds and they think that the bottom in oil is right here. so somewhere around the $70 range. >> is that because they're energy specific funds? >> it could be but you have to remember that long-short they make money on both sides. for them they don't have a vested interest in seeing oil sit right here. obviously, for a lot of the eps cutting cap-x and seen the firms getting hit on earnings and truth of the matter is, you

could see break the mark and technically holding 70. if it does, 65's not much support here. >> that's not what the energy complex wants to say. ceo of halliburton called the fairway where they need it to be to help the consumer but also make sure that their business models aren't completely killed for the time being. >> you know, that's actually very honest because, you know, this last six months we have heard a lot of guys say they could make oil depending on the region they're in, make money, the businesses down to 40, 45, 50. the truth of the matter is we used to hear that number be 70 dr. it was $80. >> we know -- i assume it's higher than here. >> like keystone, right, which was so in the news. that oil sand, heavy tar sand oil above $90 to be feasible. >> 100%. >> we have to remember, oil used to trade at $25 a barrel for a

very long time. and the price of oil is sort of arbitrary to some degree based off supply and demand. >> fact of the matter is, kelly, $250 million a day in the consumer's pocket and i say it gets to -- >> you heard ross. he doesn't like the retail story and we have heard this from macy's itself. they said it's health care, tech. might have been home furnishings and don't specialize in. >> you have to get jon fortt off the show. talking about tech kathie lee. >> the behaviors have changed and we saw it last kris ms and this christmas. the big box stores just don't appeal to most shoppers today. i ask you, kelly, where will you go shopping? will you walk around soho or macy's? >> we are at the stamford town center next friday. that's a different story. >> williams sonoma. i'm fascinating by nathan's survey data which is so contrary

to exit polling data from the election a couple of weeks ago. >> but not contrary to the quits rate and consumer confidence and there's an interesting disconnect where if you ask people about personal finances or economy, they're much more upbeat than the direction of the country. >> but when you think of retailers sounding the bullish horn about their customer, it's t.j. maxx stores and gap, urban outfitters, macy's warning for the full year saying it's below expectations so even though they have more money, they want it at a discount retailer. >> you think the cool kids are buying tech. steve? >> another thing to factor is in how much spending going on on etsi and not tracked and spending online sites that are small retailers and other people that aren't even really tracked and a company like etsi doing a ton of business on trafting and

homemade goods and they're still thinking like the old days and people just are different. >> in the aggregate retail stores, up strongly. it's increasing rate of 7% or 8% and year on year. i was going to ask a possibly controversial question and important one and goes back to health care an ento what extent are premiums related to obamacare and happens this time of year, only second year of this massive activity hitting just entering the holiday season. how much is that potentially taking a bite out of consumer spending? >> to me, there's so much noise and so many contrasting statistics. we don't know how many people are enrolling. they don't know the baseline. enrollments are uncertain. congress, you know, whether's going to happen state by state mandates? the moving parts are in my view almost impossible to gain. >> amounts to a wash or a real impact, say? than? >> an impact on the economy. >> on the question of health care right now, they are very

satisfied with their health care and i think a warning two years from now. >> aren't the clients of yours relatively well off people or a wide sampling of the u.s. population? >> the survey's 1,000 people across the country. both client standpoint and nationally, people are pretty happy with the health care and people, 6 million, or 7 million, people didn't have it before. look at what insurers the last year. >> steve grasso, just last word before we go? >> i think you bring up a great point. corporations are bearing the brunt of the cost. they are happy they have health care because they're not paying for it. business owners are paying for it. you bring up the point of the premiums, how much gobbling up from the benefit of lower oil. that's a great point. >> try to circle back to it. catch steve grasso coming up with the crew at 5:00 talking to

ceo of red robin why that stock is on a tear over the past month up 30% and red robin's new holiday red wine, yes, milk shakes and ross gerber can't wait to get his hands on. thank you, ross. good to see you this afternoon. the dow and s&p 500 closing at all-time highs again and this before any santa claus rally. our top two wall street pros weigh in, two top wall street -- you know what i'm saying. china's surprise rate cut giving stocks in the u.s. a boost. is this a tremendous buying opportunity in china? that's also coming up.

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welcome back. the dow, s&p 500 closing again at a record high. i feel like a broken record. mary thompson, what drove the day? >> transports, kelly. rate cut in china as well as expectations of the ecb buying sovereign debt and a lift to the u.s. markets. as you might expect seeing lower

rates in the world's second largest economy, that benefits material, energy and industrial stocks. the leaders in the broader market's rally today and also posting gains today were some of the etfs of countries commodities based and they could see higher demand of china for the commodities they produce. brazil as well as south america and of course the china, the largest chinese etf, xfi also trading higher in heavy volume in today's session. the news of the retailers today, mixed. stand dwrout is ross stores with better than expected results and lowered the outlook for the fourth quarter, its stock got a nice boost today. the gap lowered the full-year outlook and ann taylor and missed in the third quarter and aushs comments of the fourth quarter, as well. foot locker turned lower and the fresh market, a grocery store

and absorbed the higher cost of food and stock got hit and the dow ended up 91 points. back the you. >> yes, it did. thank you. fifth higher close week in a row we should say. let's bring in two guests. jeff, we'll start with you. how much can equities go here and when do we hit dow 18,000? >> probably between now and year end. i have learned it's difficult between thanksgiving and christmas to put the market down. it just seems to be the ebb lens of the holiday season and since 1950, december up 48 times and down 14 times and you have a seasonal upward bias here. >> why's the market so strong? what's driving all of this? >> we are in the midst of a credit boon. we have a scary selloff every

once in a while and the pattern is the same, greek crisis or the fiscal cliff or the end of qe-3. we selloff like it lease the end of the world and the buybacks and credit buying pick up and since the bottom of a month ago, credit investors brought almost a quarter trillion of corporate bonds. 352 billion as of yesterday. probably over the top today. financial engineering. 70 billion of stock buybacks since the bottom was put in and this is probably going to accelerate into next year. >> that, jeff, would tell you what about just what kind of equity performance to see in 2015? >> well, i came into this year thinking that even this despite the tapering announcement that the fed's balance sheet expands 10% to 12% and earnings up 10% to 12% and i said at the beginning of the year likely with a high r squared or correlation that the s&p up 10% to 12%. i would say the same thing of

next year, quarter. >> i have to ask you both a question i hear all day long. oh, market had the helloth guy, a high every five days this year. i'm sitting on the sideline in cash. now what do i do given what you have said. >> brian? >> well, the credit market is acting as if the s&p is well over 3,000 for over a year now. so over time we're going to go higher. we will still have the selloffs. some point the fed will start to debate tightening and another panicked selloff next year like we did in october. but over time, the stock market goes significantly higher. we know that most institutional investors are overweighted in stocks and then start to catch up to the credit market and more invested. >> all right. so my -- we'll call it the russell $2000 question, why small caps lagged so dramatically and talking like 10 percentage points.

that's an extraordinary gap. and of course, the question is, is that because institutional money is going to index funds or catch up or what's going on in your views? >> people hate stocks and most investors selling stocks. they have been companies themselves and most companies in the russell 2000 too small to access the credit market. like alibaba came in with a $8 billion deal yesterday and there were 57 billion worth of bids. so for a russell 2000 company to come in and try to issue a bond, it's too small for people to notice and they don't have the ammunition to drive the stock price higher so that means when people try to sell stocks, they go for the russell 2000 and only 20% of the stock market. the 80% of the stock market which is represented by the s&p 500 is being propelled higher by engineering. and the credit boom is going to intensify over next couple of years because pensions bring in more money to the credit market. >> look at illinois today. >> dragged up by the financial

engineering but that's going to take some time and the russell 2000 is not any way, shape or form set to lead in the next couple of months. it is the big caps right now -- >> do you concur? what are you telling clients to be buying here? >> well, i just got back from europe and the europeans all wanted to talk about is emerging markets stocks and about u.s. stocks and they're not interested in the russell 2000 for the most part. they're interested in the big cap and the big names that they know over there. i would also point out that the russell is still fairly expensive. on a historic pe ratio basis. but i think you're at the stage of a secular bull market where everything is going to work because i think you have 8 to 10 years left in this thing. >> eight to ten years? >> well, secular bull markets tend to last 15 years and return at 16% per year. >> do you agree, brian, about that time frame? brian, do you agree --

>> the pensions have driven the financial markets for 25 years, they're bringing in more money the try to cure the underfunding. they're raising assessments on the cities and town that is contribute to them and lasting for a number of years longer. equity investors, they keep betting on the end, betting on the end being right around the corner. so you get the sickening downturns that feels like the world is ending but once the seling runs the course, we go back to the highs and then a long, strong run after that and that's where we are right now. >> incredible to think it keeps going. thank you both. jeff, brian, this afternoon, a lot to think about over the weekend, for sure. federal reserve governors including the chair yellen is confirmed by the senate. the next guest wants the same process for the head of the new york fed which oversees wall street banks. senator jack reed here to explain why he's trying to make that the law and house speaker john boehner says president obama's executive order is

sabotaged hopes for bipartisan reform. is hope for issues lost? chuck todd joins us later on "the closing bell." (vo) rush hour around here

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he joins me now with the latest on the push. senator, great to see you this afternoon. >> thank you. >> can we begin with the hearing today, this question, this notion was put to new york fed president dudley. were you satisfied with the respon response? >> president dudley expressed no reservation or objection to having the legislation passed. he was quite clear about that. he said it was up to congress. this is a proposal that i not only made and included senate version of the dodd-frank bill four years ago and about creating a structure that will inspire confidence across the not only the american public but also the financial firms that the person there has significant responsiblies for regulation and also has clearly responsibility to the nation and to good economic order. >> senator, do you think that if bill dudley had been nominated

by the president and the process he wouldn't have made it through, that somebody else would have been at the helm of the new york fed and handled matters quite differently? >> i don't think, again, this is about mr. dudley. i proposed this four years ago and he was on the scene. this is about going forward. this is about dispelling in one respect the perception that many people have. in fact, it's growing with some of the revelations that there's no difference between the regulator and the regulated. that the regulated has been captured. i think we have to dispel that and i think one way to do it in a procedural and principle way is to have the process as done for every other major federal financial regulator in which the president nominates and the senate confirms. i think that would give the individual whoever it is the additional i think credibility that he is in a process not

exclusive just to new york, frankly. >> also, by the way, raise the spector of this process held up in the confirmation process which you know happens time and again because it's so politicized. would you be comfortable if there's no head of the new york fed? >> well, you know, the process applies the board of governors. my sense is that -- >> two of the seats are still open as i understand. >> they are still open. they're waiting i think not only on nomination and confirmation but i think this is a situation where if you look at every other major federal regulator, comptroller and others, they have to go through the process and we recognize and we should recognize that if we establish this we have the responsibility to fill these positions and that's something i think that we hopefully will recognize if we pass this legislation. >> right. but you do see what i'm saying that it sounds like this idea

could hold up, keep anybody from running the agency that because we're having this conversation has demonstrated how vital it actually is. >> no. i don't think it will. again, we have federal regulators in place. there is, in fact, there would be pressure, huge pressure publicly and through other ways if the vacancy was open for an extended period of time. part of this is making sure the process works and in a way in which the individual is perceived to be clearly responsible to ultimately the american public, not to particular entity or sector. that's why every major regulatory position in the federal government and most state governments is subject some type of political appointment and confirmation. >> understood, senator. just to back out from the narrow issue to more broadly banking regulation, there are a lot of different agencies who we have been pressing for weeks now, the

cftc, the piecemeal fashion of which they're regulated itself is part of the problem, is there anything that's going to resolve that? >> i don't think there's anything immediately that's going to resolve that. some of dodd-frank was designed to try to coordinate better the existing agencies but to be honest and candid, i think we are in a situation now where our best approach is to move some of the regulations that were sponsored or created by dodd-frank, get them on the books, give financial institution and the public more certainty. that's i think the immediate step. >> yes. it's been going on five years now. most of those rules, many of them anyway, still not written. senator jack reed, doing his part to try and make sure that there's more oversight, at least of this new york fed position. thank you, senator, for being here this afternoon. happy thanksgiving. >> thank you. u.s. federal reserve may be on the verge of cutting rates but china cut. should you be investing in

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welcome back. surprise move, china cut the lending rate first time in two years and u.s. firms watching chinese based etfs. it is different in that it takes aim at the onshore bond market. bruna dalama says it may be a less risk of a u.s. based etf. welcome. are you saying less risky than the u.s. bond market? >> definitely not saying that. i don't think i would claim that at all. it's really just an i think fantastic story from an access perspective. it is unusual of a $5 trillion capital market that's essentially untapped for u.s. investors, institutional and retail. this is a vehicle that allows access to a market that before was just not available. >> let's talk about that. we have a planned economy in

china, a nice way of saying a dictatorship playing with capitalism. you never know what you get. 2 billion people with a change of attitude, we could see things go differently. what happens if the chinese currency will rise? >> this is yuan denominated fund and what investors like. looking at it since 2004, it's appreciated about 25%. since 2011 about 11%. so you potentially get an additional pickup. >> what if it goes the other way? >> you take the risk. clearly, that's an exposure with the fund and it could for or against you over long term our perspective and expectation is that the yuan will appreciate. but it could work against you. >> i would probably take a different tact that it's not a dictatorship of capitalism. it's an autocratic government. >> sounds so nice. i feel better already. >> you know, believe it or not, u.s. capital markets are not

highly predictable in spite of the fact we like to hold that out. i have the question of how much liquidity really is there. it's a much more constrained bond market. may be 5 trillion in access but not 5 trillion is not accessible in an open market to foreign investors. >> it's surprisingly extremely liquid so when you think about liquidity for the fixed income market in china there's two segments of the market to trade it. on an exchange. that's about 5% of the liquidity. 95% is on the intrabank market. very difficult to get approved there. we have an approval for the fund through -- >> that's what i meant. may be liquid internally but not foreign investors. >> correct. this is exclusively really a domestic market with the 5 trillion invested in the market. it's all really onshore investors, only now that for investors through the vehicles. >> how much can you absorb? everybody decided this is great, how much can this etf actually

absorb? >> yeah. the etf can be massive. you look at sort of a penetration of etfs different capital markets, typically a 5% penetration, brazil etf, 3% of the domestic market capital and 5% of 5 trillion is enormous capacity. >> the other side is there's a rumor some day interest rates here in the u.s. are going to start to go up. what do you think happens in the fund to see interest rates in this country rising? that's the other risk to understand as an investor before i put a dime anywhere. >> yeah. i think that's when, you know, we designed the product talking to institutional investors and like about the fund the diversification, the correlation of the central bank actions in the u.s. and china and -- >> when i go on a roller coaster, lie toi like to figuref i need dramamine before i go on it. >> when interest rates start to rise in the u.s., you know, doesn't necessarily have an

impact in the u.s. these economies are connected, a lot of trade between them, but really when's a bigger driver of interest rates in china is what's happening today, growth rates. accelerating in china. that's slightly to cause a reduction of interest rates and even as we see interest rates rising in the u.s. our expectation is more likely to see rates going down in china. >> we have to leave it there. it is going to be probably that concern about a slowdown that keeps some people on the fence in this one. but bruno, here to explain why they should think about jumping in. thank you so much for being here. republicans say president obama sabotaged all hopes of working together with an executive order on immigration. "meet the press" moderator chuck todd is here to talk about that. late-breaking developments in ferguson, missouri. that's right after this. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price,

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welcome back. president obama is in las vegas signing an executive order to overhaul certain immigration standards. meanwhile, speaker of the house boehner and other prominent republicans taking a hard line against the president's action. john harwood has the details from washington. >> reporter: hi, kelly. president obama went on the road today to las vegas to build support for the order he outlined on national television last night, he went to a high school in las vegas meeting with a cheering crowd of latinos and he himself seemed liberated by the idea of years of congressional gridlock on this topic he's finally done something and moved ahead.

>> we've known about this for years. and we have known we can do better and for years we haven't done much about it. well, today we are doing something about it. >> reporter: now, president obama said the solution for republicans who don't like what he did is to pass a bill. he repeated that again and again and mocked the inability of the house to move the bill and seems clear passing the bill is not what john boehner the house speaker in his statement today had in mind. >> with this action, the president has chosen to deliberately sabotage any chance of enacting bipartisan reforms he claims to seek and as i told the president yesterday, he's damaging the presidency itself. >> reporter: now, the question is where do we go from here? the house finally after announcing the intention to sue the president over obamacare did so today. it's not clear the legal action of the courts venue chosen for

house republicans. there are other ways through the appropriations process to try to tie the president's hands and clearly looking at a big fight over the next few weeks and months, guys. >> we'll brace for it. thank you for now. it was widely expecting the congress and democrat in the white house good in terms of gridlock for the stock market. with tensions of immigration reaching a fever pitch, quould the gop do something to retaliate to turn the market on the head? joining me now is chuck todd, moderator of "meet the press." great to see you again, chuck. let's begin there with the executive action and whether as mitch mcconnell was saying we will take action in retaliation on this. is that this suing the president over obamacare or more to come? >> i think they would -- they need to try to find something. i think that's what mitch mcconnell is trying to say. now, the lawsuit isn't enough. i think mcconnell and boehner know they have a base of the

party that wants a political retaliation or retribution but they can't agree on what that is. i think secretly they hope that a state because the lawsuits that i have heard about that could be filed against the president and his action could come from, say, the state of texas or the state of oklahoma, two states where the attorneys general or governor openly talked about it, the social services being overburdened and sue under that guise. the problem, kelly, is the politics is so complicated. the president put the republicans in a box. the easiest way is to pass a bill, and even veto for higher ground, but they can't agree on a bill. >> well, and do you mean the bill on immigration, chuck? >> i do. border security or even on a piece of it. >> yeah. >> that's a problem for them. they don't have a piece of the bill to say, mr. president, we did pass something. you didn't negotiate with us.

that's not the case here and so republicans don't have very high ground to be standing on, on this issue. >> zach? >> hey man. >> why the timing? why not wait three months, say, hey, you know, call a photo-op, meeting at the white house, talk about immigration and then clearly doesn't happen, you then have an announcement. why now? >> look, zach, that's what i thought they would do. have the president say by the way, dating this june 1st, 2015. republicans, you have six months and if nothing happens, it goes into effect. the white house argument says we have already delayed. we have delayed as far as the hispanic community's concerned. they've been postponing them for five years. they keep saying wait until you next year, wait until next year. the call collision on the white house's part is running out of time, credibility-wise with hispanic activists on this issue. >> sounds, chuck, like something that could have been brought to the public as early as labor day and then the president waited

until after the midterms anyway and it does feel like this is going to become a galvanizing issue and more executive orders becoming more galvanizing issues and just building a to-do list for the gop to things to overturn on day one if a republican president comes into office. >> perhaps. i have to tell you. the irony of what the president announced he's doing and calling for onpacted on this, most republicans and everybody agrees is going to be the policy once something is passed. meaning, there is going to be some form of amnesty for the people that are already here and not deported. maybe they don't ever become legal u.s. citizens. but they become legal in some form or another and they certainly aren't deported so i don't know if you'll ever have a republican president rescind this policy, kelly. i don't believe it. >> i wonder, chuck, to pivot and

talk about an issue that threatens to overwhelm this into the weekend, of course, talking about the grand jury verdict in ferguson, missouri. >> right. >> can you update us on what you have heard in terms of how many protests there are planned across the country, when's responsible for the timing of this decision and what the fallout politically might be and just in terms of national dialogue in this country? >> i have to say i think it's sort of a sad leadership that we have seen and i put leadership in quotes to declare a state of emergency as the governor of missouri did before anything happens. is a pretty pessimistic way and you could argue almost encouraging there to be unrest by saying, oh boy, you're batten down the hatches. here we come. rather than a message of, look, this is going through the legal process and that so i think that i have to say that i think some of the decisions by how public this is a state of emergency, law enforcement putting out warnings in a weird way may be

sending the wrong message. >> sure. chuck, i'm hearing they're closing schools there next week. >> right. and it just -- it's a -- it feels self fulfilling in a way that, again, a throwback to the way leadership might have acted in the '60s or '70s. the 21st century, this seems out of date. >> i'm sure you will be covering this. >> we are. >> and the show planned for this immigration topic. thank you for joining us this afternoon. chuck todd, appreciate it. chuck will be joined by the panel and experts to discuss the president's latest move on immigration and the long-term implications a fen that ferguson decision comes down they'll be covering that, as well. local listings have your show time. straight ahead, immigration is not the only hot topic in washington today. far from it. house republicans suing the government over obamacare. that story and more when we come back. monday, we talk with retired

neuro surgeon and critic of president obama, dr. ben carson. you won't want to miss that. your old 401k is rolled over into a td ameritrade ira.

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that ford f-150 made of aluminum? that's what's burning up the hot list with alan. >> how's it going, kelly? people love pickup trucks. phil lebeau wrote this wonderful good news, bad news piece for ford. the good news is their new aluminum f-150 is actually going to get better gas mileage than it used to because aluminum's lighter, so it's going to go from an average of what was about 19, it's going to go up to 22. good news. bad news, that's not going to make it the best pickup truck in the category. that still goes to chrysler's dodge ram. which will get 23 on average. >> oh, come on. 22, 23. >> the point is if you're buying a big honking pickup truck, are you really caring about gas mileage? >> exactly. i love pickup trucks, too, by the way. carry on. >> but speaking of costs, dan mangon wrote a wonderful piece looking at the out-of-pocket cost for obamacare. a lot of people don't realize,

they go in and get their bonds plan, it covers 60% of their medical costs, but only after they hit a $5,000 deductible. >> ouch. >> 70%, $3,000 deductible on average. but job base plan, $1,200 deductibility on average. hopefully they'll read dan's article and get a clue. >> we were talking about this impact on the consumer wallet earlier on the show, so it's definitely worth checking out. >> speaking of disappointing prices, our third one, tech crunch reported this today. we wrote up the tech crunch report. it's looking at fab.com. remember that site, it was all the rage. it started out as a gay dating site and morphed into a home decor site. everyone said this is going to be the bomb. well, turns out now they're getting ready to sell it for anywhere between $50 million and $15 million, which is quite a drop down. so much for start-up craze. >> exactly. so many of our stories have been going in the other direction, so we'll see what happened in this case. but alan, thank you.

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welcome back. time now for some final thoughts

with the panel. kayla? >> i'm going to eat a lot of turkey next week. a lot of it. >> on thursday. >> and maybe watch the opec meetings. >> yeah. >> somehow live tweeted. >> that's what everybody does at thanksgiving at my house. >> you're not shopping on your ipad, you are watching the opec meeting. >> is anybody going to go to the stores on thanksgiving? the answer better be no. >> no. >> the best deals are on monday. or thanksgiving. i'm telling you. i hate to be the one to tell you. monday or thursday. you can get them on the internet. >> is that how you shop? >> thanksgiving week normally is up three quarters of a percent on average in the week, when typically the market is only up about 17 basis points, if you can slice a percentage point that small, and we actually calculated in the american household. >> we actually heard jeff come on earlier and say he never likes to try and short the market this time of year. is that your view here as well? >> this year, this market, no. you get run over trying to do it. i'm long. i'm still very enthusiastic. i'm looking at china. i'm looking at europe. i'm very much worried about middle of next year.

but right now, i'm good. >> three years ago right about now that the market and the financial markets had their last major convulsion. a little bit in june 2012. and then that passed. >> and look at where the ten-year spanish yield was today. 2.03%. italian ten-year. 0.77%. >> as an investor, let's remember one thing. when the stock market pushes some money at you, take a little of the privacy. you need income, take it now, put it away. >> it was so funny, the time of the year where people say how could we never borrow at three? now it's borrowing at two. what happens next? in ten seconds. >> barring a massive seizure of the credit markets, we're in a low-market environment as far as the eye can see. >> it's so hard to fathom what happens next. thank you all for being here and have a great weekend. "fast money" coming up in just a few moments with melissa lee. what's on tap, melissa? >> two of my favorite beverages,

milkshakes and red wine. what would happen if you combine the two? >> is this a new product, by the way? i saw the teaser to this. i couldn't believe it. >> red wine milkshake. >> oh, my gosh. >> red robin gourmet burgers. we've got the ceo on. it is a stock up about 30% over the past month. >> is it just cherry? all right, over to you guys. >> i'll let you know. thanks, kelly. it's "fast money" friday. live from new york city's times square, i'm melissa lee. tim, steve, brian, and guy. tonight's top story, china's big move. people's bank of china cutting interest rates today, sending stocks to intraday highs after bank of japan's surprise stimulus just a few weeks ago. so add into that a little mario draghi comments, in terms of easing central banks around the world. what do we have here? >> you definitely have fx wars going on. i think china is doing this for reasons that are domestic.