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MARIA BARTIROMO, FBN HOST: -- top stories right now. 6:00 am on the East Coast. President-elect Donald Trump taking his victory message to the American people. This afternoon the President-elect heads to Indiana where he secured a deal to keep 1,000 jobs at that carrier plant. Vice- president-elect Mike Pence, emphasizing the administration`s agenda when they take office.
(BEGIN VIDEOTAPE)
MIKE PENCE, VICE-PRESIDENT, USA: I think the American people are ready for change and working with Republican majorities in the house and the senate and democrats who are willing to work with us. We are going to roll our sleeves up and we`re going to - we`re going to move the Trump agenda forward and we are going to make America great again.
(END VIDEOTAPE)
BARTIROMO: And tonight, President-elect Donald Trump will hold the rally in Cincinnati, Ohio to thank his supporters. The thank-you-tour. Breaking news overnight. A police officer killed in the State of Washington. The officer was shot while responding to a Domestic violence call. Police are now in a stand-off with the suspect. This is a breaking story and we will have the very latest developments as they happen.
Plus, android users beware. Millions of Google accounts compromised in a malware attack. The details there coming up. Walking away with a pot of gold. The man stealing a bucket filled with gold flakes valued with at more than one and a half-million dollars. Police are still searching for the suspect this morning.
Watching the oil market once again this morning after the OPEC production cut yesterday. Crude price is really topping $50 a barrel. Take a look at where we stand right now. Up better than one percent, just shy of 50.
Markets coming off in their best monthly performance since March this morning. We`ll see a little bit of pullback today. Future`s indicating a fractionally lower opening for the broader averages. We`re also watching treasuries today. Take a look at the yield for the 10-year right now. Just hitting a new high for the year 2.42 percent.
In Europe this morning, the markets look like this. Stocks are lower across the board. Down about one percent on the FT100 in London. The others down about three-quarters of one percent in the Euro zone.
In Asia Overnight markets posting gains following the sharp drop in the price of oil. Asian markets up across the board. The Nikkei average in Japan, the best performer there, up better than one percent. Well, the countdown to Christmas is on, the annual cost of the 12 days of Christmas rising less than one percent. The biggest bargain? A partridge and a pear tree. All those stories coming up this morning. And joining me to talk about it, FOX Business Network Dagen Mcdowell. Recon Capital Chief Investment Officer, Kevin Kelly. And National Review Reporter and FOX News Contributor, Kat Timpf. Good morning.
KAT TIMPF, FOX NEWS, CONTRIBUTOR: Morning.
KEVIN KELLY, CHIEF INVESTMENT OFFICER, RECON CAPITAL: Good morning.
BARTIROMO: Good to see you. Good morning.
KELLY: All I - all I want for Christmas is to join that favorite man-list that you guys had. Mike Baker and Anthony yesterday, you said they`re two of your favorite guys. So, (CROSSTALK) speaking of Christmas, I want to join that list.
DAGEN MCDOWELL, FOX, CONTRIBUTOR: I have a -
KELLY: I am cheap.
(CROSSTALK)
BARTIROMO: You are our favorite.
MCDOWELL: That`s not what I was going to say to him. I was going to say we have a step by step plan to achieving that high road. I`m -
KELLY: OK.
(CROSSTALK)
KELLY: Oh, I`m pretty low, huh?
BARTIROMO: OK. No, no. This is really good. Right.
[Laughter]
BARTIROMO: Oh, that is cute. You were watching us yesterday, Kevin?
KELLY: Of course. Everyday.
MCDOWELL: You are the best.
(CROSSTALK)
KELLY: And I treat religiously - yes, on my pillow. Yes.
[Laughter]
BARTIROMO: We (inaudible) this morning. President-elect Trump and Vice- President-elect Pence head to Indianapolis to announce keeping more than 1000 carrier jobs at the Carrier AC plant in the United States. Trump tweeted this last night:
"Look forward to going to Indiana tomorrow in order to be with the great workers of carrier. They will sell many air-conditioners." White House Press Secretary Josh Earnest also waited on the deal.
(BEGIN VIDEOTAPE)
JOSH EARNEST, PRESS SECRETARY, USA: The president-elect says has indicated that he deserves credit for that announcement. If he is successful in doing that 804 more times, then he will meet the record of manufacturing jobs that were created in the United States while President Obama was in office.
(END VIDEOTAPE)
BARTIROMO: Additionally, Trump is kicking off his thank-you-tour in Ohio tonight. He plans to visit a mix of states over the coming weeks. Joining us right now is former Georgia Congressman and Trump supporter Jack Kingston. Congressman Kingston, good morning to you. Good to see you.
REP. JACK KINGSTON (D), GEORGIA: Good morning to you, Maria. I want to be on that list too, Kevin.
[Laughter]
KINGSTON: I don`t know how you do it but -
[Laughter]
BARTIROMO: You`re on that list. Oh, my goodness.
KINGSTON: I want to work it.
BARTIROMO: Well, you`re there already. But look, Congressman, isn`t it amazing that Trump is certainly doing a lot before his inauguration? What`s your take on this?
KINGSTON: You know, he`s hitting the ground running. He`s fulfilling promises. He`s showing that he`s in connection with American people. And, you know, one of the statistics that we kept saying during this campaign is that there were 94 million people in America who were unemployed or under employed.
43 million on food stamps and household income has fallen from $57,000 to $53,000 in a 15-year period of time. And this is real. So, when he goes out there and he connects and save these thousand jobs, it`s not just about Ohio, it`s not just about Carrier, it`s about the American worker and American manufacturer base. So, it is an absolute great thing for the whole country.
KELLY: Congressman, it`s Kevin. I`m curious, is your take, given that this was such a politicized deal and that you`ve seen basically - everyone was thinking that the workers were marginalized by carrier, I mean, it more - it`s like to be 2 cents a share on their earnings next year. It was only $65 million dollars that they were going the save. They make over $56 billion in revenue for United Technologies. Are we going to start to see a wave of other companies taken into consideration or government contracts at risk, should they move jobs? Is that what`s really the tone here in the messaging with this deal?
KINGSTON: You know, I think the message in this is a lot bigger than, say, the United Technology prepped with the angle. I think it`s the fact that they are saying, "Look, we are going to get Obamacare off of our backs. In some form, we are going to have healthcare. It`s going to be a lot better, it`s going to be market driven. We`re going to have more choices in energy because Mr. Trump is going to unleash the American energy. He`s going to rebuild pipelines and let the cost of energy go down. The regulatory burden of the EPA and the bureaucrats out of Washington, micro-managing businesses, that will be gone. And the tax code is going to be simplified and taxes will be lowered so we can compete internationally."
So, there`s really a whole basket full of things that the Trump Administration brings to American businesses. And for manufacturers, they`re responding very, very positively. We are already seeing it. Just the optimism on so many wins on so many levels for American businesses to stay here to reinvest and to expand.
MCDOWELL: Congressman, although important and symbolic, what was done with Carrier in keeping these jobs here in the United States. How do you respond to the criticism that the president-elect and his vice-president are really overstepping in terms of business intervention? Better than just step back, implement policies, but the fact that they went - they approached carrier individually Is not a conservative move in the minds of some, at least.
KINGSTON: it`s not. And I have a degree in Economics and I know that the best macro approach is to just say, "Let`s have good policy so that the system could work." And I think you`re going to see a lot of that. But I also want to point out something that Marcy Kaptur, a veteran congresswoman from Ohio made this statement yesterday.
She said Hillary Clinton came to her district and stood out on the busiest corner of an (Enterprise Station) in Toledo and did not talk about infrastructure. She talked about Warren Buffett and Marcy Kaptur said "Nobody know who Warren Buffett but that was the Hillary Clinton message, whereas the Donald Trump message was, "Your jobs are real, your jobs and your lives are relevant to me and we are going make changes that are going to be better for you." And so, it`s such an immediate connection with the American people. But I didn`t think from a macro level, lower-cost energy, better regulatory burden, the better tax structure is going to make all these business saved. That`s what we really want in the big picture.
TIMPF: I had - Dagen and I are the same. I had that thought myself, kind of, thing. Well, if Obama had done something like this, maybe we would be saying, "Don`t intervene." Just because it`s Trump and it`s that kind of job, it`s the manufacturing job, people have a different view.
MCDOWELL: Yes.
BARTIROMO: Well, I mean - but that`s the point. I mean, Congressman, you bring up the point that I think has changed this election and this whole campaign. And that is small business and mid-cap businesses are desperate for these economics. And a plan where you are getting these kind of incentives to actually keep business in the US.
Yesterday we spoke with the President-elect`s` picks for Treasure Secretary, Steven Mnuchin. And he also talked about the desire to bring back jobs to the U.S. Listen to what he had to say.
(BEGIN VIDEOTAPE)
STEVEN MNUCHIN, TREASURE SECRETARY, USA: I mean, if you look at Apple, Apple is kind of the classic company. They are sitting on hundreds of billions of dollars in cash, and they go out and borrow money against their overseas bank accounts. This makes no sense, and they said the reason why they are doing that is because of high corporate tax rates.So, we think there is going to be hundreds of billions, if not trillions of dollars that`s going to come back and that`s going to create Infrastructure and create jobs.
(END VIDEOTAPE)
BARTIROMO: You think - you think it`ll be that significant?
KINGSTON: I absolutely do. If you look at the rig in the economy, we saw the same thing. Businesses that got excited that Washington was going to be working for them and not against them. Washington was going to be out of the way, and so that free enterprise could do its thing. And that`s what makes the economy tick. And I`d say Carrier is more of a by-product of the new optimism and the new regulatory environment rather than, you know the center of it. It`s really just a byproduct. And it`s a very good byproduct.
TIMPF: I always love hearing, more than creating jobs, allowing jobs to be created. It`s more
(CROSSTALK)
KINGSTON: Absolutely.
KELLY: I think it`s important to note that --
MCDOWELL: You know, actually: that should be applied to the infrastructure plan. Its that, rather than talking about a real conservative, and our laugh for his express this repeatedly. Don`t look at infrastructure spending as a job`s bill. That is the wrong way to approach it.
If you`re going to spend on infrastructure, it should be to make doing business easier in this country. And to facilitate those jobs created by actual businesses and not the government.
BARTIROMO: And that`s what they all talked about you yesterday. This infrastructure plan where they`re going to be putting not only investments, money to work, but jobs creating new jobs within the construction. Commerce Secretary Selection Wilbur Ross was here. He talked about also privatizing Fannie Mae and Freddie Mac as part of the Economic plan. Listen.
(BEGIN VIDEOTAPE)
WILBUR ROSS, COMMERCE SECRETARY, USA: The average small bank now has more complaints people than lending officers. That`s not the way to run a bank. Government is not the right way to allocate capital. Try detector as the right way. Look at Fannie and Freddie. The two things that government had the most influence on. They are not exactly role models.
(END VIDEOTAPE)
BARTIROMO: So, what do you think about that? Do you think that`s possible? I mean, right after Wilbur Ross said that, Steven Mnuchin jumped in and said "We are definitely taking Fannie and Freddie out of government. We`re going to privatize these two institutions." Which is a big job. They`re enormous.
KINGSTON: You know what, a lot of these government sponsored enterprises like Fannie and Freddie were supposed to be back up so the mortgage system, you know, kind of, the last choice, but they actually became the go-to areas where real estate depended on them. And that wasn`t what the market was supposed to be about. So, I think stepping back and saying, "You know what really should do is let community banks make lending decisions again and not have to clear it through their regional officers and few bureaucrats in Washington, but let local bankers make these decisions.
Because they grew up with you, they know their community, they know who is making money and who is not making money. And I think that`s one of the greatest signals that we are going to have in the Trump Administration, is letting community banks get unshackled. Because Dodd-Frank has actually created winners and losers and the winners that have been the bite have gotten the Bigger share of the market.
And I do think that we`ve got to let the community bikes be empowered. Because that money spent locally, money staying locally will increase the economy forever.
BARTIROMO: For sure. And Kevin Kelly, that`s exactly what Steven Mnuchin say yesterday. In terms of rolling back Dodd-Frank. The goal just to make sure these smaller banks start lending again, and the larger bank.
KELLY: You have to. I mean, you look at - you look at Dodd-Frank, there`s over 22,000 pages of regulations that came out of alphabet (sue) of organizations that should have been making these loss. Talk about the CFPD. They are going anything from t he interchange piece when it comes to Target cards, we have regional bank regional banker after regional banker talk about how - if they hit a certain level assets, then they got new regulations coming up of them from the OCC from the COPD, everything else. And it`s hampering with growth.
KELLY: No, I have the : Yes. Say - what did they say? 6,000 regulations in the last two years?
MCDOWELL: Right. I will point out the Wall Street Editorial page was lukewarm on the treasury and commerce picks. And you can read the editorial but one thing that they took issue with. That Steve Mnuchin did say what you just brought up as he`s talking about bank lending? We had regional banker They said, listen "Dodd-Frank is a low that is surely way too complicated but the amount of bank lending should not be decided by regulators. You know. I have, like --
BARTIROMO: The federal reserves?
MCDOWELL: Yes, get out the - get the government out of the way but politicians and regulators need to stop trying to tell banks how much they should lend. And I just said - you can read through it. They, you know, nitpick a little bit,
BARTIROMO: Underwhelming.
MCDOWELL: They said Trump`s money made an underwhelming pair of nominee.
BARTIROMO: Congressman, good to see you sir. Thank you so much, Jack.
KINGSTON: Well, it`s good to be with you, guys.
BARTIROMO: Have a great day.
KINGSTON: Let`s make that list, Kevin.
BARTIROMO: Congressman Jack Kingston, you`re the best. We`ll see you soon. Stay tuned at 06:.30 this morning, we will talk with a Carrier employee about Trump`s announcement. We`ll see what the talk is within Carrier and the ranks there.
Tomorrow we`ve got live coverage and announcements of the November`s jobs report. We`re going to tell you exactly where the jobs right now. Where are the opportunities. Jobs in America, our special, begins tomorrow morning, 8:00 am Eastern.
Take a short break. A police officer shot and killed In the line of duty in Tacoma, Washington. The stand-off with the suspect is going o right now. We`re going to take you there live. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Breaking news out of Washington State, a SWAT stand-off underway right now in Tacoma. The suspect who gunned down the officer. Cheryl Casone with the details. And this is happening as we speak.
CHERYL CASONE, FOX CORRESPONDENT: It is. The stand-off has been going all night long, Maria. This started with a domestic violence call yesterday afternoon. Two officers went to investigate and someone inside the home opened fire, hitting one of them. The 45-year old officer died in the hospital last night after undergoing emergency surgery. The department has not released the victim`s name.
A SWAT team has surrounded that home. That stand-off continues right now. Officials believe the suspect is still barricaded inside. What`s unclear is if there`s anyone else in the home. The officer, the latest victim in a violent year against law enforcement, more than 130 have died in the line of duty this year. 59 of which were shot to death.
Meanwhile, the death toll continues to grow in a devastating Tennessee wildfires. Police found three more bodies yesterday in the ruins of the fires that torched hundreds of homes and businesses in the great smoky mountain`s region. That brings the total now to seven dead. By the way, that number could rise, we`re told.
Flames destroyed entire swaths of Gatlinburg. And police have only been able to search about 30 percent of that popular tourist town. And the search and rescue mission continue. A few of the firefighters (inaudible) flames are getting some much needed rest. Look at this picture. These pictures went viral. They came from the Johnson City Fire Fighters Association. This shows crew members laying down In the sidewalk. This was their first break in 30 hours.
And also yesterday ,the Dollywood Foundation announced it will donate a thousand dollars a month to victims of the wild fires in several county that is over the next six months. These flames spare Dolly Parton`s theme park, Dollywood but hundreds of families in the surrounding towns did lose their homes. This area, one of the biggest tourism draws in Tennessee in the wild fires are expected to cause that state millions.
Another headlines this morning, hackers have breached more than a million Google accounts using malware to attack android devices. According to the report, the malware targeted phones running Android 4.0 and 5.0 which make up nearly 74% of android users in addition to securing sensitive data. The attackers were able to generate revenue by installing apps from Google Play on the affected devices.
And the federal government is on track to forgive at least $108 billion in debt in the coming years as more borrowers seek to help pay down their loans. The government accountability office reported the staggering about the congress yesterday. While the report criticize the government`s county methods for student loan portfolio. It still expects the program to generate a profit over the long-term. Where President Obama has supported income-driven repayment plans to slow arising borrowers. They`re defaulting on their loans in the wake of the recession as you reported many times over trillion student debts right now. Back to you.
BARTIROMO: Still: really big issue, Cheryl. Thank you. Take a short break. Still to come. A November to remember for the Dow Industrials. How much longer does this Trump rally move on? We`ll tell you. And then a bargain on the 12 days of Christmas. How much the gifts in the Christmas carol would cost you this year? Back in a minute.
(COMMERCIAL BREAK)
MCDOWELL: I`m not surprised but I think you deserve a round of applause for that. Because you again called it. You were calling it for weeks, and weeks and weeks ahead of the election. That all the nay-sayers loading up on treasuries, loading up on gold, I can call out a billionaire, Mark Cuban.
BARTIROMO: Mark Cuban, yes.
MCDOWELL: Stayed in the market, he was going to fall out of bed and you kept saying, it`s so simple, it`s simple. And you`re, like, "Buy this market. (CROSSTALK)"
TIMPF: (inaudible) Maria Bartiromo, she called it. She called it. Everybody knows you got this.
BARTIROMO: Well, you know what, it`s because the plan was so simple. I mean, we talked so much about the fact that lowering corporate taxes to 50 percent would a reasonable tax because it`s going to lead to earnings. And we`re up since, Kevin Kelly? -- 15%.
KELLY: Yes. We`re up over 10 percent since the (inaudible) low when you actually use that language. And you - I like how you even said, use Trump verbiage, saying huge.
[Laughter]
BARTIROMO: That Trump rally led to strong gains in the month of November, certainly. The Dow Industrial is up four and a half percent since election day. The S&P500 is up better than two percent. And our next guest says that we have seen in the past few weeks, it`s good omen for 2017. Joining us right now is JMP Security President, Mark Lehmann. Mark, good to see you.
MARK LEHMANN, PRESIDENT, JMP SECURITY: Hi, Maria.
BARTIROMO: So, you think this continues?
LEHMANN: I do. I think, at least, we have a little bit of a pause in this ferocious rally over the last four weeks. But I think there`s a continued sense among investors. And I have been visiting (inaudible) the last three or four day. And I think there`s an acceptance of what`s going on and what is going to happen with the tax policies and what`s going happen at the corporate level. And I think that we are going to see a good 17 in these part of the market that haven`t participated over the last four, five years but I think, we`re already seeing that it`s going to continue.
BARTIROMO: But the leadership so far, healthcares done well, right? Banks have done well, is that where you want to put money?
LEHMANN: I think that`s part where you want to put money, I think part`s of healthcare which have had a good year or some of the regulatory places that you guys talked about so often. I think you`re going to see that framework continue for 2017. I think the changes to Obamacare. There`s not going to be this instant Obamacare repeal. that`s not just going to happen. And I think he should have thoughtful change to that, and I think it`s going to be winners.
Some United Health (INAUDIBLE) high yesterday, and I think that kind of speaks for what we`re going to see in 2017 and beyond. And I think we`re going to have a good year. Tax has been a little bit of a lagger here? I think your iInaudible) might (inaudible) in technology that didn`t take place in 2016 which will reinvigorate the market. Snapchat being one that we voked. Talk about Sexy is ecpected. Very good 17 and beyond.
KELLY: We`ve seen healthcare as well as bangs in financial (inaudible) but on a violation metric compared to historical. They`re still not expensive that`s why I think this is - it can resume in those two spaces, but you mention tech, one of the bibiggest things that I see happening is the rotaion out of growth which is tacked in the value. These names were mentioned healthcare as well as financials.
Now, is tech going to rebound from this? Because it looks like the dollar is going to get stronger and a lot of their sales are overseas. And that`s what I had when I against but I`m looking - getting back to evaluations. They look like a buying opportunity here given their growth? What do you think about the stronger dollar impacting sectors like tech.
LEHMANN: I think you`re going to see parts of tech too extremely well. I think we`re still in its infancy for part of the market. So, you look at what`s in the call for the last three to five years. We`ve seen mobile, then very, very strong. When you`re seeing cloud, be very, very strong. When you`re seeing internet, obviously be strong. We`re staring to get to that next phase (Cloudistone) that says in traffic, that`s - I kind of, take off.
LEHMANN: AI, artificial intelligence which is going to be a theme for one time. There`s drivalous care, kind of, new animation, it\s going to take off. You playing the places where that is a tougher. That`s going to work. Those who are not in infancy, that`s going to be a theme. We`re going to be initial for ten years That`s not going to change. And the Cloud too I mean, you look at what they`re doing at Amazon web searches, that`s still on the 17th. You playing the places where that is a theme, I think you`re going to make money.
He played with a dollar strong and stay strong, I think that`s going to be a little bit tougher. And I think that`s what you want to talk about.
MCDOWELL: Broadly speaking, when did you start worrying about high level longer term interest rates yesterday. The 10-treasury, the yield treasure closing at a 60 month high hyancith last summer. I think it was 2.365 percent.
LEHMANN: I think - I don`t think we`re there yet. I mean, historically (inaudible) very very low under the van. We`ve talked about 25 years that I`ve been on Wall Street so that`s still a great area. I don`t see this being a 3, 4 percent tenure anytime. And I think there`s plenty room for that to go. I`m still very optimistic about the potential for raising the growth rate of the family here. And that`s really important.
I think you also have really - I think we haven`t talked about it, yes. But this consolidatory part of both sides of the aisle that we really haven`t had in congress for a long time. We`ll see what that turns into, but they`re going to need. The republicans are going to send some of the Democrats to participate when it comes to legislation here. And if you see parts of that, and we really haven`t talked about that, that`s not such a bad thing here for economy.
BARTIROMO: What your take on Will? Big move, $50 this morning. And we got the November jobs report out tomorrow. The expectations for jobs, is a 179,000 added to the economy last month. Unemployment rate expected to stay steady at 4.9 percent. When you`re factoring oil, is that telling you what`s happening in the economy or is that foreshadowing something to come in the economy?
LEHMANN: You listen, the economy has been grinding to a hire for a while here. And I don`t think that`s going to (inaudible) think over time with what the 10-year is doing, with what ooil is doing. It`s telling you that`s going to accelerate a little bit. Whether it`s 180,000 jobs, or 200,000 or 160, frankly, I don`t think it matters. I think the tone has been set. I think it`s with rates, with oil, I think you`re seeing a better economy. I think you`re seeing a better backdrop - regulatory backdrop that`s going to power the market in 17. I think there`s going to be a lot of headlines saying that.