>> so when sean spicer took to the briefing room, now we're up 136, one of the questions asked by blame burman was are we going to see tax reform? sean spicer said yes. let's give it to ainsley ashley webster. >> ainsley ashley webster that's my new name. thank you very much. was it a sean spicer bounce? a holiday high for the markets. wall street celebrating the start of a short week with new record highs. the dow, nasdaq, and s&p 500 all looking at new records as, yes, the trump rally resumes in the meantime, president trump also flexing his muscles, delivering campaign promises on immigration with sweeping new guidelines to crack down on illegal immigration and border security. that does include broader authority for border patrol and ice agents to detain people living in the country illegally. especially of those convicted of crimes.

and, yes, don't foet. building a more effective border wall. our fox business all stars have every angle covered for you. plus president trump has his new national security adviser ready to go. start with russia, iraq, north korea, and other hot spots testing the new administration. where should general mcmaster start? former deputy national security adviser john hannah will answer that question and many others. plus milo resigning from breitbart news. charlie gasparino way ahead of the story, he breaks it with details from inside the firestorm. we're less than an hour from the closing bell. i'm ashley webster in for liz claman, let's start the countdown. ♪ ♪ ashley: well, we are following breaking news at this hour, milo resigning from breitbart news.

he's due to speak to the press at any moment about his resignation which comes from the wake of controversial statements he made late last week. when that happens, we will take you there live as you can see the podium waiting. in the meantime, the president not slowing down stocks, that's for sure. all the major industries surging to new highs today. take a look at some individual stocks, if you will, investors buying up shares today believing that perhaps kraft heinz may have a taste for the oreo cookie maker. shares up 4.5%, this comes after unlever rejecting the offer. meanwhile verizon still buying yahoo but at a bit of a discount. the two companies posting gains after agreeing to shave $350 million off a near 5 billion asking price. this after two major data breaches at yahoo. verizon hoping to build a digital media empire to rival facebook and google.

both stocks modestly higher today. all right. to the white house, new immigration orders by president trump will soon be carried out by the department of homeland security. direct dh to enforce the current law whether it comes to immigration issues. it also prioritizes the deportation of criminal immigrants, the hiring of 5,000 border patrol agents, also begins the planning process for a wall along the u.s. mexico border. lots to talk about. fox business blake burman standing by live at the white house where press secretary sean spicer just where are you employed up another very interesting day of questions. blake. >> hi, there, ashley, and maybe the most poignant information of the homeland security came when mr. spicer was asked whether or not this mass deportations, which is what the critics call this, and he point-blank said "no." instead, the administration,

spicer, you heard it multiple times at that press briefing, and you just used the word. what they're describing this as is priority. saying that certain illegal immigrants most notably violent criminals are the first priorities under now the new guidelines for the department of homeland security as it relates to deportation. so take a listen here to spicer earlier this afternoon. >> the pledge from this whe house and from the dhs is that those people in this country that pose a threat to the safety or committed a crime will be the first to go, and we will be aggressively making sure that that occurs. that that is what the priority is. >> ashley, 15,000 border patrol agents are expected to be hired when you break it down between immigration and customs enforcement and customs and border patrol. that essentially amounts to a hiring spree among one section of the federal government and spicer was asked how are you going to pay for all of this? especially when you add the border wall on top of that? and he said as it relates to

those agents at least that they're going to be working with congress on this and take resources and allocate where else. ashley: blake, thank you so much. blake at the white house of course. now to wall street now. we've seen a lot of history in the making for the markets recently. seven record market closes in a row for the dow. six for the s&p, eight for the nasdaq. my, oh, my. let's head to the floor of the stock exchange. let's go down to scott at the new york stock exchange. quick question for you. how do we get from here to hire? do we need a pause, in other words, of this action? or is it no way but up? >> well, i think last week if you look at the s&p cash, we paused three or four sessions before making new highs in friday? ashley: i'm so sorry conservative journalist milo facing the cameras for the

first time since his controversial statements about underaged sex that landed him in boiling hot water. either way, he was in trouble. let's go to that and listen in. or not. we do not have him right now. we're waiting on milo. again, he made some very controversial statements last week. questions were raised about breitbart news. that's a right wing site at one point executive chair steve bannon was leading an alternative right website but apparently the future of milo -- i'm sorry someone's talking to me. let's go right now. let's try to get in now. >> thanks for coming, everybody. i'm going to be reading from a

statement, and then i'll be happy to take some of your questions. i'm a gay man and a child abuse victim. between angel of 13 and 16, two men touched me. one of them being a priest. my relationship was complicated that, in fact, at the time i didn't perceive what was happening as abusive. but i can look back now and see that it was. i still don't view myself as a victim but clearly i am one. looking back, i see the effects that this had on me. in the years after what happened, i fell into alcohol and partying. it lasted well into my 20s. a few years ago, i realized it was time to do something good with my life. i started focusing on work but the black comedy, the galose humor and the shock value in my 20s never really went

away. i've reviewed the tapes that appeared a few days ago in the proper context, and i don't believe that they say what is being reported. nonetheless, i do say some things on the tapes that i do not mean and which do not reflect my views. my experience as a victim led me to believe that i could say almost anything on this subject, no matter how outrageous. but i understand that my usual blend of sassy gay british sarcasm, provocation, and humor might have come across as flippancy. a lack of care for other victims seem to be the case of report. advocacy. i'm horrified by that impression. i would like to restate my disgust for adults who sexually abuse minors. i'm horrified by pedophilia, and i've devoted large portions of my career to expose child abuses. i've exposed three of them.

which is three more than my critics. i've repeatedly disbursed pedophilia in righting, and i was also the first journalist in the uk to ask whether the real story of his rampant child abuse would ever be told, my professional record is very, very clear. but i do understand that the videos that you have seen, even though some of them are deceptively edited, paint a different picture, and i am partly to blame for that, i do not advocate for illegal behavior. i explicit say in the tapes from the section that was cut that i think the age of consent currently is about right. i do not believe any change of the legal consent is justifiable or desirable. i do not believe that sex with 13-year-olds is okay. when i mentioned number 13, i was talking about myself and the age that i lost my virginity. strikes some americans as unusual and strange but my mother's native germany the age of consent is 14, and we have a different approach to these things sometimes in europe.

i shouldn't have used the word boy. gay men often use boy or girl to mean men of consenting age. but i understand how heterosexual people may not understand that, and that was an error. i was, in fact, talking about my own relationship when i was 17 with a man who was 29. the age of consent in uk is 16. between older gay men and younger gay men that can help escape from a lack of support or understanding at home. it's perfectly true and every gay man knows it. i'm guilty of language, which i regret. but anyone suggests that i turn a blind eye to illegal activity is unequivocally wrong. i oppose pedophilia, and i will continue to speak -- ashley: property you've been listening to myeloyianpoo myeloyiannopoulos, journalist for breitbart news. he did not say that he was leaving breitbart news but we

understand at the very end of the news conference, we understand that is going to be the announcement. he said he is a victim of sexual abuse. he made comments last week not exactly supporting sex with under age victims but it's a poor thing. now he's saying he was a bit flippant describing he himself was a victim of sexual abuse as an underaged person. so charlie gasparino who has been odds story since the very beginning. we did not hear him saying i'm out of breitbart news. but he's done. >> he has a press release out already. breitbart and both milo -- ashley: so the purpose here today is -- >> explain himself and save his career. as we reported yesterday and, again, i say this is not a story i relish doing. you know, we did some reporting. my producer brian schwartz did a great job of reporting this out. milo is a friend of mine. a guy that i know who i like a lot. he's extremely prospective.

he says things that i don't like. but he usually does it with a purpose and the purpose is to expose liberal pieties. and he as we said yesterday got ahead of his skis he was making a comment about underaged sex. and i'm not going to paraphrase it. go and look it up and judge for yourself. and most people don't think it's appropriate. ashley: he himself said it wasn't appropriate. >> let me be clear what's going on here. this is a business decision by breitbart. here's what i know by breitbart. started by andrew who is a brilliant man and a friend of mine. i did some writing for steve early on before he passed away i believe in 2012 or '13. i can't remember the exact date. it was handed off to steve bannon, who i know very well as well and someone who i really like. the publication has become a little bit of a caricature of itself.

it has been dominated by trumpism and the alleged support by trump that they can't make money right now. and if you notice what's going on at breitbart right now, they are moving towards a more mainstream -- i'm not saying they're going to disavow liking donald trump. steve now works for trump. but they're making moves to be a much more mainstream publication. they have hired -- ashley: to attract more advertisers? >> from what i understand, they don't make money. they may be losing money. this is what i hear from sources. here's where it gets interesting. milo allegedly was a huge driver of traffic. but they made a decision, and i know this because people inside the company late last night about the notion of how much traffic does he drive, meaning eyeballs, and how much advertisers does he lose? and does he drive the right traffic? and i'm telling everybody here they may hate -- listen, i'm sure the editors at breitbart disavow totally, which they said in a statement despite

his comments. but i also know because i know how the media works, this is a business decision. they cannot in a business sense keep him on and expect to get advertising, any advertising, which they're looking to get now and make this a profitable venture with a guy who came out and said some of the stuff that he said. now, we can argue about the true nature of the stuff he says. milo is not trying to put the genie back in a bottle. he did say it. and, by the way, here's why i feel bad for the guy. i've seen countless times that people said stuff and didn't mean and then double down and double down and all of a sudden they're raging races. they're not really. ashley: right? >> i've seen this happen -- ashley: bottom line, charlie, what you're saying is ultimately at the end of the day this really does come down to a business decision. >> i am telling you -- ashley: breitbart -- >> there's going to be a liberal notion here about how, you know, he went too far even for the far right. that's not it. he basically is a business, you know, he's albatross in terms of a business.

now, maybe it is right that he went too far. ashley: that's not in dispute. >> and i will say this. i don't believe that he represents mainstream conservative thought. he never did. ashley: no. >> and i'm going to write a column on that on foxbusiness.com. it should be published shortly. milo, his main thing was about him. and he loved the fact and universities used to go nuts -- ashley: so now hoping someone else will pick him up. >> i'm sure he is. he has to pay the rent. but this one's going to be tough for him to come back from. but in terms of breitbart why he's not working there, i know he resigned, he resigned as we used to write at the wall street journal to be perfectly legally clear, he was ousted. he was resigned under pressure. they didn't want him there essentially because he would be a business albatross if he stayed. ashley: got it. way ahead of this story, charlie gasparino. thank you very much. appreciate i all right. let's get back to the floor show. gentlemen, sorry to interrupt

there for that breaking news. let's get back to the markets. the dow up 106 points. scott, i asked you, listen, onwards and upwards. i've had a number of analysts say recently, you know, we need a bit of a pull back, a bit of a breather, this is still based on more hope than fundamentals. what say you? >> i think that a lot of people have been saying that and the dow went up 800 points. i think what's happening is the rotation here, which is keeping it going. you have technology lead the markets to highs. and then you have the small caps and the banks last week reenergized by the hawkish statements from janet yellen. now traders looking to see with the little broughtout of oil here do oil names that have lagged, are they the next group to carry the market one more leg? traders don't want to chase the market but there's lots of setups and sector rotations to keep us all busy. ashley: for investors out there that have money and want to get a piece of the action, of course they should have jumped in a while ago. but of course that's easy

20/20 hindsight. should people with money to invest wait a little bit perhaps for a little bit of a come back and use that as a buying opportunity? >> well, i think that a lot of have been waiting for that pull back, and we've seen it on very modest dips. but i think more interesting going along with the equities contingent to go higher. when i woke up this morning, gold was around 1227, 1228. it is completely reversed and not because of fundamental news we've got here. it's all about risk. and i think lack of alternative places to go to get the sameeturn argog to continue to do well. yields and treasuries are going to continue to tread water and gold will see up and down days. but i think right now risks are on the rise and whether or not the stock market can withstand some kind of event overseas or an election result it doesn't like, we'll have to wait and see. but i think investors should be prepared for that because obviously the stocks aren't going to go up forever. they may go up for a long, long time, but they can't go up forever. ashley: that's true. i hear what you're saying. i hear from a lot of other

people as well. what about a catalyst if you like to kind of burst the bubble a little bit. elliott, oil continues to move i guess on the belief that opec is actually sticking to its crude output cuts and ultimately the price just has to rise; is that correct? >> you know, i don't really think that's the case. there's still a ton of oil. i don't really see that-ishians or iraqis. it is still holding $55. you shouldn't be looking at that. you should be looking at natural gas, down almost 10% today. energy is cheap. there's no reason for us to be ponying up about this stuff. and if you're going to talk more about the breitbart guy, it's great. the stock market hit 16,000 but you love milo.

ashley: all right. not my decision. let's point out the w up 107 points and oil we'll close at 54 bucks and that i believe is a 20-month high. so someone likes oil. walmart is the biggest gainer on the dow 30 after a strong quarterly earnings report. walmart is up over 8% this month. popeye's packing a bunch. burger king owner buying popeye's for $1.8 billion in cash. that's a lot of chicken. up next, president trump has his new national security adviser but where does he begin first? russia? iraq? north korea? former cheney deputy national security adviser john hannah with the threat analysis next on countdown.

ashley: iraqi government forces backed by the u.s. allies close to retaking an

airport in mosul from islamic militants. underway to remove militants from western mosul. humanitarian agencies preparing for as many as 400,000 civilians who may flee the city because of the fighting. secretary of defense general james mattis committed to the cause saying quote i imagine we'll be in this fight for a while, and we will stand by each other. all right. joining us now to give his take on all of this and the u.s. role in iraq and other hot spots around the world senior counselor and former deputy national security adviser to vice president dick cheney. john, thank you so much for joining us. lots to talk about. let's begin with what's going on in iraq. i get the sense that isis is losing ground. yes, there's still isis-inspired attacks around the world, particularly in eupe. but i feel like we have them on the run. would you agree? >> certainly in their geographic center, which is

iraq and syria. i think they're on their way to defeat. and that is an absolutely critical victory that we've got to win, ashley. they say that their caliphate, its establishment was ordained by god. and i think if we leave them scattered to the forewinds, it deals a real death below to their narrative. but as you say, given the fact that president obama kind of slow rolled this war, they've had three years to metastasize across the middle east would be we'll have thousands of foreign fighters return to their home countries, including in europe. and of course we've got people sitting at home who don't even leave their own countries who are radicalized online just waiting to be triggered to carry out operations, including in the united states. so there's still a lot of danger out there. ashley: we seem to be having more of a presence. we have some 5,000 troops. and reports now to those troops, those u.s. troops pushing closer to the front line, perhaps more than just

an adviser and trainer of iraqi forces. do you agree with that? >> yes. even before president trump came in, we pushed our guys closer to the front lines. there's now secretary mattis has got to report to happen in about a week. to deliver a new plan to even accelerate the destruction of isis that could include more troops. it could include more apache helicopters,ore armenia armeniaon the battlefield. ashley: of course nsa adviser general mattis is going to have to deal with russia, which is a complicated one. always been complicated with russia. we know about vladimir putin. what kind of approach would you like to see general mcmaster take with the russians? >> well, i think the first thing that the general has got to do is build what the administration has already done and allow credit for,

which is to really establish that alliance with nato and that we're going to stand strong together, that's going to be the cornerstone of the policy and they've done what they've done in ukraine, but they can't be messing around with other vulnerable nato states. i think that will give us a basis to then really begin to get after these issues of what's happening in ukraine and of course the russians are going to have a huge role in syria. they are right now the dominant power broker there. ashley: yes, because we allowed them to. and if i could bring up north korea, perhaps the administration would like to have north korean officials come to the white house to talk and at least try to find some common ground. but as someone pointed out yesterday, it doesn't matter what you say to the north korean's or rather what they say to you, they're going to do what they're going to do anyways.

you can't really believe them. >> well, let's just be clear. these talks are between north korean officials and u.s. nongovernmental experts. so it's really a track to affair. listen, if we can get intelligence, if we can find out what's on their minds, that's always a good thing. but nothing about the north korean threat will have changed. the nuclear, the missile threat. let me tell you. the most important thing that has happened over the last week, ashley, is that china has said it is going to cut off all north korean exports of coal to china. that's up 40%. if the chinese are serious, that's a big win for president trump, and it can exert real pressure. ashley: and plus a strong relationship with japan as well, and it seems to me that prime minister abe and president trump seem to get along very well. that's important for that part of the world as well, isn't it? >> absolutely. that is the crown jewels of

america's national security policy are these alliances with some of the strongest and most economically prosperous countries in the world. we've got to do everything in our power to maintain those and as you saw secretary mattis' first trip broad was, in fact, to asia to shore up those alliances with japan and south korea. ashley: i did notice that indeed. john, thank you so much for joining us and showing your expertise. we really appreciate it. >> thank you, ashley. ashley: we do have some breaking news for you. we're getting reports from houston police that the hospital in that city is on lock down after reports of shots being fired. a s.w.a.t. team we're on told is en route. but all we have at this point is reports of shots fired at a hospital in houston. we are following that, of cour, and we'll bring you the very latest when we get more details. in the meantime, back to the markets. the dow looking for its eighth straight record close. up next, the law and order president laying down the law when it comes to border security. catch and release is over and the wall?

oh, yeah, it's going up. paul on the sweeping changes at homeland security. countdown is coming right back . . great panther silver produced approximately 4 million ounces

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we'll continue to follow it as more details become available. all right, president trump keeping his campaign promises and homeland security secretary john kelly signing a memorandum implementing trump's executive order to build up security and eventually a wall along our border with mexico. within it shows the customs and border agency shows current protections no longer viable, no good and wall effective in places such as el paso, texas, tucson, california, and el send troh california. i used live there. -- el send troh ellis, let me begin with you. this is follow through with president trump. there will be 15,000 more

officers added to customs and i.c.e. divisions. and more interesting i think was the word today dreamers will continue to have protection. i wanted your feedback on that? >> it's a great human move as long as it holds. i think most americans have deep sympathy for young people brought here at early age by their parents ashley: donald trump said he felt for those who had no say in coming to this country. is this a good move politically for president trump? >> i think it's a good move politically. texas and one other state were kind to children who had no say what suffer becoming illegal immigrants.

that makes perfect sense. to something ellis said there country is passion not about seeing our laws enforce president trump is enforcing the laws at winnen. if you don't like the laws, petition your government to get them changed. time we enforce the law. ashley: the laws are there. they have never been enforced. bottom line they committed a crime with that. >> that is technically correct. the dreamer case is more broadly. if you have all you do have rigid enforcement attitude. you have to evict 11 million people of this country. consequences are utterly unthinkable. what you have to do recognize the law. maybe it does need to be changed. recognize the law and apply some common sense and human decency and some american values to it. i'll say, if you do that, you're not going to be throwing all those people out. ashley: paul, sean spicer said

the number one priority secure the border. 11, 12, million illegal immigrants in it country. seal the border. make sure it works best you can. deal with those legally already, beginning with the deportation of criminal illegal aliens. and that i guess criminal illegal, undocumented, i think is what some people call them. they're here i will really. bottom line, they're committing violent crimes they should be gone. that is where they need to begin, right, paul? >> absolutely. not one word of those memos or anything since he has been president says he is going to evict 11 million people. that is not the direction this is going. this is enforcement of the law. it is starting with criminals. not sectoring off people as protected groups. about the border security, for years my border patrol friend have been telling me the main thing is needed enforcement of the laws, not jerking them back and forth on enforcement of the laws, and technology and other stopgap measures along the way. one more thing, ashley. ashley: yeah he. >> when the message is sent that

the united states is not open for whoever wants to come whenever they want to come for whatever reason, the flow will begin to he slow down, particularly countries other than mexico. that is important. ashley: that is a good point, paul. i was on a show earlier today where i got a lot of twitter messages upset they're protecting dreamers this is another way of inviting or enticing people to come here illegally, with the hope children will live here. >> that is, some of the good news that flow dramatically stopped. there are more people going to mexico, home, than coming back from mexico. ashley: so it is working. >> well, maybe so. that was the obama approach to it. ashley: yeah. >> one thing to remember the last stab at law and order on this topic from president trump has been neither lawful according to the courts or remotely orderlily. we'll see how we do this time. the message thus far is not that encouraging i'm afraid. ashley: last word to you paul? >> who is going home is mexicans. that is good. their economy is better for them to go home.

but central americans and others have not been going home. so the message needs to be clear. you can come in orderly fashion but can't just like there is not a border anymore. ashley: we'll have to leave it right there. we could talk a long time. many people have. it's a long, long talk into the future. thank you both, paul, ellis, thank you so much for being here. >> thank you. ashley: immigration and border security overhaul at the department of homeland security not the only changes the commander-in-chief hopes to put in place early in his administration beefing up the military a major issue of focus for president trump on the campaign trail. we have the latest what we can expect from the expansion of the u.s. military. lucas? reporter: ashley, from the air force to the army american armed forces are ready to expand their forces greatly, as president trump reiterated last week, his plans to rebuild what he calls a diminished force. >> they don't have the right equipment and their equipment is old.

i used it, i talked about it at every stop, depleted. it is depleted. won't be depleted for long. reporter: for some services expansion will grabbed all. for others the ramp up is steep. air force want 30,000 more airmen. the army, 30,000 more soldiers. the navy wants 82 more ships and submarines, the marine corps, 3,000 more marines. air force will spend six years building up it force. army wants to do it by october. navy and marine corps want to get their jets flying. currently the navy's f-18 hornets can't into. 75% of the marine corps jets are grounded. last week the gop chairman of the house armed services tweeted, that real donald trump promise is facing obama hold overs at dod fighting against rebuilding and still undermining the agenda. ashley, a short time ago here at a pentagon briefing a spokesman

said secretary mattis is committed to rebuilding the military and very concerned about the state of u.s. military readiness. now also of concern, not as much here at the pentagon is a pesky russian spy ship that continues to loiter in international waters roughly 30 miles off the coast of virginia, near norfolk, home to the largest naval base in the world. the russian spy ship traveled up the east coast of connecticut last week, home to a u.s. navy submarine base. ashley, that russian navy ship, the victor leynov last spotted off american shores in april 2015. ashley. ashley: won't go away. lucas tomlinson. thank you very much. appreciate it. record day on wall street as the trump rally remains in place. eyeing apple's latest rumor and a whole new dimension. charlie and liz love playing with snapchat. forget the -- boy, oh, boy, what

can you say. that picture is worth a thousand words and then some more. investors waiting for real crown of gold. hilly borne next. oh, boy, that is just disturbing. "countdown" comes right back. planting a size-six,

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ashley: more on breaking news. updates from the houston police department. officers in the process of searching this hospital in houston, the ben taub hospital, reports of shooter or sounds of gunfire. no confirmed reports in any injuries. no confirmed reports of an active shooter. but as you can see authorities reacting with s.w.a.t. teams and or the law enforment checking out what is going on with the hospital in houston. we'll follow it for you as more

details become available. meanwhile apple on the edge with the latest iphone 8 rumor. an analyst reports that it will have revolutionary camera technology which could be used for 3d selfies. that would be cool. facial or iris recognition and new gaming experiences. apple also by the way hitting a new all-time high after morgan stanley upgraded the price target to 154 bucks from 150. another video technology giant is also grabbing headlines today. the parent company of snapchat has taken its road show overseas. snap is trying to woo london investors and raise as much as $22 billion in advance of its upcoming ipo. hillary vaughn joins us from los angeles with how investors taking it all in. quite an sales job, hillary? reporter: that's right, ashley. ceo spiegel announced it is challenge convincing people

isn't bigger or better. they're trying to convince investors, their user base, smaller than other social media platforms is worth more money because their users are more engaged. >> our users come to snapchat almost every waking hour, because they want to tell their friends how they're feeling. the nature of product is active, not passive. >> spe gl faced a roug crowd of investors. snap's ownership structure and decision to offer nonvoting shares. spiegel didn't give any projections, how quickly the company thinks they can make money. most investors focus on user growth amid concerns of a potential slowdown. as snap tries to convince investors they're in "a league of their own," the latest launch gives them competition. facebook debuted a future on

messaging app, whatsapp, almost identical to snapchat. it features a new tabitha lets users share photos and videos that disappear in 24 hours. it is a snapchat copycat. it comes with a bonus n the messages are end to end encrypted. what thing snapchat has that facebook doesn't hardware. their spectacles are on line for the first time they're retailing for 130 bucks. snap says they haven't made significant revenue off the glasses yet and right now costs are more than sales but even though the specs are still an early bet investors in london were expecting to get a demo and they were bummed that they didn't. up next, boston and san francisco. ashley? ashley: you would think they would bring the spectacles on a road show trying to hype the product. anyway, whatever. hillary vaughn, thank you very much for the report on snap. closing bell rings in just under ten minutes. the record run for stocks, well, showing no signs of running out of breath.

up next, countdown closer sean pacer shows how long stocks could last and where the strength really is in this rally. "countdown" coming right back. dear predictable, there's no other way to say this. it's over. i've found a permanent escape from monotony. together, we are perfectly balanced, our senses awake, our hearts racing as one. i know this is sudden, but they say: if you love something... set it free. see you around, giulia ♪

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ashley: more breaking news. carl icahn has taken activist investment in a drugmaker. adam shapiro. what is going on? reporter: talking about bristol-meyers. this is "wall street journal" report, not only taking a stake but sees bristol-meyers as possible takeover target. there is value in the drug make ear es pipeline. bristol-meyers early this morning, it was falling but gotten a pop since the news broke. they were talking about charges in the quarter of 1 1/2 to two billion dollars as part of a restructuring. they announced a accelerated $2 billion buyback. here is carl icahn swooping in.

ashley: thank you, adam shapiro. we're abt five minutes away from the closing bell. after a three-day weekend the markets seeing yet another day of records. it goes on and on and on but is it sustainable? we ask that every week. what is the true strength behind this rally? let's bring in pacer etf president sean o'hara. we called him sean pacer in the last segment. we apologize for that, sean. sean o'hara. thank you, regardless, for being here. the question we ask everybody, how long can this rally go on and on? a lot of people say really it is not a lot of downside, as long as president trump can deliver his promises? >> well that's the whole story. the market loves the trump message. they love what the president is doing. they love his plans going forward. tax reform, regulatory reform, energy independence, repeal and replace obamacare. everything that he is talking about the mark account loves and is pricing in. the real proof in the pudding will come whether or not he can

actually get what he wants get implemented and how much of it. i don't know anybody knows exactly how much of this run-up you would attribute to what he is talking about. we'll see what happens at the end when we ultimately see real results. ashley: where are you telling your clients to put money in this environment? >> well, you know, there is a great party going on, right? ashley: yeah. >> when there is a great party going on nobody wants to leave. what we do at pacer etfs is a couple of things. if you're at a great party doesn't mean you need to be the guy running around with the lampshade on his head. we say be close to the door in case something bad happens of the we have series etfs, large cap, small cap, mid-cap, nasdaq 100, which has downside protection and we have series of cash cow indexes we focus on free cash fl yield. you get names like apple, walmart, ibm, huge free cash flow, huge free cash flow yield trading at discount.

the market is expensive as a relative basis but you can buy cows or gcows pay 16 times earnings than 22. much better to do this late this game than overpay for future earnings. higher multiple stocks will hurt you. if we get upside we actually get real legislative impact here, then those trading at discount might get a bigger lift. ashley: you know, a lot of sentiment and emotion as part of this rally i think in the sense of optimism, sean. do you think that's well-based? consumer optimism, housing market slowly turning around it is all pointing in the right direction. >> optimism begets more optimism. one old sage said bull market ends in euphoria, not pessimism so be ready. the market is on a tear. i was listen on the radio to rush limbaugh.

rush is always right, he said look, donald trump is up against so much resistance here. not only from the democrats but also from people in his party. and so if they're not going to cooperate with him, he will not get what he wants done. that could be a big problem. but i just like they did in the primaries and the election i don't think anybody should discount the president, especially mr. trump. he will, i think by sheer force of will play the game his way and get what he wants to get done. ashley: i guess one of the fly in the ointments could be tough talk on trade, leads to trade disagreements ultimately a trade war. that is something many analysts say could take the air out of this market. >> i never believed he wanted a trade war. i think it's a negotiating ploy. i think what he is doing on trade is the right thing. these multinational broad-based coalition trade based agreements we always get raw end of the deal on those. what he wants is fair trade and individual bilateral agreements with these countries. so one-on-one we talk about our trade with that country, make

sure both party get representation they both deserve. ashley: i don't think he wants a trade war. ashley: ashley: sean i'm an investor and i haven't jumped into this market yet. do i wait for the pull back, is that when i jump in. >> time frame always determines what to do. if you're a long-term investor, the u.s. equity markets are a great place to put money. i would look at mid-caps for example, which always performed better in the long run than large caps. i would also be paying a lot of attention as i mentioned earlier, we focus on free cash flow yield with our cash cows indexes. i would much rather buy 100 high quality companies with high free cash flow yields or by 1000 stock index and 500 stock index that has a whole bunch of names not really worth investing in. know what you own is the big thing and don't overpay. 15 to 16 times for gcow or 16 times for could yous is reasonable price where the

overall market is. ashley: sean, thank you very much. we have the fireworks over our dow graphics. another record day. they're clapping on wall street. the rally goes on. it is a short trading week. who cares. people still buying stocks. david asman and melissa francis up after the bell. >> euphoria. melissa: another historic day on wall street. the trump rally rolls on melissa: i'm melissa francis. david: i'm david asman. this is the "after the bell." we have you covered on the big market movers. president trump meeting with his national security team right now in the situation room at the white house. as his administration is it rolling out new measures to crack down on illegal immigration, getting more aggressive on deportations and