Transcripts For FBC Mornings With Maria Bartiromo 20180214

Coming up this morning. Took me a taco about it, Dagen Mcdowell, rose clip ceo managing partner mike murphy and twc managing partner Mitch Rochelle. Happy valentines day. Thank you for this. So sweet of you. Its a more important day for us. The cpi day. So excited about inflation day. Maria so worried, et cetera. All this comes back to a market improving. I dont have a problem. If the overall economy is improving, the market cannot fluctuations but a good thing overall. Dagen let me be the worrywart. Maria of course we want to get the Consumer Price index data to see how bad Inflationary Pressure is close to the third consecutive day. 200 points with another wild wind up trading despite gains at the close. The dow and s p 500 remain on pace. Worst month since august 2015. Nasa but the biggest monthly decline since january 2016. Mike murphy, what is your take . A little nervous. Nice rally from a three day rally, but its important to find that cpi. Its a basket of goods come in the price you pay for a basket of goods. If the price of that is going up, then the market feels that made the prices of goods are going up, therefore people wont have as much spending power and batteries will go higher and market selloff. For the last several years, weve been talking here on this program any better than 2 gdp growth. We need the economy to improve. With an improving economy you often get inflation. The question is which one is going faster. And what comes with it because the fed will raise rates and whether they raised three or four times in 2018 has a major negative impact on the market. If we see for, i dont know. Dagen Bond Investors seem to think its for. This also goes back to see this and it totally. Youve heard for major corporations who are very concerned about rising prices whether its on food, metals, other materials, ford, in the most recent quarter, food prices were up 3 . So it is percolating. There you have to factor in people anticipating higher inflation if they start changing their behavior. One thing that should the markets up so much, the market decline since february 1st, the 2. 9 fastest wage growth since 2009, we want that to happen and however, he raises the specter of higher inflation and that could have some longerterm rates even higher. A thousand products in goods and services. Not all of them impacted by wage. And that often with the more causeandeffect when the wage goes up. We should keep an eye on that as well. Obviously really important. The journal reported that u. S. Regulators looking into manipulation of the fear index. Top story this morning the volatility index. The Financial Industry Regulatory Authority focusing on whether traders place bets on options to influence prices for vix future is good for the longest time there was no volatility. Now the volatility and now theres this pro. I hope it drives individual investors out of the volatility related products. We cite couple of sharp volatility products that blew up and essentially shut down, that people lost billions of dollars essentially because they were betting on something they didnt understand. You can talk about if you read the disclosure documents for. Its pretty doggone clear the risk you are taking by the Volatility Exchange traded products. I hope this drives people out. This is worse than a coin flip. Maybe it is rigged, but your trading against individuals and institutions who are a lot more powerful. Is steady and out it did all of his victory daytrading product. The universe on a daytoday basis. If you held it over time, you are guaranteed to lose money over time because it was based on a futures Contract Price the same way as the underlying insecurity. Maria the resample up is the future is based off of cat training from 4 00 to 4 15. They essentially after the regular stock market closed they lost all their money. One thing that costs investor hundreds of millions of dollars in losses every month because theres some identified crimes. Hes obviously manipulating them, urging regulators to take a look. Most of these products are professionals. In 2009, where the regulators then . Writer beware. If you want greater regulation, wheres Elizabeth Warren and her Consumer Financial protection board . Maria regulators are always behind. You can never give regulators in place to understand products on wall street. When this came out in 2009, it was in reaction to 2008, so its a way to give not only professionals, the Retail Investors away to bat with volatility of the Previous Year but it ended up ending really badly. By the way, not just the vix, not just the cpi. What is interesting is the National Retail federation who has a forecast very bullish on the retail ahead and theyre also more bullish. We will have more and more good data in the market may or may not react people expect. I watch the headlines and im not necessarily out there looking for bad news, we started this year with two major worries about the stock market inflation and Interest Rates and the Federal Reserve making a mistake in going to a trade war. Headline in the wall street journal, trump malls foreign steel. Go do Something Else on top of the solar panels. Trade do we spoke to wilbur ross then i said specifically, as aluminum and steel of next . He said bottomline comest dealmakers internationally have been dumping steel of this country for years to wilbur ross has been on the other side of that. So aluminum and steel are next. Is a policy mistake if they do anything to drive up prices at a time where inflation is a worry picking up in this country. Also in the u. S. Household because inflation, much higher Interest Rates. Trillion dollars deficit in u. S. Household shouldering a record amount of debt in 2017. I love dagen. I kind of disagree with that point. Listen to the steelmakers, whats been happening for years is chinese steel in china they take our steel and put a huge markup on it. But they take their steel in a dump it. If you have a steel company, maria like wilbur ross was. We just wanted fair. If you pay 10 tariff on our steel in your country, will put down 11, but a 10 tariff year. Trade your reciprocal tax . Shes not going to allow cheap products to come and get dumped in this country. Hes not. Dagen my point is whether the justification is fair or not for these terrorists, it could have a major market impact. Congress pushing back saying we dont see inflation. Yesterday i sat down for an exclusive interview with paul ryan. He weighed in on everything from entitlement reform and also inflation. They should be normalizing by the way. The fed has been carrying all of the water. Blues, easy money because we had horrible fiscal policy couple over regulation, higher taxes. We are getting regulatory relief, tax reform Long Time Coming and the fiscal policy authorities are taking over the work of growth in the economy so they dont have to do that so we can start normalizing Interest Rates. We want to have rates be normalized. That is why the biggest driver of it is health care entitlements. That is why one of the biggest casualties of the bill passing was not Getting Health Care entitlement reform. That is why we can never give up reforming health care because if you Reform Health care and take care of the structural drivers have a dad like medicare and medicaid. Maria he kept going back to taking care of the structural drivers of the debt. I said, mitch, that is not enough for the markets. You cant just say it. The growing deficit is on the minds of everybody. Not just politicians, not just the elect to. They are very focused on the growing deficit. Trade do they just blew it out. Republicans both adept to say. 300 billion in additional spending setting a new baseline and sending us on the path of 1 trillion annual deficits as far as i can see. Yes, awesome that they did tax reform. Awesome that they are cutting regulations, but we are so far into this bull market, they might not be worried about it. Again, that was a mistake. Republicans made a mistake without spending plan. Maria the twoyear spending plan. Now we talk about the benefits of the tax package. And now because we are actually seemed pretty good growth and expectations of good growth, theres some poking into this tax. Do they need more stimulus into an economy already growing . Probably because after that stimulus you want more stimulus. That was the issue. Right. An economy heating up because you reform taxes, then you put in place more deficit spending. Thats what doesnt make sense. Ipad speaker ryan made a good point would you estimate question he said these are onetime things we have to give in for. The growth will be ongoing, but to make a deal we have to give in on these two things. If its one time it plays out as he laid it out to you. One time this time. Dagen is not one time. Its Community Health centers, billion more in health care, abstinence, 150 million, a boost to spending. Maria why did they throw that in there . Dagen the conservative religious rights. They had to give money to the military. 20 billion in Infrastructure Spending in President Trump wants 10 times that. Dagen youve got to pay the piper at some point. That the tenyear number. This was 20 billion a twoyear budget. We will take a break when they come back here tragedy on mount hood. One climber loses his life and several others are rescued after being stranded during a trek to the summit. Pictures coming out this morning. The snow boarders but they they going to victory at the olympics. Back in a minute. Oh, thats lovely. So graceful. The corkscrew spin, flawless. His signature move, the flying dutchman. Poetry in motion. And there it is, the baby bird. Breathtaking. A sumo wrestler figure skating . Surprising. Whats not surprising . How much money heather saved by switching to geico. Fifteen minutes could save you fifteen percent or more. A trip back to the dthe doctors office, mean just for a shot. But why go back there, when you can stay home with Neulasta Onpro . Strong chemo can put you at risk of serious infection. Neulasta helps reduce infection risk by boosting your white blood cell count, which strengthens your immune system. In a key study, neulasta reduced the risk of infection from 17 to 1 , a 94 decrease. Applied the day of chemo, Neulasta Onpro is designed to deliver neulasta the next day. Neulasta is for certain Cancer Patients receiving strong chemotherapy. Do not take neulasta if youre allergic to neulasta or Neupogen Filgrastim . Ruptured spleen, sometimes fatal as well as serious lung problems, allergic reactions, kidney injuries, and capillary leak syndrome have occurred. Report abdominal or shoulder tip pain, trouble breathing or allergic reactions to your doctor right away. In patients with sickle cell disorders, serious, sometimes fatal crises can occur. The most common side effect is bone and muscle ache. So why go back there . If youd rather be home, ask your doctor about Neulasta Onpro. Each day our planet awakens but with opportunity comes risk. And to manage this risk, the world turns to cme group. We help farmers lock in future prices, banks manage Interest Rate changes and airlines hedge fuel costs. All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. On the only bed that adjusts on both sides to your ideal comfort, your sleep number setting. And snoring . Does your bed do that . Right now during the ultimate sleep number event, save 50 on the ultimate limited edition bed with adjustable comfort on both sides. Ends soon. Visit sleepnumber. Com for a store near you. Train to a fall on the tallest mountain. Cheryl casone with details there. Good morning to you. He climber died after falling 1000 feet and several others had to be rescued all happening im one of the most dangerous mountains in the country. They encountered tumbling rocks and falling ice after weather conditions turned treacherous. The National Guard airlifted and pronounced dead when he arrived at the hospital. Apple ceo tim cook leaving investors didnt win when it to future dividend hike. Could say hes not a fan of the special dividends, but increasing the dividend is something they are committed to do. The new campus by the way, apple shares are trading slightly higher in the premarket. Chipotle has a new ceo. Taco bell chief executive brian nickel hoping the fast food veteran can revive the struggling mexican food chain which has had a number of food safety problems and theyve also seen a decline in customer visits. They affront taco bell for three years, made it the most successful portfolio we should add. Also pizza hut, kfc. It would take over for cofounder and chipotle shares have lost nearly 40 of their value over the past year. As christians around the world observe ash wednesday, abcs the view decided to mock Vice President mike pence face. I want one thing to talk to jesus. Its another thing when jesus talks to you. Maria they decided to beat up on pence after the former white house staffer, with amendments that on the show big rather believes that jesus speaks directly to hand, maria. Shes been on that show really bashing the president as well. Trade do what is she know about mike pence by the way . I dont even believe her. Dagen why are we still talking about amoroso . Can we stop writing about her shenanigans . Can we stop talking about whatever she thinks about the president and the Vice President . Why was she working in the white house in the first place . Again, she would send her way by john kelly. Again, a man who has what every think about what is going on with rob porter. Esf border in the white house. Which is why people would not see him leave. I dont thought there were mistakes made in terms of rob porter and whether his security clearance was in place soon enough. The people do not want to see john kelly stepping out. Train to the wall street journal has an editorial about that today. A very hot issue, but they say the people who want john kelly uttered the people who want dysfunction in the white house, disorder in the white house and i think that may be some changes are made, but john kelly. Maria we are going to talk about that in an hour. First, big story in the journal and leading the way. How will the record rise affect demand. 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Ready for a chance at 100 clear skin . Ask your doctor about taltz today. And go to taltz. Com to learn how to pay as little as 5 a month. Ythen you turn 40 ande everything goes. Tell me about it. You know, its made me think, im closer to my retirement days than i am my college days. Hm. Im thinking. Will i have enough . Should i change something . Well, youre asking the right questions. I just want to know, am i gonna be okay . I know people who specialize in am i going to be okay. I like that. You may need glasses though. Yeah. Schedule a complimentary goal Planning Session today with td ameritrade. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Maria take a look at where it is. Dp Nancy Rochelle companies turn on a record rates. The report publisher, stephen short. Good to see you. We were just reading the journal story that output is so strong, there are questions if its going to meet demand. Energy observers addressing could overwhelm global demand. What is your take . Absolutely am on board without peer production is at record highs and will continue to rise. We have hedges by producing companies at record highs hedging this rally since the fall. We also have a strong correlation in counts and the rise in oil prices giving the star prize in oil prices over the last six months and will continue to climb well into the summer. Absolutely, supply should outweigh demand. Keep in mind that steve, mike murphy. We are talking a lot about inflation and the price of goods going. Is there a scenario where you see strong numbers from the economy, numbers that are so strong that we push back through versus 70 a barrel . That is indeed a possibility, mike. I dont think well stay up there long enough. Demand elasticity will remain strong at 7 a barrel, so i certainly wouldnt rule it out. I think i was here last week, the high 60s is the top of the market. Having the producer wants oil prices have much higher because all that does is invite more substitutes in the market. While demand is strong, did not think its going to outpace supply simply because the two events. We have the response by the substitute come electric vehicles of course and greater efficiency. Just the anecdotes i can drive from philadelphia to charlotte, North Carolina inmate beetle suv on one tank of fuel. We are stretching out much further and supply should continue to outpace demand. Stephen, Mitch Rochelle. I was talking to some of the folks down there in one of the interesting things as you can turn it on and turn off unlike breaks that take forever. Is there a price that will stop production and has that balance worked . I think as long as we hold in the mid50 range on the bottom of any sort of pull back, we will still see solid production. Its not until we get below 50, most of my clients that subscribe to the daily report on the producing side are comfortable with oil prices above 50 a barrel. You start to see a handle in oil prices and youll start to see production pullback. Keep in mind it will be a tremendously because of the tremendous amount of hedging that these producers have done over the last six months. Maria venezuela staring down the barrel of an oil crisis. It has failed to the lowest years. That was just last month despite having crude oil in any country in the world. Secretary of state Rex Tillerson weighed in saying the administration is still considering a ban on exports for the country. What is that to say putting venezuela and genetics . Absolutely. Annie Bernie Sanders supporter look at the outcome of socialism. It is now less than half that was in the late 90s before they can administer the country and the long decline. Right now, experts are down to 1. 6 billion a day. Another fraction goes to china and russia for repayment on that. You cut out a third of export to u. S. Companies. Venezuela is an absolute dire straits right now. It is Dagen Mcdowell. We can handle it as the nation. We only import as they thing back in 2006 we imported 13 Million Barrels of Petroleum Product and crude oil every year. We are very, very stable and virtually independent. Absolutely. Just to keep in mind theres four refineries in the gold coast of the United States in import 54 , so these four companies certainly would have to search for 280,000 barrels a day of oil should did they occur. The United States could easily counter that with the release of barrels in the spr to source oil from other countries. Maria will see that. Thanks so much. Joining us fair comment plane traveling to a wide had to make an Emergency Landing after passengers noticed a problem with the mentioned that the scary moment was, social media. The market moves today. The Consumer Price index plus retail sales go out. A big rally of 120 points on the dow industrials right now head of all of the data. We will navigate the market for you. Back in a minute. Welcome back wednesday morning everyone. I im maria bartiromo. It is wednesday, february 14. I know inflation and economist in investors are awaiting the price index. Up a four tenths of a water over quarter. It will either ease or heightened concerns about Interest Rate policies around the world. It will likely be a market mover. Futures are showing a rally this morning. Provided that number comes in inline. One half of 1 . For the third day in a row yesterday. Its up almost 40 points. A fractional move with the other majors as you can see. Up a quarter and half of 1 . Money moving into equities there as well. Thats 36 points higher. Thats 80 points higher in germany. In asia overnight markets closed mostly higher. With the exception of japan. The best performer was hong kong. An engine on the United Airlines jet breaks apart in the middle of the flight. More of the terrifying video this morning. Take a look at this. The Technology Giant looking to become the major product supplier for hospitals. The details coming up. Shaun white making history. He becomes the first snowboarder to win three gold medals. We have all of the highlights. Getting into the valentines day spirit. [music]. We have a look coming up at one company that will help you get in the luxury look for lack. Our top story this half hour and that is optimism ahead of todays inflation number. Futures indicating a pretty good rally this morning. I head of the Consumer Price index report which is due out in two hours time. Join us right now is the chief investment strategist for see our research. Thank you so much for joining us. Dont tell us about that yet. These are the stocks that got hit the most that will come back. What is most important today in terms of the effect on market. It is inflationary number. Even though the market is expecting the year on year change to come down versus the prior months and might even come down more than that. We might see core cpi instead of being up 1. 8 we could see 1. 6. I think we are sort of a scene that kind of optimism built into the future. That was one of the contributing factors for the very sharp selloff. It actually took the least amount of time since world war ii to cross that 10 decline threshold. It all started with the wage growth number. We had been hearing for years now that wages are not increasing. We need wage growth and we get the wage growth of the market have a terrible reaction to it. As you say over 11 and a lot of that seem to like Program Trading. We were dropping hundreds of Points Per Minute it seems. Do you think Program Trading or Algorithmic Trading is making the entire process that much shorter so we can go to a correction in just a short number of days . I think thats a very good possibility. We were 14 above the 200 Day Moving Average. We have gone 564 calendar days. The longest stretch since world war ii without a decline of 5 or more. Once we did get that decline. You also have a lot of computerized sale of stock orders. I think that really contributed to the further spike down. When i talked to brokers their Customer Base is not freaked out at all. Maybe it is just the computers that are driving this behavior. While its a headline grabbing the story dont seem terribly concerned. Also what we are seen as there is still a lot of money on the sidelines to begin with. A lot of people that dont trust the overall market. That adds fuel to the potential rally and if someone people have been saying i would love to get some sort of correction this would they were seeing this and hoping to be 14 to 15 or 16 . They wanted to get back in before everybody else. The two week selloff is the worst two weeks of the market. It has created some opportunities. We probably will see some sort of a retest we normally do. The 200 Day Moving Average will hold and present the buying opportunity. As we like to say basically the worst performing groups during the market selloff tend to be the leaders coming out of this. Going back to 1980 which is as far back as s p has data they have the 12 worst performing sub industries such as construction materials, or construction machinery. Life and Health Insurance. Those were the worst performers in this market decline but history says if it repeats itself and theres no guarantee it will they could more than double the return of the s p 500 in the coming six months. And from those areas then i come up with individual stock proxies based on cf ra recommendations. Ups. In airfreight. Looking at martin marietta. In construction materials. Caterpillar, lam research in the semiconductor equipment. Semiconductor equipment. These are stocks that have been beaten up that we still think of that upside potential. In addition or in lieu of buying those individual names can a Retail Investor by those. There are some of the s p 500 there are hundred 25 in total of the sub industries and maybe you had 30 to 35 that are replicated. It have a huge run up. Your point is it have a big sell selloff when the overall market sold off. That is when you would want to buy on the selloff. A company that have good fundamental reason to be rising that still has a buy or strong buy recommendation those are the ones that i am selecting for the dirty dozen. I think you have to look to earnings and inflation. Right now our expectation is 1. 9 is where we end the year in terms of year on year core cpi. It points to about 2000 on the s p. Or up price raised for the whole year. Earnings we see at a hundred 55 per share. This comes from the consensus data 18. 3 as the estimate right now. But stronger for midcap and smallcap stocks which really seem to be lagging right now. I think the worry is with higher rates what kind of dragon that will drag that will be on their debt level. Earnings growth based on what i call the roll of 20 which meaning inflation plus earnings it would actually say that we could see 12 price appreciation for midcap and 15 for smallcap. They hold better fundamental outlook. We will leave it there. Select 20 through percent capital where the earnings story is for the year. As a backdrop for the economy. Thank you so much. We have the news for you. The wall street journal is reporting that at t is making an unusual move in the antitrust trial. The journal is reporting that both companies had drafted a list of possible witnesses which include the Justice Department antitrust chief i trump nominee. The trial is scheduled to begin march 19 and we are seen changes in conversations about this ahead of the trial. I dont know what you guys think about it. I think it will be an antitrust issue but not a political issue. In a year that looks like the mergers and acquisitions activity should be picking up giving the backdrop. It could impact sectors even individual stocks if it looks like potential mergers. They are looking at potential mergers. They dont want to have the time and effort. With the Justice Department doing what its doing. To challenge the antitrust department. We will take a break. Amazon is shipping just about everything you need to your door. Now they are turning to medical supplies. The online retailer could disrupt another business. Needs flowers when you can express your undying love with the scent of fried chicken. Here is a unique gift this valentines day. Back in a minute. Im a concrete mason. I had severe fatigue, became diagnosed with hodgkins lymphoma. He was a good candidate for immune therapy, which is allowing his immune system to attack the tumor. Learn more at cancercenter. Com welcome back passengers on a flight to hawaii and get the get the scare of their lives. United of flight 1175. Packed with people. It shows the planes engine falling apart. This is at 30,000 feet. They feared for their lives. They put their heads down. A huge round of applause it was the result and unclear at this hour why this engine failed. Amazon added again. Continuing their ambitions to disrupt the healthcare industry. They made news a few weeks ago with their plan to disrupt the Prescription Drug industry. Up about 70 from a year ago. In three separate winter olympic games. So a milestone for team usa. Our 100th gold medal of all time in the winter olympics. They needed this spectacular file he scored a 9725. Leaning back to back 1440s. If you can tell. You might have heard its valentines day. It is your chance to show that special somebody how much they mean to you. They are going to shell out nearly 20 Million Dollars. And kfc is spreading the love. Chicken scented scratch and sniff. And that has the Little Things on it. Like you have the secret recipe to my heart. Investors are showing some love but the stock is up nearly 15 over the past year. So today if you going to kfc to get a 10dollar value meal as well. This entire room smells like a chicken. You can do wings today. Ten bucks i fell in love the moment i sly you. The secret recipe to my heart. We are two peas in a chicken pot pie. Putting on some pounds is okay. They have done sunscreen which weve have onset. The chicken flavored lip balm. And we also had some other things that theyve gotten with the specials and stuff. You cant can accuse them of not innovating. And taking the product everywhere. It is a valentines day. So i will stuff my pockets with im not done. With some other surprises for you. Dont fill up on the poppers. Go easy. Your guide to tweeting your sweetheart weve all of that coming up. Today, innovation in the finger lakes is helping build the new new york. Once home to the worlds image center, new york state is now a leader in optics, photonics and imaging. Fueled by strong university partnerships, providing the worlds best talent. And supported with Workforce Development to create even more opportunities. All across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. Bring it on. This is valentines day. The hottest new and used jewelry and watches. The true facet founder. Good to see you. Thank you so much for joining us. You have invested in this. How would they be disrupting the entire jewelry market. So rose clift invested. And so far as meeting the expectations. When you buy that and you want to buy that but then you see there is so many copies out there so one of the biggest and most popular pieces of jewelry is this love bracelet. The love bracelet is one of the most iconic pieces. If you look at the beautiful loves bracelet. They retail for about 6,300. For the certified preowned. Anywhere before between 404,000. How are you able to charge so much less. We are the retail marketplace. They could resale their jewelry and watches. And we have a verification system in technology as well as appraisers in our network that will verify the piece it to be real. See how to play pay full retail at a store. There is some meat wannabes out there. I have some of the lumber necklaces. There is all these fakes out there. How easy is it to sell the real from the fake. You can go up and down different Jewelry Stores or even online and just to show you a real versus a fake this is a real bracelet. Here is a right here is a fake one. The big difference is this has rounded edges thats one of the biggest tale tell signs. It detects them. It is completely blurred. In this stamp this stamp has all of the serial numbers is very clean. If you look at the difference and then tell us about the bank weve met with. Not only for the refurbished pieces but they also had new pieces on the website for christmas i went on the website and i bought my wife tracy this bracelet. Those prices on a new product are a lot less than you would pay in a regular retail store. The growth is coming from the preowned market. Its now larger than you knew. They can trade and trade up. Happy valentines day we will be right back. The day after chemo might mean a trip back to the doctors office, just for a shot. But why go back there, when you can stay home, with Neulasta Onpro . Strong chemo can put you at risk of serious infection, which could lead to hospitalizations. In a key study, neulasta reduced the risk of infection from 17 to 1 , a 94 decrease. Applied the day of chemo, Neulasta Onpro is designed to deliver neulasta the next day, so you can stay home. Neulasta is for certain Cancer Patients receiving strong chemotherapy. Do not take neulasta if youre allergic to neulasta or Neupogen Filgrastim . Ruptured spleen, sometimes fatal as well as serious lung problems, allergic reactions, kidney injuries, and capillary leak syndrome have occurred. Report abdominal or shoulder tip pain, trouble breathing or allergic reactions to your doctor right away. In patients with sickle cell disorders, serious, sometimes fatal crises can occur. The most common side effect is bone and muscle ache. So why go back there . If youd rather be home, ask your doctor about Neulasta Onpro. Sometimes, they just drop in. Obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. On thousands of hotels, cars and things to do. Like the occidental at the xcaret destination for 32 off. Everything you need to go. Expedia. Maria welcome back. Good wednesday morning. Thanks for joining us. Im maria bartiromo. Its wednesday, february 14th. Happy valentines day. Your top stories right now. 7 00 a. M. On the east coat. Inflation in focus this morning. Economists and investors are awaiting the january Consumer Price index. We are expecting to see a rise, 1. 9 year over year, up 3 or 4 10 of a percent quarter over quarter. The report could trigger action from the Federal Reserve. The markets have been nervous about inflation. This has become that much more important this month. Dow industrials showing a gain, up 128 points, slightly higher yesterday, making it three straight sessions of gains. The markets rallied on top of another day of gains yesterday, with the nasdaq up 32 points yesterday. In europe this morning rally under way there as well. Take a look at the indices. The dax index is higher by 3 4 of 1 . In asia overnight markets closed mostly higher with the exception of japan. Hang sang and hong kong best performer, up 2. 25 . One republican law mak lawmakers challenging Nancy Pelosis negative comments about the tax package. The he details as he wants to make bonuses from the historic overhaul truly taxfree. Protecting our borders, the senate is expected to begin the debate over immigration today. This comes after a federal judge rules against the Trump Administrations plans to end the daca program. President trump weighed in and held firm. We want security, the border war, ending chain migration and cancelling the visa lottery. I think you all agree, anybody in favor of the lottery, where you pick it up and say good, we he have a new United States citizen, doesnt work. And theyre not giving us their fine, thafinest, that we can te. We listen to Law Enforcement and we put the safety and security of American People first. Maria the latest on the debate coming up this morning. Netflix is filled with glee. The massive deal it gave ryan murphy to bring his talent to the streaming site. Well tell you about that. Bow wow, its a fourlegged face off at the Westminster Dog Show. Well tell you the breed that took the coveted best in show prize. I could watch this all day. Love it. All those stories coming up this morning an joining a and joinino talk it, Dagen Mcdowell and mitch rochell. I love puppies. Who doesnt . Who doesnt . I get nervous ao dont love puppies. Dagen i know which dog won. I can say a lot of hair care is involved. Maria oh, yes. Dagen lots of maintenance. Maria you dont have to have the hair grow that long but when you want to show the dog, they do. It requires a lot of maintenance. Dagen charlie dog is a rescue with completely messed up teeth, a bad eye, and he he he l requires a lot of salon time. Maria were talking about inflation this morning. Happy valentines day to everybody. Happy cpi day. In about an hour andahalf well get the Consumer Price index. Economists are looking for it to be up 1. 9 year over year. Iwhy is this important . Its important because it has the market on edge. If the number comes in hot its almost a certainty that the market sells off. As weve seen over the course of the last few weeks, a selloff these days can be dramatic. 1,000 point drops have become the norm over the last few weeks. On the flip side of that, if it comes in in line, so were looking for a core number of 1. 7 or if it comes in a little bit lighter than that, meaning things are not overheating, i think the market is going to take that as a get back in signal. Youre going to see people coming in. Youre going to see the market rally. We could see a big update today. With sort of 2 being the feds target, a fun fact for you. Since world war ii, cpi averaged 3. 5 , and that includes the double digit years during the 70s. Dagen we havent had 3 cpi in a quarter of a century. Maria and the fed targets 2 . Dagen the danger is Inflation Expectations from individuals who are now seeing fatter paychecks because of the tax reform and the organic wage growth and that feeds into expectations and theyre willing to shoulder higher prices whether its food, whether its other materials. Thats the thing that the fed will be watching. Maria well be watching as well. Look at the chart for the dow. Its the last couple weeks that weve seen this real volatility on the idea that rates are going higher, inflations going higher many well bring you the january cpi when it hits the tape at 8 30 a. M. Eastern. Stay with us on that. Want to turn to washington. Thats taking the taxes out of the tax reform bonuses. An indiana congressman is set to unveil legislation that would make that a reality. The law would be titled the crumbs act after nancy pelosi criticized the 1,000 tax cut bonuses from hundreds and hundreds of companies. Take a look at what he she said last month and how House Speaker paul ryan responded yesterday in my exclusive interview. In terms of the bonus that Corporate America received versus the crumbs that they are giving to workers to kind of put the shmooze on is so pathetic. Its so pathetic. The rhetoric is so overthetop, that i dont think people know what to believe. Were getting into real wage growth, real takehome pay. Thats exciting. Thats good. I cant imagine why someone would be against that. Maria as you said, mike murphy, earlier, this is happening for a good reason. Its growth. Its happening for a good reason. Anyone who talks about the bonuses 1,000 checks being cut to people, hundreds of companies doing it, i dont know how you can you can he see how you find the negative there, you make something up as nancy pelosi did. Real workers are getting checks. Maria i like the idea of the crumbs act. Make all the bonuses taxfree. Joining us to weigh in on this is richard fowler. Thanks for being here. Its good to be here. Happy valentines day to you. Maria happy valentines day to you, richard. What do you think about the crumbs act . Theres things about it i agree with. I agree for middle class and working class families, if they get the bonuses, they should receive them taxfree. There should be a cap. I dont know where the cap should be. I havent read the entire bill. Maybe a quarter Million Dollars or less, you get it taxfree. If its over a quarter million youve got to pay uncle sam because you make a lot of money, period. Overall, i think while we see the tax code allowing folks to get bonuses, what i want to see is permanent raises. A lot of companies are giving out permanent raises. Bonuses are a onetime blip on the Balance Sheet. Raises are built in over years and years. Its interesting that paul ryan made that comment when he deleted a tweet a couple weeks ago which praised giving the High School Secretary 1 similars 50 which he was happy about 1. 50 which he was happy about. I think thats about a pack of gum. I think we can do better. Maria are you trying to minimize the fact that 200 plus companies im not, no,. Maria are you trying to minimize the fact that the Corporate Tax went down. Are you trying to minimize the fact that people are talking about 4 Economic Growth . Im saying the speaker of the house cant get mad at nancy pelosi for making a crumbs comment when he tweeted about the idea that its great that a High School Secretary in lancaster, pennsylvania only makes 1. 50 a week. Thats nothing. Dagen i can get mad at her because shes a dismissive west coast liberal living in a bubble. 1,000 feeds a family of four for a month where i grew up. It will buy you a new watching g machine. It seeps so out of touch. We have wage growth running at the fastest pace since 2009 and youve had a lot of gigantic employers announce wage increases and raises for people. Walmart, you can talk about the layoffs at sams club. Walmart and wells fargo and cvs across the street from where i live in new york city are getting raises. I have a couple responses. Ill avoid the sams club talking point. In some private sector places youre seeing raises. Overall, most folks are getting bonuses, which are onetime blips on Balance Sheets. Think about the teachers and Police Officers and the ga garbagemen, their wages are not increasing. In West Virginia, teachers have seen their pay go down because their Health Care Premiums have gone up. Theyre not under the Affordable Care act. Theyre in private Health Insurance di. Dagen thats the fault of the unions. These are unionized workers. Walmart, theyre not unionized. How is it the fault of the unions. Dagen the private Sector Workers how is that the fault of the union when the governor is like im only willing to give the teachers 1 but ill raise Health Care Premiums 20 . They negotiate the pay packages. In West Virginia the pay packages are negotiated via state law. Lets talk about facts. Whats the point of having the union in West Virginia . The union is to fight for making sure theres a small class size. They do lobby for wages but once again, the governor i said they do fight for wages. I said the point im making here is were seeing wage growth but wage growth isnt happening across the board for all workers. Its not happening for ga garbae men in memphis or teachers in West Virginia. The point were talking about is that tax cuts for corporations its not happening for Charter School workers. If we talk over each other, no one can hear anything. If we look at corporations in america that got a tax cut, they take some of the money, the talking point from the Democratic Party is it was only going to go to the top earners, top 1 . Now the corporations that are made up of republicans and democrats are giving onetime checks to their employees. Theyre also increasing salaries. Thats a win for both parties. Its a win for the United States of america. And calling it talking about a pack of gum is taking the facts and twisting them. People are getting real money from this. Maria youre getting real selective, richard. When you talk about 4 Economic Growth, that lifts many boats. I agree. Maria why talk about a pack of gum . Im talking about a pack of gum because paul ryan was talking about a pack of gum. Lets be he ver very clear. I think theres great Economic Growth. It has a lot to do with the fact we he have a stable economy for almost a decades. That has everything to do with barack obama policies, number one. Yes, they benefited from trump tax cuts. The larger point im making is some of the corporations including kimberly clark, the makers of kleenex, are bad actors. While they receive millions and millions of dollars in tax cuts, theyre also going to lay off 5,000 workers and close three factories. Thats not what make America Great again looks like. What we should be doing with the money automatically is pumping that into building more american factories and giving raises, not onetime bonuses which are onetime blips on a Balance Sheet. Maria are you saying we shouldnt have done the tax plan, then . Thats not what im saying at all. Maria what are you saying . You cant legislate how much a company is going to give a bonus to somebody. Thats exactly my point. Maria you want the government to legislate it . I am not against tax cuts. I dont think democrats are against tax cuts. Were against taxes that favor corporations and the rich and we this when they dont favor the middle class. The middle cut tax cut is not even permanent. The Corporate Tax rate is permanent, period. Dagen i think you have incredible style and youre a wonderful man, but maria but, but, but. Dagen the individual tax cuts expire is the talking point. Why didnt they step up and vote along side democrats . Why didnt republicans make it permanent. Maria not one democrat voted for the tax cut. This is a joke. Im trying to figure out why republicans didnt think it was a good idea to make the middle class tax cut permanent. They say corporations need planning. Mortgages are 15 and 30 years. Middle class families plan as well. Dagen they coun couldnt bee of the budget restrictions because the democrats no, no, no, lets be clear. President obama when he was president passed the largest middle class tax cut ever and democrats voted for it. The reason why democrats were against this particular tax cut and i was against it was because it favored corporations and wealthy ceos over the middle class. The proof is in the pudding because the middle class tax cut wasnt permanent. Dagen the Corporate Tax reform that the republicans passed was utterly similar, almost identical to what president obama proposed not once, but twice. So they couldnt get its because its a republican idea, even though they back up the details, they wont get on board with it because theyre not in charge. Let me make another point. Facts matter. The reason why we were against this one and for the obama one is because the obama closed tax loopholes that are still open under Donald Trumps tax plan. Maria 4 Economic Growth, richard. Well see you soon, sir. Thank you so much. Richard fowler. Back in a minute. Maria welcome back. An offduty Chicago Police officer gunned down confronting a suspect in broad daylight, we have the details. The Police Commander was shot multiple times by a convicted felon running from other cops. He happened to be in the area for meetings. He heard the call on a police radio of a suspect who ran away and he jumped in to assist. Hundreds of officers lined the streets to salute the fallen hero. Bobower, a 31 year veteran of te force, is the fifth officer killed across the nation just this week. He he leaves behind a wife and 13yearold daughter. Flight delays at Londons Heathrow airport after one man died after two airport vehicles were involved in a crash. This picture shows Emergency Services on the scene there. The man died on the way to a hospital. The other man in the accident suffered a suspected broken shoulder. Police say his injurys not life threatening. Hundreds of passengers were evacuatessed froevacuated from e tarmac when the incident happened. Jc penney is cutting the workforce. They are cutting a Distribution Center in wisconsin and eliminating 670 jobs. This comes as jc penney and many other retailers are reducing stores and reducing operation as more americans start to shop online. Shares of jc penney are down 50 from a year ago. While he may not have been the biggest dog in the show, but flynn was certainly the best. Best in show at the 142nd annual westminster ken hell club will be the bichon frise. There he is, the bichon frise had no trouble winning over fans and the judge at the Westminster Dog Show yesterday. The judge pointed out flynns beautiful expression, straight back and also mentioned that every time she would look at him his tail was wagging. Hthis is his second ever win for a bichon frise that is. To dagens point, that is a lot of brushing. Maria he was so perfect to groom. Looks human. Maria he had some really human expressions, youre right. Personality. Dagen charlie dog does that too. When you talk to him, he stares at you like this and his tail is constantly wagging. If you dont follow dagens instagram, her conversations with charlie are epic. Dagen we had a long conversation this morning about how the day was going. These are both rescues. I encourage people, as much as a pure bred dog is beautiful, theres no love like that of a rescue because they really rescue us. Maria im so glad you did that. That is great. Take a break. When we come back, netflix jumping with glee. They struck a deal with the producer behind hits like gle question. Glee and American Crime story. And a salons plan to use its readers to cash in on the crypto craze. Well be back in a minute. Ive gotta say, i love the new place. Oh thanks. Yeah, i took your advice and had geico help with renters insurance it was really easy. Easy. Thatd be nice. Phone for help with chairs, say chair. Phone for help with bookcases, say bookcase. Bookcase. I thought this was the dresser . Isnt that the bed . Phone im sorry, i didnt understand. Phone for help with chairs, say chair. Does this mean were not going out . Bookcase. See how easy renters insurance can be at geico. Com. Maria welcome back. Netflix is has just locked down another major producer. Ryan murphy is known for creating acclaimed hits for other networks. This is a big hire. Lauren wait until you see the details of the deal. Ryan murphy, the name behind many hits, including American Horror story, American Crime story. The reported deal, five years, 300 million and it starts july 1st. The 52yearold got emotional in this statement. The history of this moment is not lost on me. Im a gay kid from indiana who moved to hollywood in 1989 with 55 in savings in my pocket. So the fact that my dreams have crystalized and come true in such a major way is emotional and overwhelming to me. Murphys jump to netflix is another hit for traditional tv. Shonshone. David letterman returo television with a netflix series. Chris rock, Dave Chapelle left hbo for netflix. Netflix is spen spending 8 biln this year on content. Basically, every single year netflix increases its spending for content by 1 billion because they need the content to bring in the subscribers, to up the revenue, and look at that, about 118 million subscribers worldwide. Maria netflix and amazon have been just dictating what goes on in the industry. Theyre paying all this money for content and for big producers and forcing the majors to scramble. Theres like 400 programs that are in development and 200 that are in active Development Across all these platforms. I wont be able to binge watch any of this stuff. Dagen no of worries. The vast majority of them wont be any good. Right. A lot of them are good. Some of them. Dagen i wont watch a lot of it. The investor question for 234e9 flicknetflix is are they overp. They committed 125 million for one movie and it turned out the budget is climbing and climbing and climbing. There was one report that says that its going to be north of 140 million for one movie. Maria the stock trades at 100 times cash flow or Something Like that. It trades at a ridiculously high number. If you bet against netflix, the knock on netflix is they spend too much for content. If you bet against them, its been a horrible mistake. Maria you would take 1 times cash cost . I think disney coming into the streaming service next year or later this year is going to be a big hit to netflix. Comcast is trying to mess that up. Apple has over 200 billion being repatriated. Will they spend that on content and get into the game too . Maria ryan murphy leaving fox, going to did the disney, fox deal have anything to do with it . Thats a good question. He had free rein to do what he wanted. Something he said earlier this year, he he said the disney deal shook me up. I didnt want to be buried in the fox lot. So i think he he was a little bihe was a little bitworried. The reported deal, 300 million for five years and seeing so many competitors go to netflix, thats what he decided to. Maria well leave it there. Thank you so much. Coming up, the white house time line called into question. Chief of staff john kelly now under fire this morning about when he learned of staff secretary rob porters domestic abuseaabuse allegations. The new details in the growing scandal coming up. The uber tries to put controversy in the rear view mirror. How much they grew amid heavy losses in 2017. Back in a minute. Liberty mutual stood with me when this guy got a flat tire in the middle of the night, so he got home safe. Yeah, my dad says our insurance doesnt have that. What . you can leave worry behind when liberty stands with you™. Liberty mutual insurance. Stay at la quinta. Where were changing with stylish makeovers. Then at your next meeting, set your seat height to its maximum level. Bravo, tall meeting man. Start winning today. Book now at lq. 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Maria welcome back. Good wednesday morning. Thanks for joining us. Im maria bartiromo. It is wednesday, february 14t february 14th. Valentines day. Your top stories right now. 7 30 a. M. On the east coast. Eyeing inflation, economists and investors are waiting for the january Consumer Price index this morning, expected to be up 1. 9 from a year ago. The report will either ease or heighten concerns about Interest Rate policies across the world as the markets traded wildly. The number has become more important. Were on it. Its coming out in an hour. Futures are rallying ahead of the number. Futures indicate a gain of 140 points at the start of trading this morning, 1 2 of 1 . The s p 500 is up a half of percent as well. Well get retail sales data this morning, 8 30 a. M. Eastern. Both of these numbers could be market movers. This comes after the major indy easindices posted moves up yesterday. In europe this morning the major indices are higher across the board. In asia overnight, markets mostly higher with the exception of japan. The fbi memo battle heats up again. Adam schiff is now saying he will not make any revisions, despite what the white house says on his memo number two. All i can say is were trying to get it out as soon as possible. Are these significant changes that the white house wanted . Were not going to make any revisions to it. The only question is what redactions will be made and obviously we would like to keep those to a minimum. The white house has a different interest. Were dealing with it responsibly and were going to do our best to get it out as soon as possible. Maria why did he put the sources and the motives in there from the start . The latest on the fight about the memos, coming up. A deadly car accident in california last night to report. The crash involved Actor Luke Wilson and professional golfer bill haas. We have the latest on their condition this morning after that accident on the Pacific Palisades in california. A look under ubers books. The companys financials in focus after the company is dealt with several scandals and starbucks getting in the valentines day spirit today. The taste of love in your morning caffeine fix later this hour. Plus squeeze heart travel deals coming up this morning. But first this, white house chief of staff john kelly under fire this morning as the background check time line for former white house staff secretary, rob porter, is called into question. Fbi director Christopher Wray and Sarah Huckabee sanders laid out the details yesterday. Watch this. The fbi submitted a partial report on the investigation in question in march. And then a completed Background Investigation in late july that soon thereafter we received requests for followup inquiry and we did the followup and provided that information in november and then we add administratively closed the file in january. The fbi portion was closed, the white house personnel security office, who is the one that makes the recommendation for adjudication had not finished their process and therefore not made a recommendation to the white house. Maria so theyre blaming john kelly. The white house is insisting that general kelly will stay in his role as the president s chief of staff. Joining us now is judge andrew napolitano. Good to he see you. Good to he see you. Good he. Good morning. Maria what do you think should happen here . Its clear the white house did not move quickly on this extremely hot button around and potentially dangerous situation. It should have come to general kelly immediately. Stated differently, when director wray said we gave a preliminary report in march, that report must have had the allegations in it and the allegations were so incendiary, they should have gone to general kelly. If they didnt, theres a breakdown in the mechanisms he put in place. If they did and he sat on it, the president has to revisit general kellys tenure. Maria the journal writes an op ed, kelly and the chaos. It isnt clear what the dismissal would do, beyond satisfy mr. Trumps opponents. I think people like general kelly where he is. He puts structure in the white house. I agree with you and i agree with the wall street journal. It would delight the president s opponents and disrupt the white house until a new person came in and put that persons structures in place. On the other hand, the visual is very bad. Maria very bad. We all saw the photographs. We read the op ed by one of the former wives. The evidence of porters behavior of inappropriate and criminal behavior is overwhelming and nothing was done. Dagen the communication of this, though, by the white house is appalling, though, for them to say repeatedly that the investigation was ongoing and then seemingly changing the narrative yesterday that this was a person this was in the office of personnel management, although the fbi background check has been wrapped up and then john kelly told the wall street journal yesterday, asked if the white house should have handled mr. Porters situation any differently, he said no, it was all done right. Whos the head of communications but hope hicks who is dating rob porter. The general statement is without credibility. You saw chris wrays response. It was clear, crisp, credible and not challenged. The time line that the fbi gave is so at odds with what the white house is saying and the white house is not credible in this dispute. Maria do you think anything is going to happen . I wonder. Do you think john kelly leaves . Rumors that the president is unhappy with kelly maria i dont believe it. I dont believe it either. I think general kelly is the adult in the room and donald trump knows that. Maria he might be annoyed with him. But i dont know. Its going to take a lot to get him fired. Dagen who dropped the wall in this, then . Thats the central question. Maria he may have dropped the ball. Dagen rob porter was handling very sensitive information, passed to the president daily as the staff secretary. Theres literally been dozens of top officials within the white house that have had interim security clearances in the first year. I dont know who dropped the ball but whoever it was, it was on general kellys watch and it was on a person that works for general kelly. Whether it was the general personally, literally himself, we may never know. We need accountability here, its basically we need to give accountability to the situation and give credibility to the white house. If a mistake was made, mistakes happen, so it needs to be addressed and whoever is responsibility need to im a fan of the general, as i know you are, maria. I dont know how he can maria i dont know him at all. I dont know how he can say nothing was done wrong. Maria i dont know him at all. I know there are people out there who want him in place. They feel he puts structure in the white house. I dont know him in any way. There are people who dont want him in there. Dagen they want access to the president. They want to be able to come and go as they please. What john kelly did as the chief of staff, he cut down on the number of interlopers walking in and out of the office. He got rid of steve ban nonwho d omarosa and people who were destructive for the president. Maria weve got to talk about the dueling fisa memos. House democrat adam schiff is insisting his party will not make any changes to the rebuttal of a republican memo which as we know alleges fbi surveillance abuses. Devin nunes weighed in on his when i had him on the Program Sunday on fox news. Watch this. Were not going to make any revisions to it. The only question is what redactions will be made. Obviously we would like to keep those to a minimum. The white house did not deny that the release of the democrats memo. What they did is they say, look, you need to make redactions and technical corrections here and well get it out right away. Now, from that point weve heard nothing but crickets. I happen to think theyre both being accurate. I think one of the reasons the republicans voted to get this memo out is because there are things in there that are ridiculous and not credible and the republicans want the public to see what the democrats have written. As for congressman schiff, i think its a he question of quef redaction or revision. Hes not going to revise the narrative. He may redact, cover up, white out, certain proper names or dates so as to not tip the hands of how the government maria sources and methods. Why didnt the republicans when they voted for it, caveat it and want the redactions at that point . Some of this is so political, the republicans who voted for this might want to embarrass or frustrate their democratic colleagues. Ive been critical of the whole thing. You have a body of raw Intelligence Data which is top secret. You have politicians who have top secret security clearance looking at it, republicans write their political narrative, democrats write their political narrative. This is the improper use of raw Intelligence Data for political purposes and its going to increase pressure to produce the raw data and that will seriously frustrate the work of the intelligence committee. Maria to be clear, the political memo, the way you refer to it, the memo from the gop states the bias that was occurring at the top of the fbi and the way that they actually abused their power. Theres a lot of maria youve got to call it the way it is. Its a massive abuse of power. There is credibility in there. We havent seen what it came from. You or i or any intelligent person could cherrypick information from raw data to paint a narrative. If we dont see the raw data or if we dont see the contrary memo, we have nothing with which to compare. Maria i dont need any other raw data other than to that the fbi went to the fisa court with a dossier and used it as a just at this fijustification to wiren american citizen and didnt tell the judge that Hillary Clinton paid for it. Thats all i need. Theres enough under fisa to justify surveillance of carter page. He boasted that he worked for the kremlin. Thats enough to get surveillance. You dont need the dossier. Maria four times . Each time they wiretapped him and went back for more, they had more information. Maria i dont think thats true. I dont think they had more information. They kept using the dossier, four times. Well, the judge should have demanded more. Maria i want to see the transcripts. Are we harassing an american citizen or are we getting information to help keep the nation safe or are we trying to frustrate Donald Trumps ability to become president. I would never have been on the fisa court because i think its unconstitutional. Maria thank you so much, judge. Coming up, uber still trying to curve its losses. They revealed their Fourth Quarter financial results. The one sign things could get better for them in 2018. Love is in the air, as long as you book it. The perfect Vacation Getaway to surprise that special somebody in your life this valentines day. Back in a moment. So, from the two trucks over here. I want you to pick a new truck for your mom or dad, knowing that they could possibly pass it down to you one day. Cool. But before you decide, you should know that chevy silverados are the most dependable, longest lasting fullsize pickups on the road. Which means that ford f150s are not. laughs which truck would you pick . The chevy. The chevy. The chevy. There you go. Boom. That was obvious. Plus it looks cooler. No doubt about it. Now they know what to get me. laughs maria welcome back. Actor luke wilson was involved in a deadly car crash in california. We have details on the breaking story. Police say that luke wilson was driving in Pacific Palisades last night when his car was clipped by a ferrari. The driver of the ferrari was killed when he lost control of the car. That officer rar ferrari crasheo another car. Bill haas was a passenger in the ferrari. I was taken to the hospital in serious condition. The driver of the bmw, a 50yearold woman was also seriously hurt. Were looking to get an update on bill haass condition. He is reportedly hospitalized right now. Despite a Sexual Harassment scandal and major leadership change, uber continues to boost sales. Their revenue jumped to 2. 2 billion in the Fourth Quarter, up more than 60 from a year ago. Uber also reported a log loss of 1. 1 billion in the Fourth Quarter. Well, salon magazine is asking to use Readers Computers to mine a cryptocurrency. You heard me right. Ad blocking technology is on the rise. Salon is having customers choose between seeing all of their websites ads or allowing their computer to be used to mine crypto cash. Salon is mining for a cryptocurrency similar to bitcoin. They typically require a lot of computing power, so weigh that one. And then time is running out if you want to tristar bucks tribute to valentines day. Today is the last day you can taste the companys new drink, so it ends tonight. The cherry mow cay it mocha. Its got whipped cream and pink and red sprinkles. Weve got the cherry mo cha here ourselves. The stock is down 1. 5 over the last year. Theres a theme with the specialty items. Remember the zombie frappuccino. That went viral on the internet. Then they had the Christmas Tree frappuccino. Now i bring you this one for valentines day. The cherry mo mocha frappuccino. Steamed milk, whipped cream, cherry syrup, mocha sauce. Im trying it out. Its actually really good. But the specialty things that theyre doing, i see a theme. So like ill see you at easter dagen . Tarbucks drink. Dagen can you get that zombie frappuccino still . I dont think so. Some places, if they have the supplies theyll do it. Most of them dont have the supplies. I think the pink or purple stuff dagen the medicine ball is a goto as well. Some starbucks, the employees dont know what youre talking about when you order it. Its two different kinds of teas with hot steamed lemonade. Ill leave you with this, the cake pop for valentines day. We havent had enough sugar on the show this morning. Or chicken. Or fried chicken. Dagen that one bite is literally 350 calories. Maria this must be about 800 or something. This is a little less. These are good though. Maria then theres this thank you so much. The perfect Vacation Getaway this valentines day to surprise that somebody special in your life. Back in a moment. Today were out here with some big news. Jardiance is the only type 2 diabetes pill proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease. And lower your a1c. Wow. Jardiance can cause serious side effects including dehydration. This may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. Ketoacidosis is a serious side effect that may be fatal. Symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. Stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. Symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. Do not take jardiance if you are on dialysis or have severe kidney problems. Other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Tell your doctor about all the medicines you take and if you have any medical conditions. What do you think . I think its time to think about jardiance. Ask your doctor about jardiance. And get to the heart of what matters. Maria welcome back. Attention love birds looking to book a flight to paradise with your significant other. You are in luck this morning. My next guest is here to dish on the sweetest travel deals in time for last minute valentines day surprise. Joining us is expedia travel expert, courtney scott. You say now is the time to book, february is the time to get out there and escape and put the booking in now. Its the cheapest to do it now . We have exciting news coming out of the latest report from expedia. February is the best time, the cheapest time to Book International flights from the u. S. So its even more incentive to escape the cold, get out of the u. S. , down to the caribbean, mexico, warm weather getaways. Maria how much would i save if i booked now in february . If i want to book spring break or going away in march . Its a significant savings, especially if you focus on booking a vacation package, bundling your flight and hotel into one. You can save an average of 600 by just doing that. I have a lot of other great deals to share with you as well. Maria we want those deals. Lets talk about it. We want to talk about warm climates since its so cold. Is that popular . Bahamas, its ranked at one of the places to travel in 2018. On expedia youll cab up to 1300 youll save up to 1,300 on vacation passes. Naynassau and bimini are some of the best locations. Maria now is a time to go after the hurricane season. Are there areas that are being rebuilt . The best thing to do to support the caribbean is to travel to these places. Maria how about mexico, whens the best time to book . I love mexico. Next week, expedia is launching a sale on over 75 hotels in cancun, 20 off. I love the riviera maya, that coastline is beautiful. Theres an island outside of cancun, pristine wildlife and much less of the hustle and bus bustle in cancun. Maria you say ill save if i book next week . H yes, next week, a sitewide sale. Maria how about hawaii . Youll save up to 1,200 if you book now to travel to hawaii. Hawaii is always a good idea. If you head to oahu, go to the north shore, get out of honolulu and youll experience some of the real local culture in hawaii. Maria and the temperature is mid to high 70s. Lets talk florida. One of the best warm weather getaways within the u. S. , i would recommend south florida. Youre going to get mid80s around this time. Miami, fort lauderdale, key west, direct flights from many major cities across the country. Maria kids . No kids . Best time to get romantic when the kids arent around. The best adults only resort . Theres nothing worse than getting to a he resort that youu planned with your sweetheart and you see a lots of kids. Theres a new resort that opened in nassau in november, a cutting edge culinary scene and night life. Youll impress your sweetheart here. A chef opened a restaurant called fila. Its luxury through and through. Theres another all inclusive adult property on the beautiful coast of the riviera maya. Maria what about kid foreignly hotels . The entire coast in mexico from cancun to tulum, theres resorts for every time of traveler, especially in mexico. Maria thank you so much. Coming up, history on the half pipe, shaun white getting gold again with a historic run. The highlights from his incredible run coming up. Back in a moment. The stories 8 on the east coast, inflation in focus, economists investors are awaiting january Consumer Price index due out a half hour we are on it expected to be up, 1. 9 from a year earlier some estimates 1. 7 markets rallying ahead investors waiting for january retail sales that is expected to be up, up 2 10 of 1 all numbers as they come in, to look at this market leading into those numbers stocks higher 118 points dow industrials one half of 1 nasdaq, s p 500 at high of the morning, after three days of gains to look at yesterdays close dow industrials finishing 24,640 gain 39 points s p 7 points higher nasdaq 1 points higher yesterday in europe this morning, tone continuing money into equities ff 100 up twothirds of a he , dax up half a in asia overnight markets higher as well winner hong kong up two and quarter percent, protecting our borders senate will debate on immigration today, this comes after a second federal judge has ruled against the Trump Administrations plan to end the daca program. President trump weighed in, and held firm on priorities. We are working on daca were working on immigration bills and were making them tough, right now in the senate, were in congress altogether, we will see what happens with daca. We want security board and a wall ening chain migration canceling the visa lottery if you all agree everybody in terms of the lottery where you pick it out say good we have a new you know, state citizen doesnt work very latest on debate coming up this morning, sweeping up the crumbs one republican Law Enforcement challenging House Minority leaders nancy pelosi, and negative comments about tax reform he wants to make bonuses from historic overhaul truly taxfree calling it crumbs act. Sams club a shakeup revamping memberships Free Shipping more as Company Faces press from costco amazon. Golden, snowboarding shaun white performance. Joining us to talk about it Dagen Mcdowell, rosecliff ceo mike murphy pwc partner Mitch Rochelle great to see ahe happy valentines day. From cpi anybody countdown. Big number, going to be very interesting the risk to upside because i think. Maria upside . I do i think the market baking this kind of growth in there, and if it comes in in line or lower i think sets off deaning neb out 30 minutes expecting 1. 9 year overier 4 10 of a percent quarter over quarter he importanty critical important triggers selloff comeback in volatility that wage number 2. 9 yearoveryear wage growth we got strongest since 2009 not just Federal Reserve raising Interest Rates, in fearing higher inflation it is also what we are doing with that Balance Sheet the massive flood of of treasurys or borrowing that you are going to get from federal government because of the deficit that we are going to be running, north of a trilliondollar each and every year 0 years. In an is starting to disappear from Federal Reserve nobody knows what is going to happen as they wind this Balance Sheet down. Maria right. If they tell you they know well they are not telling you the truth. Maria eventually going to be 50 plan a month unwind they have a plan, mike, right. Starting in fall. Worried i am not because they have a plan maria there has been plenty to worry about, as the for the last three or about four years we got out of the financial crisis, people have professionals experts talked about the worries that we are going to be caused when stop asset purchases when we unwind Balance Sheet. Maria dagen talking about nobody has seen unprecedented 4 1 2 trillion dollars. My point that to this point i think the fed has done a good job, in what theyve done now, as they unwind more i dont think it i think the markets expecting it, what hurts the market is massive surprises that is hurts market i think well planned it has been well, telegraphed. It has been. I this i the market expects it, it can prize it in. Mike if it goes the other way. Dagen they didnt expect congress to raise spending 300 billion dollars, over twoyear period, they didnt expect after tax tax reform gets Done Congress says okay were happy with trilliondollar annual deficits, that is the concern, it is the supply versus the lack of demand. They also didnt expect growth above 2 you havent seen that can offset spending i am not saying i dont know this that is the hope growth priority mitch. Right, absolutely, the thing that could surprise the market the other way would be cpi coming in high that could trigger a massive selloff. Numbers out 25 minutes stay with us we are looking at that tell you what it means to everybody, when the number comes out january cpi out literally in less than 25 minutes, we turn to the battle ever immigration front door and center senate will attempt for a second day introducing competing daca bills, this comes as second federal judge ruled against the Trump Administration move to end the daca program. Blake burman live at white house with the latest we have that deadline blake march 5, where do we stand now. Reporter there is a federal judge that upheld the prior riling another federal ruling maybe at least appears as if that could be, a potential soft date at this point President Trump had set a march a deadline lawmakers trying to beat at this point, yesterday the senate supposed to have this open format freewheeling kind of debate, got bogged down yesterday, as there were arguments over process, and democrats objected to a vote on amendment, over socalled skwhair sanctuary subcommittees so that i was disappointed the majority leader attempted to start voting today with an amendment that does absolutely nothing to address daca, does absolutely nothing to address border security. I am ready to get started. This is a debate they said they wanted, i said we have an open fair process. Were trying to do that. So that stymied start of the immigration debate is expected to begin in full force later this morning, here at white house yesterday, President Trump jokingly read the few Senate Democrats while also saying he appears to be optimistic. The differences we want to help daca you dont. Okay . I am kidding. I am sure you do, i hope we can, by the way, while at the table, i hope we can do daca. Reporter white house maria believes this could be a couple week process that plays out in the senate, though republicans Mitch Mcconnell said he would like this wrapped up this week, it remains to be seen if the president s four main pillars will be eventually what is produced if anything at all or if they go something more narrow in scope, which is what Chuck Schumer has suggested. Interesting the president makes that comment, you know we want daca you really dont, he is not kidding. He says i am kidding he is not kidding. There are some saying this is he is the moment, to see whether or not democrats this is an argument the president is making if democrats are using this merely political cancellation or if they want calculation or get something done. Blake burman at White House Joining me highways Financial Services Committee Member congressman Roger Williams of texas good to see you thank for joining us. Good morning happy valentines day and to you can you confident senate can come up with immigration bill this week. I am not so sure how confident with the senate can do, i hope they do i mean we are ready to act and this President Trump has said march 5 would like to get something done we are ready doing in the house lets see what senate comes up with. Maria let me ask you about being on house Financial Services committee, do you think were seeing inflation i mean there is a report this morning that i am looking at from Goldman Sachs says we are coming off the strongest Holiday Shopping season since 2011 people have not felt tax cut impact yet because going to be back Quarter Ended so from second half of the quarter, until we really see an impact, are we seeing impact yet congressman . There is no question about it, i am a trailretrailer a hug commitment to begin to buy things spend money, and it is it is really hit main street positively i think were seeing growth from it, and the consumer confidence, i think is as high as i have seen it in many years. We are waiting for Inflation Numbers to come out 20 minutes or so do you think the markets then have been right to be acting wildly because we are in fact seeing inflation because with growth comes higher wages comes perhaps Inflation Higher Interest Rates. That is that is comes out of all that, of course, the markets have been going up and down, and i dont know any if anybody really can put their finger on it the fact of the matter is i can tell you as businessperson, this economy is growing i think tremendous amount of growth, people are excited. Jobs are becoming harder to find we have seen unemployment going down, so it is a good time to be in business in this country. One of your republican colleagues, set to unveil new legislation, that would make the bonuses given out as a result of the president s tax plan, taxfree. He is calling it creating release usefully middle class benefits and savings or the crumbs act we know a jab at house jiernt leader nancy pelosi revered to bonuses crams her comment House Speaker paul ryan reaction joined me yesterday on set. In terms of the bonus that Corporate America receives, versus the crumbs that they are giving, to workers to put schmooze on is so pathetic. Rhetoric over the top i dont think people know what to believe the good news is law occurred reality setting in people opening up paychecks seeing bigger checks bonuses from employers a raise minimum wage that is occurring. Something you would support. I think so we are putting more in hands of people, if we can afford it from a taxfree standpoint that is great where i come from in texas crumbs 1,000 dollars is a lot of money to people they can do a lot with that, people are excited about it we are on right side of this debate. We got to list of companies right next to you that rolling up a kaenz have given 1,000 dollar bonuses about incredible let me ask you about the trade part of the story, i get what you and colleagues have done on tax, that is good. Moving the needle on Economic Growth i get what you guys are talking about in terms of rolling back regulation, very good. Moving the needle on Economic Growth unleashing animal spirits but i am not sure about trade, the president says he is considering a range of options including tariffs quotas aluminum and steel listen to this. Part of options would be tariffs coming in as they dump steel tariffs substantial tariffs means United States would actually make a lot of money we are talking about tariffs and or quotas. So we have already seen tariffs on washing machines solar panels are aluminum and steel next . Well sounds like it i was not in meeting yesterday but i saw what president had to say i dont know, i have never really been supportive of tariffs i this i what we have done with our tax plan repatriation of money, lowering tax rates puts us in position to drive world market i want to do everything i can to make American Goods competitive we dont want to have them go other direction i take a look whatever the president comes up with, but i think we are in right direction now with our tax policy, letting people begin to make money in this country. Isnt this one area that could go either way . I mean the other day when market fell out of bed last friday, when when this most recent wild decline started i think part of the reason it started was Justin Trudeau said were willing to walk away from nafta negotiations in canada i think people are saying whoa, not just the president getting tough, trudeau is going to get tough, so could nafta and this idea that were going to see you tougher stance on trade up ravel markets . Well, i think it remains to be seen, a lot of this right now is talk i think a lot of countries are trying to keep the wrote up with the president , the president is tough on his stance and beliefs, and you know they dont want to fall hidden in rhetoric i think at the end of the day our tax plan the economy we got going main street america being solid repatriation i said earlier are going to do a lot to settle this in and see where we need to be on competition, tariffs. We are going to leave it there congressman you worried about trilliondollar deficits. Totally worried about it weve got to address the the items in the room as we talk about Social Security medicare address i am really concerned about defendant. Thank you so much breaking news reports of a shooting, near nsa headquarters, in fort immediate maryland local Police Closed highways near fatal due to investigation we bring updates that come in Police Responded to a possible shooting, near nsa headquarters, in fort mead. Well be right back up the count. Bowl without me. Frank. im going to get nachos. Snack bars closed. Gah ah, ah ah. Im goin up the country, baby dont you wanna go . Im goin up the country, baby dont you wanna go . Geico motorcycle, great rates for great rides. Maria tax season under way a irs sending out warning about rapidly growing refund scam you need to be aware of Cheryl Casone with details. Cheryl getting more prevalent, how this one works, thufrz steel information from tax prepareers a file a phony tax return to did he did he posit in Taxpayers Fund Contact Person tell them money did he positivesist in error request sent to Collection Agency very complicated but effective scam irs telling, tax prepareers to notify fbi police client as soon as they realize data has been breached or stolen. Well, military police in brazil in a race to ask youresc nineyearold buried in mud police frantically digging to find girl buried under three feet of mud police decided not to use heavy machinery her name isabel finally rescued reportedly doing well after being taken to nearby hospital, but scary moments there. Sams club change Free Shipping to compete with costco amazon going to reduce categories to two club level an plus level, the plus level gets you Free Shipping, on 9 a of items in the 59 of items the warehouse arm of Walmart Walmart up 47 from a year ago 47 , all ght. Valentines day retailers across country offering a lot of heartshaped deals especially items baskinrobbins a sweetheart pizza with traditional duncan love beans heartshaped doughnuts boston dream doughnut jelly love struck munch kips Dunkin Donuts down over past year. Valentines day bile there is first off, yes, i brought more food im sorry, sick of me and my food . They see are harvester shaped Dunkin Donuts they are like everywhere all over the store. Maria okay. This is pink one there is black and white. Maria what is this chocolate one. Cake batter in it brownie. Chum crumble vanilla, doughnut jelly baked in hearts, this is. Maria in our traditional ice cream cake. Ice cream cake if baskinrobbins, several offers there is coffee hart shaped pizza sold, all kind of stuff you. Dagen book in the day i could have eaten all 12 one sitting. Maria this things with chocolate stuff on it. High school i ate entire dozen of krispy kreme doughnuts. All right happy valentines day see everybody in the gym later today. Coming up chipotle to become new ceo of chipotle direction after concerns over food safety, flu season worse in a decade, weve got the tips you need stay healthy at the office back in a minute. All you need is love, all you need is love, all you need is love, love i want you to pick a new truck for your mom or dad, knowing that they could possibly pass it down to you one day. Cool. But before you decide, you should know that chevy silverados are the most dependable, longest lasting fullsize pickups on the road. Which means that ford f150s are not. laughs which truck would you pick . The chevy. The chevy. The chevy. There you go. Boom. That was obvious. Plus it looks cooler. No doubt about it. Now they know what to get me. laughs stay at la quinta. Where were changing with stylish makeovers. Then at your next meeting, set your seat height to its maximum level. Bravo, tall meeting man. Start winning today. 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Switching gears in midst of a terrible flu season approving to be one for the record books, how can you prevent flu from entering your home your office, your car, joining me right now dr. Varshavski dr. Mik good to see you backdrop, so many people even canceled they have to flu people, about bad this season. Really bad i am glad to hear people he canceling i dont want them to spread flu a big problem you see even in celebrity life they go to awards show get onstage claim award say, by the way, i have the flu. Then 15 minutes later, they are hugging kissing everybody that is attention seeking behavior if they had real flu wouldnt be able to stand up onstage maria you are right. The flu effects people differently i dont want to make judgments there too early i will say if they do have the flu horrible, horrible, horribleing to outside and spread to people you have to say home, because the flu spreads through contact, through breathing in fact a lot of people think oh, if i destini sneeze it can get to somebody 6 feet away you can sneeze in empty room your flu germs hanging out an hour later. Is this flu season worse than other flu seasons is it because, this is not being treated by flu vaccine if yes how do we fix that going forward. Great question, we dont have a perfect answer we get a lot of statistics of the flu that we have right now, after the season has concluded, what we know this peak is incredibly high peak came early and lasting extra long time, so we have Record Number of hospitalization pediatric deaths earlier on in flu season than expect to see it. Dagen what is so devastating the gastrointest tinnal distress. It is applications from the flu takes you down think about your immune system an Army Fighting infection not the worry if you have in tact cuban syst immune can lead to bronchitis, illness that claims your life. Right back january cpi right after this. With Public Services without starting from scratch. It brings your business up to speed, doing more with systems you have in place. It can bring all your apps to life and run them within your data center. It is. The new ibm cloud private. The cloud thats designed for your data. Ai ready. Secure to the core. The ibm cloud is the cloud for smarter business. February 14 top stories 8 30 a. M. On the east coast. We are waiting on Inflation Numbers going to be out in 10 seconds, Consumer Price index due out 10 seconds expecting up 1. 9 from a year ago up 4 10 of a percent quarter over quarter going to ease or heighten concerns Interest Rate policies inflation spree of in wages up 2. 1 yearoveryear that is worse than expected, up 5 10 of a percent men and womonth over mo quicker than we expected giving up gain because this number is much higher than expected, there you have it 2. 1 on cpi, market turned negative. December anybody was also 2. 1, the estimate was 1. 9, so it is not red hot higher than expectation but not red hot, and we will see how market responds obviously one for the downside. Not good with retail sales inflation up sales down retail sale down 3 10 of a percent we wanted to see a good retail number, after the tax plan, not what were getting right now. I think kind of the worse case sthar for the market coming on the scenario Immediate Reaction you have this inflation number that is coming in, it only looking like. 3 higher that is a big difference, in the number that was expected to what were seeing, so the markets not going to like 24 we have had 300point swing in the futures, and i think, this is kind of this is bad news for the market i think, maria major market move down 113 points dagen waiting on a number core inflation yearoveryear 1. 8 that is the cpi yearoveryear, is 2. 1 coors 1. 8 any way this is hotter than expected. Dagen core was expected to come in lower than that, 1 10 of a percent lower the biggest fear in these markets, and what triggered it was that wage gain number that we got in early february. About an economy we want an economy that is growing faster we want an economy that is warmer than it has been over the last decade however, it is not so much inflation today, that is the worry it is the overraeks to that inflation, about will federal government get more aggressive in terms of fighting that inflation, down the road. Real sales largest decline on retail sales 11 minutes mike. There will be more important to read through that number because i want to see exactly what makes up that number but i think for the people at home hatching a headlined moving number you see market react a big way to it but we have rallied for the last three days if you are sitting at hole with portfolio this doesnt mean go on etrade ortart liquiting if you have a longterm plan this isnt someing you want to ll he will in. 219 points lower Dow Jones Industrial average futures. It is worth looking at like a tip etf treasurer inflation protected securities portal folio of bonds that are protected, if if inflation starts picking up, those securities actually during that massive selloff last week, didnt do that well. You didnt see a major rally in them so that is something, that if you are trying to add balance to portfolio worried about fixed income losses like attracts as yields going up. Falling out of bed down 300 points as market digests. Worry one thing to focus on probably why market reacting the way it is how key to gdp growth the consumer is, and the consumers are the retail sales number, so that is what is moving that maybe we are not going to see gdp growth that we expect, if a Silver Lining in any of it the thing dagen talked about it, an hour ago, i do worry about howshold debt so if seeing a slowdown in retail celsius they mean not inflating Balance Sheets. I think this reaction in the mart that were seeing 400point swing is i dont think that has to do as much retail sales as has to do with what has been spooking the market, as inflation. Up 5 10 inflation picking up that is why you are seeing programs, again Program Trading going off selling this news dropping the market in big way. Inflation is an issue, and that is going to be what the fed focuses on. Dagen you would know that inflation was an issue even before this number came out, if but we have been talking about it on the show you have had ceo after ceo major corporations, talking about rising costs, metals food stuffy i said earlier sisco food distributing overly food inflation up more than 3 recent quarter, ford grpg higher material costs caterpillar whirlpool starting to work through supply chooifrn costs. Not just material but labor costs. Right so the double whammy. Where a do you do in a market that is down 300 points, mix murphy you are invested in this market bullish on stocks, a market falling out of bed on inflation scare right now. Take a brought and sit back this morning is not the time if you have been holding core holding in Amazon Microsoft facebook apple, for the last year, two years, three years, you dont the get up this morning and say sell, you are going to sell that, lets see how the market reacts in this i dont believe this is cause again 11 drawdown peak to trough not cause for bear market major collapse this is several hundred point move has been become normal we were down a few hundred points yesterday closed flat three up daisy market going to open down today, the market goes up and goes down take deep breath look at information if you are too exposed to equities sell them on this selloff sell on rally but the danger we need to point out to people, if you are trying to reallocate your portfolio, reduce your stock allocation, you have to be careful what type of fixed income that you put it in, because if you have longer term treasurys think long ohr term rates keep going up north that is a loss ooh north of 3 a principal loss if you are not careful you have. Asset allocation challenge entering period of rising Interest Rates from equities to fixed income bond prize go down, unlike time reporting, what you are dagen they dont know yields go up actual the price of a bond falls. Maria i meanings ppi earlier. Producer price index, out thus this is telling us that the higher increases have gotten to the Cash Register when you check out supermarket impacting you why market is failing out of bed. Although i am still going to wave caution flab numbers for january exactly the same as for december. So were not seeing, inflation rising were just ahead where have we were from expectations perspective. Dagen quick i want to point out, something, about because i keep bringing up, the the unprecedented stimulus and Monetary Policy we saw from federalizing over last decade, Federal Reserve and central banks, the central problem is that this fee of money cheap easy money pushed into these the economy never benefited average folks in this country didnt see wage he increases instead it was asset inflation. Maria yes. Stock market. Junk bonds real estate. So the average person in this country could still be okay if we have an economy that is on stable footing higher wage increases so long as people are careful even if you have these asset bubbles. Go ahead. Going to say Interest Rates are rising does not necessarily mean stock market goes down the stock market can move up, in a rising Interest Rate lets put in context we are only talking about 2. 88 on 10 year i recognize, it is a different show 10 year range i recognize a different direction than what we have seen we got rates, moving up, and that is the negative, but 2. 8 . Who is afraid of 2. 8 . Dagen when paul volcker fighting inflation 10year yield at first morning. 15 . Well my rate was 13. Dagen asset price was a heck of a lot cheaper. Maria the point,lets bring Jon Hilsenrath into the conversation Global Economics editor the wall street journal, big number here. Reporter . On the phone i think this Inflation Numbers are going to continuing to up in next few months, because what happens last year, was also dropped pretty sharply put downward pressure on index going to wash out of this report. And the exif couple months we are going to see yearoveryear increase continue to rise. I think what were seeing in the markets is stock and bonds adjustments shifting inflation reality, inflation is not going through the roof it is not the 1970s early 180s he relative to expectations shifting the market adjusting to that is a. Jon mitch, one things people need to remember cpi a weighted next housing is in there gets a lot of we the because of the size of housing in the basket, in fact, we may see, because of rising Interest Rates, real estate yearoveryear appreciation not as robust as it has been that maybe a down ward pressure, on cpi over time as well. On the phone real estate gets less of a weight if have the index that fed watches, the personal consumption and have price index but the general trend i think is up, and my message here is keep an eye on, on yearoveryear changes what happens when Cell Phone Services wash out in next couple months were going to see a pop in the numbers almost baked into the cake at this point. Maria jon thanks for weighing in a market down 256 points Jon Hilsenrath see you soon back on set, thank you, Nicole Petallides watching on floor of New York Stock Exchange big reaction to cpi number this morning, market down across the board we were looking at pretty good rally earlier. Right exactly i woke up this morning futures to upside wow we are going to have four days in a row of gains would have been nice for bulls as we saw this number down over 300 dow points here u. S. Stock Index Futures traders just as this number came out we got in cpi number 0. 5 clearly above the estimate, and that and retail sales number weaker so with that, we know we have anflationary number strairdz shouting numbers to downside concerns about inflation concerns about higher Interest Rates, your point i want to say about corrections, the corrections in 2009 future out how many corrections 10 or more we have had 5 directions since 2009, and you dont move back to new high no the earlier than 157 days so everybody was expecting volatility testing lows, we see it here now, evident down 246 points. Maria it is broadbased right . Selling in some big winners, mike murphy there is any way to hide in market like this day you are expecting 300point selloff out of the gate. Not really, but i dont want to sound as if not giving credibility, i am, inflation is not good. But we expect the cpi to go higher the peas you have seen volatility market we saw pullback we have had fewday rally now the futures have dropped this morning, issue market isnt open for most Retail Investors so you have a selloff i this i when you go through it, if this is backed by an improving economy i think going to have very little longer term impact on market if earnings continue to come in strong if the economy continues to improve, i think the best place for peoples money is in the stock market. Maria we point out volatility index spiked as wells a probe going on in vix, right now. Dagen that is really what people also need to be focused on, is you have to be prepared for much wilder swings than weve seen in last year and a half. Maria yeah. Dagen everything was just smooth, there was no nos disruption everything going up, you could being buy anything and you were a genius, oh i am trade bitcoin i am arbitrageing, versus bit coins versus i am making money and just not that easy. People get conned into this could they are trading jeengs quite frankly very few of those in this world one thing i add in terms of inflation risk bonds are have much more inflation risk thanking stocks do companies, in inflationary environment raise prices earnings go up as so long as inflation is mild, or okay, not runaway then stock market should do okay goes back to people uncertain about what impact will be on longer term Interest Rates, you use those very Interest Rate factor in what you are willing to pay for aerngs if you had a stock market quite frankly overruled coming into february. Watching the show Retail Investor trying to figure out what make out of all this remember if you are want to be in equities do it gradually overtime, and you dont have to worry about the swings daytoday. Maria it doesnt look like there is any one time items in here, do you see any one time items that is spiking at this month, that doesnt get out looks like you just have an inflation, that is really moving up i think you know the lot of things. Maria markets down, yep. You see how reaction here we havent seen news so long dagen was pointing out it has been low Interest Rates flat so long market k go higher so some people dont know how to react to this. Dagen i mentioned this earlier the performance of treasury inflation for protected securities etfs track them they lost money in the lastly month down 1 1 2 so if inflation is a real worry you would see upcoming better but if you you are looking for something to research, might be worth a look. You can unpack cpi number see what caused it to go up going on in basket. Lets do that. We are at 2. 1 level, fed target is 2, so not like post boiling water is boiling all over. This is one month. One month. We want that out is there. Same as last month. Stuart varney on deck, host of Varney Company stu i guess the fed meeting is next month, and march expecting another rate hike your reaction to numbers stu. I am a little surprised that the yield on the 10 year treasury didnt go up more than it has gone up. 2. 88 , this Inflation Report that is not even getting back to the high that we hit i think last week 2. 90 . Right. I think weve got to let this settle down get to grips with this level of inflation, and see if were going to 3 and quarter percent on 10 year treasury if so i would expect a more serious decline in stocks, built let it settle down as you he say, in pack the cpi report what is really inside this thing, and does it imply a strong pickup inflation in the months to come if it does, all that the markets an attractive alternative for now let it had settle down weve got 45 minutes till we open trading i think things settle by the time off and running. Maria i think you make a good point in terms of settling down this is a whole new environment for investors something that the Investment Community hasnt seen in a while talking about ease money from fed seeing Growth Numbers we havent worried about Inflation Higher Interest Rates so long so this market mass to settle, and digest, completely new narrative. We are just not used to a market that does this. We are used to a market that does that. We have had that for a year, suddenly we dont, and inflation and higher Interest Rates are the cause so, so i expect some volatility but, again, let things settle. Maria going to be a year of volatility. Dagen i wish more republican congressmen watched Fox Business Networks they would understand that an xie. Maria i think they are watching. Dagen heating up in large part tax reform deficit spending isnt good or o necessary thing in this environment. Lets not forget that we are just shocking money at this economy whether extra Government Spending or whether tax cuts or whatever it is, we are throwing money into the hopper, you know, euan get inflation as a result of that maybe that is what we are seeing right now. That is obviously the worry, we will see where it goes from here it is only one month we are going to hear comments about that later on in the day, i bet, from market watchers one month the 5 10 of a percent hotter than any of is were expecting. Sure is. I know you have more Varney Company top of the hour jooin stewart at 9 00 john Meridian Equity Partners on floor of stock market stock market right now your take what do you want to do with a market down 200 plus points and environment that sees, inflation on the move . Right this is is the new normal, we have seen a lot of volatility in our markets, seen a lot of volume, over the last week and a half or so in this market, what this has come to, yes we had three up sections in a row friday monday, tuesday everybody was waiting for cpi number everybody was thinking the same thing, you know,. 3 or lower, markets going to rally, if it is. 3 or higher going to see market pull back that is exactly what were seeing, so two things, it shouldnt be a surprise seeing pullback, yes, it is a little bit of a surprise that we did see a number that came higher than. 3, i think once again going to see investors waiting for some sort of settlement in market to come eventually buyers coming back in continue to buy on dips, up days down taz a pattern for a while. Mich, last week saw a lot of Computer Trading wild springs is this a bad news story to get psc on hyper activity. Mich the computers are also a going to be there reactionary, right the programs set up to be base off cpi number where it was going to come in so computers are going to push the market the human are going to step in to see where the dust settles where this bottom comes in, we have seen trading sessions, where the markets sells off in the mornings we find a base then rallies in the afternoon, Something Like that could possibly happen today. Maria you know, is there any where in i where you want to hide market down as much as it is was do you want to do as investor i know the idea to just stay put not react to short term moves is what you should be doing, but as a trader, and investor who is in this market is there anything to do in terms of short term moves . Right, listen as trader investor i dont think you want to hide i think these are opportunities, that we havent seen in quite sometime, we followed a one way market for 14 months some people missed that rally certainly household names out there, that have started to pull back, i think that is where you want to get involved, if you have been investor like you said i think staying the course is what you want. When you look back over time you have seen market pullbacks very small blips on very long chart, so these two are opportunities for investors, to actually become a little bit more aware that the markets are not always going to move one direction and there is going to be volatility, but staying the course is clearly the smart thing to do. Maria we will be watching we know you have a busy day thanks for stopping by this morning john from the floor of New York Stock Exchange to you stuart who have manuel chief economist on the phone stuart good to talk with you thank you for weighing in do you worry about inflation, given is it increase in cpi this morning. On the phone i dont worry about it, i think the fed actually is going to like to see a little more inflation. This was certainly a bit harder from stock market point of view kind of feels like a week ago friday, all over again when you got hotter bigger increase in wages. And now, you know week half later big increase the core inflation you did see apparel you talked about it you saw some Energy Prices go up certainly gasoline and guess what going up that much again in month of february. So there is a little whiff of flaigs part smells like gasoline other parts signature fed probably going to get 2 inflation target this year, but i dont see that as an lar alarm or panic we think if stock market wants to sell off this is a good applying opportunity. Stuart mike murphy i agree with your take on this but one from an economic standpoint what do you want to see from economy . In order to support this cpi number up here inflation picking up we see, is condition robust economy offset that keep the market going up . Yeah i think corporate earnings can underpin markets so you know fed is going to raise Interest Rates three times we think probably, in march, if not, you know certainly june, september, december. I think that is kind of baked into the marketed maybe leaning towards 2, could go to three rate hikes i think corporate earnings are key with tax cut, and stronger economy, gdp growth at 3 , you know, if the rates in denominator pricey earnings ratio tend to push market down if earnings are good because economy is good i think that that offsets that that is why we still like the market. Maria yeah. It is going to be more volatile that is more normal, and probably a good time to buy . Look we started the program this morning, with sam talking about 18 Earnings Growth to s p 500 2018, 23 Earnings Growth for small midcap companies, what do you want to buy then stuart if you say the backdrop is positive, where do you allocate quick we want to get to Charles Payne here on set. On the phone i dont deal with individual stocks we continue to like that technology, area. Maria all right. On the phone maybe concerned utilities intrasensitive stocks would stay away from short duration on bond portfolio self years Interest Rates go up. Maria depp. On the phone maul and midsmall and mid caps stronger economy, so small cap etfs. 23 Earnings Growth pretty good thank you for weighing in Stuart Hoffman joined charlespaper host of making money Charles Payne futures a complete we were up 160 before cpi number reversed couriers down 300. Coming into this any number above consensus going to trigger this reaction having said that i got to tell you going through numbers i like what stuart was saying and we have to juxtapose idea we havent had any real quote unquote kwaij inflation for a long time look at year over gain for instance in wages 2. 9 pathetic last you know just go over last several years, and forget about put up multidecade chart most people watching probably would say hey, Wage Inflation i had no idea what you are talking about. That said, i think one interesting aspect about this morning i havent had a chance to go through retail sales number disappointment, see what happens, because if were going to have inflation at least see hitting the economy. You flip to the stock side why i had the biggest winner in market apple under armour day biggest winner fossil not nell bellwethers but point to the fact at least people if getting wages matching confidence are spending this my favorite area in market is Consumer Discretionary i think the huge winner this year in part because people wages are going up, and they are spending that money because of the confidence. Maria . Volatility. Maria is Goldman Sachs report, that we were talking about earlier, says the tax cut benefit is going to be back ended so we have not seen true impact yet in terms of Consumer Spending case back ended that quarter back Quarter Ended. That also, there is also a confidence factor to this, that you have to say has he emerged i see with credit cards debit cards mastercard visa recently, i think 2009 debit card use grew faster than credit card that was because people become the reality they were scared didnt spend money they didnt have. People on cusp right now cards reemerging faster than debit i know a red Flag Associated with it that. Dagen in journal that the household debts set a record high to end last year added 26 billion dollars to credit card balances fourthth quarter total credit versus debit doesnt cover disability. Dagen this is dangerous to me rising right environment that people are adding debt that is going to cost more to service it. I get that by same token 70 of economy is consumer we cant have it both says a consumer not spending any money and consumer starred to spend all of a sudden hole world falling apart two crazy dynamics win each other i think we need to broaden out look where we are over the last few years, and then understand that if this is if we cant deal with this quote unquote inflation we are doomed, how can we ever grow an economy there will be a point, i agree, one thing people should look at, Household Income right, d disdigs about about positives i believe, alltime low to tick up near alltime low, so we have a little bit of wiggle room to take on a populate more debt household than they did in 2009. Dagen i do think at highlights what has been a dangerous reliance on monetary stimulus, by asset investors, whether you are taking a flier on cryptocurrency or real estate around the globe that you have assets ininflated something that never benefited the folks who we grew up with. Maria depp that is right. Dagen that is what we have seen last decade now now the world is shifting we dont know how it is going to play out. I think, to right, we dont know for sure dagen, but i would be in challengers charless camp no wage growth get wage growth two weeks ago that spooked marketing completely, but a selloff doing long enough to know, about 5, 10 correction, how many people came on your show said we need a correction, we need a correction. Maria i dont mind i say bring it to me bring it to me. Numbers that published last week have to be retested they have we have to make sure, because you know this is where Technical Analysis does work because it does give you insight to sithey held a number will they continue to hold if they blink weve got a brandnew set. The dirty dozen earlier 12 stocks, and from sectors hardest hit way down coming back fierce on the way up, another one research one of those that i dont think was in sam but apple wildly held selloff two weeks ago high of 1890 to 150. Dagen apple one with of the biggest lowers in the dow this morning, apple being one of them. Maria you know what dagen point you know about to become big buyers in this market insiders. Insiders. Because the quiet period is over, with regard to earnings for the lastly weeks been in quiet period corporations could not buy back you are about to see big buybacks. Dagen you saw that the after crash in 87 not like anything like that companies stepped up announcing stock buys. Remember that a support for this market. You always buy not but they can they will. Earnings season about to weekend going to buy in the market. Trading crash we are going to buy back stock now on sale, so that may. One more thing i am glad you mentioned, people need to look at individual names, lamb had a great number microchip next day secretary of state down a lot of opportunities to apply great names on this. I love the fact we have the number first, we brought it to our viewers we saw reaction as it happened have a great day, everybody. Varney company. Well done maria all right, crunch time, half hour from now red arrows return to the market good morning everyone, banni bang all pointing lower why . Inflation number, we are now of 2. 1 inflation over the past year that is not dramatic, but shows prices at he consumer level are going up. That inflationary report rates up 10 year treasury 2. 87 that is not close to the hi of last week when it was 290, add it all up, and this wednesday morning, stocks are