Market has been elected. If we do in fact get meaningful tax reform, how much higher can stocks run pete quite a bit higher. I dont think its priced in at all. Everybody has been looking at this thing for a long time, saying the tax reform, all these various things, i dont think any of them are in there because i dont think anybody believes well be able to get there if we do, holy smokes, thats a great catalyst i look at these financials, the way we exploded to the upside. The rates werent doing anything special but look at citi, jpmorgan, goldman sachs, theyre breaking out i expect to see the xlf at 30. It did hit a nice level on the tenyear yield today it didnt do a whole lot. Were not at the two six level like we were the explosiveness of the facts, which has been record earnings and revenues, thats what people care about yeah, no, i 100 agree. First of all, i dont think anything is priced in for tax reform it could add 7 to 10 of earnings to the s p 500. As far as if things go through the question is if they go through. The problem is if youre an investor, you cant sit back and not discount a very meaningful, meaningful and potentially positive outcome so you have to get prepared for that i said earlier, maybe four months ago, investors were going to give this market a pass until First Quarter of next year they will continue to do that. As we get closer, youll start pricing in some sort of tax. Its clear from the performance of russell, it broke out in a massive fashion i think there is obviously investors werent placing a lot of hope on major tax reform in that sector. But what about the s p we talk about the s p, its been trading within a tiny band for it seems like a very long time right now. And i dont think 40 blips on the s p is saying a whole heck of a lot i think theres no reason to believe there is going to be meaningful tax reform in 2017. A tiny band but right around record highs thats fine okay okay we also have, we just said, the tenyear, two three, it was two six nine months ago. Crude oil is at 50 bucks, where it was nine bucks ago. The dollar is lower than it was nine bucks ago i think im having a huge problem with this side of the desk tonight i just think with all those ingredients in place, the s p up on this announcement on tax reform, thats not going to happen its just not going to happen. Yet here we are thats fine, pete what im saying is when it doesnt happen, well have that correction if its not priced in, it doesnt happen, we should be exactly where we are, no the logic is its not priced in. Where do we think the russel is going to go if this thing dice if you look at todays action, people are starting to discount theyll have to start discounting in some sort of if it happens and youre caught not long enough, its a problem for your performance i mean, youll totally underperform this market what are you talking about . People were chasing data today. They were chasing data it outperformed massively. Its telling you were setting up for an acceleration of this market i have no idea. Its hard for me to know i remember fred smith. Federal express. We were talking about tax reform you know what rate fedex pays . 34 . 34 . Usurious. Compared to competitor dhl which pays 12 if they were to get that down to 20 , huge, right . Ive got to tell you something this show tonight is like one of them breakfast burritos, a lot of great things wrapped up in a small package. Thats what tonight is with that said, i say this all the time, the market doesnt give you an ample amount of time to buy the lows or in this case, sell the highs to dans point, yes, weve been at this level is he s p for some time but in my world, were just getting ready for the next leg higher the russell, which we discussed with Carter Braxton on monday, up 2 today, continuing that performance, i think it will drive the s p higher one of the biggest beneficiaries of tax cuts, just dont tell me russell. In the energy sector, right, you look at the refiners, the refiners benefit big time. Free cash flow will accelerate we talked about that in the report this morning. M a is going to pick up. Because of repatriation repatriation, all that stuff. Refiners win in this scenario. Certain parts of technical win in this scenario its a great tailwind for technology, which has already been moving to the upside. That was based upon nothing but great earnings and growth. And you look at valuations, not a stretch. There are areas in the market, no doubt about it. You want to talk about f. A. N. G. Names, i would agree with you. Theres no evidence, though, that repatriation for mega cap tech is going to lead to a boom. Microsoft immediately paid the 32 billion special dividend, 30 billion buybacks, which is all great. For the administration, right or wrong, its points on the board. Its a step forward instead of backwards. Let me just say this. You guys are talking out of both sides of your mouth in a way here if you get a quick fix sort of tax cut just so he can put a win up on the board, that doesnt mean tax reform. Im looking all day on the network, individual tax rates. Thats the thing thats going to help his base. And its not there its not a postcard. I saw six levels, then i see three, then i see a potential higher one its a bunch of nonsense im talking more sentiment versus actually a tax reform or a process catalyst, baby. Im talking about people thinking this could occur. Did you see the headline today, hes winding back the Public Private partnership for infrastructure the legislative agenda is done, theyre scrambling for any you mention microsoft and what they did the last time around im an investor in microsoft am i happy that this happens am i happy that i think so, yes at the end of the day, if youre a shareholder in these companies, its a good thing and i understand what dan is saying, nobody knows what any of these corporations will use the money for. I would submit, i dont even know if that matters, because the market will say, look at this, this is, a, accretive, and adding, what did you say, fuel to the file. Fuel. Kerosene on top. Wow you should come sit over here you want me to move no, stay where you are. Sit down thank you. Mike wilson is chief equity strategist at morgan stanley, the biggest bull on wall street, with an optimistic price target. Mike, good to see you. 2700 is without any tax reform, presumably 2700 included at least progress on progress. Yeah, progress in terms of the legislative agenda the idea we had last year was we needed fiscal so we could sustain this debt bubble we had around the world a lot of people misconstrued populism as a bad thing. Its a good thing because it forces the hand of legislators around the world to pull the fiscal lever directionally moving in that way. We made a call a month ago, we thought last year they got way ahead of themselves after the last election, we got way too excited. Weve been consolidating that for the whole year in august it was basically not priced at all. We just thought the risk reward way good. Today was a short term euphoria on some of these things but we think this is the primary trend, small caps, financials, energy, i was on the show a couple of mondays ago talking about energy as an opportunity. It doesnt mean that f. A. N. G. Or tech gets left behind, they can both work under this progress is a little amorphous to me. If we get the Corporate Tax rate to 20 , get some sort of repatriation, does that move the 2700 higher . Not necessarily or make it more likely . It makes it more achievable to get to 2018 estimates, you need tax tax is about 6 benefit to the s p and a 25 rate by the way, other groups that could benefit, it is energy. Energy could get a 22 benefit next year as a group if you just go to a 25 rate so what it means is that the 2018 numbers now are more achievable the 145, 146, was a big number versus 130, is now doable. We can pay for the 145 already thats how you get to 2700 lets go out there and extrapolate. If we do get 25 and the estimates go up by 6 , that sounds like an economy heating up even faster does this become a pushpull event where yellen starts ratcheting rates higher or faster than the market expects this is the trick, be careful what you wish for. Were late cycle, we made this call back in april, were looking for the boombust. This is part of the boom, its the fuel, gasoline, kerosene on the fire, but at the wrong time. That will cause the fed to go faster next year just as people get excited about this probably when they sign the bill in the First Quarter, thats probably around the time the market will top for this cycle. Not the end of the world, but it brings the end of it cycle closer thats the irony youre telling investors right now to invest for the likelihood of some progress on that not just for tax. Theres a very strong earnings recovery thats been going on since the beginning of 16 the multiple expansion, people are feeling more confident that we can sustain it. Tax is icing on the cake, it gets people to believe and finally come in and show on me optimistic for the most hatable market of my career. Mike, thank you thank you for having me hes speaking petes language im loving this guy the kerosene, the icing on the cake youre short the s p he makes a very cogent argument theres not a whole heck of a lot going on right now that should make you too worried. You brought up rocket man, thats a huge thing. If that were to find some sort of diplomatic cooling right now, thats obviously more kerosene for the fire, given the backdrop if Interest Rates dont move up too far, too fast. We forget that the enyear treasury yield was trading at 3 in may of 2013 we were just touching 2 of the other day. So yeah, i get all the reasons why equities have this upward bias the Biggest Issue i have is the level of complacency its gone on way too long. People forget q1 of 2016 was a bloodbath. We forget what thats like and we rally over 50 from there its true lets get to what we did today, pete. I added to my financial exposure the other day there was a huge paper out there on the spiders, again, second time in the last couple of weeks. I actually grabbed some Deutsche Bank today and i took a dip into nike i think the pullback is far too much i think its a great opportunity. Im looking at the stock, well off its 52week highs a month ago. Im not happy with whats going on in the u. S. For nike right now. When i look at the growth aspect for china and the potential there and the fact that theyve got a very incredible shoe line Going Forward and everybody says theres no innovation, i think their new distribution is going to be much better because of all the folks that have actually left the industry, and its putting them in the ecommerce world even faster to compete, and theyre on amazon. I like cof here, attitude capital and financial. And alvlo is going to benefit. I hear you on the financials. I would mention on the nike front, foot locker, fl, should have traded worse than it did, it closed unchanged. That might be a tell guy mentioned the show is like a burrito breakfast burrito this is an amazing show hes right i dont know about the breakfast burrito, but its got a lot of good ingredients ahead, the one and only tony robbins, often called the ceo whisperer, hell weigh in on whats keeping the c suite awake at night plus, trouble on the march ta tarmac a woman dragged off a flight and later, the hollywood legend and owner of the Golden State Warriors, peter gruber is in the house s hheere to talk President Trump and ratings. Much more fast money still ahead. K it . Yes you can can i kick it . Yes you can well im gone throughout history, the one meal when we come together, break bread, share our day and connect as a family. [ bloop, clicking ] and connect, as a family. Just, uh one second voice guy. [ bloop ] huh . Hey . I paused it. Bam, family time. So how is everyone . Find your awesome with xfinity xfi and change the way you wifi. Welcome back to fast money. Oil making a comeback, up more than 20 since hitting its low in june. One trader is betting big on a crude crush ahead. These guys were justtalking about obviously oil and gas stocks as a primary beneficiary if we were to get tax reform into 2018. One trade in the s p energy oil and gas etf caught my eye. Put volume was three times that of calls today it was largely in one trade when the etf was trading 33. 73. A seller too close to the 22,000 or so at 37 cents and they rolled the premium up to the december 33 puts paying 1. 43. Those break even at 31. 37, thats down 6. 5 from the trading price. Obviously we have no idea whether that is an outright or someone is rolling the strikeup closer to where the stock is trading or some sort of protection one thing thats interesting, we were just talking about the price action here. Look at this welldefined down trend. Its up about 17 or so from that low just last month which is pretty interesting. Here is the fiveyear chart. When i think about rolling and strikes, pete looks apartment this stuff closely too 29 was the prior low in the summer 33 now is very near where this kind of breakeven is. I think thats kind of important to keep an eye on. Then just one last thing, we know the vix is trach at 10, option prices are relatively cheap. The price of options in the prn etfs like this, buying options is one way to do it or to be buying protection. Pete, you probably saw this action today i saw this today. Dan mentioned somebody could go rolling up, thats exactly what theyre doing. It makes sense, why not protect yourself, roll up to the 33s. Last week some massive call buying, october 33s as well i think this is all part of the same trade it also plays into the idea, low volatility, gives you a great opportunity to play the options world. Thats exactly what people are doing. For more options action, check out the full show friday 5 30 p. M. Eastern time still ahead, hollywood legend and owner of the Golden State Warriors, peter guber is here speaking out for the First Time Since his team was disinvited to the white house. Well hear what he has to say about President Trump and the future of sports im melissa lee. Youre watching fast money on cnbc, first in business worldwide. Meantime, heres whats coming up on fast. Let me handle this. Calm down, get back to your seat now theres even more drama in the skies as a southwest passenger is dragged off a plane. Will investors punish the stock . Plus the man, the myth, the legend tony robbins may have just discovered the key to the bull market and hell share with us when fast money returns im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at Td Ameritrade. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise President Trump continuing his tirade against the nfl he may soon have a new sports team to target Julia Boorstin has the details in l. A julia . Reporter hey, melissa. President trump continued his attack on the nfl at a manhattan fundraiser last night, saying Roger Goodell should have suspended Colin Kaepernick for a couple of games. He says we cannot let anyone disrespect our country this morning the president tweeted, quote, spoke to jerry jones of the dallas cowboys, jerry is a winner who knows how to get things done players will stand for country so far nfl sponsors are sticking with the league. Under armour, ford, fedex, nike, anheuserbusch and hyundai standing up with the league. President trumps tirades havent just been focused on the nfl but on the nba as well with its preseason starting this saturday the president of course canceled the warriors possible white house visit this past saturday tweeting, going to the white house is considered a great honor for a championship team, Stephen Curry is hesitating, therefore invitation is withdrawn. Lebron james called the president a bum. This of course quite a different feel for the start of this nba season back over to you thank you, Julia Boorstin in los angeles. Peter guber is the owner of the Golden State Warriors. He owned movie studios in the 80s he also owns an esports team, liquid first we have to start off with President Trump, the protests, the disinvitation. How did you hear about that and what was your reaction i think i heard about it like everybody heard about it, on television my reaction is hes the president of the United States, im do what he thinks he wants to do for what he thinks are the reasons. The team and the players will do what they want to do for the team and the reasons and therein lies the difficulty, that different opinions about Different Things i respect my team, i respect my players, i respect my partner joe and rick and the coach, the decisions, and certainly the players. Thats the team im on im with them. Do you respect the president and what he had to tweet and how he handled this whole situation . I respect the office of the president completely there have been many president s that i didnt agree with their policies and their decisions but i always respected the office. I still respect the office the incumbent, the chief in charge, you have to give respect in the sense that they are the person there but that doesnt mean you dont relieve yourself of our obligation to think and be appropriate and be a good citizen and have your own opinion and support your own views and your teams views when theyre appropriate. So as an individual, i do that i exercise my rights as a citizen to have an opinion, to live by that opinion and act by that opinion i respect other peoples opinions as well, although they may differ with me thats the beauty of this country, you can have those opinions safely. Just days after the invitation was cancel