Week look at what happened overnight in asia. The nikkei eking out another gain a gain of 9 points, but thats the 14th day in a row that weve been looking at gains for the nikkei these are the highest levels weve seen in 21 years nikkei closing at 21,457 the hang seng with a gain of 1. 17 . And the shanghai up by 0. 28 the dax is up, the cac in france is up by 0. 21 spain is up, but just barely look at crude oil snapped a fourday winning streak. It is still above 50s a b s a on the wall street agenda just one piece of economic data, september existing home sales out at 10 00 eastern time. Well watch that carefully after getting some week housing numbers lately fed chair janet yellen is the keynote speaker this evening at an event at National Economists club in washington ge, honeywell, Procter Gamble, suntrust reporting results before the open. Later today an exclusive interview with ges chairman and ceo, John Flannery 10 00 a. M. Eastern, squawk on the street. Just to give explain why everyone was laughing, they were trying to put screens over me. I cut myself i cut my ear with a razor. Is it still bleeding i was holding this against my ear, hoping it would stop. Pretending he was talking on the phone. Are you still getting dressed in the dark . Any way, i didnt think it was going to what kind of razor . We have some news let me do the news are you sweeney todd . A big, long straight razor. We will be fine what have you got here . This is a liquid bandaid. We will do watch this. Dont want do this on the airments. Really hurts. Come on, make him squeal. We have stocks to watch well tell you whats going on we have a couple things to do. A big stock mover to tell you about. Shares of skechers are soaring this morning, the shoemaker posting earnings of 59 cents a share. 16 cents above estimates revenue at 1. 09 billion the big beat coming thanks to a 29 increase in the companys international howholesale business i will now put on a liquid bandaid i dont know what i think of a liquid bandaid on my ear. I dont want to do it on the air. Turn his mike off, he will scream andrew, i havent said anything and your ears are bleeding please dont ahh lets go to eamon go for it. Ow ow i told you. I told you i told you that that stings so much i dont think you got it, gail come back. Does it really sting . Really stings does it look okay . Looks fine. What stings more or the Senate Passing this budget for you . Well see late last night the Senate Passing a budget bill that paves the way for tax reform its like a zoo here eamon javers has the latest from washington ill tell you what i thought, for one brief moment, its like clowns is a strong word. Did these guys really did the fear of god actually descend upon some of the republicans in the senate usually fear of good is not collective you have a mccain or guys that got their own things going on. Theres no such thing as a collective fear of god they didnt get all 52. Rand paul did not vote for it you heard people say you guys will all be defeated in 18 if you dont do this. I think theres something to that republicans have not been able to pass the signature bill of the year, repeal and replacement of obamacare, they need this they needed to get tax reform done, if they wanted to do that they had to pass this budget last night the vote was 5149 the sflenate budget leaves room for a 1 1. 5 billion tax cut rand paul defecting from his side, but they were able to hold everyone else. The house budget is deficit neutral. Republicans in the house and senate will have to work this out. Do they want to add to the deficit or keep it deficit neutral. A lot of pressure on the house members to go along here with what the senate did last night that is something to watch Going Forward. The president this morning, very pleased with what hes seeing. He issued a tweet already today. He said great news on the 2018 budget, Senate Majority leader mcconnell First Step Towards delivering massive tax cut for the american people, fax people, taxreform. The president yesterday continuing to go after Insurance Companies. This is something to watch the president has been on a streak of about a week and a half bashing Insurance Companies nearly every day or every other day. This is an appearance alongside the governor of puerto rico. But it was a wideranging question and answer session. The Insurance Companies are extremely good at making money extremely talented at making money. I wanted them to be careful with that we will probably like a very shortterm solution until we hit the block grants it doesnt just kick in the following day. Theres a transition period. If they can do Something Like that, im open to it but i dont wanted it to be at the expense of the people. I want to take care of our people i dont want to take care of our Insurance Companies. Theyve been well taken care of over the last number of years. So the president there continuing his opposition of a bipartisan healthcare deal that had been moving up capitol hill. That deal would have extended the csr payments, payments to subsidize Health Insurance for lowincome people. The president cut that as of last week saying those are a political payoff doesnt want them to continue. Said the Insurance Companies are making plenty of money they dont need this revenue coming in from the government to subsidize those plans. People inside the white house talk about the idea that the Insurance Companies should have to eat those costs well see what the Insurance Company rob by sa lobby in washy about that. The quandary for me, you want private companies to do well, thats their mandate, maximize profits. You love it when stocks go up. We are all watching the dow trade higher but our own Brian Sullivan did some calculations for the big insurers, i mean, in the last four, five years, the gains are outsized they are so theres a difference between maybe just being really good at what you do in the free markets, and then maybe cronyism. Sort of capitalism i dont know brings up that whole debate about excess profit. Normally in the old days i would say youre trying to maximize profits competition keeps you from doing things that are illegal, because pr wise look at wells fargo did that help . Usually it helped the executives its selfcorrecting. Competition comes in if you overcharge here government is involved in the system that change, is that dynamic so, thats why these things become really complicated. They put in all these different measures designed to sort of mimic the effects of the free market, make sure Insurance Companies are not profiting too much by whatever the definition of too much is then it becomes unwealdy and complicated. These things are massive mnuchin the other day, i dont know what he should say. Whenever you talk about markets going up and down, you should be careful. But we went above 23,000 on a huge day, didnt back off much yesterday. And now you got this overnight, were up another 100 theres something to, i think, the market responding positively towards these small incremental moves for tax reform it may be something that the market would like. Heres the question i have for you, joe i dont know this. You guys are the market experts. Does the market bake in already the assumption that tax form is getting done. Not after healthcare. I wonder if thats why stocks are up this morning. I knew okay. When i looked at cnbc. Com, i knew, after i saw the budget passed, i knew they would be up. Looking through the dow components t looks like financials are benefiting more this morning across the board just about every one of the dow components is indicated higher. I heard a lot of people saying tax reform was baked in you hear if it failed, you would see a selloff if it succeeded, it wouldnt go much higher what were seeing doesnt indicate that. It indicates room to the upside. Everybody has a horse in the race nobody is an expert people that have said people that have said the market is up 25 say, yeah, i would attribute that more to domestic things if japan wasnt up, europe wasnt up so, depending on if youre trying to poohpooh it or attribute it everything is political these days tell me about it. I know. Youre in the middle of it. Im in the swamp. You are definitely in the swamp. Watch out for the gators and snakes thank you. Arent there . There are were lucky because we have Vice President dan quaylehere to talk about things no. Youre not im sorry youre not no, no. I looked over quickly and thought, wow jim tooney who is an expert we will talk about the markets and why were seeing the dow up by 100 points this morning after closing in on its sixth straight positive week. Joining us is jim tyrannerney a dave joy jim, why are the futures up . Does it suddenly look like tax reform is more likely . Im of the opinion that tax reform is not fully baked in there has not been much differentiation between u. S. Companies and international companies. Who knows where the number will fall out a whole bunch of companies are pay 36 , 37 tax rates what is the upside and down side potential at this point policy built or not built into the market i think you have 5 , maybe 7 earnings upside. Stock price upside if it doesnt lap, you lose 2 3 trump is tweeting again. The budget passed last night 5149 with zero democrat votes with only rand paul. He will vote for tax cuts. Voting against he spent some time with him trump was out on the golf course with rand paul. Maybe rand paul saying i wont vote for this budget, but i will vote for tax reform david, how much do you think tax reform is baked into this . Is that why were seeing futures higher im of the same camp. I think the upside is 5 the down side, the large part cap of the market is symmetrical with that. If we dont get something done, small caps getting a break down side might be as much as 10 . Thats on the back burner now. I think the upside may be 5 that seems right no, i dont think this was baked in i think the market was saying theres a decent chance it happens. By no means given the state of affairs in washington was it a slam dunk. Its clearly why the market is up today you think this is likely to get done this year. Weve been of the mindset it gets done the First Quarter of next year. Which is fine with us. It doesnt matter as long as something gets done. Its really on the corporate side, not the individual side. One does have to balance out the other. Were of the mindset that First Quarter. Thats okay that holds the market in place, i think, for a while. I think its okay. Jim, talk about the conviction that the American Public has in this rally theres a story in the front page of the journal talking about how Trading Volume has been down. Even though weve seen stocks dontd m continued to march to new highs, Trading Volume is down maybe not everyone is buying into it. Do you take that as a positive or worrying side i think the Retail Investor is buying in if you look at schwabs cash held by clients, it was 13 at yearend, 11. 1 now. The stock flows have not been great when it looks at the Retail Investor. They have been pulling money out of the Stock Mutual Fund if you made some money and you pull a little off the table, net youre still up. Were seeing the retail investo really engaged what would you compare that to what moment in time . Well more than any point over the last seven, eight years but not back to the late 90s. So maybe nothing to be concerned about at this point . I think its a healthy engagement david what do you think i think thats right. Youre getting questions, were getting questions about the longevity of this bull market. From Retail Investors yes and thinking should i be worried about something because this has gone on for so long . What do you tell them . We tell them, no. The fundamentals look good valuations are stretched no question. This is an expensive market. We caution them to be well diversified. Rebalance your positions from time to time we think the recovery is still intact it has a couple more quarters to go what do you think about the earnings season weve seen so far . Well, its early. Its been a bit mixed. Some good and bad. I think the market seems to be Rewarding Companies that have seemed to have executed well youve seen that in names like morgan stanley, ibm surprised a bit. The market liked that. J j so where the results have been good, a little bit surprisingly good, the market rewarded it. I think the market understands the Third Quarter is full of noise because of the hurricanes. So i think this is a stock by stock type quarter not an aggregate earnings type quarter. And i think the market is looking forward and through this to the Fourth Quarter. The market is kind of looking through this but not on a company but company basis. David and jim, thank you for being with us. That would be the first tweet, that had some dot dot dots this is not like the words are not attached to the first one. Its an additional thought with only rand paul voting against is how the last one ended, this now allows for the passage of largescale tax cuts and reform which will be the biggest in the history of our countr country. Coming up, when we return, the dodgers are headed to the world series for the first time in nearly 30 years highlights next, and a video game is going viral based on a China Party Congress well explain what were talking about after the break. Welcome back chinas 19th Party Congress is underway in beijing. A new video game is going viral. The two things are related tech giant tencent has a game called excellent speech, clap for xi jinping this is a mobile game that asks users to clap for the chinese leader by tapping on their screen as many times as they can in the span of 19 seconds. You tap it really fast users first played a short snippet of xis speech to the Party Congress before theyre allowed to show appreciation by clapping then you try to get the record about 24 hours after the chinese leaders speech the game had been played more than 400 million times. As of yesterday users logged on more than a billion claps. This is telling. We were talking about how xi jinping is poised to become the most powerful leader, most long lasting leader we need a squawk box app. I thought you were going to say that would be embarrassing. Can you imagine if there was Something Like that for trump . Zero claps was al smith last night . Its usually november i saw something that paul ryan was pretty i you know, you never know when you look at news a lot of fake news. Looked like he made a good joke he got a lot of applause he said applause like this, this is like when President Trump walks into a Cabinet Meeting pretty good pretty good you told it. Im not saying the applause is not warranted no. The speaking of applause, new york, l. A. Could happen. Probably will happen. Two chances tonight i got plans tonight to watch its been a while since i was excited about baseball the dodgers won the National League pennant last night. 111 they did so in hollywood fashion against the cubs cubs did it recently but they making closing that taco bell. The hero was Enrique Hernandez who hit a threerun home run, propelling l. A. To an 111 rout of chicago taco bells busy after that maybe some of the bars, too hernandez was the first doernlg ever to h dodger ever to hit three home runs in the postseason, and the first to do so in a League Championship series. The dodgers head to the world series for the First Time Since 1988 they will face either the yankees or astros. Astros would have to come back two games. Doing it at home. I didnt check, should be time for verlander back tonight. You remember how he pitched last time unhittable right i dont know. I can watch tonight. Two of the yankees games this week were at 5 00. Thats for us. Watch with your dinner. We did. We did, too did you it lasted until 00. I didnt see the ninth inning either time. You didnt have to. No. You didnt watch the first inning of the first i did bottom of the eighth is when everything happened. Some venture capitalists are blaming cash infusions from places like startup to for allowing ipos not to go public barry diller said theres no reason to go cpublic unless you need capital ceos talking about the headaches youre dealing with, quarterly conference calls, investors who want changes right now when you try to make a longterm play you never had liquid bandage before no. How is it going . It works. Still trying to figure out how it happened. I was trying to get the what do you call that . You dont have one of those weapons that people no. Side burn, thank you very much i nicked like that okay. You have an electric razor. I do. But that was not that. I i oscillate it is more of a pinch all right coming up, General Electric, interested in this do they throw is it a kitchen sink quarter maybe. It will be interesting to see ere numbs. Well bring you the numbers and the instant reaction when we return throughout my career, ive been fortunate enough to travel to many interesting places. Ive always wanted to create those experiences for others. With my advisors help along the way, its finally my turn to be the host. When you have the right Financial Advisor, life can be brilliant. Ameriprise looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better pa