The dax in germany up by. 2. The cac in france is up by a quarter percentage point the ftse is flat crude oil ended down by about 19 cents for the week last week this morning its down another 17 cents to 56. 38. A couple big stories were watching geopolitics. Germans chancellor Angela Merkel said efforts to form a Coalition Government has failed. Merkel has been working for more than a month to work with the, quote, free democrats and the greens after losing ground to a far right party in the september election if a coalition cannot be formed merkel could form a minority government or call for a new election youre looking at the euro down. Big questions about whats going to happen in that country. Also, in Corporate News, Marvell Technology is reportedly nearing a deal to buy chip maker cavium for 6 billion. Its going to create a bigger competitor for chip makers like intel and broadcom it would be comprised of 50 cash and 50 stock valuing cavium at 80 per share. Possible deal was first reported in early november. Talking about chips, qualecomm moving one little step closer to completing the 30 billion deal. Reuters said its going to win approval from japan. It will get the green light from regulators before the end of the year buying nxp could help qualcomm fend off the hostile 1. 3 billion deal from broadcom some stocks to watch today alibaba investing 2. 9 billion in chinas top grocer Sun Art Retail Group is the name the deal gives alibaba more than a 36 steake making them the second largest shareholder they have Stores Across china. Obviously the comparisons are sim nl to make simple to make here isnt that like a whole foods or something . Right. Shares of toshiba fell nearly 6 the Company Announcing its going to raise 5. 4 billion. The sale amounts to half the companys current market value boost toshibas assets back above its liabilities. Help it avoid being delisted in japan. Boeing has secured an order for 75 737 max jets from avalon with an option for 20 more. The deal could be worth more than up to 11 billion list price avalon is an aircraft leased in dublin owned by china. Back here in the United States, a showdown over tax Reform Administration officials speaking out on the sunday shows. Eamon javers showing us more of a roundup. Omb director mic mulvaney was on meet the press. He said a number of things about tax reform, including admitting that the administration is not really happy here that some of these provisions are going to have to sunset over the period of ten years that he said is due to the byzantine senate rules heres what he said yesterday. Were using reconciliation so we only need 50 votes in the senate instead of 60 in order to do that certain proposals can have certain Economic Impact. One of the ways to gain the system are the bush tax cuts what we tell folks is this if its good policy, it will become permanent if its bad policy, it will become temporary thats just the way it is. This is done more to force the shoehorn the bill into the rules because we think its good policy. Mick mulvaney said the administration is not necessarily opposedto the idea of removing the Obamacare Mandate repeal from this bill when they all when all is said and done in the negotiations between the house and the senate here. Speaking of Mick Mulvaney, we are still expecting him to be named at some point to run the cfpb, the Consumer Financial protection bureau, at least on a temporary basis while he still holds the omb job. That announcement not fully baked yet. Were waiting to see whether that will be announced all of that setting up a battle in the senate over the tax cuts. The president seems to know something that the rest of us dont know yesterday in a tweet, take a look at this, attacking senator jeff flake, a republican of arizona. Republican jeff flake who is unelectable was caught purposefully on mike saying bad things about your favorite president. Hell be a no on tax cuts because his political career anyway is toast. So the question is does the president know that jeff flake will be a no he hasnt said that necessarily publicly, but does the president know something about the way flake is going to vote if he does and if flake is a no, that makes passage in the senate just that much more complicated because you remember they can only lose two votes in the senate north in order to pass i. Although a lot of the language, murkowski has said gang of six. Has some issues shes not going to necessarily vote against it. Susan collins wants to see them raise the corporate rate from 22 to 20 so you can keep in some of the state and local deductions its complicated to win some of those people back in i think well see. Gang of 6 gang of 6, eamon we know who they are i saw the rogues gallery. This is why its fun to be a United States senator. Your vote is really powerful. Yes. They enjoy playing footsy with playing a no vote a lot of this is posturing and negotiating tactic traditionally senators will do this and kind of stall and hold out, hold out. You never want to be the first to commit. If youre the last to commit you have a lot more sway the question though is how many of these senators are dealing with fundamental oppositions. Johnson i think is a high lift he wants to get to yes but what johnson wants is a high lift are you going to bring down the pass throughs to 20 are you going to bring up other Corporate Taxes so theres no that inequity between the two . Right thats something he said is core to him they say they are willing to negotiate with johnson they say ultimately they can bring him on board you cant bring down pass throughs without it really jacking up the price of what this is going to cost. You cant do that within the senate reconciliation. It seems like a fix to raise the Corporate Taxes which is what Susan Collins want then you run up against another nonnegotiable, right the president has said hes not going to sign it i think he would pass anything they put on his desk if they give him 22 . I think youre right. Hes also posturing. Everybody is doing a lot of posturing ahead of this. He has said 20 is his absolute limit. He wanted 15 . Hes going to settle with 20 because of the way the math works out. Would he go higher did the senate and house reconcile, pass a bill thats higher than 20 . My guess is the same as yours, becky. He would he doesnt want to admit that. Whats the math if you go down you hate the pass through thing. I dont like the pass through. I know youre youre the opposite of ron johnson but youre going to argue from both sides. No, im not im suggesting if you lower the pass through down to 20, you have to it would cost 700 billion to do that. Right thats not even 23 . Maybe it would cost you 700 to 900 billion. You have to get to 24, 25 . Thats where youve wanted to be all along. 28. To make up for it. Im much more i would like to im much more worried about her, andrew flake. Even corker. Flake has no reasons yeah. Im not worried about johnson. I dont even know about murkowski. What are they doing, building a big bridge. Eamon, alaska, there is very specific stuff in the senate bill for alaska. I dont remember the specifics on that. Something about oil revenue. If you raise the comp rate revenue to a certain point, at some point the average company, theyre paying an effective rate much lower than the real tax rate at some point do you get the average effective rate the companies are paying anyway and youre not really effectively lower . Probably not at 22 . No. At some point it ticks over. I would say to me, 23 if you can get to 23 after that then you get into 23, 24, then it makes a lot of sense above 23 or 24 . Well then you get into the issue that youre talking about. Youre going to be paying 55. Then youre not moving the needle at all. New york and new jersey and Everything Else. 56, 55. Soak the rich. It is thats why i love it this is big tax give away for the rich big tax break for the ultra ultra rich. I cant wait for that. I cant give somebody more than 14,000 a year and not pay taxes on it. Let your heirs pay the Capital Gains appreciation is the way you can do it. I dont that would make sense. My heirs are on their own, joe. They have to fend for themselves they get nothing. Pay my debts. They get nothing. Exactly. Yeah. Whats his name in caddyshack. Spaulding. Thank you. We should note it may be a holiday shortened week not really shortened, it has a little space in the middle but theres still plenty of data on the wall street agenda. Tomorrow look at home sales. Durable goods, Consumer Sentiment and the minutes from last months fed meeting markets closed of course on thanksgiving and are only open for a half day on friday but that wont keep us away. We will be here on friday talking about it. Speak for yourself. Yeah, the two of us will be here. Becky and i will be here. Speak for yourself. Sell celebrating thanksgiving loyal viewers with us who wake up because they want toknow. Because youre going to be able to mail it in nothing is going on. You mail it in. Those days are hard. You dont blow a vacation day. I like being off. Its a good day to be home. Day with your family. I dont like thursday during thanksgiving just having to go to bed at 8 or 8 30. Oh, my gosh, you have to get up the next day exactly im happy. For me, the tryptophan from the turkey kicks in early and i go straight to bed. At 6 00. Exactly tofu turkey has tryptophan . Youre not really killing a living thing and eating it, are you, on are you doing that . Youre having honestly . How do you think who do you think the sorkin i thought it was a molded comes out of a mold of tofu turkey. Do you think everyone on the island of manhattan not everyone. Not everyone . Just you is this me . No, its me now its me. We skipped over some other things we skipped over you. Kale. Tofu turkey. There are a Dozen Companies. Watermelon juice. Reporting earnings this week. Watermelon juice is good notable names including lowes, campbells soup, h. P. Ink and hewlettpackard. Back to tofu turkey. Yuck. Like the mcribs. Chicken nuggets. Its like pig in a blender and then you put it in the get back the snout, everything. I wont say what i want to snout, tail, hooves makes mcdonalds almost as bad as i was talking about ronald and the scary clown. We love mcdonalds you cant be mad lets get back to the broader markets, joining us ed campbell, qma. John stolfus we need to buy a vowel thats a lot of consonants chief investment strategist at oppenheimer. Ed, youre pretty happy. Youre pretty you think things are okay. Youve got more concerns youve got more concerns youre worried maybe that this earnings run might be over now there might be a little consolidation . You know what else hes worried about . As much as you know about powell, whenever theres a new guy, the market doesnt know everything so theres a period of trepidation. Im not ebulient. Im going to check that out i dont know what the hell yo youre saying. Its thanksgiving. Pecul peculiar way of saying. Weve just about completed earnings season for q3 we still hold our target of 26. 50 for the end of the year. We think we have a chance to reach it we dont see in the market, we think this is very positive, animal spirits we dont see any irrational exuberance we dont see any worry people are hesitating. We were meeting with private investors in west hampton and evan sto evanston, illinois and scottsdale and denver. No one was just so positive on what was happening everybody wanted to ask me is there an expiredate on this bull market its all about revenues and earnings and the economy its fundamentals that are driving this the political side show will have an effect if we do get a tax reform and we wind up paying more taxes instead of less taxes. Youre wondering about tax reform im concerned about it. Would you say 50 likelihood, 80 . The number that ive seen that ive come closest to agree with and im concerned about that is even a 55 chance of it passing close to the way it looks. Im sort of youre not as concerned of it passing as much as concerned about whats in it im concerned about whats in it and i think were more than likely to get some kind of a tax cut ahead of a year that really is next year weve got interim or midterm elections and politicians both sides of the aisle have been told by their constituencies dont just stand there, do something. So some kind of a tax cut. Perhaps something particularly for corporations and much more modest and fair than what this looks like coming in may come out of it. Not until the first quarter. I think the points you all were making initially theres groups of people who will be taxed at much higher levels than currently who are already being taxed out. And then on top of it you have what i keep hearing is that people who are making a little more than 59,000 a year are likely to wind up paying more taxes. It tankered out in the senate bill because so many sunset. Once you get them rolling out. Plus, its costly in terms of the deficits its once again my question is and i think it will be by the constituencies who are these guys and whats the reality marker ed, you feel better than that one of the websites has a story about goldman. If you think 2017 was great wait until you see 2018 rip roaring economy. Good stock market. If you go back to some of the things that john said, too, i mean, investors are still skeptical, you know, i see that more as a positive than a negative. Yes. If we go back to, you know, John Templetons famous quote, bull markets are born in pessimism, grow on skepticism, die in euphoria, you know, i think were in the optimism stage. I still think this bull market still has at least a couple of years left when i look around i see strong Economic Growth, right weve gotten a couple of quarters of 3 plus if you look at gdp now for q4. Thats currently tracking at 3. 4 if we look at the composition of total return that we had for 2017, most of it has been driven by Earnings Growth were going to get 12 to 13 Earnings Growth for 2017 just a little bit in terms of multiple expansion i think the multiple has been remarkably stable so far this year i think for 2018 were looking for something similar, you know, another year of maybe low to double digit earnings low double digit total returns i should say im not totally disagreeing, but time will tell whats with the apple watch . Keep the apple watch whats with the apple watch . Its new. Whats with the apple watch whats with it im wearing it today. I see that. Thats why im asking you eight times. My wife my wife and henry and max and sydney gave me this as a present christmas recently. Early present. What kind of present . See, this is the watch. You can see whats going on. 6 18, 37 degrees i just got a tweet on it right now. You can see the tweet. Thats horrific you get tweets youre alerted to tweets. Alerted to tweets. Can you block them like dick tracy blocked this jerk . You could i actually dont know about that. So youre wearing the apple watch . Im wearing it. You dont think ill notice it. I got it a week and a half ago. I was five months pregnant sitting next to you, months and months six months pregnant before i knew but i was afraid to say it. You never know you never know. Wise man. Its better to wait until the baby is already delivered. Ive done that, too. Thats bad, too no, i already had the thats not good. I think youd like this really. What was the occasion for the gift it was a surprise it was in that realm during that whole week of lots of work. Wanted to be nice. Cheer me up. Thats nice. Do you like it or no . Im digging it. Tim, im liking it. Did it tell you to that youve got to stand up. It tells you to stand up. It even has a thing called breathe which ive been doing. It reminds you to breathe. Good thing you remember. No, its an app. Chew gum. One minute Meditation App doesnt have that great activity and great Activity Tracker tells you your heart rate and all of that stuff. Good. Im an early fan. Ill tell you after a while. Okay. I havent figured out all the things to do weve got to go. When we come back, a controversial provision in the tax bill could eliminate big tax savings for individual investors. We have details straight ahead later well talk to kevin hassle, chairman of president obamas council of economic advisors is he president again i think we should do that meeting tomorrow. Well wait. What did you think about her . Its definitely a new idea, but theres no business track record. Well, have you seen her work . No. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading companies see it and see it throughwith digital. Senate tax plan has a definite plan theres a change thats going to be happening to individual investors to prevent them from minimizing taxes when they sell stocks its going to be this fifo, first in first out i think its lifo. First in first out so the shares that you hold, if you decide to sell some stock and holding youve been building over many years, you would have to sell the very first ones that went in that you probably have the largest gains on. The reason is that they want you to have to pay taxes on it. They want you to what they really want to do is make sure youre not going short term trading and think they have losses to offset gains last in first out, the stuff you just bought is going to not have appreciated as much and maybe even be down but theyre letting mutual funds do it. Theyre not hurting do you have a strong feeling . My eyes glazed over. I think this is a huge issue. If youve been building a stake over years and years like comcast and ge. Let mutual funds do the average price. So complicated by the way, if youre a betterment or one of these one of these robo advisers who are always trying to do all of these tax losses. No reason for you to exist anymore. You cant do it but also a lot of times with Charity People give the lifo stock to charity and they want to do it that way so they can take a right look, i just started thinkin