The nikkei closed up by a half percentage point stocks were mixed in china hang seng down by 2 if you look at whats happening in europe and the early trading, things are mixed there stocks down in london with the ftse down by 0. 6 . Stocks up across the board in the other countries. The dax in germany up by 0. 9 . A gain of a half percentage point in france. Crude prices, wti around 57. 50. We are up another 55. Yeah, market was up 255 yesterday. Think if the market was down 255. Think of what we would do with 160 point observe a down day or 190 as far as the sentiment in this market right now, if the market were to go down we take it in stride when we hit new records. Yeah, the market is going up. Maybe its powell or tax reform. Thats 300 points this morning, if we went down 300, you would be every newspaper, they would have picture traders going stock shot. Stock shot. Is that what they call those . Stock shot. Stock photos. Not about stocks. No. About something that you got on file that was not taken yesterday. It was taken yesterday. The same guy who just always puts his hand over his head. Maybe ive seen on twit their theres a whole bunch of, like, little what with those things gifis maybe thats what they are. People use those to show surprise or satisfaction is there a stock guy looking we should have a set of squawk gifis we could have had a couple of gifis last night we had a celebration of our new set with all the important people people that have been around squawk. Guests phil has been on for a while. Orlando. You stayed here. I went home you did i left around 8 00. Theres a the coright here. 20 years, right 20 years on this show tom lee paulson. Well speak for him well talk more about that. I just think thats representative of the sentiment in the market, which means it keeps going. Were taking it in stride 255, but if it was down, 255, its over. It is. Wow. Oh, my god we will see well have more on the markets in a moment. First were following a developing story out of korea the norths test launch of a new Intercontinental Ballistic Missile that it says is capable of hitting washington, d. C President Trump condemning the launch yesterday afternoon a missile was launched a little while ago from north korea. I will only tell you that we will take care of it we have general mattis in the room with us we had a long discussion on it it is a situation that we will handle the launch came a week after President Trump put north korea back on a u. S. List of countries that it says supports terrorism, which opens the door for more sanctions. Then you have to think about how this will this situation man fest itse manifest itself in the market . It did yesterday. It was up, then down 80, then the senate got on board that makes no sense is there a moment at which this takes hold of the psyche of the market the 255 was after this missile supposedly went ten times higher than any of the other ones, which puts the entire mainland, supposedly, within range this is also ironic. That was years ago, there was a cartoon, the market sold off after an asteroid was headed for the earth, but rallied in the afternoon after the money supply was down you get a missile launch, you go down, but we get corporate taxes a little lower, and the market goes from right its just i dont think at this point the mutually assured destruction, no one thinks that this is something he would do. It would be the end of his life and regime and everything else, right . You have to believe everybody is a rational actor. I know. When you say that, youre not talking about the guy in north korea, right youre more worried about thank you for playing eluding to some other character that may not be rational, right . Theres a lot of irrational characters in the world. Here are the big stories today. Bitcoin surging past 10,000 two days after it hit 9,000, nine days after it hit 8,000. Thats going up too fast is it hyperbolic what is it its one of those. One is a fraction of, the other is the right word. Almost 11,000 hyperbolic maybe . Someone in twitter will write in up 1,000 since the start of the year the rise has been a little bit. The rise has been a global phenomenon, more than 60 of the Trading Volume is denominated in yen. Thats weird 20 in u. S. Dollars. In washington, the u. S. Direct court denied a temporary restraining order that would have prevented President Trump from naming an interim director of the cfpb. As a result omb director Mick Mulvaney will lead the agency now until a permanent director is named hole eman jenkins said the first time in 243 years, an attempted coup in the United States that was thwarted you like him i like him. Dont smirk at me holman is one of the great thinkers of our time you dont have to agree with everything, but he makes you think. Thats what a great columnist does, he makes you think okay. On todays wall street agenda the second estimate on q3 gdp is out at 8 30 a. M. Eastern thats followed by pending home sales at 10 00, and the beige book at 2 00 janet yellen is testifying before the Senate Joint Economic committee at 10 00 a. M. , well hear from new york fed president bill dudley and San Francisco fed president John Williams today. Tiffany reports Quarterly Results before the opening bell. After the close, well hear from workday and box. At t pleading its case in that fight against the Justice Department its trying to avoid the lawsuit blocking its more than 85 billion deal with time warner. In a joint court filing, the Companies Said they operate in highly competitive markets that will remain competitive after the deal they cited rapidly growing digital competitors like netflix, apple, google, facebook saying americans have changed the way they watch television rapidly. They pointed out how much money is being poured into developing content. At ts General Council saying we offered the department of justice a variety of solutions, and we believe any divestiture of assets is not required under the law. Ill sit down with Randall Stevenson today, thats happening at noon. Well take some of his comments live during that conversation. The most interesting piece which i had not appreciated in that filing yesterday was that they effectively already agreed to the equivalent of a Consent Decree for the turner stations in terms of carriage fees. They basically agreed to what comcast agreed to with the sevenyear arbitration or something . Seven years of lock on price, arbitration, all of this so that basically for the next seven years you cant begin to make the argument they could use they had market power. When did they lose you . You thought it was vertical. You thought it was fine. They didnt get to me you think its okay they get together i think its fine they get together i think the judge in this case is not necessarily going to be helpful. What is he thinking is that based on thats based on the fact that the judge, from what i understand, relatively unhappy with the comcast nbc transaction. He must not be in an area that gets xfinity. He doesnt have the cable i have my understanding is that he may give this a tough time and the other piece of it that has never been tested over the last 40 years, while vertical deals have been approved, the largest ones have always come with some kind of behavioral remedy and typically when you go to the judge, theres the prosecutor the government agreed to a deal theres been no judge recently that has had to approve a deal cleanly. Meaning, without any its an its a thumbs up thumbs down situation its not you come to the judge and say lets make a deal now. The Supreme Court has ajude adjudicated a merger they did have behavioral remedies they put in they are stuck in the media world of 1972. Thats what gets me. Directv will be lucky to survive. With all these new players and facebook, google, these two guys, you should hope they pool their resources. It reminds me of worry being sirius xm, that merger with spotify, pandora, my iphone, i just stick in the stupid the bluetooth thing, i have all the music i wanted how is sirius and xm going to monopolize the music the other thing about the filing, how they had to some degree undermine the Strategic Value of the vance action in the legal eyes at t did. At t did. This really sucks what were doing. They didnt say it was a terrible deal. Not selling it the same way you would sell it to wall street were not that competitive. Merger doesnt make sense were paying a lot but thats funny that sell it differently than you sell it to a wall street analyst or investors well hear more about this today. Well talk to Randall Stevenson later today as well. A full senate vote on the tax bill could happen as soon as tomorrow ylan mui has more on that story. Some key republican holdouts appear to be getting closer to yes. Senator ron onson said johnson assurances that Small Businesses will get benefits. So whether its full think fixed in this bill or in conference, ive been given assurances the recognition, everybody says this is a problem, that helps me support this measure senator bob corker is another one who has been on the fence. He put out a statement saying hes reached an agreement in principle on a trigger for tax hikes if nick groweconomic grows not materialize. And Susan Collins of maine is reportedly working on a proposal that would allow a 10,000 deduction for property taxes in the senate bill. Thats the same limit that was adopted in the house so, senators are expected to vote today to officially begin debate on this bill with hopes of final passage by the end of the week President Trump heads back to missouri today to make his pitch outside the beltway. Hell focus on the benefits for Small Businesses and treasury secretary Steven Mnuchin will be traveling with him one person not there, claire mccaskill. Several red state democrats at the white house tried to get on board with this tax reform plan and say they still have serious concerns with the bill right now republicans are focused on making sure there is enough support within their own party to pass this bill. Mitch mcconnell compared it to a rubiks cube, but he appears to be getting closer to solving it. Thank you very much lets talk markets joining us now, Michael Tyler from Eastern Bank Wealth Management and on the set, phil orlando from federated investors. Hanging out with us last night can we just talk about the north korea piece for a half second. Sure. It seemed to be a blip on the radar of the market. Is that right . Is that the right way to think about this we do our view is somewhat similar to joes. We think this whole north korea thing has been an elaborate kabuki dance north koreas military people have got to explain to them that theres no winner here theres no positive to the end game so you rattle your sabres a bit. We think theyre trying to extract economic concessions from the west. And thats the end game. And things have been quiet over the past couple of months so this was an opportunity to bring us back into the spotlight if youre north korea, and try to resurrect that the focus has been on other things we dont think this ends up as a Nuclear Holocaust which is why the market has sort of ignored this taxes you got your tickets yet . To south korea . Going to the olympics andrew working on his wardrobe youre not that concerned about whats happening 50 miles from im a little concerned. I am concerned though were all within range supposedly i dont know if it matters if its south korea or i shouldnt well, i will knock on the glass or the wood im less concerned in a way, if you talk about the irrational actor and given all of the people who will be there at that particular time, it seems less rational but maybe i could make a flip argument talking about trump, the irrational actor also that other guy in north korea, he could be irrational, too. You said it i didnt say these things. Im looking at you. I dont know who youre referring to lets go back to the markets in terms of upside down side at this point in the ball game. Were excited we thought we would have a 60 , 70 chance this would get done those odds go up based on whats happening this week. And the important thing is this increases our target price in the market corporate earnings last year, 118, 130 this on fundamentals, we were estimating 140 next year, 150 in 19. Thats how we got our 3,000 target on the s p. If this tax plan goes through, we have to add 10 to earnings that will move our 3,000 forecast into the end of next year thats what the market is focusing on. Corporate tax reform will create better leverage and move shares higher michael, you in agreement essentially, yeah i wouldnt agree on necessarily the specific market target that might be a bit aggressive the markets are already pricing in some tax reform, or probability of tax reform. That has gone up so at this point, yeah, 70 , 80 likelihood we will get a bill coming out the senate is getting closer to the house bill once they go to committee, they will have so much positive momentum it will be hard for one senator to step in and say im out and kill it. I think the markets are probably recognizing that you will see some tax reform, and that will help raise earnings to some degree 10 a share may be pushing it. Just so i understand, in terms of the is there a downside scenario at this point for you . Yeah. There are a few things that i would worry about. One is the possibility that we dont get tax reform that will show once again how dysfunctional washington is and cast appall on a lot of what expects are for next year. If we see Consumer Confidence paling for any reason, that could be a problem i dont see that coming. Thats the least of our concerns now. The consumer is doing fine valuations are not the problem if there is a problem, its going to be whether people believe Earnings Growth can continue or whether Interest Rates will start to be a problem. You know, the contrarian bet here is that the ecb decides to stop its qe program a bit ahead of schedule or tail it off ahead of schedule, in which case you could see long bonds beginning to show higher yields. If so, you have problems in the stock market as well thats the contrarian trade. Im not saying that will happen. It probably wont. Final word to phil orlando. Theres an issue that we have to watch that special election in alabama on december 12th. We would like this wrapped up before the republicans potentially lose that seat thank you for coming in michael, great to see you. You bet coming up, nat republic sh,e republicans advancing their tax plan out of committee. A full vote could come this week axios executive editor mike allen will join us on set next from squawk square to talk politics and a new axios oped from snapchat Ceo Evan Spiegel is this a phone . Or a little internet machine . [ phone rings ] it makes you wonder. Shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And ask how to get a 200 prepaid card when you buy any new samsung device with Xfinity Mobile. A new kind of network designed to save you money. Click, call or visit today. Major tax reform hurdle cleared. The bill passing the Senate Budget committee, a full vote could come this week joining us is mike allen, executive editor from axios. Almost the liz smith or the late great liz smith you know everything about all the stuff happening. Well talk about tax reform. Lets talk about what you broke this morning, that is that some insight that no one has into this book coming out about trump by people that know him well yes so theres been a lot of trump outsiders that have done and are doing books. Some of them pretty good the first real insider book, this is let trump be trump so the title gives it away their dedication to the president and first lady gives it away. This is by corey lewandowski, the Campaign Manager who was there from day one, and dave bosse that ran the campaign in the fall the two of them did this book together in secret most people in the white house didnt even know they were working on it. The dedication, thank you to the president , the first lady, and the whole trump family for making America Great again that gives you an idea this is about homers, moonies, people who are agreeing with a lot of whats going on either that or gambling that the president wont pass the rededication can we glean anything about trump himself, the man himself that throws a wrench into what we see from his enemies in terms of that he might be demented or deranged or challenged irrational. Irrational. Are there anecdotes to show this guy to be human, compassionate that we should believe what we do see is the president s habit. We see he treats people as comfort food he just has a couple people, close people that he can sympathize with and see the world through his eyes like the smart people in the west wing have figured out how to do that not just family not just ivanka. The treasury secretary, steve mnuchin. Comfort food each morning. No hespeople he can tell stories to someone that has sort of lived the most recent years of his life, they can have that shared experience you see in the book that a dinner on the campaign trail, he liked to have the kids, as he called hope and cory sit down with them. He would tell stories about what do you think donald trump told stories about at dinner with the kids donald trump golf. Donald trump. He told stories about himself. His life a fun twist here we see the president , the one person who really takes a beating is paul manafort, who started as a delegate strategist, became the campaign chairman, now under indictment but we have a moment where the president , april