29,297 the close on the dow. Economists are blaming big slowdown on trade pressure and tariffs, what do you say, john . There you go, this is as expected, china was much more vulnerable to imposition of trade war and u. S. Economy, china has a very strong incentive as ambitious as it might be. Dagen one thing i will point out that we have a record in the stock market here in the United States, in the meantime the democrats are trying to remove President Trump from office, we will get to that in a second but there are good numbers coming out of china, the index jump today highest level since 2015, this is probably a better leading indicater than Economic Growth, the wall street journal writes also about this, the price of copper is up more than 7 in the past 2 months, again, industrial metal used around the globe, another bellwether for Global Health and surveys of purchasing managers in the euro zone have shown continued weakness, new export orders have been going up, the market is telling you something about a Global Economy rebound. Maria shipping is incredible by important indicater and so is copper, i totally agree. Thats reduction in trade risk, thats what youre seeing. Maria exactly. The market is moving and we are seeing shipping across the world, indicater of whats happening across the world. Yeah, i think another interesting indicater, you have been reporting on Bank Earnings and you see on jpmorgan results and citigroup and others, the Business Customer getting more optimistic, doing more investment tale deal making and if we are hoping for return to capital expenditures, businesses making investments in new plan and equipment, i think the table is set for that now with the deal concluded. Maria i like to look at message of the market. Anything can happen in the next couple of weeks in the senate trial but, of course, we will see about that go ahead, john. This is similar to clintons impeachment where the equity market took off and went through the roof. Maria yeah. Dagen clinton wasnt up for reelection. You cannot emphasize this enough, income inequality is shrinking in the country, you have seen reversal where ranking file workers are seeing greatest gain, this is reversal of what happened under president obama, astonishing, steve forbes talked about this yesterday, theres been a skyrocketing number of latino businesses being formed, you have Income Growth in every metropolitan area in the country, we havent had that since early 90s. Maria chief Justice John Roberts swearing members of the senate marking beginning of impeachment trial of President Trump. I attend the senate in conformity with your notice for the purpose of joining with you for the trial of the president of the United States. Do you solemnly swear that in all thing appertaining to the trail of the impeachment of donald, john trump, president of the United States, now pending you will do impartial justice according to constitution and laws so help you god . Maria the Government Accountability office determined that the Trump Administration violated the law when it withheld aid to ukraine and the white house slammed those findings. Dagen james, the hang ringing, said it was illegal. The funds eventually released. This is literally something that the left was hanging all of their shapoes on. Yeah, ive heard those reports this morning calling gao independent, it is not independent, group that work for the congress, works for legislators, in this case democratic Chris Van Holland in the senate asked them to opine, essentially asked them to agree with him. Ive also heard that this is a nonpartisan organization, just for the record, the employees union at gao is ifpte in 2016 election cycle they gave 100 of their donations, this is their pac to democrats. [laughter] maria 100 . Theres also the point that this is not a ruling from a court, this is an opinion from some staff who worked for members of congress and i think as the white house has pointed out, its pretty hard to make the case theres a legal violation when the deadline was september 30th and the funds got released september 12th. Dagen let me point something out, if this new information, credible witness, question mark, whether its this Government Accountability office report, this goes to the issue of nancy pelosi and co rushed the impeachment process. So if you rather than waiting and continuing to investigate, subpoena john brake lighton, push it through the impeachment process. Now the senators in house brief are due tomorrow, potus briefed by monday, commences on tuesday, where we are now is the senate is in control, the Senate Control by the republicans and they can do what they want and theres a big move to just look at testified thats presented to them to have fake articles of impeachment and the second standing up to power of his office, thats whats happening, its proof to American People that its purely political and the democrats rushed it. Maria i think americans see through it and thats why we see the markets performing, people understand that this is a lot of politics, a new member of the trillion dollar club; little larger, Google Parent Company alphabet becoming the Fourth Company to surpass 1 trillion in market value, joining apple, amazon, microsoft. Something that would not be happening if you expected that we were going to see taxes go higher, regulation become tighter and trade deals reversed. That is the trifecta of income policy that the president instituted and has fueled markets. But i think its also a warning for this president and and other leaders that given the value of these companies, these efforts to go after big tech whether in the u. S. Or we see it in europe on the tax side, we see it in lots of countries in the privacy side this is going to have a big market cost if the world, the worlds governments died to go after the companies. Maria what about censoring conservative conversation . Kudos to facebook for standing up to the crowd saying you need to start preventing banning editing political advertise and what people may want as well. Dagen this trillion dollar on google puts a target on their back, they will get hammered over and over again by Elizabeth Warren and Bernie Sanders assuming theyre not fighting with one another. Maria yeah. One thing to remember 1 trillion is about 5 of u. S. Gdp, two trillion Dollar Companies is 10 of gdp. Maria House Speaker slamming social media giant for what he says is misleading the American People, one veteranowned Company Making flipflops and other footwear from men and women, we have the story there. Historic auction, John F Kennedys belongs on the block, wait till you see that, we will slip in a short break, white house strategist steve bannon is here talking all things impeachment to 2020 and justice investigation, yes, they are looking at jim comey, we have that information. Dont miss that another manager loses job over scandal, history is made for one team with a female coach. Back in a minute. Apps are used everywhere. Except work. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com maria welcome back, new developments, Lauren Simonetti in headlines, lauren. Lauren despite earlier claims that there were no casualties, iran ayatollah said in weekly sermon that it had divine support in delivering, quote, slap in the face to the United States, the sermon came to downing of ukrainian airplane that killed 176 people on board, microsoft is taking on climate change, looking to trap all Carbon Dioxide ever sent in the atmosphere by the year 2050, all part of microsofts goal becoming negative by 2030, microsoft plans to invest to support companys developing technology to remove or reduce Carbon Dioxide, the new york mets part ways with new manager Carlos Beltran months before the kickoff to 2020 season, all of this coming in the wake of the mlb signstealing scandals, beltran was named in the report in the Houston Astros but not disciplined by the mlb, mets hired him 3 months ago, he didnt get to manage a single pay, the mets will not pay 3 milliondollar salary, San Francisco giants making history, get it, after hiring mlbs first female fulltime coach, there she is, first joined the team as an intern back in 2014, she played softball in college in sacramento state, no word yet if she will be one of the 7 coaches, the team has 13 but only 7 to dress in uniform for game, big achievement for females in mlb. Maria lauren, thank you. Dagen beltran . Oh, i dont know, im not a big baseball guy. Theres no such thing as bad publicity, get young people to join baseball again, i dont know, im not a dagen steve forbes, brian kilmeade, they think its a cheating scandal that will damage baseball and put asterisk next to astros world championship. The degree they benefited from cheating, alex was the manager, came from houston with the same technique, techniques to perhaps help his team, you ask yourself the money these guys are getting paid, i think one guy signed a contract for one year for 27 million, he was the mvp in 2018, the numbers inflated. Maria big numbers, decide to call split with old navy, more on that, the stock is up 5 and a quarter percent this morning on the news, then singer selected, demi lovato super bowl gig making buzz this morning right after the break. Truecar knows exactly how much people have been paying for the car i want. I tell truecar my zip and what car im into, and it shows me the truecar curve. This shows the range of prices people in my area actually paid for the same car. Looks like these folks paid a little more than everyone else. And this guy got the deal of a lifetime. This is how car buying was always meant to be. This is truecar. narrator before you buy a car, see what others paid for it with truecar. Oh no, here comes gthe neighbor probably to brag about how amazing his Xfinity Customer Service is. Im mike, im so busy. Good thing xfinity has twohour appointment windows. They have night and weekend appointments too. Hes here. Bill . Karolyn . Nope no, just a couple of rocks. Download the my account app to manage your appointments making todays Xfinity Customer Service simple, easy, awesome. Ill pass. Maria welcome back, markets breaking records again, check out futures this morning, gain of 80 points, major indices closing at the highs yesterday, investors riding high, phase 1 china trade deal signing, the ceremony this week, joining us to talk more about markets, chief Investment Officer troy. Would you put more money to work . No, i think you want to put new money to work until they stop expanding Balance Sheet which they claim theyll do at the end of q2, plenty of wiggle room to continue to expand that, what we know is the fed is most powerful institution, they took a pause when fiscal policy took over, the resistance is higher prices for the time being. Is there a multiple that you will say you will stop buying . For earnings. Thats correct, our thesis was that at some point in the first half you had a reasonable probability to hit 20, after that, i think you want to get more cautious because remember what the fed is doing here, theyve done so many policies changes over the last 18 months that you cant discount that, what basically theyre doing they are willing to run higher possibility of mediumterm bubble risk to further lower nearterm Recession Risk and what they stop extending Balance Sheet theyll be correction, its just question of how severe. Dagen you can look at tenyear yield n recent history particularly in november of 2018 when it got to nearly 3 and a quarter percent, thats when the bottom fell out of the market, thats a good indicater of fed policy and also appetite for risk and once the yield start going up, it becomes more attractive to investors but right now its stocks and the dividend yield on the s p over 1. 8 on the 10year. Lets not forget theres mean ingful top here. We could get there, we could end up higher and the unfortunate part of that, a lot of people forget, the last 2 economic down turns were caused by collapsing bubbles coming out of the internet era and you had housing bubble, it is more concerning medium to longterm that that could help lead to an economic downturn again but for the time being Recession Risk has gone down meaningfully, the fed is pumping new liquidity. Maria what youre saying theres not a lot of wiggle room in terms of earnings miss, the backdrop has been pretty strong when the midst of Fourth Quarter earning season has been strong start in terms of banks, do you see anything in terms of horizon in terms of guidance, negative commentary from the corporate side of things that could mess with that wiggle room . Yeah, i mean, in terms of the Broader Market its unlikely that we get negative surprises to knock this trend off in shortterm, geo politically thats always there, if we had gone toward iran all bets are off f things are heated in north korea all bets are off. Its difficult when you look at economic con fundals and consumption growth, decline in cap x has abated and some argue cap x might come back and be a positive contributor, europe stopped falling off a cliff and they have at least stabilized. If target has bad earnings, thats not enough. I think if banks came out earlier this week and showed massive increases in delinquent loans and Net Interest Margin was collapsing and that might have been a problem. Maria how about if it looks like joe biden will be the candidate . Well, yes, now we are getting into the election, right, from our perspective, so as you get into late 223 market focused on outcome, consensus that mark will win the election. Secondary assumption if not trump then biden and people think that trump will be classic corporatist democratic president like clinton and obama, the danger with that, though, of course, if you look at bidens plan taking the Corporate Tax rate from 21 to 28 , taxing Capital Gains as the same as ordinary, thats obviously not a marketfriendly plan, as we get in q3, you talk about meaningful downturn or correction, clearly election thats suboptimal. Maria do you see any other marketfriendly plans on the democratic stage in. None whatsoever, lets not forget in the event the economy falters or doesnt do as expected, Interest Rates will come down quickly, i think the fed will be quick to add because the fed indicated repeatlied they are not that worried about inflation, let it run and they dont care, they will cut rates to keep recovery going. And we have to see the lower Interest Rates, lowering borrowing costs from 2019 begin to see it in spending provided boost to spending, faster rate of growth for home sales, we have the highest weekly reading on Mortgage Applications for the purchase of a home the latest week for the current recovery. Clearly lower Interest Rates have finally affected housing and housing construction. But, look, the reality is consumption growth 2 and a half years, we created 2. 6, no one expected that, very hard to see growth of consumption less than 2 , theres 140 base points of gdp. 50 and 75. Maria another stimulant. Youre already at 2. If you look back at people that are calling 80 probability of Recession Risk in 2020, the math never worked, the peak Recession Risk was 2030. Maria they kept talking recession. Dagen the American People are smarter into that. Maria bingo. How often do they Pay Attention to headlines . Dagen they know, are they making more money or changing jobs, do they feel secure . The average consumer is also looking at 401 k . Maria yeah. Their home prices are going up and they are not paying that much for gas, you know, they are going to consume. Dagen 10 Million People invested in 401 k plans, 100 Million People, so, you know, when the democrats want to dismiss whats going on in the market, just for the rich, thats simply not true. Maria on november 2016 the dow was at 18, look where we are right now. Amazing. Maria nancy pelosi versus facebook, the House Speaker slamming the social media giant for what she said is misleading the American People, we will get into it and the analysis of misery when unhappiness hits alltime high, we will tell you when to expect it, plus a real purple haze, arizona pot farm turn