That and so much more on making money. Charles as President Trump tests positive for covid19, lawmakers around d. C. Are being affected as well. Edward lawrence has the very latest on whats happening in washington. Edward . Reporter charles, a lot going on here. I can tell you that any white house official within ten feet of a camera is going there and telling everybody that its business as usual related to the work that goes on here at the white house. I can tell you that the white house physician says the president is working uninterrupted. He does not have to disrupt what he is doing because hes having mild symptoms. This is the press secretary, White House Press secretary Kayleigh Mcenany about 30 minutes ago. Listen. This morning and this afternoon, were focused on the president. Were having to hold him back a little here because hes hard at work, he spoke to senator mcconnell today, senator graham, i just spoke with the chief of staff and President Trump has talked to him about emergency declarations and stimulus. Were just trying to make sure that he takes it easy. Reporter members of the first family have postponed their events but the Vice President since he tested negative will resume his schedule. Cabinet members testing negative so far for the coronavirus. That includes treasury secretary Steven Mnuchin. A source close to mnuchin tells me that the white House Doctors say because of his lack of proximity to the president , he doesnt have to quarantine. Thats good news for the next covid relief package negotiation. In fact, House Speaker nancy pelosi releasing a statement telling Airline Executives not to lay off workers, because relief is imminent, saying this. We will either enact chairman d, fazios bipartisan negotiation or achieve this as part of a comprehensive negotiated relief bill extending for another six months the payroll support program. In the last half hour, five points she has concerns with within that negotiation, talking about the unemployment insurance, republicans coming in a little bit low, schools, state and local funding, children testing and tracing and appropriations. White house chief of staff mark meadows tells me the first question the president asked him today was how were those covid negotiations on the next package going. Business as usual here at the white house and thats on his mind. Back to you. Charles absolutely. Its on all of our minds. Thank you, edward. Now, i want to turn to rob luna, James Mcdonald and scott martin for more. Gentlemen, lots to deal with in the market today. You can say we are on trump health watch, stimulus watch, election watch, and economy watch. I want to begin with stimulus because all the chatter has gotten much more positive today, although the markets are moving up and down based on every single headline, particularly from nancy pelosi. We also know President Trump contracting the virus underscores the unknowns and vulnerabilities with Everything Else in this economy, but let me just start with you, rob, about the stimulus part of this, which is dominating the markets every move right now. I think thats the huge part of what we are dealing with now on the market, especially i think the big game changer is a few days ago we saw disney come out laying off 28,000 people. But when american came out and said we are getting ready to lay off thousands of people unless we can get a stimulus package, that put a lot of pressure on getting a deal done and all of a sudden, we started to see some of these talks pick up. I dont think either side wants to be responsible for Something Like that. So the stimulus is really the big issue. I think the covid issue obviously with President Trump is a Health Related issue but thats a red herring in terms of the market. The stimulus is what we need to get the market moving back up. Charles theres no doubt that the initial reaction to President Trump being positive for covid19 was devastating. Most of the action in the premarket, preopening session, was down but we have clawed back and scott, to robs point, youve got the airlines who directly threw a salvo at congress saying we wont lay off 30,000 people if you help us. Disney took a direct shot at california. Yeah, we got to lay off 28,000 people because you got the economy shut down. Corporate america taking their fight to law makers and the markets responding. The ball is definitely in the lawmakers court. I think the companies are playing it right because they are playing it straight up. Heres the thing. Just remember, as we have been fighting over this stimulus now for weeks or months, even probably really internally, the markets have seen better and better Economic Data coming out, whether its Consumer Confidence, Consumer Spending numbers, jobs data. So its not so much that we absolutely desperately need a stimulus. I think the markets would like it. But theres also a good economic backdrop going on there, too, that i think the markets can rest their laurels on if we dont get a package soon. Charles i agree that overwhelmingly, the data has been good but theres enough yellow flags, consumer income down 2. 7 , you know, the jobs report this morning, the headline number wasnt as good as we thought it would be. Consumers had to dip in their savings to the tune of 700 billion. They are spending, they are keeping this economy going but you got to wonder if they can keep it going without any additional help. Weve got the vshaped thing going, no doubt about that. Where do you stand on what needs to be done next . Its important to understand these data have shifted. We saw a massive rally in march and its been going up and up and up. August was a record. But that came to an end in september. So its important to understand the Inflection Point is here. We have all been talking about the incredible recovery, whether its equity market prices or simply just a trajectory of the economy. This has come to a pause and we believe its come to an end. Permanent layoffs increased by almost 10 just in the past week. 345,000 permanent layoffs to 3. 8 million now. We have to understand that equity market prices here are overvalued. If we look at the price to earnings ratio or even the cyclically adjusted price to earnings ratio, we are still 10 higher than precovid levels. The ratio stands at 30. 92, the second highest earnings excuse me, valuation behind the dotcom bubble. Charles you know, heres the thing, though. I dont know about you, i can tell james is not going to be in this boat, i plan on taking some positions. If we dont hear anything from congress at 3 45, im going to buy three or four stocks because i think we will get some news. The question, though, is where do we go, because this session began with profit taking. So the super deal for hot megaagrowth names ironically are the weakest in the market today. Its the defensive stocks that are holding up. Is now the time to maybe go there for real . I think so. You know, the issue about pe ratios and all that, if you look at historics, thats right, but look, we have 50 basis points on the tenyear. When you have things like the Dividend Aristocrats rallying today because you are getting 200 basis points over a tenyear you cant look at that old news. That wont get it done. I think you stick to that barbell, stick to the dividend names that will pay you to wait but you also have to get back to the names where if we are dealing with covid, the service nows, crowdstrike, zoom will perform but they are also the names leading us out to the new economy as well. Charles all right. And in general speak, less marketyspeak, essentially saying large corporations that pay out bigtime dividends and have done it for a long time are so much more attractive because you cant get anything with a cd or bonds anymore and that gives these stocks support. You know, to that point, scott, with this work from home, that is the one niche obviously thats doing extraordinarily well today. Peloton earlier today hit an alltime high. Are you looking at these names . Are they worth chasing . You are definitely chasing them here. Yeah. They are too high for my blood, charles. But they are interesting, when they pull back, which they do because they get to these levels, then they pull back about 10 . They are very quick pullbacks. You got to be ready to hit the trigger. But the reality is this. The funny thing about the ones you mentioned as well as some of the other lets say work from home stocks that are out there in the cloud side, those are kind of defensive names now, if you will. If we get into say slower economic growth, if we get into more shutdowns, you can actually buy these names to probably help protect your portfolio, then just going forward, too, also take a look at financials here. Financials are performing very well. I have talked about them on the show before. They have nice dividends attached to them as well as rob pointed out with the tenyear so low as far as yield. Charles i will admit im not a fan of financials but early in the session, jpmorgan and later goldman sachs, they are flashing on my screen. I dont know what the flash means because there have been a lot of false alarms but a lot of people believe theres value there. James, im not sure if you are a value guy or not but energy made a big reversal today. Im not sure whats driving that. Some folks are going into names like the financials which have underperformed. If you are skeptical or concerned, how does someone build into some insurance for their portfolio here . Its a great question. Purely to protect a portfolio, we like the valuation of only one asset class, and thats volatility. Volatility right now is underpriced where it should be. We think theres about 50 to 70 upside between now and the election. But going back to the comment about where we put money right now in stocks, Value Investing does not work in this current 2020 environment like it may have worked coming out of the dotcom situation or may have worked coming out of 2008. If you study all the style investi ining tactics for 2020 e we have had 13 of the 20 largest daily point loss in history, fiveyear Earnings Growth projections is the only way you can make money in this environment if this year continues and we have said that the fed has indicated it will not change Interest Rates for 36 months, so we have got to buy growth stories, and it is the cloud but not just the cloud. Beyond meat is one that has nothing to do with technology. There are some innovators out there that are going to grow. Right now we are putting money into volatility. Charles all right. Volatility. Hold on to your hat and you will make a lot of money. James, rob, scott, we really needed you guys today. Thank you very much. Appreciate it. Meanwhile, i just mentioned the economy adding a net of 661,000 jobs last month. The problem, though, is the government lost more than 200,000 workers. So whats the future of our economy, where are we headed . I will ask council of economic advisers acting chairman right after the break. President trump testing positive for covid19 is obviously shaking the markets up. What kind of shakeup does it mean for the election . We have the very latest from the trump and Biden Campaigns later in the hour. Now is the time for a new bath from bath fitter. Every bath fitter bath is installed quickly, safely, and beautifully, with a lifetime warranty. Go from old to new. From worn to wow. The beautiful bath youve always wanted, done right, installed by one expert technician, all in one day. Weve been creating moments like these for 35 years, and were here to help you get started. Book your free virtual or inhome Design Consultation today. Charles so the u. S. Economy adding 661,000 jobs in september as the Unemployment Rate dipped under 8 , folks, just 7. 9 . But like so many other major data release, its a lot more complicated than the headline number. Private sector jobs actually came in above consensus. Heres the thing. Monthly job gains are slowing and perhaps the more problematic part of this report, 4. 4 million americans have dropped out of the labor force since february. At this stage of the crisis, america is still far ahead of where experts said we would be, if you go back to march and april. The question, though, right now is what happens next. I want to bring in council of economic advisers, acting chairman, tyler goodspeed. Thank you for joining us. You know what, as you look through this report, there were so many more positives than you would get from the idea that the headline number missed wall street consensus. Walk us through the Key Takeaways we should focus on. Great to be back, charles. First of all, i would like to note i caught the tail end of one of your earlier conversations with one of my predecessors and i think you were spoton in highlighting that western europe is not quite the example that they were, or we thought they were, just a few months ago. But yes, when we are looking at the september jobs report, it was an 877,000 net job gain in the month of september for private Sector Employment and just to keep that in perspective, pre2020, that would have been the third biggest private Sector Employment gain on record. And that was in the context of nine states reversing reopening, including the states of california, texas and illinois. So those are the first, second and fifth biggest state economies in the country. And a further ten states were pausing reopening. I think we have to bear in mind the context within which these 877,000 jobs were added to private sector payrolls. Also, i think you noted the headline number of 661,000. That headline number was below private sector gains because government actually lost employment and that was due to the census hiring or unhiring, and then also, state and local Government Employment in education. While state and local governments added educational employment in the month of september, they didnt add it as much as we would have expected for the month of september and that was because a lot of states werent fully reopening schools and colleges. Charles and this gets us back to the debate, right, over just how open these the country should be, and of course, with President Trump contracting covid19, there are going to be some folks who say were glad we kept it shut down, but the economic reality and perhaps even the Health Reality is that at this point, these numbers to your point bear it out, were not helping ourselves by having a Lockdown Society with schools closed. What kind of difference could that make as we are seeing the monthly rise in these job numbers, theyre impressive but are beginning to slow month after month. Right. So a few months ago, my colleague dr. Navarro and i, director of the office of trade and manufacturing policy, wrote an oped pointing out this is not about health versus wealth, this is about health versus health. There are enormous health costs from continued lockdowns. So reopening and Public Health can go hand in hand. I think thats been the focus of our negotiations on the hill. We want to make sure that on the economic front, we are providing the support we need, particularly to small businesses, to certain sectors that have been particularly hard hit, especially airlines that were providing a second round of Economic Impact payments to support households. Also, that were providing state and local governments and schools with the resources they need to safely reopen and deal with the Public Health cost. Thats why we have been incredibly disappointed and frankly saddened that the speaker has made this a binary choice between 2. 2 trillion, technically 2. 6 trillion, or zero dollars. In effect, congressional leadership would prefer that households get nothing, that unemployed americans get nothing, rather than they get anything less than 600 and they would prefer that state and local governments get nothing rather than they get anything less than 436 billion. Charles i can tell you right now, i really believe we will get a deal over the weekend, if not sometime today, because it is not a binary choice and americans are speaking loud and clear about that. Tyler, congratulations. The administrations doing a pretty good job here. Certainly the economy with respect to jobs and so many other metrics are far ahead of where anyone thought they would be at this point in time. We appreciate you coming on. Meanwhile, folks, with the state of the consumer actually showing more strength, weve got retail names that maybe you should consider adding to your portfolio. Also, secretary mnuchin making it clear the focus of the stimulus negotiations, still waiting on the details. Can the economy actually recover if there is no stimulus package . Well be right back. 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 charles House Speaker nancy pelosi and treasury secretary Steven Mnuchin failing to reach an agreement on the next round of stimulus, but pelosi says shes optimistic as she weighs in on how President Trumps covid diagnosis could impact future stimulus talks. Watch. This kind of changes the dynamic because here they see the reality of what we have been saying all along.