Hour developing, as well. Mexicos president just cancelling next weeks trip to washington. Michelle cabruso cabrera onset with us. We have the panelists, steve weise, josh brown, pete najarian. Michelle, you first. Maybe not that big of a surprise, considering the jousting that has been going back and forth between our two countries over the last many days and weeks. Yeah, and its been playing out mostly on twitter at this point over the last couple days. The president in mexico putting out a tweet, saying we just informed the white house this morning that were not going to attend the event that had been planned for tuesday. This comes in the wake of him putting out a Statement Last night, saying, listen, weve heard about the executive orders, were going to try to protect our citizens that are living in the United States. And by the way, im going to have a big meeting with the senate. Governors board here, and also my Foreign Ministry team. And were going to decide, were going to have meetings to decide if were going to go. Donald trump tries to the president tries to beat him to it and put out his own statement, saying, if they dont agree to pay for the wall, maybe we dont have the meeting at all. Its been yes, a war of words, for sure. He has been tweeting almost nonstop daily with the hash tag that i cant say on the air. And as of two hours ago it was continuing to tweet at the president , saying, quote, donald, dont be selfindulgent, mexico has spoken, we will never, ever pay for the wall. You can guess. Begins with an f. Fox has been extremely angry from day one, continuously discussing it in very, very strong terms about how angry he is about donald trump. What ive now seen happening in mexico, and via twitter, mostly, you can see people kind of falling on to him, and now talking about boycotting american products. Just saw somebody saying were going to boycott Starbucks Coffee and buy mexican coffee. We can see the governor saying were going to start telling people they shouldnt go shopping in the United States, crossing the border, a lot of revenue for stores along the u. S. mexican border. This is playing out, not just at the high levels between the two heads of states, but within the lower echelons within the state governments and within among the people. So john harwood, on a day where the president of the United States wants us to be talking about his agenda, and this congressional retreat, and a time line to actually pass some of these policies, here we are discussing this battle between the two leaders. Yes. In fairness, that battle is part of President Trumps agenda. Remember, he has said he wants to build the wall. Thats a flashpoint. He wants to make mexico pay for the wall. Thats a flashpoint. He wants to renegotiate nafta. That is also going to be a flashpoint. Now, important to note, speaker ryan said today that republicans are going to front the money to fund this border wall. And then the question is, given President Trumps repeated promises during the campaign, that mexico would pay, what is the mechanism for that . All republican members have all along been skeptical of that. But remember, in the executive order that President Trump issued on the wall, he instructed his administration to identify all sources of funding to mexico. Military, humanitarian, development, economic. All of that is potential lever for that conversation. And what other ways is he going to have to try to pay for the very substantial cost of this wall. Whether its 10 billion or 20 billion. Is he going to try to impose a tariff. Will republicans go along with that . Is he going to somehow seize remittances that are going back from mexicans in the United States who are here legally or illegally, back to their home country. We just dont know what the mechanism is. There is a lot of skepticism that mexico will pay. And that is a potential political problem. I would just add to what john is saying. In some ways, mexico is already paying. We have been showing people the peso. Its getting hammered day by day by day. The central bank, spending billions to defend it. It continues to fall. They have lost jobs, and we know that american executives are thinking twice about putting new business there. In many ways, mexico is already paying. Hey, john. There were these other comments as well from speaker ryan today that were getting quite a bit of chatter. Where he said, quote, we have Ambitious Goals and ambitious time lines. Our goal is to get these done. That being the trump policies and the agenda in 2017. That is a very ambitious time line, considering health care, taxes, infrastructure, the wall, and Everything Else that President Trump says he wants to do. Thats right. Now, they do have some tools at their disposal, in addition to the fact that they have got majorities in both chambers. They have the reconciliation process, which has been used by both parties in the past to move through with simple majorities. Not super majorities to get their agenda passed. They can repeal obamacare that way. You cannot replace obamacare that way, however. You may be able to replace some individual components, but you cannot do a comprehensive replacement that way. So are they going to do that rapidly or not . You know, the initial plan was repeal and delay. And figure out an obamacare replacement a year or two years, three years from now. That does not appear to be given what President Trump has said, an option on the table. The same thing on tax reform. They can do some things in the area of tax reform, but when use reconciliation, a reconciliation plan has to reduce the deficit. Well, the plans that we have seen for tax reform would expand the deficit. That is Donald Trumps plan. The House Republican plan, as well, though much less so. So youve got a brewing discussion about how hard a line to take on the deficit. Is everything deficitneutral, are you going to let it go up and youve also got the question of what are the contours of this plan that donald trump has promised, saying people everybody is going to have coverage thats going to be better and cheaper than obamacare. Nobody knows what that is. Right, and steve, given everything that were discussing here, the agenda and ambitious time line, the issue with mexico, the market doesnt seem to care too much. Exactly right. So the market doesnt care. So we talk about and i say that in the fact the dow is up, what, 30 points . But, again, in a week in which we have hit and crossed and closed above 20,000 for the First Time Ever. And had a huge move yesterday. So the market doesnt seem to care at all. Protectionism, we hear talked about, but thats really an academic study as far as most people that invest in the market today, and that have been investing in the market for 30, 40 years. What have we seen . We saw banana wars. We saw wars with beef. And thats really it. Thats our frame of reference. So i think that nobody and this is going to sound callous and may even sound, you know, dumb to some level. But i dont think the market really cares about what happens with mexico and what they see is that jobs have gone from the u. S. To mexico. So the populous is actually steeled by this. They dont care about china. They look at china as human rights abusers, so their support of trump hes further emboldened by this, looks at the market yesterday. So for him, it just pushes him to go further. So the market is fine. Could it in a longterm basis yes. But its not like three years. Its shortterm, daytoday. Thats the score card. Its like a sports game. So its all systems go, market goes higher. Youre talking about the broad u. S. Market. Speaking with people in the emerging markets world, counterintuitively, looking at mexico and thinking this is cheap. This could be a good entry point. The currency has been hammered. How much could it go lower, this may be marking the bottom. I dont know that, but i know well, certainly been a topic of conversation on not only market experts. And josh has even made the argument that emerging markets are quite attractive. I dont know if you think mexico specifically, but youve made that point. Mexico is not a huge portion of emerging market stock indices, but emerging markets in general doing better than u. S. Stocks. Most people dont know that. Youve also got up side surprises in macro data. All over europe and asia, as well. Developed asia. So thats just been the start of maybe something that becomes profitable for investors. I think on the mexico thing, to steves point, market does not care. Hes absolutely correct. However, that could change on a dime. Lets bear in mind, yes, we have a trade deficit with mexico. But a deficit doesnt mean that we dont also benefit from trading with them. So while theyre exporting 270 billion worth of goods to us each year, were sending them another 210 billion of our stuff. And the chamber of commerce types in the republican side of the house, and senate, you know, these are people that are not going to be thrilled to be reporting on a complete stall in trade across the border. Mexico is our secondlargest trading partner after canada. Accounts for 14 of all u. S. Trade International Trade each year. So we may n care today. But that could change on a dime. We dont know what the cause of that will be. If this escalates further, youre going to hear some business types that were willing to get behind the trump agenda. Say wait a minute, wait a minute, i wasnt counting on something quite like this. The etf down more than 2. 5 . Real question, pete, what what is the market not going to be immune to . Whats going to of the potential to rattle investors as were watching air force one, the president expected to get off momentarily. The market right now, its not that people arent paying attention to whats going on with mexico and the rest of the global world. I think what people are focused on, its earning season. Thats number one and thats what people are reacting to. If you start to look back, scott, in the last week and a half or so, and as we started to push over 20,000 yesterday, it was banks. It was technology. When you look at what these earnings numbers have produced, again, it follows up what we heard from last quarter. Again, very positive, very strong, very impressive. People look at the economic growth, and so right now, thats the focus. As we get further into earnings season, however, and it starts to put a lot of the Major Companies that have already reported into the back burner, thats when people, i think, will start focusing a little bit more on whats going on in the global the other point of view here, is that i think steve was kind of making his point, is that while important, in its relationship with the United States, and the world, mexico is not china. If something more contentious is developing between the United States and china in terms of trade, you would likely see the market taking a much different reaction than a teteatete over a border wall with mexico. Absolutely. I think if you see this, if you see this happening in china, and you see earnings go down yep, and there is the president of the United States, donald trump, arriving in philadelphia, walking off air force one. He will head to that republican retreat, where his agenda will be top billing as republicans discuss how to get it past, the time frame in which they can do that. Speaker ryan has already made comments today to the following. We have Ambitious Goals, and ambitious time line. Our goal is to get all of this done in 2017. He was speaking of health care and taxes and infrastructure. But there is the president of the United States now in his limousine. And he will head to that retreat. Hes expected to speak, by the way, at the event, and we will carry that live when, in fact, he does arrive and take the lectern. Im sorry for interrupting. Continue. To petes point. The reason you said what are we not going to be immune to. When Companies Start reporting starbucks sees sales going down and you see them in the big emerging markets and developing market, thats when our developing markets, global in nature maybe not this quarter, if that happens, you could see the market then sell off and say, wait, this is much more real than just talking between two different countries. My bet is that this is a negotiation, part of the negotiation. And some will come to the negotiating table, as we have seen the companies do. And he knows that you dont get everything in the negotiation. Right . That eventually, you compromise. But i think correctly so, that we have been the u. S. Has not used its full negotiating power, and he just wants to bring a little bit more of it back. So right now, thats the story. The market is going with. Theyre not going with the market is giving absolutely. The market is giving him and all of the companies the benefit of the doubt. I think just to answer, what could change it . That. But i do agree with you, because this is more of a give and take, the negotiation, you do this with mexico now, both sides from china and the u. S. Will learn. They need us more than we need them. Were a consumerdriven economy. Internally, right . 70 of our economy is consumerdriven. Thats not true with mexico, thats not true with china. So we sit on the bigger end of the negotiating table. Certainly when it comes to mexico. They need us much more than we need them. Yeah. Pete, i mean, im wondering, as we start to think about the reallifetime line in which the trump agenda westbound passed, how fast does the market need actual things to happen, beyond executive actions on certain things . I mean, real stuff. Tax reform, repatriation, infrastructure plans, et cetera. Well, you know, were all betting those things are going to be happening, right . We made our bet. Now we need to see the results. When will those results come . That will take lots and lots of time. Obviously, you know, extending out much further than what people are used to hearing me talk about. But that still gets baked in, scott. And people still start looking ahead, and starting to figure out, well, maybe the tax rate goes here. Maybe repatriation is here. Thats all part of this whole thing. Its all a matter of how it gets implemented and how effective thats going to be. And who gets affected most. And i think thats why were seeing certain areas of the marketplace that are outpacing others still. John harwood, the beast, as they call it, is on the move. And i suspect that youll be seeing the president shortly. You would also expect, i would guess, that when he does President Trump, start to make his comments, that he would likely address the mexican president deciding not to make that visit next week. I would think he would make reference to that. I would think that members would want to hear something about it. And, you know, again, i appreciate the comments about the markets not being rattled by this. But the more turbulence you have in u. S. Diplomatic relations with mexico, with china, china we may have a strong hand with china, but they have a strong hand with us. They have the capacity, if we impose a tariff we would be doing it to ourselves. But that would raise Consumer Prices on every consumer in the United States. I think theres a buckle your seat belt quality to this administration. And were just going to have to see which events produce the kind of reaction that spooks the markets. Hasnt happened yet. We have gone through eight years of the worst Foreign Policy and the worst relationships with all of these nations than we have ever been through, at least now we have the other side, which is fiscal stimulus coming. So i would say netnet. Were in a better situation than we were for eight years. All right. Were going to see the president shortly. And, again, well take you there back to philadelphia, live when President Trump takes the stage in just a little bit. Michelle, thanks so much. Michelle Caruso Cabrera joining us, as well. Lets talk about caterpillar, hitting a 52week high today. One of the dows best performers over the past year. It is up 66 . Pete, youre not a buyer, though. I would say its a hold because of the reaction we have seen. We talk about i think so being priced in. Let me ask, why is it a hold and not a sell . Well, because a lot of people think the stock has gone way too far. Yeah. For what the fundamentals suggest. Yeah, right. The fundamentals concern me. If i didnt know where you were going. But my biggest concerns are the fundamental story. When you look at the valuation level right now, youre talking about a 30plus on the pe side. You look at debt. Debt is a concerning thing. Cat has always had debt. When you look at their debt, 30plus billion dollars, thats a bit concerning, as well. Is a lot of this infrastructure, and all the projects and everything that everybody talks about, each and every day, ever since president elect was in there. But this was a stock that was moving before the election. So this was a huge momentum moving into it. Obviously got more momentum afterwards. Thats why the stock is where it is. I think that its probably set for a political bit of a pullback, scott. But fundamentally, there are things that still make sense for the Company Going forward. Well, you know, i dont know fundamentally what they you look, the stock, 66 year over year. Heres the ceo on the earnings today. Quote, our results for the fourth quarter, while slightly better than expected, continue to reflect pressure in many of our end markets from weak Economic Conditions around much of the world. Does that sound to you like the ceo of a Company Whose stock is up 66 over the past year . Scarcity value. Just like deere. And i know you like deere and have been right on it. This stock should be 50, 60. They missed every quarter for the past three years, with the exception of one or two quarters. I have no idea why its up. I am not sure, havent been sure for a few years. I wouldnt recomm