Transcripts For CNBC Power Lunch 20161108 : vimarsana.com

CNBC Power Lunch November 8, 2016

The election results. Dow is higher by more than 100 points. Nasdaq, 47, a gain of nearly 1 . S p above 2100. Telecom and utilities are the best performing sectors. Materials and real estate are the laggards and yet they are still in positive territory. Brian . My shichelmichelle, what bet to have a real power lunch and the pulse of the people than one of most popular restaurants outside of dayton, ohio. Were here in one of the most important states for donald trump outside of florida with the pulse of the people. Well bring you the major issues what people are concerned about. I can sum it up in three words, jobs, jobs, and jobs. Well be live here in dayton all two hours. Thank you very much. Tyler mathisen here with a special guest today. Camping world ceo marcus lemonis, host of the profit on cnbc. Hell be with us for the next two hours. Welcome and welcome back. Lets get started, though, with our coverage. We have six hours to go until the polls close. And a multiple number of states. What are the candidates doing today in the final hours . A aim eamon javers is live in new york city. Were in a new york state of mind this election day. Both candidates here in manhattan today to wrap up this 2016 election season. We are standing on top of new york citys fabulous new high line park. We have a view of the Javits Center behind me. That is where Hillary Clinton is going to have what her aides hope will be a Victory Party tonight here in manhattan. Hillary clinton voted earlier today in chappaqua, new york, before making her way into the city. We saw her along with former president bill clinton at the polling place in chappaqua. We also saw donald trump voting here in manhattan today. He voted at ps 59 over on 56th street, not too far from where were standing here. He got a mixture of boos and heckling, also small crowd there cheering donald trump as he went in to make his vote. We also see that Donald Trumps party is going to be tonight at the new york hilton. Thats only about two miles away from where Hillary Clinton is having her party tonight. Imagine that. We have the two candidates just two miles away having simultaneous parties this evening. One side is going to be very happy, one side is going to be very frustrated. It takes about a half an hour to walk between the two of them to give you a sense of how close those two parties are going to be tonight. Guys, a little election fun fact here. This is the First Time Since 1944 that we have had two candidates from the same state, tyler. In that election, it was fdr and wendel willky, both here. Now a look at where the race stands up to the minute. Hi, john. You know, as eamon indicated, we have two new york candidates and battling it out for the closely contested states. Lets look at the battleground map, the nbc news battleground map, we have the Senate Balance of power. Lets talk about the senate for a minute. In the senate, democrats need to gain four seats to take control of the chamber. They have a good shot at doing that. But it is by no means a certainty. We have close contests in all of the major Senate Battleground states. The house is a much more difficult picture for the democrats because they need to gain 30 seats in order to get control of the chamber. There are only about three dozen seats that are even possible for them to take away from the Republican Party, so it is very likely that paul ryan will wake up tomorrow morning with the opportunity to be the speaker of the house once again. And in terms of the national race, we see Hillary Clinton with a four percentage point lead over donald trump in the last nbc wall street journal poll. Four point lead in other major polls and in the battleground states, the nbc news projection right now is that based on the where shes leading and safely ahead in the polls that she would have 274 electoral votes. Donald trump has to figure out a way to take something out of the democratic column today. Yep. Well be watching tonight, see you tonight, john. For more on the key things to watch during the day, lets bring in jared bernstein, former Economic Policy adviser to Vice President biden, cnbc contributor as well. And former republican senator and former governor of New Hampshire, judd gregg. Good to have you here. Jared, jared, jared, good to have you. So, listen, the polls suggest and the models suggest that Hillary Clinton definitely has the electoral edge here. You being an economist are familiar with how models can go astray. How confident are you that they are accurate . Well, first of all, let me say thanks to senator gregg for letting me use his office. I was recently at st. Anns and they put me in your office for a few minutes and it is a beautiful office. You raised the standard there considerably. Youre absolutely right. Probablistic kind of number like the type we have been throwing around is always going to be a dice throw. And you cant count out that the results could be surprising. If everything holds, were going to get the scenario that john harwood just described. I think probably the best early indicators will be this blue wall on the east coast and i throw ohio in there. Basically if were talking about North Carolina, florida, pennsylvania, ohio, youve got over 80 Electoral College votes. Those are all swing states. If Hillary Clinton wins two or three of those, very, very tough path for donald trump. Vice versa, a long night. What about the ability to call georgia super early or not . I wouldnt call anything super early. The only caveat i say to that is there has been so much early voting this time, that when the polls close and some of those east coast swing states which were talking 7 00, 8 00 tonight, then you might be able to see some early tallies that give you a sense of what i was just talking about whether the blue wall holds. But, no, georgia, i wouldnt go there. Donald trump leading there. Depending how wide that margin is or isnt when we see the numbers early on, may suggest something wider or bigger for the country. Senator gregg, what are you watching . Well, basically i agree with jared. Those states that you mention ready key. New hampshire is key also. It is a swing state. And when you pass the president ial election, as was pointed out by john harwood, the senate race is very, very important in New Hampshire. And in the other states which we have senate seats that are close because if hillary gets elected president , and the senate stays republican, that changes the whole dynamic of her presidency. If the senate goes democratic, that has a huge effect on where the country goes. The senate is probably as critical as the presidency in this round of elections. Jared this is marcus lemonis, i would like to hear from you what do you think the number one economic pinpoint item is going to be in the swing states. What are voters ultimately going to be making a decision on when it comes to the economy and their money . You know, it is a great question and while the usual answer is jobs, jobs, jobs, let me give you a different answer. I think it is whether you believe Hillary Clintons narrative on the economy, or Donald Trumps. Donald trumps is that the economy is an absolutely terrible shape. It is a disaster as he would say. Hillary clinton very different, says that in fact many of the key Economic Indicators are positive, the job market looks tight, and were adding a decent clip of employment every month, youre starting to see some wage growth, but the job is far from complete. There are significant swaths of the country that the recovery hasnt reached. Let me finish. In the swing states, i think it is going to be a matter of do you believe the narrative that says this track is one we can build on or more of a tear it down and start over, narrative. Governor gregg i think it goes beyond that, actually. It is really the attitude of the American People and the confidence in their future. And there is a real concern among the American People today about the direction of the country. The vast majority of americans dont think were headed in the right direction. Thats why Donald Trumps doing well and it is one of the factors that is going to play out very significantly in this vote. Youre there in New Hampshire, governor. And i want to get two questions in if i might. One is, who do you think is going to win the president ial race in New Hampshire . Who do you think is going to win the senatorial race in New Hampshire, where you have an incumbent senator, versus a popular incumbent democrat governor. And, third, what are the odds as we look at the market, which is up two days in a row, that we may be setting ourselves up for a kind of brexit reaction if it happens to go trumps way. Governor, take it away. On first question, i should refer to New Hampshire to michelle, shes our favorite daughter. Oh, charming. Charming. I went to college with kelly ayotte. I mean, high school with kelly ayotte. Thats right. Played a little basketball with kelly i suspect. Kelly is going to win the election here in New Hampshire. Im fairly confident of that. It is going to be a close one, late at night decision because were going to have a lot of write in votes so the count will be fairly slow. The president s race is up in the air. But i do think trump has a heavy lift here because there is going to be a fairly significant vote for the libertarian as the major newspaper in the state has endorsed the libertarian. That means every libertarian vote is essentially a trump vote. Hes got to overcome that. But the polls are close and the turnout is huge. So i suspect this is going to be a very close election. On tomorrow morning, i actually think were going to see were back in a gridlock type of situation. And the markets will probably react positively to gridlock, which is incredible to me, because we actually like to have the government do something. But i think youll have a positive reaction to gridlock. I dont think there will be a brexit reaction. I do think the market has been really fascinating over the past few days. I never make a big deal out of one or two days of wig lz agles waggles in the index. The nine day tanking of the equity market, when trump looked like he was doing better, was really pretty revealing. You like the Market Indicator when it supports your viewpoint. You know, actually, you ask me you happen to ask me about this the other day, i said there is nothing there. So it does take me a while before im convinced. I thought that nine day streak was really something. You see the turn around when she seems to be doing better yesterday. And i do think it gets back to this point that i said below. Which is less an endorsement of either candidate, by the way, and just says if you believe the economy is moving in the right direction, but needs to move there a lot more quickly, youre just more likely to be comfortable with a Hillary Clinton agenda than a donald trump one that says tear it down and start over. Still didnt tell us what you actually believe though. Sorry . You still didnt tell us what you actually believe. I think the economy is much, much, much better than donald trump says it is. But i definitely believe there are pockets the recovery hasnt reached. Gentlemen, good to see you. Jared bernstein, senator judd gregg from my home state of New Hampshire. A very michelle day. Very proud of you. Lets get back to michelle, michelle, michelle. Lets get back out to brian in ohio. This is not my hometown, but it is the home state of joe kernen and sara eisen and courtney reagan. Courtney reagan used to work at the restaurant were at now. Little known secret. Happy birthday, court. Back to the election. Why are we here . Okay, ohio, not only an important state, 18 Electoral College votes, but also this state literally mirrors the nation. What do i mean by that . Back to 1896, remember that year . Guess what, since 1896, ohio has voted with the winning president every single election except for two. 1944 and 1960. Also, the ohio popular vote almost nearly mirrors the exact National Popular vote. Varies by 2 . Thats it. In other words, what happens in ohio in the past anyway has pretty much mirrored the nation. Now, what are the big concerns here . I said jobs, jobs, jobs. Thats half true. Let me lay it out in a different way. Jobs, jobs, and the supreme court. Short time we have been here, spoke to a lot of people last night, what they talk about are jobs, manufacturing jobs are coming back to the area. But they pay a lot less than they used to. Jobs, one of the keys, also the supreme court, a lot of concern about whoever becomes president , what will they do . There could be three spots open on the supreme court. Thats something we have heard a lot about from ohio, the polls close at 7 30. Speaking of polls, i know we have the nbc wall street journal poll, i know there are all kinds of official polls out there, but we werent satisfied with that. So last night, what we did was we went to a local tap room and we gave you know what, watch this and figure it out. Were calling it the poker chip poll here at chappys tap room and we asked everybody to put their votes in a hat here. Blue, red or yellow for third Party Candidate. We want to see and were going to unveil the results live on power lunch and well find out later tonight how this corresponds to america. Well see how dayton, ohio, votes once again. All the votes are in this hat. Im voting for donald trump. Hillary. All the way, baby. Slam dunk. Just kidding. Obviously a little tongue in cheek there, cant be more informal than that. We figured lets take it right to the people, red, blue or for some reason yellow. Were going to reveal the results of our exclusive and highly technical poker chip poll later on in power lunch. How is that for Polling Technology . Where is Steve Liesman when you need him . At a bar, i didnt expect any better. Brian, you were at a bar. It is marcus. I had had to go to a place where people would be at 10 00 p. M. , marcus. The question is why were you there . Thats the question. Polling. Just landed. Just landed. On the ground research. Brian, well check in with you later. Stay with us on cnbc, our special election coverage starts tonight at 7 00 p. M. Eastern time. News alert in the bond market. Three year notes up for auction. Rick santelli tracking all the action at the cme. What is the grade, rick . We gave this a dog plus, d plus, it was definitely not a great auction. First of 62 billion in supply. This particular auction 24 billion, three year notes, yield at the dutch auction, 1. 034. Pricing wasnt bad. Thats about where the one issue market was. It was very close to the high yield, low price of the day. Here is where it gets dicey. 2. 69 bid to cover. We had an equal, exact number on july of this year, 2. 69. But you had to go back another seven years to 09, july of 09 to find a lower level. 42. 6 on indirects. That was the weakest since february of this year. And 7. 6 on directs was also on the light side considering 11 is a ten auction average. It failed miserably on most of the metrics. Not surprising and i should point out yields have awoken or waken, up, just like stock markets today, as we may looking at a high yield close for tens back to early may. Back to you. Rick, thank you very much. Were just Getting Started here on power lunch. Next, well look at the key things to watch for your money beyond the election. As we head to break, here is one of many, many memorable campaign moments. Do you make the same commitment you absolutely sir, that you will absolutely accept the result of this election . I will look at it at the time. Im not looking at anything now. Ill look at it at the time. Stocks rallying for a second straight day as voters head to the polls. The dow up triple digits once again. Lets bring in charlie ryanhart at mainstay investments. Welcome. Christina hooper at allianz. We can talk about the election, but lets talk beyond the election a little bit if we might to what you will start looking at come tomorrow morning. Well, tomorrow morning there is the reaction to the election. So there is tomorrow, the day after, and then there is the long haul. And so tomorrow, after we get the reaction, well be looking for relative value. In the fixed income market, we think the Municipal Bond market, in the equity market, well be looking for companies that can grow, that are good allocators of capital, and for some that Capital Allocation process will also mean paying a dividend. Thats what well be looking at tomorrow. When you look at those kinds of investments, what is your time horizon . Youre not clearly youre in the worried about a shortterm Market Reaction to who wins and who doesnt. No, no. But if history is a guide, historically had the incumbent Party Candidate wins, a positive, and usually end the year on a high note, and i think we have seen in the last several days, since october 28th, a microcosm of how the market might react in either case to who actually wins. But no, tyler, we are looking longer term. What are you doing . What are you thinking about . Were separating out the shortterm from the longterm. If they have shortterm horizons they should be focused on the o out. It is something to worry about with a shorter time horizon. Over the longer term, what we really want to see is the policies, that the candidates present once they become president s and their agenda. Are you more i dont know how to put this delicately, are you more concerned abou

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