Dollar flat, tenyear 224 and moderate action in crude. Budget priorities the white house out with its 2018 budget plan today which targets big cuts to medicaid, food stamps and disability. Plus u. S. Markets are shrugging off global terror concerns. Futures are aiming for a fourth consecutive day of gains. Isis claiming responsibility for the deadly concert bombing in manchester, uk. The worst terror attack in the uk since the london bombing in 2005. The white house set to unveil the president s budget for 2018 which aims to eliminate the deficit in ten years, the budget includes 3. 6 trillion in spending cuts over a decade, including medicaid, food stamps, welfare, Student Loans and disability benefits. The plan does call for an increase in military spending, most notably, jim, calls for 3 real gdp from 2021 all the way through 2027. Yes, i dont know what to say. You read the new york times, notice i didnt call it the f l failifai failing new york times. This is ridiculous. In a news story, not a news analysis, but maybe that doesnt matter but when i was reading it, i said, well geez, this is just, if i came out here and said that this is going to happen, i think youd look at me and youd say jim, ive always known you as a rigorous thinker, hopefully you think that, and this is the first time youve really said something on air that i have to tell you, really just doesnt jive with reality. Thats how i kind of felt. It would take nondefense spending as a share of the economy to about 1. 5 by the end of the next decade, the lowest its been since they started keeping records or at least going back to 1962. I mean plus the growth is look, i love the growth. It would be fantastic. The cuts, you know, basically you see the thesis which is now is the time to get these people to stop getting help from the government, and stand up on their own, and whether you hate it or like that, that is not what the issue is in terms of the true entitlements, thats the smaller part but medicaid obviously its a third rail, if you want to take it on. Another key part of this apparently according to well, a number of people, including larry summers, former treasury secretary, who writes in an oped in the Washington Post that the budget being proposed includes the benefits they see from tax reform, but does not include any of the costs from the actual tax reform proposals that may eventually perhaps, and we should talk about this in a minute, come to pass. But he says this is an egregious error, akin to buying a company assuming you can make investments that will raise profits but then in calculating the increased profits counting the higher revenue failing to account for the fact the investments cost some money. This is a business administration, and i think that if you were to do an analysis of a company, and you predicted this kind of growth you know it would cost a lot to get this growth. The government is not facebook, okay . The government is not facebook. We dont all put content out there and the government reaps the gain. I mean, this is the government is facebook. Theyve got the Business Model of facebook. Not even the Google Business google wishes we had the businesses. We wish we had the operating margins at the u. S. Government. Any margins would be helpful. It would be great i charge 72 for a beer and think everybodys going to come. Can you imagine . Id quit this job in a nanosecond. Gary kohn, if he put forward this budget at goldman, i think some may say you have to raise the compensation levels. Well summers pointed to davids point it is a classic double count that you would give an introductory economics student a failing grade if you turned this in. Well hear more about it today. John harwood will interview the treasury secretary att the Peterson Institute in a little more than an hour. At the least they are couching it as a reframing of government benefits. If you are able bodiy eied you stop getting benefits you perhaps do not deserve. Right. That is, i wish they had come and said lets be more touchy feely. This is an extension of the clinton government putting it on the backs of people. It doesnt ring true. There was a way to couch it you could say look its going to cost, there will be some costs up front, we have to raise some taxes. Right, but the two biggest parts of the budget are untouched, medicare and social accurate. If you were to say everything i just said, this is an environment where people will say you hate trump. No. Its a Business Plan and its a Business Plan that if you put it in front of shark tank who would what would cuban say about this Business Plan . He would just say, pass, who would he give it to . You think mr. Wonderful would go . I dont think so. Hes pretty cleareyed, mr. Wonderful. Robert corcoran . Maybe. Pie in the sky. Are you surprised defense is not up more . Theres been some discussion about that. No, because we got everybody else paying for the defense now. I went through the orders that lockheed got yesterday in saudi arabia. The saudis are making a commitment that is extraordinary and if you get all our allies to step up like that, then you wont have to produce as much for our country. Theyre our allies, i think they are but someone probably says jim you call the saudis our allies . But i think they are our allies. I think its an important point to make in terms of for our audience in particular what all of this means for tax reform, or the prospect of tax reform, which is the single largest issue dealing with the business community, as we watch the president about to depart for rome. For rome, yes. Had the bilateral, is having a bilateral with abbas today. Already gave a speech this morning with netanyahu, goes to rome after this, and on his way to sicily and brussels. Busy week continues. It does. And a lot of things need to happen in washington as well. Back to the point i was making about tax reform, because i think its a very important one, and it gets somewhat complex for people to understand, which is that in order to actually have tax reform and do it under reconciliation, youve got to pass a fiscal year 18 budget through congress. Because that will dictate the terms of reconciliation. So if people can follow me, i know its hard to, especially when youre watching these great pictures, as he leaves tel aviv, but youre not going to get tax reform. The long this delays everything. You put up a budget that is far out of the consensus, and youre going to just take longer to get it done. Thank you. Not to mention Everything Else thats going on in washington involving this president. Right. And it simply puts, makes the prospect for actual tax reform under reconciliation, which they needed to do because they can only do with 51 votes much more difficult. Thank you, that is my point. If they made it heres where were going, the direction. This is what were thinking. But lets do some Economic Growth first. Youre right, they have to have something. Were getting caught in the calendar situation is what youre saying. Yes. The idea were going to see something in 17 is hard to imagine. Remember, they always seem to do Health Care Reform first because that was reconciliation off the 17 budget. Now were looking for reconciliation off the 18 budget, the one thats been submitted today. How much debate is going to need to be taken on over this budget that is clearly not in the broad consensus, if you want to call it that. Bring it full circle. What stocks have been going up . The stocks of companies that need no help whatsoever from washington in terms of taxes. Thats what yesterdays rally, what they all had in common. Great point, jim. You know what . All those companies that would have benefited the most from tax, they stopped going up in january. And they are actually lower now than they were after the election. Yes. I mean, this is rally involving a couple of Companies Involved with secular Growth Trends involving look, there was a horse that won. There was a horse right here, his name is cloud computing. It won on saturday and won on monday. Cloud computing. Understood. But youre watching the tape. No yeah, im, i hope people follow this. We made an important point, and again its all about tax reform for our markets to a certain extent in businesses at least as the big story for this year and by the way it may end up being the story for next year. Its interesting, pope francis a compelling figure youre not going to have trump being involved in the news flow but the secretary of treasury obviously but yes, i just have given up on tax reform, given the fact this was it. I just threw my hands up on this one. Leader mccarthy on squawk box this morning said he thinks it gets done this year, given everything you guys just talked about. I love that level of optimism. The phillies are going to win it. These are the things that i come to think about when i read about optimism. I want the optimist to give out so much in life. This one is a tough one. Jared kushner is saying goodbye to netanyahu. In that speech in tel aviv said the palestinians are ready to reach for peace, but not going anywhere near whether a twostate solution is part of this deal that he ostensibly hopes to make. It felt like when clinton decided to get everybody in a room. They came close. Very close. Oslo. Right, oslo was very close. Look, i dont want to be too far afield. I see the stocks that are coming look, one of the biggest stocks today if i can transition for a second, nobody else is going to do manchester but take two interactive, major game, red dead which is what im looking for, delayed by six months. The stock is up huge. Why . Because this is that new generation. That is about nvidia. This has to be equaled to the nvidia chip. Thats how good the game will be. The stock is up. Its the economy, the stay at home, have doritos, call netflix, read your facebook page, have the food delivered play video game economy. Ill take a picture of you and we watch people play esports at the garden. They have winning teams at the gard garden. Esports weve got to be on this. Niche should buy an esports team and start winning. The sixers ownership have bought some. Who owns, the koreans are the best at this. Who owns the Korean National team of esports . I dont know, who . The chinese. They like winners. With all of that, we do have isis this morning claiming responsibility for last nights suicide bomb attack in the uk. Willem marx is live. Reporter Manchester Police arrest aid couple of individuals, executed one just two miles from here and another in fallow field, 300 miles where im standing. Ment im down the road from Manchester Arena where the horrific attack took place last night. Were getting details of the victims and 22 that lost their lives last night, some of them were children, according toing Prime Minister theresa may. 29 have been treated in area hospitals, children. Outside number ten downing street talking about the threat level following this attack in the uk. Lets take a listen. The threat level remains at severe. That means that a terrorist attack remains highly likely. But the independent joint Terrorism Analysis Center which sets the threat level on the basis of the intelligence available to them will continue to assess this throughout today and in the days ahead. Theresa may was talking to President Trump prior to that little press address you saw there. He described it as a wanton and deprived attacked. She said it was the result of a warped and twisted mind. Police and authorities in manchester have carried out two arrests, a further arrest this morning, thats now three individuals we understand have been arrested by local police. Theyre going to try and identify exactly who these people are their relationship and the motivation behind this horrific attack. Willem marx in manchester, thank you. Still to come this morning the treasury secretary mnuchin, john harwood will sit down with him at the Peterson Institute to talk about tax reform, the budget and more. Later on alan simpson of wyoming on the budget and all things white house. Take another look at the premarket, the nyse will hold a moment of silence for the victims of manchester at 9 25 a. M. Eastern, in about ten minutes. Were back after a break. Say carl, we have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh. And i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. For years, centurylink has been promising fast internet to Small Businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. We do business where you do business. Were counting down to the opening bell. We have a little while and also the moment of silence for the victims of the horrific attack in england. Where is your focus this morning, my friend . I mentioned take two, thats already out there. Were 3 for 3 basically on earnings. Toll brothers this morning the magnificent quarter, many factors brought buyers off the bench. It was interesting, best spring selling season in over ten years. Lot of times people talk about seven years, over ten years, that was the heyday and bob toll putting up fantastic numbers. You want fantastic numbers . Adulence, from hewlettpackard, its a Life Sciences and diagnostic company, put up 6 in life science, extraordinary, both stocks up. Pi cant believe it hasnt been bought by someone. Its always a bridesmaid, never a bride. Its been around for so long, as you point out, jim. Youre right. Maybe they dont want to give up the incredible symbol, the letter a. I would love to be the letter a. Spins from hewlettpackard. A lot of wealth created. Hp is up. Not hp, thats helm rick and payne. But hp, i inc. , printer comp. Agilant, toll strong and take two strong. If you look at the market and decide how is it itting on earnings, 3 for 3 is pretty darned nice. You made an important point, as we watch the president depart tale veef those companies believe to ben fit the most from tax reform have actually had the worst returns. Yes, the market is so smart. The bond market is smart, there isnt going to be a new expansion of the budget and the stocks right because theyve taken up everything that is literally is just spend, spend, spend, doesnt buy back stock. What you have is the stock market and bond market that are smarter than the average bear who played the market negatively betting somehow the trump trade being off would bring the market down. And leader mccarthy may think one thing in terms of timing for tax reform this year but what i hear from Market Participants is another, is the lack of consensus like the b. A. T. Somebody brought up to me. Spend so much time talking about it, never going to happen but it was delay, delay, delay. I think theres kind of a enui down there now. There are fewer leaks. They have a special prosecutor, lots of policy debate, we have the president overseas and when everything is stalemated we come back and we start buying nvidia which makes sense. The market is back to this narrow group of stocks that move, and we did the 15th anniversary of netflix. Of netflix and someone sends me the house of cards is coming netflix. You know what i say . Yes, probably. We are into a ridiculous market. They release house of cards, hey im taking my price tag netflix off. The other thing going on, who kraft is going to buy. I went through the supermarket aisle by aisle. I see campbells soup and pinnacle foods. Those are two i said why not . Why not what . Why not heinz kraft are you trying to work that now . No, i saw the two stocks up on big option fund. Browns foreman was up. I have two classes of stock. Family is true. Diagio is having a great quarter. Johnny walker an old friend of mine delivering on top and bottom line. Some of these economic numbers out of europe, record high, as we said earlier, eurozone pmi, sixyear high one reason youre looking at the ftse and the green. John deere had such a quarter over there. Its amazing. 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The no, Stock Exchange is about to observe a moment of silence for the victims of the bombing in manchester last night. The latest numbers we have, 22 people confirmed dead, at least 59 injured. About a dozen of those children, as they were leaving that Ariana Grande concert in manchester. It is the deadliest attack in the uk since the 2005 london attacks on the Transportation System there. Lets get this moment of silence here at the nyse. [ moment of silence ] [ moment of silence ] im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting e