Santoli in for wilfred frost and wanted to take us back to the 80s. That was back when people used real phones to call people. I get it. Lets check in on the global markets. After another pretty strong day on wall street, the dow finished higher above 20,000, again futures indicated to open higher as well. Up 11 points. Sort of a mixed picture. Less strength than we saw this time yesterday. S p futures up less than a point. Nasdaq futures are negative six. We have a lot of earnings to talk about. Google with a miss. Microsoft doing really well. Starbucks, some issues there. As for the tenyear treasury note yield, lets show you the sentiment barometer. Its been a story of higher yields all week. There we are. Bangon 2. 50 as wilfred would say. Not moving much this morning. First quarter gdp, a lot to dig through there. A lot of strength in the Third Quarter gdp. Well see if the consumer con if confidence translated into consumer spending. The forecast is for a downshift for Fourth Quarter gdp. European equities are backing off a bit this morning. Minor losses for germany, france, uk, and italy. Seems as if basically the the entire world got to dow 20,000 and participated, now were sitting around. Pausing. Pausing and seeing whats left. In asia. I think you were firmer for most of those markets. Yes. Japan, tacking on a bit. About a third of a percent. Shangh very modest losses in hong kong. So not finding the thrust for the next leg up. Lets go to the Broader Market picture and show oil was strong yesterday. Giving back a bit today. Down 0. 3 . W as for the u. S. Dollar, has not joined the party much. Many are wondering whether the dollar rally is over. A lot of wall street strategists say, no, it has to take another leg up higher. It is stronger against the yen by 0. 3 . Just below that 1. 15 level. Weve been around 117 the past few weeks. The euro is flat. 1. 0692. Just around 107. The pound weakens ahead of Prime Minister theresa mays visit with the white house. She spoke yesterday in philadelphia. Well hit that later. Its a bit weaker against the dollar, 0. 4 . Gold prices, lets show you where they stand. Gold is down about a half percent. Continuing what has been a down week. New data on where money is being put to work by individual investors. Investors pulled 5. 7 billion in u. S. Stock funds in the week that ended wednesday. During the same period money market funds took in 19. 8 billion, and taxable bond funds added 2. 8 billion. There has been a bit of a reversal of the rapid November December inflows into stock funds. Well see if theres real response out there. Kind of noisy in january. That is the question. Whether dow 20,000 ushered in a new wave of money being put to work in this market. A lot of reserve of conservatism out there in households. Well go through the individual tech movers. Was there anything in the Earnings Report last night, you were on closing bell, to derail the rally . Stock by stock, a lot to of them had run up, including alphabet, but no severe losses. Nothing said severe macro issues. Starbucks with its mobile order crowding issues. Now to politics, the mexican peso continuing to slide against the dollar this morning amid rising u. S. mexican tensions. The tension is now on how President Trump will be paying for his proposed border wall. White House Press Secretary sean spicer telling reporters yesterday that President Trump is considering a 20 tax on mexican imports along with other options to fund the project. But in a clarification, spicer said the president is not formally proposing it, but sort of put it out there. Everyone went nuts on it, this idea it could tax u. S. Consumers, who will pay for the 20 tax. The white house walked it back a bit. Among the responses, i found most strong, lindsey graham, republic republican senator, he tweeted hes not in favor of a tariff that would hurt economic growth. Any policy proposal that drives up costs of corona, tequila, margaritas is a big time bad idea. Mucho sad. Also playing off his own reputation of enjoying a drink. Then everyone wanted to know, do we import margaritas over the border . We got his drift. I dont think this will go away. The times lead today was sewing confusion on this, whether its a proposal or spit balling ideas. Not clear. The fts lead was is this going to be diplomacy under President Trump . Its the first real relationship. Escalated quickly. We saw President Trump certainly making it clear that he will follow through on some campaign promises. Whether we see this 20 tax or not, the big impact here is going to be on our agricultural products. Food, avenue rocados and other we bring across the border. U. S. Importeders are paying less, but when you enact trade tariffs like this, mexico can retaliate. And then you get this sort of trade war. It hurts economic growth. People raising the reminder that mexico is a friend and ally. In washington today, british Prime Minister theresa may will meet with the president in the oval office. Top of the agenda, trade once again. Yesterday may gave a speech to gop leaders in philadelphia at the partys annual retreated. To be invited to be the first serving head of government to address this important conference is an honor indeed. I defy any person to travel to this great country at any time and not to be inspired by its promise. May stressed she wants to renew the special relationship between the uk and the u. S. And says the two countries must always stand up for friends and allies in other democratic countries. She has invoked that special close relationship. I think on both sides they would like that metaphor. British finance minister, Philip Hammond speaking this morning on trade. He pointed out that britain will not be able to start negotiating any International Trade agreements until brexit is completed. Saying britain remains a fully engaged member of the European Union which will not happen for two years, once that clock starts on article 50. So were talking 2019. They can start to sow the seeds today. You thought you might have visibility on these issues. Not so much. President trump going after defense contractors again in an interview with fox news last night. The president said the u. S. Needs more submarines, but he wants to buy them at lower costs. Im cutting the prices of submarines. Were lacking submarines, well build new submarines, but the price is too high. Im cutting the prices way down. Were keeping an eye on shares of two companies that make submarines for the government, General Dynamics and huntington ingalls. Well have to see how they respond to the tweet risk, this time it was a tv interview. Following President Trumps meeting with theresa may, he is scheduled to speak on the phone with russian president Vladimir Putin tomorrow. The white house said it will be their first conversation since the president took office. Hes also likely to speak with an Angela Merkel tomorrow. Lots of Economic Data and a few Earnings Report on the docket. Before the bell, reports from chevron, honeywell, american airlines, General Dynamics and abbvie. On the economic front, a first read on Fourth Quarter gdp at 8 30, durable goods at that time, and 10 00, consumer sentiment. We mentioned chevrons results, landon dowdy has more on what to watch. Beyond the numbers, here are the three things to watch. First, cash flow. A key issue is what chevron will do with its excess cash. You want to listen to see if the oil giant will reinvest t use it to improve its Balance Sheet or return it to shareholders. Second, production. Chevron is expected to be the beneficiary of rising oil prices. It started off with projects in australia and angola resuming eventually. And it holds a premiere position in the west texas permian basis. Third thing to watch, capital spending. Some on wall street believe overall investments could go higher than the expected 20 billion this year. As Energy Companies feel more confident about opec and nonopec memberss curbing production in the first half of the year. Some other stocks to watch. Earnings from alphabet missing estimates. The company saw its revenue soar 22 on strength and mobile search and video advertising. Heres googles ceo on the call last night. Computing is moving from mobile first to a. I. First with more universal, ambient and intelligent commuting that you can attract naturally. All made smarter with machine learning. So Sundar Pichai on that call. The takeaway from the call, they managed to grow the search business. Growing it on mobile. We know they get paid less per click. That is the story behind the mix. Thats been the story for 15 years or Something Like that with google, costs per click going down making it up on volume. I think there was modest concern about margins and about spending levels. I think people thought maybe they would reap some further gains from a lot of these cost initiatives at the less profitable units. I think the stock ran up in a couple days beforehand. Its basically back to where it finished last week. Its not as if it was a real disappointment. I think people thought more would flow to the bottom line. Intel beating on the top and bottom lines. Results there helped by growth in its Data Center Business and a more stable pc market. Here is intels ceo on the call last night. Autonomous cars for example will generate about 4,000 gigabytes of data each day. That is creating tremendous opportunity. Intel will play a central role because our products are key to turning raw data into high value insight and information. Clearly intel is getting in the sweet spot in terms of growth when it comes to internet of things. He mentioned autonomous cars. Theres demand. Theres demand for sure. The results were somewhat encouraging. The stock has not gotten to escape velocity. Its around the 2016 highs. I think the message was basically the story remains intact. Microsofts Cloud Computing business nearly doubling its revenue for the quarter. Another Strong Quarter certainly, managing to grow this Cloud Business very strongly. Almost several quarters in a row. Thats enough to offset weakness. Tremendous momentum. Paypals Fourth Quarter sales rose, but they are offering a cautious outlook citing currency fluctuations. The stock did back off a bit after the close. Starbucks shares coming under pressure. The company posting a smaller than expected rise in Quarterly Sales blaming congestion in stores prompting some people to leave before ordering anything. Starbucks is trimming its fullyear revenue forecast. Kevin johnson on the call last night. Now when customers walk into the store, you know, we have alleviated the congestion at the point of sale line, now we have congestion at the handoff line. They might look at the number of customers around the handoff lane, the number of beverages there, that might create the signal to them that they will wait to do their transaction. We cant specifically quantify the number. We do think that was the most significant contributing factor to our 3 trying to make it seem like a good problem to have. Too many people, too many orders. The mobile order business has been growing so fast. Its an engineering issue. A traffic flow issue. 3 comps, one of the lowest in a while. Investors are adjusting to the idea of him taking over as ceo. Howard schultz will be on squawk on the street talking about that idea. Saying starbucks is best in class when it comes to operating. And if the problem is that mobile an digital is growing too fast that they have to figure it out better. This analyst and a number of others say they will. The stock is priced like a growth stock. Its been very strong since the election. Juniper network shares getting slammed. The Company Forecasting lower than expected quarterly results. And there you go. Down 8 it looks like after the market. Deal news this morning, tesco is buying uk Wholesaler Booker Group for 4. 6 billion. That deal gives the british Supermarket Chain exposure to supplying the cafe, restaurant an pub market which is growing faster than the eat at home market. Ubs reporting a drop in Fourth Quarter net profit. Results still beat forecasts thanks to a better than expected showing in its equities business. The bank is pointing to improving Investor Confidence in the u. S. At the end of 2016. Speaking to cnbc earlier today, Sergio Ermotti says that could be a sign clients are ready to get off the sidelines. We are realistic, we have data points pointing at clients and investors being more optimists and ready to be constructive about the situation. They are really looking for concrete actions by the new administration in the u. S. Ermotti says there could be momentous changes for the Financial Services sector if theres a hard brexit in the uk. When we come back, how will trumponomics play out for stocks . We dig deeper with lindsay piexta. First, a look at how the dow transports performed yesterday. The index hit alltime highs on the back of southwest having the best day in eight years. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley anything with a screen is a tv. Stream 130 live channels, plus 40,000 on demand tv shows and movies, all on the go. You can even download from your x1 dvr and watch it offline. Only xfinity gives you more to stream to any screen. Download the xfinity tv app today. Making headlines this morning, white House Press Secretary sean spicer implying that President Trump is warming up to the gops proposal of the socalled border adjustment tax, a move that would have an impact on corporations and the overall economy. Here to discuss the implications of that and other taxes getting talked about is the chief economist at steiffel fixed income. Good morning. Good morning. We have to differentiate between the border adjustment tax which is in paul ryans house gop tax plan and this idea with a border tax with mexico. First on the border tax with mexico what are the economic implications of that . Any time you talk about limiting the free flow of capital and labor across borders, its a net drag on economic growth. Both for the u. S. And mexico. Be vo obviously translate into where it hits the consumer most, the pocketbook. When we talk about tariffs, you are talking about raising the costs of goods from clothing to sneakers to computers, to automobiles. That will hit the consumer at a time when were still talking about very marginal Income Growth here in the u. S. So, on net this will take a big chunk of Discretionary Spending ability out of the u. S. Consumers hands. So on the one hand you say this might actually restrain growth in some respects if implemented. On the over hand, it has a net inflationary effect. I w i wonder how that means for how Interest Rates get sorted out in the bond market. This could be a case of stagflation. We could see moderate support to inflation at the same time reducing overall topline gdp as well as Employment Opportunities at the same time. When i talk about modest support, inflation is not out of control in the u. S. At this point. Were still talking about just about reaching that 2 target, with the feds own internal forecast not anticipating prices to go beyond that level. This could help sustain that 2 pace. But not a concern about getting a out of control price pressure into the u. S. Economy. So, where are you on Fourth Quarter gdp, which will be announced this morning and whether we can keep the momentum into what mike has been reminding us every day is usually a bumpy first quarter. Its clear as we round into the final quarter of 2016, momentum did slow noticeably from that nice bump up we saw in the Third Quarter. This is likely to leave us with an annual pace of growth around 2 for 2016. So were talking about a tenth, maybe a couple tenths of a Percentage Points what we saw from the year prior. Nothing to write home about. Many Committee Members anticipated a bump up in growth and inflation in 2016. Looking forward to 2017, again, were still talking about many of the same lingering themes. The consumer still under pressure without sizable Income Growth gains, still talking about employment at well below the needed level on a monthly basis. So you havent changed your view at all after the election, after this surge in optimism from consumers, businesses, investors, already starting to see some pretty decent data. You sound pretty negative where you were this time last year. I think were cautiously optimistic. If we look at the trump administrations proposals, there are a number of pieces in there that could very much prompt growth. When we talk about alleviating some burden and barrier on the consumer, business investment, the missing component to the recovery,