Transcripts For FBC Mornings With Maria Bartiromo 20170802 :

FBC Mornings With Maria Bartiromo August 2, 2017

Shanghai composite down a quarter of a percent of the nikkei in japan up one half of 1 . Escalating tensions to report to reappear the United States will test an unarmed Ballistic Missiles today days after north koreas latest launch. Rex tillerson calling on china once again to take action. We certainly dont blame the chinese to the situation in the reappeared only North Koreans are to blame, but we do believe china has a special and unique relationship because of the significant Economic Activity to influence north korea and regime in a place no one else can. Maria the very latest developments coming out. Take a look. Set to report after the closing bell tonight. What to expect coming out. Looking at the numbers, amazon is going on a hiring spree expected to offer jobs to 50,000 people today at warehouses across the country. Getting set up for backtoschool and holiday is. When it comes to millennial debt, who has more . Men or women. Spot if i set to hit the public market. The streaming giant as 10 million subscribers in less than five months. All the stories coming out. Join a talk all about it, and Dagen Mcdowell. Market strategist kevin kelly confirmed that romney direct air, Hoover Institution Research Fellow is with us this morning. Good to have you. Thank you, good to have me on train you. This is a tendency to be in after the ceo was here yesterday. Everybody in the press was talking about how it is such a hard environment for these Cable Companies and talk about their vision for the future. It was a phenomenal interview appeared maria away from the big deal announced yesterday, which is 20 of viewership in the u. S. That is right. Business is acting in their best interest in the best interest of their customers regardless of whats going on in washington. I think we all can potentially lose focus. Certainly the other Cable Networks do that. To just get down to the brass tacks of running an operating and tiring. The economy is holding up as well. Maria today 50,000 jobs on deck. They whipped us. During the conversation from a bridge messenger founder ceos with us this morning. Plus, 32 advisers and Fox News Contributor rob are woeful way in. Free Square Market is here. Todd west in senior judicial analyst judge Andrew Napolitano. Ceo calling dunlop with a lot of emerging business as well after the Big Small Business yesterday. Top story right now is marka. Record territory once again. Dow industrials lead to open at an alltime high once again this morning. We know this because it is up 25 points, just shy of 22,000. Apple came out with much better than expected numbers. We came within 10 points at 22,000 yesterday. This will help today. Apple is up 6 right now. The stock rallied on the news or join us on a talk more about it is chief Market Strategist senior managing director tony dwyer. Good to see you. You are pretty bullish the last time you joined us. Put money into this market now. And for that. Youre about to hit alltime highs. Maria would you do it again . Are things getting how do you see it . I see little bit of a correction. We are all looking for a friend. [inaudible] what is interesting is historically volatility is very low when people look at that like a sell signal, but it not. It is actually a buy signal that is longer. When you look for a correction come you have to identify what causes a major correction. That is the current fear. You have to have a recession to be a significant seller. The sustainable seller of equities. The only thing that create that as a negative credit environment and we are so far from the negative credit environment at this point that all you say is the market can correct because it too good. The fundamentalist wing vector earnings correlates with collection of earnings. Train to a earnings up 11 . Dagen which is a major side in terms of growth rate. Too bad the backorders in Earnings Growth in six years and 2011. Just yesterday because im a nerd i was paying attention to inflation indicator. The personal expenditures that came out with 1. 4 yearoveryear. Incredibly low inflation which again gives the Federal Reserve released a little bit of wiggle room. Such a good point because it creates the length of the credit cycle that ultimately have to invert the yield curve for shortterm Interest Rates higher than longterm Interest Rates would shut down lending. You have to have the yield curve to go in recession. Its not anywhere near a diversion. Its not flap which participates. Correct. Going back to our volatility comment, when you go from where it is now to inversion, is a signal. You can have a correction. If you put the last two cycles from 100 basis point on eight to 10 spread to the inversion, the market did not attend significantly from the inversion to the bull market peak. One of the things we miss in this narrative is we have to go back to the Federal Reserve and because of the lower for longer policy, the recent rally was kicked out by janet yellen favorites are anywhere near historical novels. That means earnings are worth more. Thats why you have apple trading at 15 to 18 times earning is supposed to 12 to 15 times. It has expanded in so you cant give credit to this administration for the market highs. You have to give credit to our credit soon. The Federal Reserve low Interest Rate policies the dollar goes down 6 in the beginning of the year. You can see technology is leading the way. 47 of revenues. The economy Getting Better locally. Just for a quick sec income if you take ge out of it, the drop in earnings that would actually be closer to 13 earnings. Once its having a dramatic effect. 6 from a year ago. Maria apple has some good stuff to talk about the revenue 45. 5 billion. Earnings per share 1. 67. The companys earnings call, tim cook dodged a question about whether apple plans to build a big beautiful plant in the u. S. Donald trump has told us recounted to the wall street journal last week. The company would have some things we will say about that later in the year. Waiting on that. Cash increased in the quarter overseas. 11. 4 million were shipped. Buy phones, 41 million high foods. Good quarter. Better than we thought. We raised our estimates today. If youre worried about the economy, apple is telling you the economy is okay. Trained to your say of may 15 to 17 times. Not bad. What is happening with apple is the core focus is on trying to capitulate to the Chinese Government about encryption. Tim cook essay in six quarters ago that he focused on the Chinese Consumer because theres going to be more than the population in the United States. They have to go over there and get their sales. They fallen in china. Revenues down 14 over there because china is focused on applications. They are not focused on the hardware. They needed, and they need wealth to be created and for china to spend a lot of money. They are not doing that. The problem is you look at from apple. This isnt peak revenue. These revenues are lower than in the past. They are going to need to deliver because their expectations for the full quarter high because they need to deliver in the third and fourth quarter. Dagen but they delivered in their weakest quarter. They had the best growth in revenue in seven quarters and they actually are selling more high patent and more macs. Ipad sales they were up six flights 7 . The first time in 14 quarters. Maria said i was a surprise. A huge surprise. Up 15 because they are selling to schools and businesses. I think that shows that we always focus so much on the iphone. She admits there were up slightly. 6 , which is decent considering youre moving into the quarter before the upgrade cycle before the rollout the new iphone. The fact they are finding areas where they can sell ipad. The reason that is important is because we built this ecosystem. Everybody focused on their fitness. If you have an iphone because you are builtin to the ecosystem and services, apple music, apple tv, get an ipad. You are builtin to their system. We need to see legislation out of washington to see the market hold onto the game. They can come you pointed out in the Washington Post earlier this morning doubtless somewhat troubling. Trade to either golf i believe it. Dagen gop tax package can be delayed. Are we surprised . I wonder how much of this that we see in the market is riven by the assumption that something will happen. Apple is a ton of money parked overseas. One of the biggest attacks upon as lets figure out a way to bring the money back. I love this question because it goes to something we were talking about earlier. The market is not a because the fiscal change and expectation. Every time i give a talk to a client or a group of people, asked the question would you like for regulation and would you like for taxes . Ive yet to see him go out. The animal spirits are not about the president right now. Youre not going to have increased regulation. Knock would not increase taxes. You actually get taxcut. Dagen the market was up solely because of what my what washington might do. Trade to instead were talking about dollar 22,000. The Washington Post story does go through. It is very factbased. What does the gop what are they facing before september . Talking about having to raise the death to keep the government funded, get a budget passed in order for them to even do tax reform. That is a lot of heavy lifting if youve got marks are predicting they will have tax reform in front of the senate and voted on in november. Emmaus backpedaled that. Im talking leadership. Kevin brady ended the year. Paul ryan said end of year. I think theyll get it done because they know they have to get it done. It could be tax cuts. We need to focus that the net effect of tax rate of s p 500 companies we are all talking about is 25 or lower. What are they paying . 12 and then they are going to get a bonus by repatriating taxes by 10 , 12 . Wed taxes for Small Businesses in the American Consumer and not the s p 500. They did a study and found a few cut the Corporate Tax rate by 27 retroactive increases earnings estimates by nine points at 10 come in next year would be named by 4 . That is not my numbers. 10 seconds job number. We expect a good number friday. Thank you so much. I render friday at 8 00 p. M. Eastern. Jobs in america identifying where are the opportunities right now . Mornings with maria will be here. Well be right back. 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When a patient comes to ctca, theyre meeting a team of physicians that specialize in the management of cancer. Breast Cancer Treatment is continuing to evolve. And i would say that ctca is definitely on the cusp of those changes. Patients can be overwhelmed. We really focus on taking the time with each individual patient so they can choose the treatment appropriate for them. The care that ctca brings is the kind of care ive wanted for my patients. Being able to spend time with them, have a whole team to look after them is fantastic. I empower women with choices. Its not just picking a surgeon. Its picking the care team, and feeling secure where you are. Surround yourself with the team of Breast Cancer experts at Cancer Treatment centers of america. Visit cancercenter. Com breast Appointments Available now. Maria welcome back to two deputies recovering after being shot in california. Cheryl casone with the story. Good morning. Shot after responding to reports of a dispute on a marijuana farm. A suspect fled to a home nearby and they have been searching the home when the gunmen opened fire. Called in and fired teargas before they entered and after they enter, they found the gun man dead. Authorities trying to determine whether the suspect was shot or killed himself. Both deputies expected to recover after undergoing surgery. Meanwhile, the United States asked that day to conduct a missile test today. The Missile Launch follows last weeks recordsetting Intercontinental Ballistic Missile test by north korea. The u. S. Air force says the test is routine, the missiles have to fly 4000 miles out in the pacific. Secretary of state Rex Tillerson says the u. S. Is willing to talk with north korea. Listen to what he says. We are trying to convey to the North Koreans, we are not your enemy. We are not your threat. You are presenting an unacceptable threat to us and you have to respond. At some point they will begin to understand that you would like to sit and have a dialogue about the future that will give them security they seek. Dagen a willingness to talk if north korea agrees not to pursue nuclear weapons. Sardinia bomb administration had enacted his policy. Talks were never executed between our two countries, so we will see the story developed today. Music streaming service spot of five reportedly to go public. 20 million paid subscribers in less than year bringing the total of 16 million if you compare that to 27 million subscribers. Modifies plan to go public without doing an ipo. The streaming Service Expected before the end of this year according to reports this morning in the wall street journal. Spot if i could be a good one. We will see. Maria yeah, well see. Really good numbers. Would you think about that . This has been telegraphed before they actually had a dead come through, leading people to talk about this and they were doing a direct offering when they dont do an ipo process. They would direct listener shares on the nasdaq which led the New York Stock Exchange to change their rules. This is pretty interesting. A lot of people want to get involved because they dominated the world that actually swatted away competition like apple. [inaudible] its a different type of system. Pandora has had a lot of issues you just saw them strike a recent deal with serious accent. They are more radio as opposed to curated playlists. Its a different Business Model in a sense. Fascinating to see within the music space because the royalty payment. And if payment. Amazon now giving away music for free. It is a battleground. Maria take a break to prepare their financial future. A surprising study in how much does the one else have right now. Looking at men versus women. A breakfast treat with a twist. 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On the flipside, women carried higher Credit Scores than men, suggesting they were more responsible in paying down the debt. The survey found the gender wage gap is significant. 57 of millennial me

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