In japan and india in the u. S. Hope for moderate fed leadership mr. Powell and the arrival of a tax bill. Here in the United States, stocks also opened at historic highs. It helps tech had a monstrous month in okay. S p up 2. 3 october. Its all lopsided gains, though. Technology was up nearly 8 and its worse than that really five stocks are most of the gain, facebook, amazon, apple, google, microsoft accounted for half of the 2. 3 gain without these five stocks, s p would only be up about 1 . Sarah, thats the amazing thing about market cap weighted indexes. When the biggest names all of a sudden just move together, they move all of the indexes along. Without them s p would only be up about 1 . Sarah, back to you. That helps explain it bob, thank you for more on the markets, lets bring in our own mike santoli. Starting off november after the best month for stocks since back in february and it kicks off with another bang here. Interesting theres first of the month effect in some months. This is not exactly like some sort of energetic rush of greedy buying, just kind of that markup we get early in the month often. I do think one thing to keep in mind we have had a strong september october. That doesnt necessarily mean pull forward gains actually means better than expected returns on average for the remainder of the year in the next few months. All of that saying the bull case is more of the same. Bull case nothing new has to happen as long as the trends stay intact with profits improving. I do think one thing to keep in mind, how rare this situation is with all the Major Economies in growth mode, the fact its rare means it doesnt last forever. Its not so much as good as it gets but just exactly how long can it stay good before excesses and overheating. Got to wonder about facebook, doesnt even last through the week, though you cant help but notice 15. 5 in october for facebook. That Company Reports after the bell today with major action on the hill around its advertising policies as well how is the volume looking in some of these tech stocks. Is it convincing its going to hold i think its convincing that people genuinely want to hold these stocks we saw earning period, stocks like alphabet, was just a reminder of exactly how almost effortlessly profitable some of these big platforms are. I do think you had interesting stuff, Merrill Lynch tech overweight by active Fund Managers is at a record high people get it. They want to own almost by default. I do think there could be a perception battle for facebook whether the Business Model could stay as good as it is if they have to have change in practice. I dont think thats a today story. The perception could be today. The reality of margins is not about today. The collision between the lawmakers rhetoric and the price action today is amazing. It is. A couple of things. You mentioned excesses last hour talked about the difference between bulls and bears and sentiment. High yield. Yeah. What excesses sentiment on a shortterm basis becomes a headwind i dont think its about entire public is in love with stocks. It is about people engaged in the market are giving this market the benefit of the doubt. This year has worn away a lot of the conviction of the bears. I do think credit, its one of those things, until it turns its a net positive. Are we seeing crazy stuff happening, Companies Getting finance . I guess at the margins, yes. Other things i would look for in terms of overheating, the conversation turns toward really tight labor market dynamics, starting to see Consumer Companies have a problem with Wage Inflation on their books. Maybe even Consumer Credit stops improving. I think we probably have done all we can in terms of having Consumer Credit get better all those things may be built up as we get into next year. We have this debate every day about how much of tax reform is factored in. We sue the russell 2,000 small caps a little more sensitive to that are you surprised to see the powerful rally in light of the delay from republicans releasing their proposal not terribly surprised. Ive been saying all year its not being actively very specifically priced in i do think today was a good test of that. Were not on pins and needles exactly figuring out what and when were going to get Something Like this. Ive been also saying the moment it matters is when 2018 earnings forecasts look way too high if we dont get tax reform. Thats the toggle, i think thats the First Quarter next year. Factored into the numbers yet . Not in a very broadway, no. Not in the 2018 estimates to answer your question. What do you think is really affecting the moves that we see in these stocks now after earnings reports early on in the cycle, we saw netflix and others it seemed to be muted upside response the conventional wisdom i thought they have run so far already. Maybe not a lot of gas left in the tank then we had last week. Oh, my goodness, not only the companies that reported strong earnings and guidance ran, companies that hadnt even reported yet apple, facebook reporting this week also had a run. Whats driving that . You know, i do think its about the market refuses to fail and to pull back in a way that allows you to be patient i think at some point it kind of wears out your patience. Really its a sellers strike. Theres not a lot you know what, stocks look a little bit rich, netflix run, doubled in 12 months, how much more does it have in there. It doesnt mean somebody who owned it for 12 months wants to sell it today. I think whats going on broadly in the market, the stocks that worked are in secure hands for now. You know, look at facebook, it could go down to 155 and thats a 15 drop, and still be priced at 25 times forward earnings and still be valued as a wonderful, great growth company, right . But its not happening yet it could happen. Nothing really terribly dramatic has to happen at the company for that to happen. Another interesting mover estee lauder, up 9 , very strong report clorox sells a record amount of disinfecting wipes after the hurricane. Its being rewarded. This an Interesting Group because it has lagged the market what weve seen so far from the earnings are real signs of the Global Economic expansion and better sales. Its a combination this market is a combination of leaders leading in a big way, megacap leaders weve been talking about and this constant rotation go back and pick up something thats fallen behind too much like Consumer Staples when, in fact, seems like dynamics and markets are stabilizing, business is stabilizing. You saw with the food stocks, nobody really likes them if all of a sudden they are stabilizing and doing better than expected, thats enough. They are not getting hit by the strong dollar anymore. There are limits, though, to that ua and ge as examples. Thats right. Record low. In fact, one of the more Amazing Things about the market, up 15 at s p this year when youve had whole swaths of the market cat dpegorized as disrup, broken brands, whatever you want to call it look at media, retail, it was packaged foods before and ge, which is kind of a condplglom r that cant find its way. The money doesnt leave the market, just leaves them aside. Mike santoli, youre on fire today, as always, thank you. Related note, back on the hill testifying before Senate Intelligence our Kayla Tausche is monitoring this spicy hearing. Thats aptly described. These three executives, their day job is to defend these companies. Thats exactly what they are doing at the second day of capitol hill russianbacked contenth and advertising sought to sew chaos in the 2016 president ial election as these companies have now disclosed, well beyond that. The vice chair of this Committee Mark warner said he has not been impressed with what these companies have done so far to combat this threat, and hes proposed regulating this sector and said he wasnt confident that these companies could on their own effectively root out this illicit activity. Candidly, your first presentations were less than sufficient and showed in my mind a lack of resources, a lack of commitment, and a lack of genuine effort candidly, your Companies Know more about americans in many ways that the United States government does. The idea that you had no idea of any of this was happening strains my credibility. Already there have been a handful of homework assignments doled out to these companies by the senators sitting up on that panel at the Senate Intelligence committee. But interestingly, the conversation now has moved from the very technical, so how do you track paid political ads, to somewhat of a gray area for these companies. For instance, why did google keep russia today as a preferred account despite repeated warnings from the intelligence committee. That was a question from senator Dianne Feinstein to google, and she was not impressed with the companys answer feinstein then said she has been proud to be the senator for the state of california, the home state to Silicon Valley. She has been a wellknown tech champion but guys, she said, i must say i dont think you get it back to you. Thank youkayla, were going to talk more about that in a moment as we were talking, the president tweet add couple of things, in this case about taxes and health care. Wouldnt it be great to repeal unfair and unpopular mandate in obamacare and use those savings for further tax cuts for the middle class the house and senate should consider asap as the process of final approval moves along push biggest tax cuts ever no word from ways and means or chairman brady about how this would complicate his life the day before the rollout. Hes putting pressure on republicans. This has been one of his signature issues hes way more involved in the tax issue than the health care issue, which is why people say theres a better shot. Also, the republicans are framing this as a must do item ahead of the midterm elections next year. Clearly President Trump is piling on the pressure. The way this argument has shifted to me is just staggering who is going to pay for all this its great to talk about tax cuts republicans used to be the party of pay for, now its all about growth im going to be really interested to see how the real conservatives in the gop respond when this is on the table and the question comes is this all about dynamic scoring . Part of the answer is going to lie in where they score this and how fast the Economic Growth picture, how rosey it will look because they say thats whats going to pay ultimately for some of those big cuts. That tooth fairy better have a really big pocketbook. For more on technology on the hill today, lets bring in kara swisher, executive editor of rico good morning. How are you doing good. Once again, facebook at least is increasing the number of estimated users that were exposed to content from russian accounts how many times can they do this and how does this make them look stupid. It makes them look stupid. I dont know how else to put it. This was not a good day for especially facebook or any Tech Companies on the hill. Because one thing it seems like republicans and democrats can agree on is they are an gri at Silicon Valley that was striking to me. Both sides took a whack at each of the companies la la land was just political theater. I do think they are sending publicers to these companies and expecting something to change with them. They are good to attack at this point given the situation, i guess. Kara, i dont feel that same level of public outrage we had say during the equifax hack when people felt like their own information was koch might have had in a way that endangered them maybe thats about pocketbooks in a way people feel elections arent whats your sense, maybe just around Silicon Valley, how on the ground this issue is being digested by people i dont think they are dismissing it. I think they realize this kind of stuff has resonance this is a group of companies, especially the companies beloved by people. They have had a good reputation. They are good for changing the world, making a lot of money, all kinds of stuff i think this is not a good look for them so i dont go really think public its sort of like uber, its not good to be thrown into this kind of controversy. Boycott facebook over political ad the dumbest stuff has prompted people to want to boycott facebook or twitter or whomever, but i dont really see that in this case. Why are we talking about that thats not really the issue. This is a bad look for these companies. The u. S. Democracy thank you so much, facebook. Its not a good look no matter what and its not something they want to stick to them. I dont think if there will be boycotts or issues around their use but it does make people think in a different way about these companies. Especially underscoring of big tech and power of big tech you know more about us youre more powerful than the government these are messages that arent good messages to get out anywhere as congress bangs away at it, its a really problematic thing. It also leaves the fact what was the u. S. Government doing, although they seemed to have warned some of these companies about the problems i think this growth at any cost thing that has been going on here, which wall street cheers, is not something thats great from a Society Perspective and definitely not good from pr perspective. Now it looks like it could possibly not be good from regulatory perspective. More on that when facebook reports earnings after the bell today, kara. Great certainly the runup in the stock ahead of time looks that way. Have we gotten to the fundamental question have we gotten an answer on whether the ads on facebook and twitter and google or the post that were financed by these russian troll farms and hackers and operators worked and actually influenced and swayed the u. S. Electorate . I dont think youll ever be able to understand that. Its like saying one of the arguments they make, we dont know the impact. Its like, i dont know if advertising works. It seems to work on regular things so you cant have a business predicated on advertising and then say it didnt work for this group of people. So i dont think they will ever be able to understand what the impact was but they will start to say how many people saw it. When the numbers start to grow and they have to keep recorrecting them, thats not good its interesting, because a couple months ago they were saying, its really small. Its going to get better and youre going to find more. I liken it to termites you find one, youre going to find a lot of them you dont know until the damage is done. I think they really have to put a lot of resources into figuring out how this worked. Because its ongoing, because theres more elections every year every month theres a different election around the globe. Its not u. S. Issue but facebook, facebook and google can massive impact across the grobe and twitter also all of them do. The asked what if russia complained about cnn would twitter block cnn in russia a lot of 3d chess. I think russia i think russia did enough damage here. You know what, they used the tools we invented to hurt us so we should be able to monitor these tools and not allow that to happen. It just seems very basic to me. Kara, thanks. Well check in with you soon kara swisher joining us from out west when we come back, facebook, as we all said, reporting tonight stock hits another record high at 181 and change. Disney putting a squeeze on movie theaters ahead of next star wars release. Weve got details on that. Later on its always good to talk to steve case big tech on lta tll wel lkax reform and a lot more with the dow at 97. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Facebook set to report earnings today as the Company Returns to capitol hill to testify before the Senate Intelligence committee the stock if the green again trading at alltime highs up 60 for the year, more than 5 over the past five trading days lets bring in Senior Analyst at cow cowan. John, good morning. Good morning. With a run this strong right up into earnings, how do you handicap how well they have to do to keep it going from here . Yeah, its a great question so were a little above consensus going in, we think they could beat revenue and earnings expectations. Like you said, stock up 5 since amazon and google since last thursday and up almost 60 for the year one thing we might see and what could get it moving up if they lower op ex guide. Accelerating cost growth in the year facebooks second half has decelerated in 15 and 2016. If they lower full yore op ex growth and plus couple it with a beat you could see earnings estimates go up across the street and the stocks would continue to grind up. What if they dont . As you mentioned, over theas few years they have gone in saying we have to spend all this money, important to invest. Then we dont have to spend as much as we thought is the focus on the top line, though, and if they beat enough they dont really need to scale back on expenses and cap ex, for example, or is that cut on expenses really expected i think they might need both. I think youll see googles quarter was pretty huge last week i think youll see a taxpayer line also i think well also get the lower op ex guide. That should be enough. The one out liar is what they are doing in video ceo zuckerberg mentioned that as a huge priority for the company over the next couple of years. If they ramp investment in that, maybe thats one area where that could cause a friction point for lowering the op ex guide the company has said it plans to hire thus more people in response to what we were just talking about, the general counsel again on capitol hill facing intern feerns in the election they want to deal with this issue. What can we expect from Business Decisions and how thats going to impact the overall bottom line i think they said they have 10,000 people right now facebook addressing safety and security thats about half of their employee base. They said thats going to double by the end of next year. I think this is a wakeup call for the companies, google and twitter as well. I think they approach it via head count employees monitoring safety and security and also using Artificial Intelligence and machine learning, coupling those two to ensure the safety and eliminate the bad actors john, when you take a look at some of the proposed legislation to rein in some of the behavior from foreign actors trying to influence the way people work. Is any of it existentially threatening to these companies margins in a significant way im looking at potential redefinition of whats a qualified political advertisement online these companies having to report whose advertising, how much they are spending if they have got more, i think its 50 million unique visitors. Is any of that extreme i dont think so. I dont think it was material for any of these Companies Growth rates as you know, typically this will change over time, probably, but typically the bulk of political ad spend is on television and local tv that will change as we go along here its not material at this point. If you look at it even for facebook, almost 90 of their users are outside of the United States i heard the last guest saying this could be a global thing typically our thing is its just not that material tat this point. If they have to disclose the political advertisers, i think they will. If it kind of gets to that but just not material. The other thing i would say, we dont have margins growing the next over the next five years. We have actually margins flat for facebook and down a little bit for google. You have to believe 200 price target, a little better than 10 upside. John blackledge, Senior Analyst. He likes amazon the best. A lot of green on the screen. Dow off the highs up 89 on this first day of november. Disney lays down the law for theaters screening star wars the last jedi. Well get you some detailston that when squawk alley returns. Whuuuuuat . Rtgage offer from the bank today. You never just get one offer. Go to lendingtree. 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Julia boorstin is out west julia. Hey, jon. Disney has more negotiating power with theaters than ever, with the most anticipated star wars. Expected to be the biggest hit bringing in 500 million at the u. S. Box office and perhaps as much as 2 billion worldwide according to comes score they are securing record 65 of ticket sales from the film, up from 64 for prior star wars films and up from around 55 for a typical film disney is reportedly requiring theaters to show the movie in their largest theater for at least four weeks if a theater violates disney will charge an additional 5 of ticket sales with the u. S. Box office down over 5 , theater chains have suffered amces off the most, down 59 . Disney declined to comment on the negotiations but all the big players are expected to agree to disneys terms to have access to the expected blockbuster and concession sales they hope to generate from the crowd. Those independent theaters fiwih only one screen may opt out. Disney has the upper hand with two of the top three movies as well as this year with beauty and the beast and guardians of the galaxy authori thor is expected to be another blockbuster for the studio guys, back over to you. Fascinating to judge disneys leverage versus netflix and now exhibiters its going to be a fascinating fall thank you, julia boorstin. Normally we bring european close but going off european daylight savings time, markets will close in about an hour the close returns to this time next week. Lets get to sue herrera and get a news update this wednesday good morning again, sue. Good morning, carl. Good morning, everyone here is whats happening this hour secretary of state Rex Tillerson meeting with belgian foreign minister at the state department this morning he commented on the terror attack in new york city that killed eight people including one belgian and four argentinean citizens. We extend our condoll lenses to the family and loved ones of all the victims. This has turned out to be an International Event in terps of the victims themselves we stand in complete solidarity with belgium, argentina and these other companies against these acts of terrorism. Overseas south koreas president addressing relations with north korea in his state of the nations speech to parliament he stressed the importance of maintaining peace in the Korean Peninsula but promised to sternly respond to north korean provocations. The American Psychological association has released annual stress in america report nearly twothirds of respondents say the future of the nation is a significant source of stress for them but 72 believe the media also blows things out of proportion youre up to date. Thats the news update this hour lets send it back downtown to you. Sarah, back to you. Sue, thank you. When we come back aol founder steve case on capitol hill, hes also weigh in on tax oc arm and much more stkst record high, energy in the lead squawk alley will be right back ial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. When it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Fidelity. Not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. My name is jamir dixon and im a locafor pg e. Rk fieldman most people in the community recognize the blue trucks as pg e. My truck is something new. Its an 811 truck. When you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you dont hit them when youre digging. 811 is a free service. Im passionate about it because every time i go on the street i think about my own kids. Theyre the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then ill drive it every day of the week. Together, were building a better california. Board with a number of tech names sitting all time highs, facebook, in nvidia, apple bertha coombs. Slipped off alltime highs, but for nasdaq 100 its been an incredible year. Take a look at nasdaq 100, only 25 of those stocks are negative for the year only half of those 25 are off more than 10 for the year so it is kind of a broad participation. But you mentioned all those tech stocks at alltime highs thats certainly whats driving it facebook again here among the list ahead of earnings this afternoon. If you look at the actual weight in terms of mega caps, five stocks that provided 75 of the gains this year. Some of those stocks with spectacular gains. Nvidia, one of three chip stocks this year that doubled or nearly doubled already. We have about a dozen chip highs today. Facebook, apple, amazon. Microsoft has come into that gain this year really been a big driver of gains here on the nasdaq but it has really been the chip stocks that are driving things, not just because of those alltime highs were seeing with in nvidia but just the breadth of movement in the sector. The chip sector, which still has not taken up that alltime high from the year 2000 is now within about 6 of that move, guys. So were really seeing some historic gains now back to you. Very impressive bertha coombs. Thank you. You know whats been more impressive this year, the surge in bitcoin which got an extra shot in the arm and trading at new record highs above 6500 the latest catalyst cme announcing it would begin trading futures of bitcoin reversal, something they originally declared. By the end of the year terry duffy cme guy says there is demand, adds legitimacy, that bit counsel could go maple stream and could make it possible to prove etf. They did it with the twins last time around. This adds more liquidity to the market. People have to be careful lock chain is one thing but bitcoin is another buying solely bitcoin because you believe in blockchain is like buying pets. Com because you believe in the internet. Thats fair except the price goes up almost every single day. You recommended it at one. 1, my only recommendation to my exboyfriend. It has gone crazy. And youre married. And im married executives meantime from facebook, twitter, back on capitol hill facing tough questions how russia used their platform for last years president ial election. Later they head to the house this morning senate intels turn and Committee Members havent held back criticism. Foips, here is republican susan collins. What are you, as american companies, doing to effectively counter unpaid content posted by the russians that is clearly did he signed to specifically polarize and anger the American People i would argue that you have a special obligation here. Were looking behind the message and pinned thbehind thet at the behavior of doing that and have been successful doubling our effectiveness doing that year over year. Looking at the behavior, taking down millions of accounts every single week. Joining us now American Online cofounder and chairman and ceo of revolution steve case welcome back, steve, good to see you. Good to be with you. The companies have made the argument, at least the general counsels there, they can handle this on their own, increased transparency, monitor bad akers and try to fix this problem. Do you buy that or does there need to be more regulation i think they are now taking the issue more seriously than maybe they were a year ago thats constructive. Even probably facebook was surprised when they looked at the data i think i saw 126 Million People were exposed to some of these ads related to the election so people were, you know, a little slow off the dime dealing with the issue but now much more engaged. Usually selfregulation is the better approach. Early days internet running aol tried to do that, a lot of different issues at the same time its understandable why people in congress, needs to be more disclosure, election ads are paid for and who they are paid for just as they do that on television my guess is it will be a mix of selfregulation with major players, facebook and google in particular, taking a lead of putting rules of the road in place. Also they likely will be some legislation or regulation. Internet has now become so central in terms of every day life, its not surprising were having more and more of these kind of discussions. Exactly thats why i find this all so daunting they are focused on the election they are focused on political operatives, whether bots or trolls buying ads or posts but if you put that aside, social media, the fact that somebody used this platform, it has been a platform for hate speech and harassment and terrorists thats just going to be a problem still. How do you sort of wrap your head around all of that . Is there any fix well, again, it goes back to the reality that the internet we started and 3 online less than an hour a week. Everybody is online really throughout the day its become part of every day life as a result there are many great things that come from facebook they love what they can do in terms of connecting people and ideas and so forth there are always negatives the challenge is maximize positives and minimize negatives. It does require these companies to think less like those agile in the garage startups and more as global behemoths that have significant influence on business and culture and society and more and more stepping up to that responsibility. Theres a reason why a country like the United States of america has to act more carefully than a small country somewhere else in the world. People expect more from the United States. People expect more from the leaders in the major fortune 50 Companies Including some of the companies such as facebook and google there is a half trillion dollars or more value companies. They have billions of users and have a Significant Impact on every day life and business and commerce its not surprising theres now more scrutiny. A little bit of backlash to big tech, a little bit of a backlash to Silicon Valley. Steve, you were quoted in a profile of mark warner saying hed probably rather be focused on the issue of the future of work you your self worked on trying to spread geographic flow of capital and the rest how much of our available bandwidth as a nation are taken up by this and are other issues going to suffer as a result. To some extent, yes its now become a major issue. Senator warner working on issues around future of work and capitalism for several years because of whats happened here with this russia investigation hes had to spend lots more time on that and less time to spend on other issues. Its a serious issue, requires getting to the bottom of it, understanding what happened and why and how do you keep it from happening again. Hopefully well get through that and be able to focus on some issues, what ive called the third wave of the internet, going to have a huge impact on the workplace, huge impact how we need to think about government and regulations and also how do you back more entrepreneurs in more places is a critical ingredient heading to capitol hill to talk about, investing in opportunity act. Steve, quickly, if you can, is there anything controversial you see in this draft of the honest ads act talking about keeping a record of who is placing the ads, how much they are spending, who they are targeting and how. Why wouldnt the Companies Agree to this . I havent talk to the companies. I know they would prefer selfregulation. Obviously every company would. I dont think legislation proposed is unreasonable i think that or Something Like that will pass if the companies had acted earlier, they probably would have been able to put in place selfregulation a year or two ago. Maybe that would have been sufficient at this point a mix of continued selfregulation and also some legislation. I also want to give credit to these companies. They are dealing with these issues also i did another rise to road trip, michigan, indiana and Companies Like google opened an office in detroit with 6 or 700 employees, getting them investing in the middle of the country, jobs in the middle of the company, backing entrepreneurs with capital in the middle of the country is the way they will feel part of the future and have a more positive feeling about whats happening in Silicon Valley. Steve, hang on, if you would. We do want to talk taxes with you on capitol hill. Were awaiting the details on the republican tax bill. I want to bring in elon on what we know so far and then get your reaction what can you tell us the Sticking Point remains state and local tax reduction. Republicans from hightax states dont want to see this go away and they are threatening to vote against the tax bill in order to protect it now, one compromise that had been noted is the idea of keeping property tax reduction but getting rid of income tax reduction but i dont want the rest of the country to get a tax cut at the expense of my constituents on long island. Reporter there are still a lot of moving parts to the bill but what we determined so far the corporate rate would go down to 20 immediately it wouldnt be phased in as floated previously the top individual rate would remain at 39. 6 but income level associated with that is still being negotiated also the estate tax, that repeal would be phased in over time again, king and other House Republicans are saying they have yet to be briefed on the details of this plan, even though they are expected to vote on it within just a few weeks. This is really being kept behind closed doors, which i have no problem with if were going to have several months to debate it. The fact is its only going to be debated for a week. That makes it pretty tough. Reporter so President Trump has also tweeted he wants to see the individual mandate repealed as part of tax reform. Well see if they are able to fit that in with just one more day to go. They have got a long list a long to do list. Its going to be a long day. Y lan, take you very much. Steve case, do you think they can get it done and get it done in a pro growth way . Well see obviously a tough issue, interest groups, lobbying groups are fighting for their piece of it. Hopefully they will be able to come together in a bipartisan way and simplify the tax code, get to lower rates i think its very important to do that in a way that creates more growth and more jobs for more people and more parts of the country, which is why i support investing in opportunity act. It was introduced a year ago in a bipartisan way hope any that will be part of the tax package. Essentially says they will defer Capital Gains on investments made in some of these rise to rest cities, fuel Venture Capital. Last year 75 of Venture Capital in this country went to just three states when people talk about this last election, the country feeling left out and left behind, its because they have been left out and left behind. If youre only backing entrepreneurs in Silicon Valley, new york, boston not pittsburgh, des moines, madison, other parts of the country, given startups are the major job creators, youre not going to get the job growth and Economic Growth simplification of the tax code is important lower rates are important. We need to make sure we do that in a way that doesnt further exacerbate this divide between whats happening on the coast and whats happening in the middle of the country. Investment opportunity act hopefully will be part of the package. Youve been preaching the gospel for a while now be good to get an update from the. Steve case, joining us from d. C. Nypd holding a News Conference this morning about yesterdays deadly terror attack in new york city Contessa Brewer in Lower Manhattan with the details. Reporter just told at the News Conference they expect investigators to be on the scene collecting evidence they anticipate until at least early this evening lets get you caught up to date on injuries. The fire commissioner in new york says there were 20 victims in this attack, eight of whom died of those he says there are nine still in the hospital, three who have been released from the hospital at this point, and some of the injuries gravely serious. There will be immediate security changes that will be obvious to new yorkers. For one thing they say there will be more Police Presence in mass trans its, subway platforms and the like they say more bag checks there will be heavy weapons teams at some of the major hubs. You might expect to see that in times square or Lower Manhattan near the world trade center. The marathon is on sunday. More than 51,000 runners there and 2. 5 million spectators in the five boroughs of new york city that will do on as scheduled enhanced security presence complete with more sand trucks and blocker vehicles than they have ever deployed for the marathon they say. They are also planning to use rooftop teams, including counter sniper teams out there Governor Cuomo described the suspect in this case as a depraved coward when he was talking about the way this Investigation Continues and how new yorkers bounce back. He also took aim at some of the nasty political finger pointing that has already erupted this is not a time to have politics this is not a time to point fingers. This is not a time to find blame. Its a time to come together and work for a common goal and yet we have seen some of that plame already in capitol hill we saw trump tweeting out today blame towards new york governor Chuck Schumer over diversity visa, thats how the suspect got into the United States from uzbekistan in 2010 schumer took aim at the president as well and questioned his commitment to this nation on the heels of this terror attack. President trump, where is your leadership . The contrast between president bushs actions after 911 and President Trumps actions this morning could not be starker schumer specifically questioning some of the proposed cuts to antiterrorism funding there, john. Contessa, thank you now we head to rick santelli, give usa preview, what know, ity of the fed meetings, of course, and today well get the statement. Will there be anything there thats different rks vever know maetha moved already actually well talk about all of that after the break. Not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Scott wapner coming up today. Halftime report at the top of the hour is u. S. The best or are stocks Even Stronger abroad sell one carrier, maybe another. The call and the debate and as twitter, facebook and others take the hot seat, one says sfamy needs a shakeup that and much more top of the hour jason l. A. Times to throw a few flames around so hell do it at halftime request the request the. Cant wait. Scott wapner, see you in a fee cme e group in a few lets get the santelli exchange. Rick good morning, carl. And before we get to the main topic regarding the fed i would like to talk about the markets a bit. You know, twoyear note yields are still virtually on their high yields of the day hovering at 161 but as you move down the curve, things have changed if you see five years, they have lost two basis points, so have 7s and sos have lost three and 30s have lost three. What i find fascinating is i always like to try to be Sherlock Holmes when it comes to market moves lets look at an intraday chart or a couple of days of tenyear note yields and bunds. You noticed we moved down in yield and bunds did not respond. For the most part pretty tight correlations so what exactly is going on today that doesnt seem to be having an effect in europe well, the first notion that you arrive at, of course, is twoday fed meeting. Today is the statement, but many dont think theres going to be any surprises, but that doesnt mean traders dont get a little bit gun shy, but theres also several other stories out and right around 10 00 eastern is when we had ism. Not a stellar number, and Construction Spending had a huge negative revision. Theres talk about treasury issuance that may be bigger than some thought on the long end, but whatever it is, we want to Pay Attention to that. Now, good buy is when you get the blue side of a trading card down here and you buy something and sell it at a higher price. Then theres adiostype good buys thats what we talk about. A lot of talk about the balance sheet. Maybe we get more information on it lets be real here definitely off to a good start with regard to our fed other Central Banks are behind the curve. Ecb has cut back, but if you look at the charts that everybody has been looking at, including me for years, the reserves of Central Banks alongside the equities, they correlate, and keep in mind, these lines arent going to turn with regard to the cumulative Central Bank Balance sheets. They are just going to have less of a slope to the upside it is going to be a very long good buy, and the issue everybody is nervous about is how tight will the correlations be on the way down versus how they were on the way up . Finally, quickly, interest on reserves i would like to hear something about that at some point sara, back to you. All right rick, thank you very much. Setting up the fed dow down only 42 points. Squawk alley will be right back you always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. The way they will justify is doing a big tax cut is the to promise that it there unleash a lot of growth. If the Republican Party raises the top income tax rate, a lot of us are going to be very unhappy. No two further disparate mindsets than washington and Silicon Valley the general counsels have the Legal Backing to try to speak both languages. What will Health Policy look the ceo of papa generals pizza saying on the companys Earnings Call that the Nfl National Anthem protest is one of the reasons for the companys falling stock price, guys. Some scathing words from that ceo. The stock is down 10 . A big miss on sales a earnings they say though poor leadership, and this is an example of poor leadership at the nfl. Is this the new bad weather though because i dont get it. Youve still got to eat. Even if youre disgusted by the protest, eventually you get your appetite are back. Ratings are down. Hard to imagine that 100 of their sales are made during a game, for a game i had the same thought about hurricanes, weather, and in this case they are a sponsor and theirtize to the league may be closer to the actual restaurant. People are eating Buffalo Wild Wings instead, i dont know. Went the whole morning without talking about its la and the earnings they would get after the bell qualcomm, fire eye, shake shack. Ill be covering qualcomm, an important quarter for them they are down some 23 over the last 12 months continued pressure over relationships with apple in the future facebook, were talking about them they were up 15. 5 just last month alone. The question is have they already had their run . Is a good quarter already built in well see, and you probably noticed were well off the highs of the morning as were expecting some tax legislation tomorrow, but the question remains what happens if we dont get it then, then what tax reglation, expecting a decision from the president on the neck Federal Reserve chairman wonder if theres any surprises there around a vice chairman appointment. A fed decision to chew on later this afternoon, including parsing the statement for hints about december lets get to the half. And welcome to the halftime report. Im scott wapner our top trade this house, the home stretch with stocks breaking, even more records today. Will the final two months. Year take the rally even higher, and if so, where are the best places for your money . With us for the hour, steve weiss, john lantial, jon najarian, a full house the Market Crossing 23,500 for the first time ever. Its pulled back and the nasdaq an