Transcripts For FBC Mornings With Maria Bartiromo 20240714

Why am i smiling, author of upcoming persuasion, lee carter is here, new mom as well. You look amazing. What a day for you to be back, too, i cant wait for calm, rational analysis of the war of words. [laughter] dagen former investment banker and nfl player. Record run, futures are pointing to, take a look, at hope this morning, 16point loss on dow futures, the earning season fully underway, jpmorgan, chase and Goldman Sachs reporting ahead of opening bell while fargo released quarterly number this hour, john, what are you watching for and what are you expecting . I think we will see fairly recent reports, you will probably see Companies Beat expectations, stilet not forget that the consensus view of Equity Analyst is in the Second Quarter we will see roughly 3 drop, we are seeing the first back to back decline by corporate earnings since early 2016, nevertheless, i dont think the current slow do you know will match the severity of global slowdown we had in 2015, 2016, so the market should be able to continue to move higher. Dagen a lot of good news the afternoon when you have markets hitting one record after another, record close yesterday, a lot has to go out you know whats helping out low Interest Rates, we have indications that Business Sales begin to pick up some speed and if i think thats the case, i think we will do well on the earnings front, we will see new record highs for aggregate estimates of corporate earnings, if thats the case with low Interest Rates, why not have record highs for equity market. Citigroup, strong u. S. Consumer banking, boost in Second Quarter, earnings and revenue beat, the stock didnt move much, had been outperforming all of the financial stocks this year, going into the report like 36, 37 . Banks are struggling with relatively flat yield curve, im a bit relieved that i see no sign in increase in Consumer Credit card delinquency rate that might create problems for that sector. Dagen tech giant facing over proposed Digital Currency libra issues related to data privacy, treasury secretary Steve Mnuchin weighing on that yesterday. The Treasury Department has expressed very serious concerns that libra can be misused by maun launders or terrorist groups, had been supported for dollars for elicit activity, tax evasion, extortion, ransom ware, elicit drugs, human trafficking, many players have attempted to use crypto currencies to fund malign behavior, this is, indeed, National Security issue. Dagen tech executives going for antitrust hearing, i will point out when you have the secretary of the treasury basically calling tout risk of libra, this new crypto currency and separately congresswoman Maxine Watters chairman of the powerful House Committee separately draft legislation to Block Facebook from operating libra, facebook said it would go live next year. You have bipartisan agreement i guess the trickiness of facebook doing this. Thats the first thing that comes to your mind, finally at least washington is coming together with a policy, but i told you before, dagen, i have had such a bad experience with these crypto currencies, like secretary mnuchin just said. Theres a lot of criminals out there that this is what they use to push their activities and you just theres not a lot of transparency right now no matter what you hear about the blockchain technology, theres so much more that need to be done from a regulatory perspective so that you can control to make sure people have have not been taken advantage of. Ive had my identity stolen and forced me to pay them in crypto. Dagen lee, its the policy of knowing. Dagen we might not be able to figure out how to regulate this and oversee this so we will just say no and take away, facebook, again, seems to be try to move pretty quickly with this. Thats right. We have seen that they dont necessarily know what theyre talking about when it comes to technology, do you remember when they talked about how do they make money, Mark Zuckerberg says, we make ads, sir. This is important technology, important to the future. Dagen facebook under so much scrutiny under because of recklessness of protecting peoples information, saying one thing and doing another. So, lee, this is for you, President Trump versus progressive democrats, both sides speaking yesterday after President Trumps tweets over the weekend, listen to this. If youre not happy here, you can leave. As far as im concerned, if you hate our country, if youre not happy here you can leave, thats what i say all of the time, thats what i said in a tweet which i guess some people think is controversial. These are people that in my opinion hate our country. Now you can say what you want but get a list of all of the statements they have made and all im saying that if theyre not happy here, they can leave. This is the president who has said grab women by the pussy, this is a president who has called black athletes, this is the president who has called black people who have come from black and brown countries, this is a president who has equated neo nazis with those who protest against them in charlottesville, this is a president who has violated the very value that our country upholds, equality under the law, religious liberty, equal protections and protections from persecution. Im not surprised at what hes doing but i also know that we are focused on making it better because we dont leave the things that we love and when we love this country, what that means is that we propose the solutions to fix it. Dagen lee, the democrats were fighting with each other, attacking one another, again alexandria ocasiocortez essentially called nancy pelosi a racist, said that nancy pelosi was criticizing these four women because of their ethnicity, because they are women of color but then President Trump gets right into the middle of this and now all the democrats are locked arms against him because tweets have been quite frankly the followup yesterday. Lee gave them a purpose opportunity, no excuse for what he said and he needs to understand the implications and he cant say he cant double down and say thats not what i meant, he needs to clarify unacceptable. If he didnt mean it that way, fine, acknowledge how much he offended people. This is something thats not okay, its not right and he needs to make it right. And this is giving perfect opportunity right now for the democrats to lock arms and have a common enemy in donald trump rather than each other, its a mess. Dagen wall street journal has a terrific editorial today about this and this is one of the lines, second line in the piece, the bond fire in the last 2 days between donald trump and democrats over who is the bigger racist or greater disgrace to the nation is new low even by recent standards, but what it does going into next year is the democrats want that election to be referendum on the president s behavior, his character and his personality. Thats right. Dagen hes giving them reasons to do that, whether to making it about the policy, i said over and over and over again, i will talk about policy all day long but not personality, but he puts everybody in this country in a position where you do wind up talking about his penalty and personality and character. Theres no way around it on an issue like this, you have to address it. I will always say that whoever is react asking the one who is losing, right now donald trump is on he his heels, hes not talking about policies or setting agenda, reacting to mistake, terrible thing that he said and that will make a mess of things. Youre right, we should be talking about policy issues, as long as things continue to happen thats what we will be talking about. Dagen you take issues about things in the past about professional Football Players and you being former professional football bayer, black man in the country, policy over personality, where do you stand . Personality its not a good thing to anyone to go back to the country, im equally as kick ed at women because to make National Crisis issues every time somebody Say Something against you and you turn your eye at the fact that our inner city and urban areas are in crisis right now. I just left east cleveland, baltimore, we are shooting each other in the streets, we are promoting gangs, we are promoting profanity, we are promoting prostitution to little girls and im talking about the top performers in the nation, thats what they are seeing, stand up against that. At some point lets take the crisis, we call the crisis at the border, what about the american crisis thats happening right now and its just at some point, man, it upsets, im tired of seeing it, the political divide, the racial divide in America Needs to stop. Dagen that was one of the issues that i raised particularly with alexandria ocasiocortez and these democratic congresswomen, is that they didnt vote for the humanitarian aid for those individuals at the border particularly children, most of it was going to health and Human Services to help individual immigrant children in the country, illegal immigrant children, she didnt ocasiocortez did not vote for that, she makes a show at the border in front of a camera and makes it a photoop and then turns that tries to turn that to her advantage, are you using the children who you didnt help, are you basically ignoring the plight of people of color in your inner cities in this country, thats the central issue, so where do we go from here policy versus personality, who steps does and actually does something about it, as you pointed out President Trump did pass the con bill. Passed more than con bill. Has given more money to black colleges than any other president in history, you can go on and look, look at what he has done. You dont stand up against that and you keep your mouth shut, thats institutionalized racism right there. Dagen final word for you, so much to cover. The billionaire versus google, peter thiel, one American City losing the stress test, whats causing the anxiety, a lot of people so anxious there, later this hour. Driverless cars. All ground personnel. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. Dagen federal judge slashing a multimillion dollar verdict against beyer and weed killer roundup. Cheryl judge reduced by 55 million from 80 millions to 25 million, california resident whose cancer was related to using roundup in his property. More than 13,000 plaintiffs who have sued over roundup, they charged that the herbicide active ingredient is unsafe. Well, staying with the theme here, judge in oklahoma is weighing whether to make Johnson Johnson pay 17 billion in a very closely watched opioid case u. Oklahoma state is suing the company claiming it created the biggest drug epidemic in u. S. History, money use today pay for treatment and cover other costs from the crisis in the state and Johnson Johnson up. This should shift the industry, we will be getting earnings from Johnson Johnson. Leaky valve, spacecraft to explode back in april, preliminary reports of the accident yesterday, spacex says its replacing parts of vehicle, model to take astronauts to International Space station, headlines from space and back here on earth on apollo 11 anniversary. So exciting. Dagen 50th anniversary of woodstock, 69. Yeah, im glad im a 60s baby, thank you, cheryl. 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I dont know who they got to design this but give them a cookie and a star. Dagen markets hitting new highs just as earning season kicked into high gear, investors preparing for a potential Interest Rate cut toward the end of this month, joining us now wealth adviser, chief investment officer, they seem perfection, but are they . You could argue that, yeah, valuation is not primary drivers of the markets these days, clearly its Interest Rates, the fact that being safe and secure is very expensive and that continues to push investors out of the yield curve, we are now facing down, you know, negative proper growth year over year, now this is the second consecutive month, we had Analysts Expect negative growth, last month companies were able to beat to a point where it was positive, this month we will see. Dagen john, we were talking about this, though, the difference in the scenario as soon as you were say to go me that the Federal Reserve acted really quickly once the yield curve inverted which has predicted every recession going 60 some odds years, the fed noticed that and said we have to do something about that because of current lending of the banks. They learned their lesson from 2006 and 2007, the yield curve curve was inverted for months in 2006 and by the time the fed responded it was too late to be of any good, i think im really happy about the fact that we are looking at the rate cut at the end of this month, end of july, by doing so the fed will bring the 10year treasury yield, and if thats the case, that does help reduce Recession Risk looking ahead. The fed responds quickly enough, we may not have a close call with recession perhaps until after 2020. What about resolution, jack, of trade fight particularly with china, do investors need to see that happen, any kind of peace, if you will, or deal . I think that investors are probably content with the on going uncertainty as long as it seems like its making progress. Where i see an issue is certainly manufacturers, some have started to reroute the Global Supply chains away from china, we are seeing lute of neighboring countries benefit as a result, some are just simply sitting on their hands and we are seeing kind of a stalemate, if you will, and i think that is probably one of the biggest risks to the market, though, it will be through the economy and not necessarily from the headlines directly itself. Jack, jack brewer has a question for you. You see so much going on, so much noise, at what point can all the political divide come in and really take effect and can Consumer Confidence last through Holiday Season in 2019 . Yeah, its remarkable. Not huge surprise, paychecks are up, jobs are plentiful, Consumer Confidence is pushing really, really high, what im not seeing is retail sales, Consumer Confidence and retail sales tend to go hand in hand and we are seeing a bit of a gap, where confidence is high and seems perhaps households are using this confidence and using the extra cash to maybe safety net so to speak and not necessarily fill americas cash registers, thats something we want to take a closer look at. Dagen we will be getting retail sales for previous months in little more than 2 hours from now, so the expectation for just 0. 1 growth month over month in overall retail sales to your point, jack, thank you so much. Thank you. Dagen good to see you, jack ablin joining us, hightech threat, peter thiel warning why google is National Security, doubling down of investigation. Johnson johnson to report this morning as it deals with fallout from Opioid Crisis, the numbers as soon as they hit. Dagen welcome back, Dagen Mcdowell in for Maria Bartiromo, tuesday july 16th, top stories at 6 30 a. M. Eastern, focus on earnings, one big morning for you coming up, dow components jpmorgan, Goldman Sachs and Johnson Johnson reporting before the opening bell as well as wells fargo, dominoes, j j out in moments, we will bring you the numbers as soon as they hit, we are expecting broadly speaking a 17 increase in earnings per share year over year but with dip in revenue, checking on markets, features futures looking for direction after record close yesterday, 3point loss on the dow future at the moment, again, fresh alltime highs yesterday. In europe lets take a look at england, france and germany, we have slight gains across the board in those countries, major gauges there and in asia overnight, mixed markets, nikkei reopening after holiday and shanghai both lower on the session, hightech threat, billionaire peter thiel doubling down because that google is National Security because of work with china, what allegations could mean Going Forward. Seattles wealth tax unconstitutional. Why Washington Court ruled against the tax hike. Cleveland coming in number 3, find out the city taking the top spot. Onto investigating google, facebook board member peter thiel calling for the cia and fbi to investigate whether chinese intelligence has infiltrated the tech giant, quote, links to china, here is what peter thiel told Tucker Carlson last night. We are trapped its indisputable that google is working with communist china but not with u. S. Military on breakthrough technology. Thats the question. I think one of explanation is they figure they have to because if they dont give it to them, the front door itll get through the back door, first answer is they have to, probably broad base of google employees that are ideologically super left wing. Dagen here is what peter thiel told Maria Bartiromo back in april. Maria so is that the most important impact, the military, in terms of the use of ai . Super important part thats not discussed enough. Big controversy last year where google employees refuse today work on project made and to use ai to help u. S. Military in various ways and i actually think that we should be grateful for them but at least surface the issue that this is a military technology and very important one for the u. S. Not the lose the race on. Joining me now is fox news senior strategic analyst chairman of the institute for the study, retired fourstar general jack keane, general, just your initial response to what peter thiel is happening about with google and potential risk with work with china. Well, certainly thats there, i share his concern, any Major Company doing business with china is subject to intellectual property theft, the fact that they were doing business with the communist Chinese Military absolutely invites penetration by the ccp of googles intellectual property and im assuming that many, many attempts took place, listen, if the chinese communists can penetrate the u. S. Defense industry which is Building Nuclear powered submarines and penetrate that, one of our most classified programs we have in the United States, believe me, they were in a fullcourt press to penetrate google, all that said, im confident that the fbi who is involved in counterintelligence is already there. Im confident the fbi has been involved with google for some time. Dagen what about also the issue that peter thiel brought up that weve raised on the very program in the past that google employees refuse today allow the company to work on project with Defense Department where they were using Artificial Intelligence to help the military, they dont believe in protecting and supporting the very individual that is protect our freedoms, freedoms that gave rise to this very company but they willingly will work in china. Yeah, i mean that is a stunning occurrence, i think its somewhat unprecedented to have a Major Company like that, its employees not want to participate in the Defense Industry and understand we have these weapons, these incredibly capable machines, why do we have them . We have them because we want to deter war and that worked post world war ii for 40 years with the soviet union and we are trying to do that now with china, we want to have military capability to prevent war from happening, why wouldnt employees of google be interested in Something Like that . Its very shallow on their part and say to look at Weapon System and saying they dont want to be part of that. Same objection from the same employees in google helped them in china communist developing military and thats stunning. Dagen i want to move onto Iranian Nuclear deal, you and senator Lindsey Graham writing a piece on the wall street journal on this, call irans bluff with offer of nuclear power. In it you write iran could be allowed in concert with their arab neighbors to operate reactors and produce nuclear power, iran wants Peaceful Nuclear power, fine, but under this plan the regime would not have the ability to enrich, reprocess or fabricate its own nuclear fuel, do you think this actually happens, general . Im involved in commercial activity to secure nuclear, the iranians have claimed for 20 plus years that theyre interested in Civil Nuclear engineer and thats why they want nuclear power, have nothing to do with weaponization, our suggestion, senator graham and myself, is when the trump team eventually sits down and i think this will happen to talk to iranians, put the deal on the table, if this is what youre truly interested in, okay, you can have Civil Nuclear energy but no enrichment, you buy it like everybody else does and we will have it inspectioned any time any place and anywhere. The arabs will do the same and i think they will comply with that, the arabs are only interested in weaponization if the iranians did it. What we are trying to do avoid, dagen, this is really important for viewers to understand, we do not want Nuclear Arms Race in the most volatile neighborhood in the world in the middle east where there has been continuous conflict, we dont want those nations there having Nuclear Weapons and fingers on those kind of buttons, that can be nightmare scenario for the world and we have to avoid that, that would be the starting point. Now, are all eyes wide open about the iranians, of course, they are, do they want Nuclear Weapons, of course, they do, we have to make certain that they dont move in that direction, lets put a deal on the table that says just that and lets see what they come up. Dagen how soon do you think that could happen, general . Ting iranians will play out all their options before they sit down with the president , i dont believe they are in a position to do that now because their playbook, you see what theyre exercising and they are busting the nuclear deal by extorting and blackmailing europeans to provide economic assistance, play that out over number of months and then they may go back if that doesnt work and i dont think it will, to military provocations which blow up in their face because we caught them on it but may go back and do that again. When they exhaust all of the options and economic sanctions continue to take hold, then i believe they are ready to talk, sometime from that yet. Dagen general, always a pleasure, thank you so much for seeing the world for us, general jack keane. Good talking to you, dagen. Dagen nice to see you, cutting flights yaws of max 737 grounding. Now the airline only expects about half of them as a result reduce flights next summer and cutting growth rate down to 3 from 7 . Well, tesla is adjusting prices in latest, 39,000 but the price of a model x is up to 85,000 and the model s80000 as tesla, global delivery, 50 from previous quarter, stock is actually lower in premarket about 1. 6 to the downside right now. Take a look at this, largest jelly fish ever found by researchers, big as human, the jelly fish is at least 5foot long, we spotted over the weekend in english channel, despite the size, supposed by poses no danger to humans but i never want to see that thing ever in the ocean anywhere near me. Those are your head iens. Dagen i saw a photo on the internet, a giant slug, no, it was like a salamander in japan. Equally creepy. Cheryl the things you see on the internet or on the show as we just witnessed. Dagen ly watch i will watch net geo all day long. With we take a look, really searching for direction this morning, so we did, waited for Johnson Johnson earnings, we have jpmorgan on deck as well, Goldman Sachs is coming up, wells fargo, wells fargo still looking for a ceo, thats going to be critical, lauren, weve got the numbers, what do you see . Lauren Johnson Johnson is dow component stock is moving 1. 95 to the upside better than expected, Earnings Report if you look at the bottom line, 258 versus expectation of 2. 46 a share, revenue also beat here, dagen, 20. 5 billion versus the estimate of 20. 29 billion, it seems that investors are optimistic about the diversification of pipeline, but that might be overshadowing some of the big legal cases that they are battling right now, on the one hand the talc powder, bloomberg is reporting that the department of justice pursuing case and you also have potentially 17 and a half billion dollar suit by the state of oklahoma that wants j j to be held accountable. Can you repeat that in my ears, producers . They raised sales guidance, having said raising sales guidance, dagen, it is not up as much as it was, looking for a gain of half percent right now. Dagen right, again, the lit ration risk will continue to be an overhang as you pointed out that refuse to go settle with the Oklahoma Attorney general in the case seek to go hold Johnson Johnson partially responsible for Opioid Crisis, thank you for that, weve got a beat on top line and Sales Forecast increase and certainly some good news coming from that major drug maker. Coming up, big banks in focus, we will have the numbers and more analysis after the break, and its time to chill out, one American City losing stress test, whats causing all of the anxiety in one city coming up. Most people think a button is just a button. That a speaker is just a speaker. Or that the journey cant be the destination. Most people havent driven a lincoln. Discover the lincoln approach to craftsmanship at the lincoln summer invitation. Right now, get 0 apr on all 2019 lincoln vehicles plus no payments for up to 90 days. Only at your lincoln dealer. Dagen we are standing by for jpmorgan earnings, joining me cfra director of Equity Research ken, ken, good to see you first and foremost, we will go the Lauren Simonetti when the numbers come out. But yesterday the numbers were fairly good from citigroup, is this to be expected from all major banks, Goldman Sachs is up later this morning. Well, we came into this week, markets obviously down, the comps very challenging, the business related to lend asking really good, both on lending and card business, the other issue with citi had to do with global picture and for them its more of a snapshot of asia and latin america, generally better than what we thought but concerns about asia, when you look at goldman and jpmorgan, about 70 of their businesses u. S. And europe so theres going to be more questions related to europe. Dagen to point out, i think, going into today, jpmorgan stock was almost up 17 , 16. 7 , underperforming the financial et, if that we all follow, xls underperforming a little bit by 1 and a half Percentage Points but nonetheless thats still a pretty strong run, not quite as good as the broad market but nevertheless when youre looking at a performance in a stock like that particularly with the yield curve inverted which makes it harder for banks to lend money and make money on that lending, thats pretty good. So when we look at these stocks, essentially they were really way behind up until a month ago and we had the Federal Reserve with capital plans, that has been terrific. Dagen lauren, you the numbers. Lauren i do, the bottom line better than expected, 282 a share for jpmorgan, the estimate was 2. 50, the stock is reacting up twothirds of 1 , 114. 65 a share, the managed revenue in the quarter, 29. 6 billion, dagen, i continue to look into this report but jpmorgan ceo, jamie dimon continues to see positive momentum with the u. S. Consumer and thats a theme that we have seen or expect to see with the banks, you know, with citi yesterday the consume certify strong, how is the Business Climate particularly with trade spat with china, continue to dig through this report, so far nice beat on the bottom line and positive comments from jamie dimon on consumer, dagen. Dagen im looking at the comments from jpmorgan, going through the numbers, but broadly speaking on the bottom line thats a nice beat on earnings per share. It was a beat on earnings and on revenue and maybe theyre getting a bigger share of the wallet as it relates to a smaller underwriting business and trading, of course, a wild card until i can see the numbers. Dagen right, lauren, youre looking at the numbers, do we have the trading numbers yet . I will go through the headlines, but, again, this is a company that continues to execute in terms of lauren dagen, fixed income revenue, this is a number to watch, it was down 3 , i believe they were looking for a number of 3. 7 billion and we think the number came year over year down 3 for that. So we have that number. Dagen thank you, lauren, just keep looking at those numbers, ken, strong consumer and this does speak to Overall Health which is what john was talking about the u. S. Economy, does it not . The consumer is strong, theres been increase in discretionary spending, thats from the fed, Mortgage Rates are still coming down, theres confidence, theres job growth, and higher job to income, this relates to stronger for the card business and also for home equity loans, affordability is making it very good for the consumer and jpmorgan is a little bit more u. S. Centric than what we saw with citi. When you saw longerterm rates coming down in the spring, refinancing activity went through the roof broadly speaking. Yeah, you get in the conversation about the inverted yield curve and spreads, but whats happening is with large franchise like jpmorgan, theyre increasing accounts both for Wealth Management and for the consumer so overnight float, i would say that in terms of their Net Interest Income which is 50 of their total revenue, youre going to see a print probably flat to positive even though we are seeing lower rates. Dagen ken, we will see you later in the show, thank you for being here, ken leon, we have more coming up. Stay with us. This thing is beautiful. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Dagen headlines across america this morning, la times reporting explosion and gas Company Worker killed in blast yesterday, happened as Southern California gas company responding to report of damaged gas line that contractor had been working on. Seattle times writing this, state court of appeals rules seattles wealth tax unconstitutional that gives cities new leeway, the law should remain off the books for now but seattle and other cities can tax net income as a matter of law, washington is one of few states without a graduated income tax or any income tax, the court saying that while the measure does violate the ban on citys taxing net income the ban itself is constitute unconstitutional. By the way, real estate taxes are wealth taxes because its, quote, idle wealth, and the Detroit Free Press says, detroit is americas most stressed out city, here is why, detroit wins this way, things like workweek, debt, divorce and suicide. The city being compare today more than 180 other cities taking the top spot for health and safety stress, detroit has unusually high suicide rate as well, second leading cause of death for 15 to 23 years of age, jack, thats exactly the kind of thing that youre talking about. Yes, it is, its sad to see some of these democraticran cities and really when you look deep how they are running its really sad to see america really in a crisis. Dagen thank you, jack, more ahead on earnings, we will weve heard from Johnson Johnson, jpmorgan, Goldman Sachs, wells fargo coming up right here. vo the ant mindlessly marches on. Carrying up to 50 times its body weight. It never questions the tasks at hand. But this year, theres a more thrilling path to follow. father kids. Change of plans vo defy the laws of human nature. At the summer of audi sales event get exceptional offers now . Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. Dagen good morning. Im Dagen Mcdowell, in for Maria Bartiromo. Its tuesday, july 16th. Your top stories at 7 00 a. M. Eastern. Earnings in focus, blue chips Johnson Johnson johnson and jn reporting in the last hour. Take a look at the performance of the stocks. Both beating expectations, Johnson Johnson has a slight gain there. Jp morgan down about 1 andahalf percent, roughly. Issue there is jp morgan going into this report, that stock was up nearly 17 . That slight underperformed mans of the broad market and financial sector, nevertheless investors were wanting more, clearly. Maybe that will change as the morning moves on. Later this hour, we hear from Goldman Sachs, take a look at the stock premarket right now. Lets check on your futures across the board. The dow futures are down 13 points, clearly pulled slightly lower by jp morgan. The s p 500 lower as well. This follows another day of records for the dow, nasdaq and s p, closing at fresh alltime highs yesterday. In europe, you have some buying to speak of in england and france, a slight loss on the dax in germany. In asia overnight, markets mixed. The hang seng and kospi in south korea moving up slightly. Probing big tech, the senate looking into facebooks proposed cryptocurrency libra, this as other lawmakers question leaders of big tech companies, apple, amazon, google and facebook, asking if they pose a threat to competition. And the 2020 race, billionaire investors and trump supporter peter teal says this is one democratic president ial candidate he is most concerned about. Who is it and why . Find out ahead. And amazon prime day continues, the big sales event entering its second day. What it could mean for the stock and its competitors who are also running special deals. Here to break it down with me, pollster, the president and author of persuasion, the book, lee carter, good to see you. Great to be here. Dagen the brewer group ceo, former investment banker, jack brewer and moodys Capital Market chief economist john lonski. So much to discuss. Good to see you, john. Same here. Dagen nice to have you on the panel. Lee, lets talk about were watching earnings, these are big consumer companies, particularly Jp Morgan Says ill look at the headline. Jp morgan sees positive momentum with the u. S. Consumer. We have retail sales out in about an hour andahalf. Broadly speaking, the consumer is healthy. But this doesnt really dovetail with the narrative the democrats are crafting, going into 2020. You know, i think itses fascinating watching the democrats narrative on the economy. Last year we heard a lot about how it was the economy was false, it was being propped up, it wasnt necessarily going to last. As were seeing that its lasting, the recession isnt coming, weve seen a shift in the narrative. What theyre now saying is, yes, the economy is strong but its not strong for the American Consumer, for the everyman. Its helping companies, helping the wealthy, but not helping people like us. Were hearing that message continue. Yet, its not being borne out. What were hearing, jamie die monday was talking about the dimon was talking about the positive momentum with the American Consumer, talking about how the American Consumer is strong. Looking at polling on Consumer Confidence, the momentum continues to grow. We see people are more confident in the economy than weve seen in a long time. If you look back two years, three years ago, the numbers were nowhere near as high. So what is the truth . Is the truth that the economy really is that strong or are the democrats placing doubt when maybe there shouldnt be any . Dagen theres having to do data mining to come up with quantitative evidence, i think, that the u. S. Consumer is not benefiting from this very broad expansion. One of certainly the longest on record that weve seen. But i want to point out with john, to lees point, heres a greg ipp column from the journal last week, a record expansion surprise winners, the low skilled, as unemployment remains near generation lows. This is the lowest Unemployment Rate in my lifetime, or close to it, were at 3. 7 . I think the low of the cycle is 3. 6 . The fortunes of low wage workers have improved markedly, nonsupervisory employees wages growing the fastest pace in a decade. Nonsupervisory employees have seen wages grow even faster. Its common sense. If you have a low Unemployment Rate, in some areas youre running out of workers so you have no choice but to give low income people that maybe havent had a job in a while this opportunity to go ahead and get to work, to become employed. This is a fantastic thing. I can almost guarantee you that if the Unemployment Rate declines further, lower income americans are going to benefit more. Dagen to your point, jack, where people are still struggling is in urban areas that are governed locally by democrats. But you dont hear that. People hear it from you, but not from people running for the white house. That is sad. Because as you said, when you have a consumer that at the bottom is starting to rise up a little bit and to feed their families and a lot of these people dont have te have the educational wherewithal as a lot of other folks do. To your point about democrats running these cities and towns a and villages, im doing a study right now of the top 10 cities who are going through violence, going through prostitution, drug use, and locking up men left and right and i can tell you that every single one of them is ran by a democrat. And so weve got to really start looking deeper at these policies. Dagen indeed. Were going to talk more about that as the show moves on. To our top story this hour, made in america, President Trump hosting his annual made in America Showcase at the white house yesterday. The president touting the American Workforce and announcing a you new executive order to boost american manufacturing. Listen to this. You make your product in america, you have a much better chance of getting the deal. Today im pleased to announce that we will begin our buy american requirements but even stronger. Currently a product can be 50 foreign and it still counts as american made. Figure that one out. In just a few moments i will sign an executive order, that will eventually raise these standards up to 75 and above o that dough miss particular goods have to have 75 american. And 95 for things such as iron and steel. The philosophy of my administration is simple. If we can build it, grow it, or make it in the United States, we will. Dagen the executive order coming amid the ongoing trade battle with china. Joining me now new york congressman, tom reed. Good to see you. Your reaction to President Trumps order on making more products in the United States . I think President Trump is setting the right policy and the right tone. Theres a huge opportunity before us. As you see the contraction in china and you see the movement of manufacturing operations out of china, we need to make sure americas competitive so the choice for u. S. Manufacturers is to build in america. Thats the opportunity before us. Dagen and in terms of building in america, that would be north america, lets a talk about the usmca, that trade deal that was negotiated by the Trump Administration between canada and mexico. Whats the state of that in terms of approval in the house of representatives . When and if will that happen . If it was on the floor, i am very confident in telling you, we have the votes to pass it. We have the votes in the senate to pass it. Its up to one person and that is speaker pelosi. She has the on or off switch in her hand. Shes the barrier. Youre going to have to speak with her. Were going to have to put pressure on her office to say get this done, its the right thing for the american worker. Dagen does the war of words we witnessed in the last few days get in the way of that . President trump going head to head with progressive democrats, both sides speaking out yesterday following the president s controversial tweet storm over the weekend. Listen to this and then ill get your reaction. If youre not happy here, then you can leave. As far as im concerned, if you hate our country, if youre not happy here, you can leave. And thats what i say all the time. Thats what i said in a tweet which i guess some people think is controversial. A lot of people love it, by the way. Ill always refer to him as the occupant as he is only occupying space. This is a president who has openly violated the very value our country aspicer to uphold aspires to uphold. This president operates in complete bad faith. Weak minds and leaders challenge loyalty to our country in order to avoid challenging and debating the policy. I heard house leadership, many of my colleagues to take action to impeach this lawless president today. Dagen democrats now introducing a resolution to condemn the president s comments. Congressman, your reaction . Well, you know, obviously the rhetoric is not good on both sides. The problem that i see is extremeism. This Extremist Movement on the left that is taking over the Democratic Party is blocking, theyre engaging in more rhetoric, engaging in this escalation of words. At the end of the day, who loses in that battle is the american people. For things like the mexico, canada deal, for things like continuing to reducing regulations, reducing taxes so were competitive on the world stage. That should be where we join together. The fight on the extreme left is going to continue, its going to get worse. Weve got to send a message. Were not here to listen to a bunch of extremists, were here to listen to the american people. Dagen were you bothered by the president s rhetoric . Any time you escalate the rhetoric higher on both sides, you should try to avoid that. What the president is saying, its a fundamental position. If you dont like america, if you dont want to be part of americas future, then you can leave. Thats a clear statement that so many people across the country have expressed to me as well as individuals in daytoday conversation. Dagen as the wall street journal points out and others, that catholics have heard, go back to where you came from, irish, germans, il italians, chinese, japanese, and more recently, mexican americans, go back to where you came from. People find it offensive. I would agree with that. Thats rhetoric i disagree with vehemently. Thats not something i would say. Its something i dont agree with. Having the choice to stand by america and be proud of america and say that we are the greatest country thats ever existed on the face of the earth as opposed to challenging america, saying were the cause of all the problems around the world, i heard this rhetoric. Its dangerous. Its dangerous for generations in the future, if they believe america is the bad guy, not the good guy. Dagen for democrats and people on the left who are upset by what the president said, they should call out some of the rhetoric from the far left, equally lousy, like the antisemitism. Thats the point. The extremeism is taking over the conversation in dc. You should condemn it on both sides. I condemn that statement by the president in regards to return to that country you came from. But at the end of the day, i agree with the president in regards to stand by america. Be proud of america. Americas done so much for people around the world. We should be proud of her each and every day. Dagen the irony is that the president ran on make America Great again. And people who speak out on improving america, maybe they might be on the left, many of them certainly they want to theyre pinpointing things they want to improve. So theres actually unity in that but we just cant seem to get our arms around it. Thank you, congressman, good to see you. Good to see you. Dagen coming up, prime strategy, amazons new revenue stream, while walmart and target are struggling to keep up. Its not about discounts, its about getting you to sign up for prime. Earnings recap, jp morgan just reporting, goldman and wells fargo are out within the next hour. Jp morgan, stock down about 1 andahalf percent. Well be right back. Are we out of the woods yet. Are we out of the woods yet. Are we out of the woods. Are we in the clear yet. Award winning interface. Award winning design. Award winning engine. The volvo xc90. The most awarded luxury suv of the century. Dagen Jp Morgan Chase reporting better than expected quarterly results. Cheryl casone has more details on this. Cheryl taking a look at the numbers. They posted a profit, 282 a share, that beat the estimate for 250. Revenue also topped expectations. The Net Interest Income jumped 7 . Equity markets revenue fell by 12 . The stock is down in the premarket a little more than 1 and a quarter percent. Theres jp morgan. Wells fargo set to report their Second Quarter results before the bell as well. The bank expected to post a profit of 1. 15, thats up about 7 from a year ago. Were waiting. Theres wells fargo in the premarket, slightly lower. Were waiting on wells fargo. Another headline were watching this morning for you. Hispanics buying more homes than any ethnic grou group in the und states. The Home Ownership rate for hispanics jumped 3. 3 Percentage Points since the year 2015. And 50 years ago today millions of people around the world watched as america launched apollo 11. The saturn 5 rocket blasted off carrying neil armstrong, buzz aldrin and Michael Collins to the moon. Four days later, they were the first people to set foot on the moon. Crew safely returned to earth after eight days. History was made. We celebrate that today, 50 years. Dagen a shoutout to buzz aldrin, hes the only person we let walk off the set with a mornings with maria mug. Cheryl thats right. I forgot about that. Dagen he had it and he walked out of the studio and were like okay, its buzz aldrin. Cheryl of all the people that came on the show, he got a lot of attention. People worshiped him. Dagen superstar. Facebook under pressure, treasury secretary Steve Mnuchin laying out cryptocurrency concerns. What he said, next. Plus, mickeys ears are ringing. Disney may be keeping tabs on is visitors. Details ahead. I knew it when i met you. Im not going to let you run. Limu emu doug what do all these people have in common, limu . [ paper rustling ] exactly, nothing. Theyre completely different people, thats why they need customized Car Insurance from Liberty Mutual. Theyll only pay for what they need [ gargling ] [ coins hitting the desk ] yes, and they could save a ton. Youve done it again, limu. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Cant see what it is yet. Re . What is that . Thats a blazer . Thats a chevy blazer . Aww, this is dope. This thing is beautiful. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. Were changing whats possible every single day. , but what does changing whats possible mean anyway . Well. If you run a business, it means a lot. For starters, we provide you with Financing Options for your customers. That way, you can help them buy the things they love instantly and pay over time. And that turns them into serious fans. Hang on, theres more. Want Customer Insights . Weve got those, too. We use data to show you what your shoppers have already bought so we can tell you what they might consider buying next. And you can offer them the perfect products. That ceo gets it. From adding unique capabilities to your companys apps to bringing you loyalty programs, our financial and Tech Solutions are changing whats possible in all sorts of ways. So, how can we change whats possible for you . Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Dagen facebook on capitol hill, the social media giant facing lawmakers on the Senate Banking committee today over the companys proposed Digital Currency, libra, and issues related to data privacy. Treasury secretary Steven Mnuchin weighing in on the cryptocurrency yesterday. The Treasury Department has expressed very serious concerns that libra could be misused by money launderers and terrorist financeiers. Cryptocurrencys have been exploited to support billions of dollars of Illicit Activity like cyber crime, tax evasion, extortion, ransomware, illicit drugs, human trafficking. Many players have attempted to use cryptocurrencies to fund their maligned behavior. This is indeed a National Security issue. Dagen tech executives also set to go before a house panel today for an antitrust hearing. Joining us now, metaphors cofounder, adam allenson. Its as if lawmakers just woke up to the fact that oh, these companies have a lot of power and we might want to do something about it. They have a lot of power with cryptocurrency. If your Computer System gets hacked, they dont say well, just give me your American Express number and well let you back in. Clearly, theres an issue with cryptocurrency and we need guardrails before we get too far down that road. Dagen how do they put up the guardrails, what are you expecting to see . What is going to come out of washington and how much would libra be delayed do you think . Its a balancing act. Someone is going to do a cryptocurrency. It is going to become big. The trick is to do it with some control, without letting it be where it is today which is the choice of currency for people who want to do less than terrific things sometimes. Dagen do you think the way that facebook has gone about this and the way they tried to construct it should alleviate concerns . Im sure theyre trying to and im sure thats the goal. Theyve got the scale to do it. But their past with their growth in their social media and some of the short cuts they may or may not have taken make them a potential risk that you want them to be a little more controlled than when they launched social media in this country. Allen, ive been personally extorted through bitcoin, had my identity stolen. I looked into some of these issues. But Block Chain Technology can be applied to so many different things, not just bitcoin and cryptocurrencies. But my question is, how can you regulate something thats so global, right, because theres just its not like were dealing with something in american currency. How in the world are they going to be able to do that . Well, they have to. Currencies are global. When you charge either visa card in a country, you have to have confidence that that transaction is secure, your identity is secure. Its a cost of entry for the category. How do you identify the people to make sure the bad guys arent the ones who are doing these transactions. I think its a chicken and mouse game. For every safeguard we put in im im sure theyll figure out how to hack it. Weve got to start out out with a pretty tight safe, with a more than a simple your birthday combination. Dagen right. I want to move on to amazon prime day, part deux. Other retailers cutting deals, trying to compete. For amazon its about more than sales. The wall street journal, this is one of the top stories on the papers website, the piece is the one day amazon prime day deal that walmart and target cant match and its amazon customers signing up for prime. And that is an incredible recurring revenue stream that theyre growing because of this twoday sale. Its about building the brand. Anyone can offer a great deal on any day but the more people you get signed up for prime, you do what we call in marketing create a frictionless situation. You can buy things easily. More importantly, you can return things quickly. Once youve got that frictionless option, you look at most households today, theres as many boxes going back as there is coming in. Once you create, that looks interesting, let me try that out, you open up a phenomenal powerful brand. Dagen this is lees wheelhouse, from marketing. I was making a joke yesterday but the prime day is Like Old School call to action marketing, get it while supplies last, buy now, now, now, like crazy eddie. Its totally that. Its been fascinating to watch and see how the competitors are trying to match up. You see far ge target went out e and said we dont require membership. Anybody can get it. The question is, who is winning . A lot of people are saying target deals are good but amazon gets the recurring customer, they get people in. Amazon owns the day. Its now amazon prime day. So i think its a really fascinating thing to watch and how were seeing such a different model. Yeah, amazon is the 800pound gorilla. Theres some other big players. But the notion that you can take a customer and say heres a great deal and its called the loss leader, now buy something else. With amazon theyre not trying to get you to buy something else. Theyre trying to get you locked into their system. Yet they are. I would love to know what the average amazon prime member has spent in the last 24 hours. Im seeing on social media all of these folks are posting, did you get this deal, did you get this deal and people are buying air fryers and all kinds of things they dont need. Dagen i would like to return the bag of groceries i bought from whole foods on sunday because a lot of it was molded. Im looking at Goldman Sachs earnings. Looks like a beat, ashley. Ashley lets start with the headline numbers, dagen. Earnings per share coming in on a diluted basis, 5. 81, 5. 81, easily beating the 4. 89 estimates. On the revenue side, coming in at almost 9. 5 billion, 9. 46 billion, better than the estimate of 8. 83 billion. That is the good news. The headline numbers beating wall street. When you dig down a little bit, you see that on a year to year basis, comparison, the numbers are down. Fixed income, currency and commodities generating 1. 47 billion in this Second Quarter for Goldman Sachs. That is down a whopping 13 from the same quarter last year. Also looking at investment banking, coming in at 1. 86 billion, that is down 9 year over year. So these comps compared to the Second Quarter of last year, not looking good even though the headline numbers are. What else do we have here . Net revenues and equities, 6 higher than the same period last year. Operating expenses, flat year over year. So be interesting to see how all of this is digested in the premarket. Its essentially flat, up 42cents. We have a quote from the ceo, mr. Solomon, saying we are encouraged by the results for the first half of the year as we continue to invest in new businesses and growth, given the strength of our client franchise, he says, we are well positioned to benefit from a growing Global Economy. But again, headline numbers great but those comps year over year not so good. Goldman sachs as you can see in premarket just ticking slightly higher. Dagen ashley, thank you for that. I want to thank ad adam allenson for joining us. We covered a lot of ground. Thank you so much. The border crisis, the Trump Administration taking new action to help address the flow of my grants from central america. The details, straight ahead. Lick fast like a cookie dough ninja. Apply that same speed to the ford hurry up and save sales event. For the First Time Ever get 20 estimated savings on select ford models, plus earn complimentary maintenance through fordpass rewards. It all adds up. Dont you love math . So get here asap because tasty deals and summer go fast. Get in or lose out on 20 estimated savings on select ford models, plus earn complimentary maintenance through fordpass rewards. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. No matter what you trade, at fidelity my ideal cloud . It has to work like air traffic control. Its gotta let new data integrate with data from our existing systems. Be able to pull from reservation platforms built 20 years ago. And also be able to use apps to book superpersonalized trips on shiny new phones from the future. Plus, i need freedom to move my workloads wherever, whenever but manage it all from right here. And thats the cloud i want. Simple, right . Expect more from your cloud. Ibm cloud. Dagen welcome back. Im Dagen Mcdowell, in for Maria Bartiromo. Its tuesday, july 16th. Your top stories at 7 30 a. M. Eastern. Earnings in focus, Goldman Sachs just out with a double beat and goldman has raised its dividend. You heard that right. Goldman sachs raising its Quarterly Dividend to 1. 25 a share. Probably giving the stock a little bit of a lift. Johnson johnson and jp morgan also out last hour, both of those Companies Beating expectations. Jp morgans stock is about 1 andahalf percent lower. Johnson johnson gaining in premarket trading. Wells fargo earnings out shortly. In the next hour, we will have the numbers. Checking on markets, fe futurese looking for a positive open. The dow futures up 19 points at the moment. Yesterday, another round of records for all three major market gauges here in the u. S. In europe, you have buying to report. Gains across the board. The biggest winner at the moment, the ftse 100, up almost half of 1 . In asia overnight, mixed markets. The nikkei and shanghai lower, the reverse in hong kong and south korea. A new privacy concern, disneyland reportedly keeping tabs on its visitors and profiting from the data. The details on that. Plus, the growing business of marijuana, the ceo of the company that has signed jayz as its chief brand strategist. We have tweets from President Trump to get to right now. The president tweeting about the democratic congresswomen that hes been feuding with, writing this. The democrat congresswomen who have been spewing some of the most vile, hateful and disgusting things, they get a free pass and a big embrace from the democrat party. Horrible antiisrael, antiusa, pro terrorist and public shouting of the f word, among many other terrible things and the petrified dems run for the hills. Why havent is house voting to reabout threbute the things the . Because theyre the radical left and the democrats are afraid to take them on. Sad. Exclamation point. Lee, hes not giving this up. Hes going to keep hammering and hammering this. Hes not going to stop. No, hes not. He cant stop himself. This is a moment where he needs to. This is like going to take over our conversations, this is all were going to be talking about. Were not going to be talking about anything positive. Well be talking about this. He needs to stop it. He needs to say that what he said was wrong and we need to move forward because this is a mess. Hes digging a deeper hole. Thats the first rule, like you have to stop digging the hole. Dagen ill talk about policy, not personality. Is next year going to be a referendum on the president s character and behavior . Hes giving the democrats ammunition. Hes giving them complete ammunition. He needs to stop. We should be talking about things like the economy, Consumer Confidence, other things. Dagen or the border crisis. Lets talk about that and policy. The Trump Administration issuing a new asylum rule, it requires migrants trying to enter the u. S. Through the southern border to seek asylum in the first country they cross through. Migrants will no longer be allowed to apply for protections in the u. S. If they fail to do so in another country. President trump weighing in on this yesterday. We protect other peoples borders but we dont want to protect our own border. We would fight for the right of other countries to have a strong, powerful border so nobody can come in. But our border was like a leaking sive. Dagen the aclu threatening lawsuits over the changes. Joining me now is the former acting i. C. E. Director, john sandwig. Good to see you, john. The president is having to act in this way because congress will not close some of the loopholes. Will it stand a test in court . I think well find out pretty quickly. I suspect aclu lawyers were working pretty hard last night on a complaint. The rule will go into effect today. It will be interesting to see what impact that has at the border. I anticipate there will be litigation filed pretty quickly. Well see if a court issues an injunction or not. Dagen would this move, though, john, will it help alleviate the illegal immigration problem, the overwhelming problem that were experiencing right now at the border . I mean, in terms of whats going to happen at the border, i think it would probably lighten some of the pressure. The issue isnt the number of people. Believe it or not, the Border Patrol handled more people with fewer resources. The issue is the time it takes to process these individuals and send them back to their home country. Because theyre making asylum claims, that triggers a whole bunch of legal reviews that ultimately ends up in a hearing before an administration judge. What the administration is trying to do is shorten the length of time, that will allow the border a patrol to process people more quickly and avoid the backlogs that avoid in overcrowding. Dagen do you expect anything to happen coming out of congress, john, in terms of im got a long list i keep of things that need to be done, in terms of making it easier to deport unaccompanied minors back to noncontiguous countries. That was a law that was passed that made it more difficult to send those young people, those minors back. That was a law that was passed at the end of 2008 before president obama was inaugurated. Thats just one of the things. But then, again, tighten the standards for asylum claims, again, the credible fear of persecution is the current standard and its a low bar. It is. And thats what triggers the legal reviews, that triggers the delays. If anyone is banking on congress to do anything, they ought to look somewhere else for a solution to this. Theres not going to be a congressional solution. Weve been trying to get immigration legislation passed for 15, 20 years now. Congress just isnt capable of passing immigration legislation. Personally, i think what we ought to do is look at the surging resources and get the claims processed quickly so we can apply the rule of law at the border. I think we can do that through resources, especially with immigration courts. It will be interesting to see the impact of the rule, interesting to see if it goes into effect. I have no hope that congress is going to do anything anytime soon. Dagen what about, do we need more of the Immigration Law judge as well . We do. You i mean, listen, i know that i think it rank les the president a little bit. Collectively, we as a country neglected the immigration courts. Theyre essential in terms of enforcing you laws in the interior of the United States. We have 11. 5 million undocumented immigrants. Thats the single biggest impediment to i. C. E. It remains the biggest impediment. We have over 1 million cases with 350 judges. An investment there makes a tremendous amount of sense. The administration increased the number of beds, not enough to keep up with the overall numbers of the problem. Dagen you said 350 judges handling 1 million cases . Ballpark, yeah. Dagen thats astonishing. It is. Thats why you have the backlog. I get where people are frustrated by the asylum seekers. I look at it more pragmatically. I recognize that as long as the United States is the United States, well be a magnet drawing people into the country because of we guarantee safety and economic opportunity. But we have a process in place that actually works. I know that theres a lot of frustration, Congress Wont change the laws but were not implementing the current process simply because were overwhelmed and having roughly 1 million cases backlogged with 350 judges its not a surprise if you come to the country make an asylum claim it would be three to four years potentially before your asylum claim is heard because the judges cant keep up with the flow. Dagen john, thank you so much. Please come back. Terrific discussion. Thank you again. Coming up, weighing in on 2020, peter teal talking about the candidates. Who he finds inspiring and a little scary. Plus, mickeys listening. Disney keeping tank keep tabs o. Sounds like what the casinos started doing years ago. Why your data is so important, later this hour. Its a little too loud on the highway. I want to pull back in your driveway. Its way too quiet at my place. Come on over. The songwriting. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for auto insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. Content on their endless quest, to nowhere. S, run hopelessly in their cage. But perhaps this year, a more exhilarating endeavor awaits. Defy the laws of human nature,at the summer of audi sales event. Get exceptional offers now. With sofi, get your credit cards right by consolidating your Credit Card Debt into one monthly payment. And get your Interest Rate right. So you can save big. Get a nofee personal loan up to 100k. But how do i know if im im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Cheryl welcome back. Im Cheryl Casone with headlines were watching this morning. Billionaire investor and trump supporter peter deal weighed in on which democratic presiden del candidate poses the biggest threat in 2020. He made the comments on Tucker Carlson tonight. Watch. Im most scared by Elizabeth Warren. I think shes the one who is actually talking about the economy, which is the only thing that i think the thing i think matters by far the most. Cheryl teal said almost all of the other democrats running for president are more preoccupied with identity pol politics callg them, quote, uninspiring. Ikea is closing its only factory in the United States. They will move operations from virginia to europe where it says production costs are lower. Ikea says the price of Raw Materials in the United States, key factor in making the decision. The closure will cost virginia 300 jobs. All right. Hey, mickey. Disney, they are tracking the moves of visitors at their theme parks and theyre making big money off of it. Bloomburgs reporting that the Magic Kingdom monitors smartphone as and wristbands to reduce wait times. Disneys Park Division is booming with operating profit up 18 last year to 4. 5 billion. And those are your headlines. Dagen. Dagen thank you so much, cheryl. Lee, i want to get your reaction to what peter teal said about Elizabeth Warren. I dont think shes the only threat. She has come out swinging. Refrains the economic issues. I think its a dangerous narrative. Shes picking up momentum. I think Kamala Harris is one to watch there too because she is absolutely gaining momentum and has a great message and is resonating with her base. I would watch out for those two men would if i were donald trump. DagenPresident Trump. Dagen Elizabeth Warren, raising her hand at the first debate in favor of taking away private insurance from 180 million americans. Single payer. Dagen she believes the government and bureaucrats and politicians make better decisions about your own Health Insurance than people in private industry, than the company you work for, or you. It will be price controls and rationing and they will tell you which doctor you can go to. She doesnt believe you should have a private option. If you want healthcare for everybody, but allow people to still buy on the free market. Shes saying no, all government. Dagen its full government Health Insurance. Full government healthcare. Dagen number one. Number two, she has a wealth tax she laid out in great detail. That is wealth confiscation. That harkens back to something the soviet union would have done. Its not socialist. Its actually communist. Confiscating someones wealth. Its unconge unconstitutional, e frankly. Thats one of her ive got a plan for that. Shes doing a very good job of packaging up her ideologies, her policies and is gaining momentum in a way she didnt four years ago. Shes more likable. Shes more relateable. I think its been fascinating to watch. From a pure messaging perspective. From a policy perspective, buyer beware. Dagen the native american reveal was a disaster. Coming from the party of identity politics, again, how she doesnt get called out on that at some point if one of these debates is beyond me, that they dont call her out for that embarrassing display of trying to claim again, she listed herself as a native american. Actually, it was American Indian is the way it read on her bar application. I dont think the target is on her yet. I think that people are really theyve been looking at biden. Thats why they came out swinging at him. Looking at Bernie Sanders, looking at Kamala Harris. I think people should start looking at her carefully. When you see attacks coming her way dagen you know who raised the most money in the quarter, pete buttigieg. We could do a whole segment on his messaging. He is the messaging master. Dagen Democratic Fund raising, he raised almost 25 million in the most recent quarter. That was about 3 million more than joe biden. So there you go. Coming up, Bank Earnings in focus, wells fargo out with Second Quarter numbers in about 10 minutes. That follows strong results from Goldman Sachs. The stock jumping on the news. Again, it raised its dividend more, when we return. Whats going on up here . Cant see what it is yet. What is that . Thats a blazer . Thats a chevy blazer . Aww, this is dope. This thing is beautiful. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. Dagen the big business of marijuana, kaliva, call califors largest vertically integrated Cannabis Company, with revenues growing 350 last year, announcing a Multiyear Partnership with jayz. Who will become the companys chief brand strategist. Joining me now the ceo and president , dennis omalley. How did you hook up with jayz . Thanks so much for having us. We are absolutely thrilled to be able to announce the Multiyear Partnership with mr. Shawn carter. Again, mr. Ca carter could have worked with any Cannabis Company in the world and he chose kaliva. As a Creative Genius and cultural icon, we really look to work with mr. Carter as kaliva seeks to create the next great American Consumer brand and we really believe this partnership will give us the ability to do so. How you doing . This is jack brewer. I know jayz. He has a huge focus on criminal justice. I know that was a big part of what his movement is all about. Were in a country that places like california and others are profiting billions of dollars from marijuana but yet in our inner cities, black and brown men are locked up every day and normal americans getting thrown in jail for it. How big is that for your company . Are you trying to set the standard and really raise the bar for other Cannabis Companies . Yeah, jack, its a very important point. We absolutely are. I think youve seen that kaliva has a real track record of putting social justice as a priority. We certainly were in the news when we did a partnership with ben jerrys during 420 where we brought attention to a program called clear my record, which is part of code for america, which is helping those with nonviolent cannabis convictions actually be able to expunge that off their record. You can see on kalivas career pages today that if somebodys worried about what they cannabis criminal record is in terms of preventing them from getting into kaliva or the job force, we provide guidance and resources. If you go to kaliva. Com and see mr. Carters statement around what he seeks to do within this partnership, its a major priority for us within the partnership. Its a very important point. Dagen i want to talk more about this business. Please come back. I apologize that we had so little time. But thank you for coming on and announcing your work with jayz. Or mr. Carter. Of course. Dagen mr. Carter. Thank you, dennis. Take care. Dennis omalley. Bank earnings when we come back. Lets do it. [ sniffing ] come on. This summer, add a new member to the family. Hurry into the mercedesbenz summer event today for exceptional offers. Lease the glc 300 suv for just 419 a month at the mercedesbenz summer event. Going on now. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. No matter what you trade, at fidelity Liberty Mutual customizes your Car Insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty dont miss your gto experience our most advanced Safety Technology on a full line of vehicles. Now, at the lexus golden opportunity sales event. Lease the 2019 es 350 for 379 a month, for 36 months, and well make your first months payment. Experience amazing. Dagen i am dig dag in for Maria Bartiromo. Tuesday, july 16 top stories 8 00 a. M. Eastern. Earnings in focus, wells fargo numbers up in moments, we have numbers full analysis Goldman Sachs outlast hour the profit slipped 6 , did beat but, overall, neither income down 6 still raises Quarterly Dividend from 85 cents to 1. 25. That is certainly helped important i that stock higher, blue chips Johnson Johnson, j. P. Morgan reporting earlier, stock down more than 1 1 2 premarket but worth noting that stock underperforming j. P. Morgan still up 17 yeartodate before this earnings. Report. Follows another day of records on wall street. The futures right now you according to higher open yesterdays close fresh news alltime highs for major market gauges in, europe across the board in england, france, germany, biggest gainer there the cac quarante france up more than half of 1 , in asia overnight, mixed markets there, the nikkei, shanghai composite lower hong kong south korea higher, china premium saying pressure on chinas economy increasing follows the report that the economy grew 6. 2 most recent quarter, that is the weakest pace in the least 27 years hightech threat billionaire peter thiel warning google a threat to National Security worked with china a Company Refused to work with Defense Department because of ininflates petition bark on ai initiative, President Donald Trump responding says his administration will take a look at these allegations, ive got a fantastic panel here let me go to Ashley Webster with wells fargo numbers what do you say. Reporter we have a beat on top and bottom line look at earnings per share coming in 1. 30 estimate was for 1. 15 so a beat on earnings, then on the revenue side, coming near 21. 6 billion, estimate for 20. 93 billion so we have a nice beat on the earnings, and on the revenue side, net income 12. 1 billion, interest margin socalled difference between interest to depositors interest on loans a 2. 82 little less than was expected. He overall, 6. Billion quarterly net income again that works out at 1. 30 on the earnings per share. Lets be honest a Company Wells fargo still looking for a ceo the latest person to step down, of course, was back in march when we had mr. Saloon tim saloon step down after being with the company 3 years a big issue they have big scandal in 2016, trying to rebuild its reputation, but apparently finding someone else to take over wells fargo has been difficult waiting to see what they say in this note about the progress whether they promote from inside or whether they will try persuade someone on outside come in take over wells fargo so this is a company that is still, does not have a ceo, after that scandal. Dagen back to you interesting to see premarket up about half a per cent up 23 cents wells fargo, again, they beat on earnings, and revenue. There was a name floated around someone worked at bank of America Kathy but waiting again if you take this job, you are in and this isfyingtively speaking in cross here is a Elizabeth Warren again has been quite vocal got into a tiff with head of the comptroller currency over tim sloan if oversight of the Bank Everything financial is political, and everything political is financial. Reporter you are absolutely right if you want the job good luck. Dagen good luck and bring your suit of armor. [laughter]. Dagen thank you so much joining me now cfra director of Equity Research kim leon up of had time to go over not wells fargo is just breaking but going over numbers that weve got out this morning you look at bank stocks particularly j. P. Morgan Goldman Sachs what picture the financials are painting. Seeing strength where you would expect in Consumer Banking carted businesses Capital Markets a wall of worry relates to uncertainty with trade tariffs, that filters into ceo confidence. Affects underwriting, and m a big drops, across all banks that again is the question of getting those deals done. Removal of a large ipo in asia related to budweiser, so that creates an opportunity if we get some visibility of removal, but things like china trade, are issue wells fargo, they are actually doing well wheels not falling off the wagon, this bank not only probably had good quarter today but they had great return capital from the fed now two areas one is ceo, the other is the i think almost as big as ceo of order you go back two years Federal Reserve other agencies say, were not going to let you grow your assets, that is a tough thing for banks. And yet they are having pretty good results, so i would say for this current management interim ceo, pretty good then we will see if based on inventories. What do you make of that you will you have a question. I think finding out i guess, the trading front banks having difficulty, they are not getting enough volatility. You mentioned m a down sharply when we notice at moodys with drop in m a seeing a deep drop by leveraged loan activity dried up banks dont necessarily hopped up to leveraged loans for the most part go out to clos whatnot i think on the markets front the outlook for remains murky depending on the consumer the consumer will come through he for you as long as the Unemployment Rate drips lower it is a different story however, once we finally reach that point whether comes to end the Unemployment Rate begins to rise. Trading today is different than the last 25 years, these banks particularly Goldman Sachs, Morgan Stanley want stable reoccurring revenue, trading is becoming less of an impact on their business. And there is some areas tucked in there client services, when are generally more stable doing better, interesting pie chart in Goldman Sachss release, 40 revenue comes from asset management, and investing and lending. So those are areas they can control. You cant control the markets, and generally that is why these stocks historically have had lower multiples. I want to ask you a question just reading through Goldman Sachs i want to i want to get to Goldman Sachs increasing its dividend a pretty big hike. In its dividend but there is uncertainty again you saw it in the trading activity, among institutional fights trade, rats ratification of trade deal request mexico canada does that translate into the consumer jane says it really based on the job market. And when when the expansion runs out. Consumers seem kind of immune impervious. The consumer so far has high confidence, that is terrific i want to point out though, that not canada it is Europe Management are not going to be aggressive they have open to make market share in Europe Deutsche bank other banks, that is my point of getting back to more stable businesses. Away from trading. Away from High Risk Investment banking, and certain products, these are good opportunities for goldman jp morgan this week, Morgan Stanley. I have a question about demographic change i cant help but notice we have gone through a situation now the number of people 65 and older in u. S. Growing by nearly two Million People this year, big difference from the past. And this means a lot of 401 k plans needed to be inning managed helping banks. Does hel banks Wealth Management even with lower rate environment maybe but to your point if you have increased investment accounts higher assets under management all of a sudden seeing that Interest Income flat to slightly up. Goldman sachs shifted to Consumer Banking money management, in recent years and i think correct me if i am wrong ken, j. P. Morgan tried going after count brokers offering Commission Free arrangement for clients they see are all moves again to create more consistent revenue streams. It is a kwi whether you are the incumbent or new disrupter for j. P. Morgan bank of america wells fargo they are thoughtful in terms of branches Financial Centers pull in business Goldman Sachs is a disrupter, they are using markets and lefrmgdz that into a Bigger Picture of over a trilliondollar saturday management business for those tiers High Net Worth mass market real interesting to see what is playing out early, but going to be over the next few years. That is big Dividend Increase. It is. I dont want to loss sight to Federal Reserve approving stress test capital returns goldman a year ago was a conditional approval no Dividend Increase this year they got it, it is big that is going to give confidence possibly to a Value Investor looking for yields. Helps when government gets out of the way doesnt it [laughter] one final point is banks are much stronger financially the capitalization so much dealer than it was in 2006, 2017, i think that is a about Favorable Development over time. A relief. Have a relief going from 2015 to today to almost becoming normalized yield plays, pay out ratios are still high but away too much capital, and you sometimes here analysts saying your payout ratio 90, one hundred percent too high they have too much capital obviously, we are seeing many of these banks get their earnings per share with 8 to 10 reduction outstanding shares. Dagen that is tease for coming up i have a theory about the bank bailout still playing out in politics today. It gave rise to the tea party the root of what Bernie Sanders and Elizabeth Warren are talking about where is my bailout. That is what ken great to see you. Thank you so much for seeing the world, and being with us all morning long on earnings, executives from facebook google, amazon apple all on capitol hill today in middle of antitrust investigation, and a pushback from democrats to break up big 10ing tech not just democrats good morning ed. Good morning, dagen the big tech giants will be grilled here on capitol hill, on the house side, they are concerned with Big Companies facebook Amazon Google apple possible monopolies related to those companies this is department of justice opened investigation into the goal alphabet the Parent Company of google over possible antitrust all trying to wrap into a hearing on senate side talking about, facebook, and their plans to create a cryptocurrency called libra. I am not comfortable today so let me just be careful, as i said. They and others have a lot of work to do before they get us comfortable. For the past few months treasury Secretary Department has been having meetings with facebook to work out currency and go forward, with their plans, for libra, listen. They are a long way away from and again part of it there has been a lot of Public Interest in this that is why i wanted to give the public the shorns before theyor any one else does this we make sure the finance minister system is protected as i said there is a lot of elicit activity that will be shutting down for people using cryptocurrency for bad purposes. Reporter worried about terrorists or cattels using anonymous currency could happy between 12 months Federal Reserve chairman and secretary mnuchin say possibly will be onboard next year. In washington, we are waiting for june retail sales to come out also import export prices we talk about how awesome the consumer is how Health Americans are financially. We will see if that holds up the bottom of the hour. And going after google, billionaire peter thiel a trump supporter says tech giant ripe with china poses a National Threat the president responds ahead. I know i go back most people think a button is just a button. That a speaker is just a speaker. Or that the journey cant be the destination. Most people havent driven a lincoln. Discover the lincoln approach to craftsmanship at the lincoln summer invitation. Right now, get 0 apr on all 2019 lincoln vehicles plus no payments for up to 90 days. Only at your lincoln dealer. Plin an emergency, who do you want by your side . A new proposal in Congress Wants to put the Insurance Companies and the government in charge of your healthcare by price fixing. Letting the government set prices means fewer doctors and a race to the bottom when it comes to quality care. Insurance companies and the federal government getting in between you and your doctor. Call congress. Make sure doctors and patients are making the most important medical decisions and keep the Insurance Companies and government out of it. Paid for by market institute. Soaring announcing it will add beyond meat on menus starting next month. Going vegan there you go. On gain blue apron beyond meats shares also gaining in premarket trading stock banks reporting Johnson Johnson, also beating expectations, gesture willis on the floor of the New York Stock Exchange with more good morning. Good morning that is right a double beat for Johnson Johnson, on top and the bottom lines enterprise at 2. 358 versus expectations 2. 58 versus examinations 2. 46 maintained epgs guidance ceo press release calling it solid Second Quarter 17billiondollar lawsuit from oklahoma ag talking about this morning, that is to revolve Opioid Crisis, jpmorgan sta jj standing ground, a company cautioning department of justice launched criminal probe into talcum poud possibly links to cans peter thiel said the fbi and cia should investigate if ago if has been infiltrated by chinese intelligence. Listen. Weird faction indisputable google working with communist china not with u. S. Military on breakthrough a. I. Technology. Is the question, i think one explanation is they figure they have to because it if they dont give it to them front door will get stolen through backdoor fierce answer they have to, of course, probably going o broad biographies google employees that are ideologically suffocasuper left wing. Bringing shares down, the president tweets saying this investigation, should go forward. Of the he said the Trump Administration, will take a look describing thiel great brl Guy Department of justice declining comment on all of this, fox business reached out to doj they are not saying anything fascinating story with he peter thiel at Center President signing on back to you. Dagen gerri thank you, general jack keane said earlier that he would assume that the fbi was already well aware of this on the case. So to speak, thank you so much gerri. We are waiting for june retail sales to come out due out about 10 minutes from now we will bring you those numbers, as soon as they come out, and saving for retirement. We tell you the goldlocks number that you need in your bank account to retire, the magic digits, chris hogan next. This is the couple who wanted to get away who used expedia to book the Vacation Rental which led to the discovery that sometimes a little down time can lift you right up. Expedia. Everything you need to go. Expedia. Cant see what it is yet. Re . What is that . Thats a blazer . Thats a chevy blazer . Aww, this is dope. This thing is beautiful. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. Dagen President Trump on twitter again, quote our country is free beautiful and very successful, if you hate our country, or if you are not happy here, being leave. Welcome back. Everybody. Saving for retirement. Of the what is the magic number according to survey from charles swaeb americans save 1. 7 Million Dollars joining me author of everyday Miles Per Hour ralliesy Solutions Financial expert chris hogan what do you make too lofty to reach. First and foremost i look at this i say wow they are reaching out grabbing a number from anywhere trying to tell people when they ned i personally know each persons retirement is going to look different everybody has different dreams different goals, so i think it is more of a matter of people not being told a magic digit but starting to understand their dreams and steps they need to take to get there. Dagen tell me how to stop worrying about my retirement savings. The best way to top stories is to have a plan starting to gain insight understanding what retirement is weve mistaken retirement for truly what it is it is about being you reaching your dreams what are the things you want to do later in life. Are you want to go travel are you want to go spend more time with family are you want to go do more giving . But i think as we dig in start to understand what can we do to help ourselves get there, i show people, if you get on a budget get out of debt you start investing, you give yourself a chance to grow money, so dont listen dont feel panicked start to get serious that is why developed riq retired spark quotation free tool creates hogan 360. Com you plug in numbers gets personal for you. Dagen i want to travel now, not in retirement but before my hips give out i need hip replacement surgery. I think there is nothing wrong with that as you get out of debt you start to save toward those trips, we know you travel as it is right now, other people can travel too it is just matter of having the goal having a plan. Dagen so people struggling to pay off Student Loans i want your reaction to this even target of scammer what should people look out for. First and foremost you cant delegate the responsibility of debt. Companies that are out there promising to take care of things for people, and they dont have to worry about it you and i know if it sounds too good to be true it is not real. People with request Student Loan Debt write down debt smallest to biggest get intentional with budgeting throw extra bonus money at debs i am talking to people every day on my show the chris hogan show paying off debt i want people to know it is possible dont fall for a scheme take responsibility attack the debt yourself. Good to see you i made you laugh. Good to see you, too. Dagen hip replacement surgery wait for more medicare to get that taken care of take care weighting for june retail sales due out in moments, again, is the consumer happy and healthy . We bring those numbers right after the break health care in america. New procedures now covered under medicare, health and Human Services secretary weighs in later this hour. Man on the run, man on the run, the he searching every won it all started under this buttonwood tree. Twentyfour people came together to sign an agreement that created the stock exchange. Just the right elements coming together. It started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. It started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. It started with the markets, bringing together steel and buildings and silicon and medicine and rockets. We believe the possibilities of life and investing are greater when we come together. Its why for eighty years weve connected ideas with technology, data with inspiration, investors with solutions. So that every day together, it all starts again. Dear tech, lets talk. You blaze trails. But you have the power to do so much more. Lets not just develop apps, lets develop apps that help save lives. Lets make open Source Software the standard. Lets create new plastics that are highly recyclable. Its going to take input from everyone. So lets do it all, together. Lets expect more from technology. Lets put smart to work. Bartiromo tuesday, july 16 top stories w8 am eastern 10 seconds away from breaking news on the economy. 28point gain on dow futures we wait for Retail Sales Health of the consumer one of the critical engines driving this economy, deep into this record long expansion. 38 point gain on the dow futures right now this after another record close for all three major market gauges, yesterday. We have also had some strong earnings, out particularly from Goldman Sachs earnings, down 6 yearoveryear but you see that stock up one percent there retail sales came out i think this is a gain of 0. 4 . That is above expectations Lauren Simonetti did i hear that right . You did dagen this is a nice round better than expected number june retail sale gain 4 a 4 10 of one percent mark looking for a gain of how is the house holy holding up how is consumer hold hold up aokay this is the 6th gain in seven months that weve seen, the resiliency of u. S. Consumer amid slowdown no Global Growth trade concerns out there also, start of summer also kind of wraps up the first half of 2018, the market response dead flat dow up 27 points before report up 30 right now, and not Much Movement for the other major averages. So we look at the top line number but auto sales expected to weaken as year rolled on top line number gain of 4 10 of a percent, what about xu. S. Autos, also 4 10 of one percent expectation was gain of tenth of one percent, so that, too better than expected. That is good news. Umhmm. We like it maybe the market isnt reacting but we will. Thank you Lauren Simonetti. So much, joining me Wells Fargo Securities managing director senior economist mark, i am in hog heaven ive got you and jaohn so a sandwich so to speak great news on economy this is about what we need to keep economy moving forward but to being prices elevated at record levels. Well it is clearly good news, we were looking at gain 2 10 or 3 10 ahead of that 4 10 take out autos, take out good gasoline autos you get control Group Retail Sales give you a very good idea what Consumer Spending going to hold up in gdp numbers up 7 10 of a percent small upward revision to prior month status consumer is in pretty good shape i think should alleviate some fears folks have because expansion is in record territory we are due for tough times. What can get in the way of this consumer, i say optimism, consumers putting their money where hearts and heads are. If something to go wrong with. Go ahead john i will get back to you. The labor market okay because trade frictions whatnot, or weaker you dont have weakerthanexpected earnings i dont think we are going to see any problems with employment. Or Income Growth otherwise my halt growth by Consumer Spending it is interesting that in this sluggish World Economy who comes to the rescue . The American Consumer keeping World Economy afloat. One thing i will point out one of the things that helped people spending was the dropping gasoline prices again that is a that is puts more money in their pocket the way a tax code would. That is one of the reasons looking for headline number sort of o lower dplooens prices reduced headline retail sales we look at that core category consumers are getting a little bit of a of a break there, and that is one more one more thing in our favor. You know one of the things surprising in Second Quarter is that we saw tax refunds lower than they were a year ago, a lot of folks looking for that, to slow Consumer Spending with data it looks like Consumer Spending in Second Quarter in terms of gdp data, rose in neighborhood 3 1 2 maybe better than that, so we are likely to have very solid gdp growth Second Quarter. I will point out we were looking at import prices fell more than expected. Down 9 10 of a percent not importing inflation. Yeah the tariffs dont seem to be to be impacting nation here in u. S. I know a lot of folks think that it is going o to have a huge impact a lot of chinese producers have eaten at least a portion of tariff or maybe entire tariff to try to protect market share. Jack brewe has question. When you look at Political Landscape you see the messaging coming out of the Democratic Party all about this is a trickle down, not getting to the right folks, and we have a big segment on population really are tight right now not feeling effects of the trump tax cuts but when you look at numbers it says otherwise, what point does reality fit messaging here. Yeah i mean sort of like that Richard Pryor who you going to believe me or or your own lying eyes . It is plainliest that the economy is ev depth economy doing well i kind of feel bad for some politicians hoping it does worse a terrible thing to hope for the economy is broadening parts of the economy that didnt get a boost earlier, in expansion are now being lifted. One of the things that i spent a lot of time, visiting with customers a lot of customers are in smaller towns rural areas for a long time the recovery just wasnt is there. But in the last couple of years weve seen population growth in this rural areas started to grow again, because jobs coming back and Unemployment Rates come down in those areas so if anything, the expansion seems to be broadening. One thing that i am concerned about is that with Global Economy slowing the dollar is strengthened a little bit that is is that is slowing Manufacturing Activity in the u. S. If that continues that could slow the economy although that is something to worry about for next year not 2019. I want to get you in on this something you were talking about earlier. I have said this, the democrats have to be very careful that they dont seem like that they are rooting for a slowdown but they are rooting for what they would label the trump recession. But they cant they cannot run well on this economy as it stands right now. I dont think that they can, i think that there was a big risk they are going to turn go boy called wolf saying it is going to rip out economic boon is going to run out look at it propped up not going to work were seeing it is continue to go work quarter after quarter i think democrats is it flipped strategies weve seen them say no longer doom and gloom around the corner this isnt economy for everyone it is for wealthy for big businesses profiting i think also dangerous strategy when you see Consumer Confidence as high as it is right now. Before we go say goodbye to mark vitner Federal Reserve is trying to ensure not necessarily fear of a recession jay paul and company eradicates it is making sure expansion continues. Why they would cut rates later. Exactly what they intend to do getting write a cut end of july despite growth by Consumer Spending and ultra low Unemployment Rate, inflation is very well contained. So there is room for lower, lower Interest Rates as a result we have been looking at increases by Mortgage Applications for purchase of a home applications for mortgage refinancing up a tremendous amount yearoveryear, lower Interest Rates will help to extended this upturn by Consumer Spending as long as the u. S. Consumer spends a recession is not in sight. I will point before we go, mark i will point out own prominent page the wall street journal hispanics sxaerngs he largest homeship gains of any in u. S. Shoring up Housing Market a rising tide lifting many boats. We are seeing more good news, more and more parts of the economy. Thank you. Mark vitner also a pleasure to see you maybe in person next time. Lets hope. Thank you. We hope so coming up economy under President Trump booming also, stuart weighs in high cost of Health Care New procedures covered under Medicaid Health and Human Services secretary alex azar is here to weigh in. Driverless cars. All ground personnel. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. No matter what you trade, at fidelity youre smart,eat you already knew that. But its also great for finding the perfect used car. Youll see what a fair price is and you can connect with a truecar certified dealer. Now youre even smarter. This is truecar. All right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for auto insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. Content on their endless quest, to nowhere. S, run hopelessly in their cage. But perhaps this year, a more exhilarating endeavor awaits. Defy the laws of human nature,at the summer of audi sales event. Get exceptional offers now. Dagen trump economy booming as earnings season kicks off retail sale numbers thehost of Varney Company. That is what i was about to say if you look at any news program in america today, what you are going to be hearing about is the feud between President Trump the squad, and speaker pelosi. All these tweets that are rattling around that is all you ever hear about but if you look beneath all of that look at our economy it is really in very, very good shape, as you said dagen, a. 4 rise retail sales doesnt sound very much but spectacular, annual basis that is a serious infusion of money into our economy ultra low unemployment solid growth, probably around one and one half to two percent secretary improving a adequate economy you dont hear about it i wish we did that is why this stock market, is what a 27360 on dow industrials, record high on s p, record high on nasdaq. You know we should pay more attention to the economy, dull subject as it is dagen what do you say. Dagen i say i would much rather debate policy own personality much rather talk about things that we can quantify. Like numbers. Like spending. Because i am a nerd would much rather discuss that over feelings. I dont mean to dismiss feel numbers over feelings tang i believe, not seminole not if feelings i am too old for that it is reality, a great economy. Have a look at it of the invest in it for heavens sake about what what is going on here. When you apply is a share of stock invest in even a Stock Mutual Fund you are owning part of america owning american greatness wouldnt you rather do that than loan money to the federal government i would amazon free college deal than Bernie Sanders free college deal no matter how it feels. I love you doing that that is why i did that when i love it i mean what i say, i love it, thank you, stuart good to see you we will see you in a little bit less than 15 minutes, Varney Company every day, 9 00 a. M. Eastern time, coming up high cost of Health Care Procedures covered under Medicaid Health and human seniors secretary alex azar joins me next. Award winning interface. Award winning design. Award winning engine. The volvo xc90. 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Absolutely dagen thanks for having me, this reflects President Trumps deep commitment to tackling Opioid Crisis one of the most important things that weve got to do is provide either pharmaceutical or nonpharmaceutical alternatives to these legal opioids that 50 million americans need because they suffer from chronic pain, they need something, and weve seen some promises with being a turnoveribeing a punfrn acupu pay for those to enter into trials or improved studies to test whether that is effective means treating chronic lower back pain. I say over and over and over again, when say Democratic Candidates talk about medicare for all medicare for nonbased on these proposals but Hospital Trust fund in medicare alone, runs out of money in, 2026. So about seven years from now then benefits would automatically be cut to i believe 89 cents on dollar based on trustee report this wont be enough even if it drives down costs, when can the nation and lawmakers get their arms around the kind of mush rooming costs, medicare going broke. This is why President Trump is committed to protecting medicare for american seniors 60 million rely on mitigatored he will be bulwark against those who want to undermine medicare solvency a Budget Proposal couple years before congress with ideas, that would extended the life of the Medicare Program because, not only could benefits be cut taxes will start to cover the cost of medicare when trust fund runs out of money in 2026 weve got to deal not time to think about extending medic care to 350 million americans. You have a lot on your plate in terms of what you handle under health and Human Services congress did pass that humanitarian bill president signed into law 4. 6 billion dollars in you humanitarian Relief Health and Human Services received i think it was 2. 8 billion of that to deal with children unaccompanied he willing immigrant minors into this country but give an update how that money so far is being put to use, say update on how many available beds health and Human Services has right now for these children. Thank you very much, and we are really grateful to the congress, for on a bipartisan basis patching this emergency humanitarian relief package took too long to happen but we are glad we have that money now, and we are seeing the results, we were able to immediately restore Education Legal Services recreation to facilities for our kids, we have been gives us a Financial Security that we can now actually contract to add permanent bedded capacity we have a funding announcement out we are working on extending over 3,000 additional permanent beds just from that approach. We currently have 4,000 open beds, in our facilities, so weve been able to get all children, out of ditch Hs Department of Homeland Security custody, who have been were able to be moved of course you always have some children might be medically fragile have flu cant be moved until healthy but we dont have any children at department of Homeland Security waiting over 72 house very few even been there 48 hours we are just delighted that weve been able to take all these kids in, and we are discharging children to usually family members in United States historic rate. I want your reaction to Vice President joe biden talking about his Health Care Ideas again, it is not full medicare for all or single payer a public option i want your reaction to the language that the Vice President used how that sounds familiar what we heard from president obama if you can listen to this mr. Secretary i will get your reaction. Anyone who has their employer based Health Insurance they like they can keep. It you have got Health Insurance you like your doctor you like your plan, you can keep your doctor you can keep your plan. Well, Affordable Care act that didnt happen people got dumped off existing insurance Many Americans did Vice President biden is trying to combat the single payer notions from Bernie Sanders and Elizabeth Warren with a public option. What do you say . Well i dont want to comment on any particular candidates proposals but i can talk about plans proposed in congress for say a public option or what they call a medicare buyin, this is medicare for all painted with different colors on it. What happens with these medicare buyins, i would buy into a plan that still pays providers hospitals and doctors, the radically suppressed medicare rates what does that mean . It means private insurance could simply not compete against those plans and private insurance would go away, it also means doctors and hospitals would stop taking medicare because they cant afford to make a go of it at suppressed rates if they dont have higher commercial rates we would end up with twotiered system like europe has the best doctors hotels would get out of the system why the president is committed to protecting americas seniors protect medicare i can ma it better do not undermine medicaid. Mr. Secretary thank you for being here so much more we cognitive covered come back soon. Love to take care still ahead final thoughts from you are a allstar panel. Stay with us. I dont know why i didnt get screened a long time ago. I kept putting it off. What was i thinking . Ok, mr. Jones. Were all done. I told you it was easy. With life line screening, getting screened for unknown Health Conditions is so quick, painless and affordable, youll wonder why you hadnt done it before. So if youre over age 50, call now and schedule an appointment near you. For just 149 a savings of over 50 youll receive a package of five screenings that go beyond your doctors annual checkup. Ultrasound technology looks inside your arteries for plaque that builds up as you age and increases your risk of stroke and Heart Disease. After all, 4 out of 5 people who have a stroke, their first symptom is a stroke. So call today and start with a Free Health Assessment to understand your best plan of action. So why didnt we do this earlier . Life line screening. The power of prevention. Call now to learn more. Dagen final thoughts from our allstars. Im starting with you, john. What about these retail Sales Numbers . Pleased for those numbers. I think the big story Going Forward will be how low can this Unemployment Rate go before we really run into a problem with inflation. Im expecting that well have that Unemployment Rate go to 3 if not lower and inflation will still be well contained. Dagen jack . Like he just said, stop talking about personality. Lets talk about policy. Lets get off of all these racia racial issues and talk about the real things that are affecting real people in the inner cities. President , stay away from twitter. Apologize for what you said, please. Dagen not happening. I know. Dagen not happening. Thank you all so much. Stuart, i leave you with this, quoting another individual. Facts dont care about your feelings. Stuart facts dont care about your feelings. I will try to work that one out for the next three hours. Good morning to you. Good morning, everyone. Sure looks like americas Biggest Companies are making a ton of money. Its profit reporting time and the big names are doing well. Many of the market watchers on the program have said solid profits will push the market higher. Thats what they say. So look at this. The dow will open at a new high, only just, up about 12 points. But its going to be pushing well above 27,300. Who would have thought. A fractional gain for the s p and fractional loss for the nasdaq. But what were looking at is new hi