Item makers on this weeks edition of the talkers. How do you feel about the issues that you are expecting tonight. Listen, the reality is the president s been practicing every day for this. I mean, hes running the country. Hes doing an amazing job of that. Hes getting peace deals done in the middle east, pulling us out of endless wars or, combating coronavirus. Maria how come nancy pelosi wont allow democrats to be part of this task force . They dont want to focus on where the virus came from, thats china. We want things to be made in america. Maria ratcliffe outlines that Hillary Clinton approved a plan to link thencandidate donald trump to putin. Its something that weve known all along, that this designed for some type of october dirty trick, some type of october surprise. It had all the markings of some type of disinformation operation. Maria who do you think the mastermind of this was . Was it Hillary Clinton or somebody else . From what ive seen, john brennan was right at the middle of all of this. John brennan running the Intelligence Agency seems to be pulling an awful lot of the strings. Maria now turning to markets and the economy, a new month and a new quarter for the markets. The s p 500 logging its best six month performance since 2009. But september is typically the worst month for stocks, and it was a bruiser once again for the major averages. Major averages down in the month of september, and the nasdaq, of course, taking the biggest hit, down 5 . Look at the Third Quarter, however, even with that rough september, the Third Quarter was strong. The Third Quarter showing a gain of 7. 66 for the dow, s p up 8. 5 and the nasdaq higher by 11 . What will the Fourth Quarter bring . All of this, of course, on the heels of the news that we got beginning with the Fourth Quarter, that President Trump and the first lady, melania trump, have tested positive for the coronavirus. How does that change the agenda. Joining me now to talk about the road ahead is cornerstone macros cofounder nancy lazar and ed yardeni. Thanks for joining us, both. We so appreciate your time. We want to look ahead to the Fourth Quarter and 2021. You both are the best on wall street in terms of the macro environment, and i appreciate your time this weekend. So, first, let me get your thoughts, nancy, on this news that we got this week, and that is that the president and the first lady are doing well, but they are quarantined and, hopefully, beginning a recovery. They have coronavirus. Does this change the i agenda for the economy, in your view . Well, short term it certainly could hit consumer and business confidence. But the economy has such a strong backstop into this, and you certainly see that in the recovery weve had so far, that if we can get news sooner than later, it should just be a minor, shortterm impact. But, again, were still very early in understanding what exactly is going on. Maria ed yardeni, we did see reaction in the markets as soon as the news hit as investors were looking at the unknown and selling first, thinking later. Do you think this news impacts the markets or the agenda . I think on a very shortterm basis, it might, but its hard to speculate on the condition of the president. The news seems to be that hes all right. I completely agree with nancy. This isnt all about washington. I mean, youve got to say this has been a crazy year with. I hope when its over that 2021 will be a little bit saner. Maria nancy, lets go through your expectations for the Fourth Quarter and for the year ahead first. Youve been focused a lot on housing, on capital expenditures, and you say that theres a real onshoring renaissance going on. Youre calling it a manufacturing renaissance going on. Your report, you say you have 176 Companies Already that have either decided to or have moved back to the united states, and you say this is your favorite emerging market, middle america. Tell us about it. Yeah. This actually started a while ago, back in 2010 when china was no longer really an attractive place to do business. And then, to be sure, when you had the Corporate Tax cuts and less regulation in 2017 under President Trump, that further fueled the attractiveness of you sell it here, you make it here. And theres a lot of data that supports it. You have seen a shift up in capital spending. Its been subtle, but thats okay, it has been stronger than it was the prior decade. And youve seen that really heal the labor market. Capital spending is the Ugly Duckling of the economic data, and the beauty it creates is totally, totally underappreciated. It obviously improves corporate productivity, improve9 corporate profitability and allows businesses to be able to hire and, therefore, its very positive also for consumer spending. And actually over the past month there have been two blockbuster reports of that have gotten virtually no press. One, that the poverty rate in 2019 dropped to 10. 5 , the lowest on record, and then earlier this week the new York Federal Reserve publishes a report on Consumer Finances only every three years. Its not a very timely report, but it also showed in 2019 you really had a healing in consumer real median family income, particularly at the lower end. So as ed said, this is a crazy year, a lot of political and economic uncertainty, but impressively weve been able to bounce back. And i thinks because, one, we had a very Quick Response by policy makers; two, the economy was healthy going into this mess; and, three, that stimulus that the fed and fiscal policy has put in has really fueled the drivers of growth. Maria ed yardeni, your thoughts on that. What will drive this economy from your standpoint . You were bullish, and then you were looking at valuations that worried you, but youre still bullish on the economy and the markets, right . Right, right. Well, im kind of hoping that the market stabilizes here, just kind of moves sideways for a while to allow the economy to catch up, to allow earnings to catch up. The economy is doing a great job of catching up. But we had a unprecedented two month lockdown recession in march and april, and because march is the end of the first quarter, that knocked real gdp growth by 5 in the first quarter, and then in the Second Quarter, because everything got shut down in april, that knocked down the Second Quarter by over 30 . Now looking into the Third Quarter our estimate is real gdp could rebound by 30 and then 5 in the Fourth Quarter. Maria i want to take a short break. When we come back, your thoughts on how to make money on all of this. Do i want to continue allocating capital for stocks . We are talking with nancy lazar ah come on lets hide in the attic. No. In the basement. Why cant we just get in the running car . Are you crazy . Lets hide behind the chainsaws. Smart. Yeah. Ok. If youre in a horror movie, you make poor decisions. Its what you do. This was a good idea. Shhhh. Im being quiet. Youre breathing on me if you want to save fifteen percent or more on Car Insurance, you switch to geico. Its what you do. Lets go to the cemetery apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com see yourself. Welcome back to the mirror. And know youre not alone. Because this is not just a mirror, its an unstoppable community. Come on jesse, one more its every workout. Come on you two, lets go for everyone. So join in now. And see your best self. In the mirror. Maria welcome back. It was the final jobs report before the election, now about 30 days before the election. The u. S. Economy add added 661,000 jobs in the month of september. That was below the expectations which called for 850,000, but the Unemployment Rate was actually better than expected. It fell below 8 , beating estimates. Now we are at an Unemployment Rate of 7. 9 . Our special guests this weekend, nancy lazar and Yardeni Research president , ed yardeni. What was your thoughts on the jobs numbers . I know, nancy, you wanted to see a little more, but we also had august and july revised upward. Did this throw a wrench in any expectations for growth in jobs from your standpoint that it was only 660,000 . Not really. There was a problem with the education component which was very weak at the state and local level, and that was in part related to some schools starting later. Put differently, youre going to see a rebound in that number in october. In addition, the private number was very strong, up 877,000. When you incorporate those revisions that you mentioned, you get roughly what we were expecting for the month of september, about a million, about a million. Now, that said, these big numbers arent going to continue now that growth, as were saying this Third Quarter, we have gdp growth at about 27, 30 . In the Fourth Quarter, things are going to somewhat down to a somewhat more normal, but 5 is still pretty strong. You will see employment gains as youre growing out of this hole. The outlook, the most important number, i think, in this report today was the Employment Index which measures the percentage of retiring, and it was 70 for the second month in a row. Most people arent going to appreciate that number. But going into the last recession, that number was down toward 50, hoveredded around 50 early on in the first, last expansion, and it was difficult for people to get a job. Maria ed, do you agree with that in terms of your thoughts on the jobs numbers we saw on friday . And, you know, its true, you look at the sectors, youre seeing a lot of hiring. Retail did very well, goodsproducing sectors did well in terms of hiring. Yeah. When you just focus on the data and not on all the discussions about how terrible things are, the data is just, continues to point to a vshaped recovery across the board including these Payroll Employment numbers. You know, it wasnt too long ago that employers recalled how hard it was to find workers. And i think, you know, if youre in business, you have to be an optimist. You have to believe that youre going to get through these tough times, youre going to survive them, and if you are, youre going to need employees. So i think were already starting to see that following the two month lockdown recession, employers are rehiring, there are job openings, and i think were finding that the economys doing extremely well, as i said. And anything thats housingrelated, yeah, i think were going to see a vaccine, and things will be back to some normal, i think within the next 612 months. Not the next 1224 months. Maria ed e, how do i make money on this . Tell our audience what youre telling clients in terms of translating this good economic backdrop into opportunities to invest. Right. Well, a lot of, a lot of stocks have been picked over, the ones that have survived in that actually flourished. A lot of them are internetrelated. You know, a lot of us are working from home, getting educated from home and also getting our entertainment from home. So all the companies that have benefited from that have had had had a tremendous rally. Whats been behind is the pandemicchallenged industries, the ones where social distancing is reducing the capacity of the crowds that they can have on airplanes or in restaurants, stores. But 612 months from now i think most of this will be behind us. Maria nancy lazar, before we go, your ideas in terms of investment. I recognize youre looking at the macro story, but what can you tell us about allocating capital in the face of this backdrop prediction that you have . So we think there are four main drivers of the economy and, quite frankly, this was our strategy teams outlook also. First and foremost, manufacturing, as you highlighting. Manufacturing companies are concentrated in the united states, not necessarily so much outside to the united states. Second, technology we do think is a growing part of the economy. The breadth of technology is used increasingly in other parts of Economic Activity including manufacturing which we think that space continues to grow, grows jobs and does well in the market. Third, as ed said, we like we continue to like housing. We think it is a secular shift up supported by near record low Mortgage Rates along with a millennial shift, finally moving out of their parents home and buying houses. So i think the Third Quarter profit backdrop, by the way, is also going to surprise. I think just as youve seen a v rebound in economic data, youre going to see a v rebound in the Third Quarter profit data in the next week or so. Maria all right. Well be getting Third Quarter earnings in about a week and a half. Nancy lazar, ed yardeni, thank you so much for being my special guests. We will keep watching the developments. Dont go any look limu someone out there needs help customizing their Car Insurance with liberty mutual, so they only pay for what they need. False alarm. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Maria welcome back. Uncertainty, new york city in crisis following a summer that saw the big apple shut down due to the covid19 disaster and violence sparked by the george floyd protests. Iac chairman barry diller told me he or thinks its he thinks its almost impossible for business to survive in new york. I spoke with him about his businesses and how theyre performing during the crisis. Take a look. Well, were a tale of two cities. On one side, we do have Home Services with angie and with dating with match and with video. Obviously, right now everything is great. Subscriptions are up. Why . Obvious, people are home, they want to fix things, they call angie home adviser to get things done. Dating, you cant well, you can, and people are, of course see each other and dating with each other. But communicating through the match products is necessary right now. Same is true for video. So im not but the bad side of two cities is, of course, travel and expedia. You know, for the last id say about, you know, we were down, of course, about 95 when this began, when the real lockdown was in mace in the u. S. Now in place in the u. S. Now were holding and weve been holding at the last 10 weeks at 62 . It isnt good, its just relatively good, better than it was and, actually, we just had our first cashpositive month. So if that holds, its not profitable for us, we lose money at that, but that it looks like sales in the last 10 weeks looks like its kind of a rock. I dont think anything substantially changes until probably after the first to have year until you get airlines traveling again and you get these restrictions lifted. So thats, thats this unsteady world i live in. Maria lets stay on travel for a second. Seeing this, you know, travel lockdown, when are you expecting things to loosen up . I thought it was interesting last quarter you announced that you took a stake in mgm resorts even in the face of all of this upset in terms of Services Like casinos and real estate and, you know, going out, restaurants. Youre here taking a 12 stake in mgm. What was behind that . I have to believe maria was this valuation, barry . No, no. Look, i have to believe that just like we did when 9 11 happened, which was just the moment we bought exe media, travel stopped completely, and expedia, and somebody in the room when we were thinking whether we would stay in that transaction or exercise an out clause, somebody said if theres life, theres travel. And i heard it, but i said, yeah, true. We closed mgm. Until there is clarity of some kind, probably is not going to come until we have a vaccine certain or we get through this flu season or this winter season and its not a catastrophe, i dont expect i think after the first of the year i really thought it was going to be labor day, but that was not to be. Maria barry, i want to ask you about new york city. Iac heatedquartered there headquartered there. Youve done something great for our city by building little island, this 250 floating park on the hudson river. What have you seen in new york, barry . Whats your take on recovering postpandemic and this, you know, protesting and looting that we saw earlier this year in new york city . Did that aaffect the park . No. Actually, it hasnt affected our building. Were almost finished. Well finish probably by january. I mean, all the construction and whatever. And open when the world, hopefully, the weather and the city pause in the late spring, early summer. May june. New york is a weird place to be around. I mean, we opened our offices actually labor day. We sent out our, in one facility, our main headquarters which is about 750 people, we said please come if you can. Were not ordering you, so to speak, to come. And truthfully, no one comes. Very, very few. Its about maybe 10 , 5 of our people are coming back. If you give people the choice, generally theyre going to say, no, im getting full pay, im working at home and doing whatever i want, what could be better. So i thats true for all offices in new york. And new yorks not going to get back again until we get clear signals that you can go about without taking these extreme precautions. Maria my thanks to barry diller, chairman of iac. Dont go anywhere, more wall street right after this. Diane retired and opened that pottery studio. How did you come up with all these backstories . I got help from a pro. My financial professional explained to me all the ways nationwide can help protect Financial Futures in peytonville. Nationwide can help the greens get Lifetime Income because their son kyle is moving back home and could help set up a Financial Plan for mrs. Garcia. And he explained how nationwide can help mr. Paisley retire early and spend more time with his pal, peyton. And their new band. Exactly yeah. Dont forget the band. I havent. Maria thatll do it for this week. Thank you so much for being here. Dont forget to tune in every friday night, fox business, 9 p. M. Eastern for another edition of wall street. And then this weekend, join me on fox news for sunday morning futures 10 a. M. Eastern live on the fox news channel. Arkansas senator tom cotton, former ambassador to germany and acting dni ric grenell and california congressman devin nunes my special guests live 10 a. M. On sunday on fox news. Start smart every weekday on fox business, weekdays 69 eastern for mornings with maria. I hope youll set the tone with us every morning every week. Thatll do it for this weekend. Thank you so much for joining me. Have a great rest of the weekend, everybody, and ill see you again next time. Gerry welcome to the wall to l street journal at large. Just in case you were thinking that this strange year couldnt possibly hold any more shocks, very early on friday morning we learned that President Trump and first lady melania have tested positive for covid19. The president s enforced quarantine throws yet more uncertainty into an already highlyuncertain election campaign. The candidates second president ial debate following this weeks brawl in cleveland, thats presumably now in