Leapfr leapfrog. Whats leapfrog . Its when a particular companys stock moves up. It causes other stocks to be revalued higher, almost instantly. How does it happen . Lets start playing. Take the actions in the airline the reason we had gary kelly the perfect ceo thug, he had solid things to say about novembers bookings. The name of the traffic pickled up week after week after week postelection. That was news today and the stock quickly moved up smartly. Now we get to the valuation part t. Priced earnings multiple. Remember stocks dont trade on absolute basis, they trade on a relative basis. Nobody cares that southwest is a 50 stock. We dont think its twice as expensive as a 25 stock or half as expensive as a 100 stock, thats nonsense. What matters is the earnings per shares, what we are willing to pay for them. It often symbolizes. When gary came on this show, southwest was swell selling 13 times next years earnings estimates and they are wildly regarded as the best capitalization in a
That old paradigm of political gridlock coupled with slow growth and, most importantly, cynicism. Cynicism, which also combined to produce hohum parks like today. Dow spliping seven points. S p inched up 0. 19 . Nasdaq advanced 0. 48 even after days of declines concluding with yesterdays crescendo of selling. Worst day of 2017. Now, look, ive been adamant, and you know that if youve watched this show, that this rally hasnt just been about the power of donald j. Trump to effect change in washington. I think the optimism that the president s created in the Business World through his endless projobs, antiregulation drum beat and rhetoric has been far more important for stocks than anything related to actual legislation in congress. Yep, the positive implications of deregulation coupled with better than expected profits have been the real impetus for the run. All that said, i totally recognize that my view is distinctly in the minority. So lets go over the majority thats in control right n
London. Matt i am matt miller dropping in for a couple of days to keep you company. Have you here in london. We are going to talk more about the general state of the market, what trump is doing on capitol hill and what that tells us about his ability to pass legislation. Lets rely, we saw yesterday around london and westminster and the lack of reaction in equity markets and markets in general. This is the ftse 100 standing firm, facing down against that terror threat. We saw at around 2 45 p. M. Yesterday london time the first news coming through of the attack and westminster and westminster. It took some time to regain lost ground. Facing down that terrorist threat. The equity market, the sell off easing a little bit as we work to see what President Trump can deliver. Matt congress will vote on the Health Care Bill later and investors are holding off on making any bets until they see about the mandate of President Trump on capitol hill. Lets take a look at the other asset classes. We
That question of john curtis. A prescription for failure, equities could be in for disappointment if Congress Rejects the health bill. Could a lastminute change inject life into the legislation and the stock market . Matt good morning. Lets take a look at the future flat futures, but with a green arrow on the ftse, now pointing down while the dax and the cac higher. It was the biggest loser among the three major indexes and the biggest loser in terms of futures today as well. Bumd look at the trade, pushing the yield down. It opposite, which is interesting. The french trade is going the other direction. Wantoks like now investors safety and german death. This is the picture we found yesterday. It doesnt look like we will get any clear sense of direction, but will we once we get clarity out of Congress Later on . The ftse in line with the rest of the market. Lets talk about asia. The aussie dollar, why . Leg in had another down the iron ore trade. Calling is significantly lower on iron
Nuanced. Im not real happy with the Freedom Caucus. But i have empathy for their position. Did you see theres one guy who already resigned . I have empathy for their position. I think it would have been better to i think the perfect i think they cut off their nose to spite their face. I dont know if they thought about it, the trillion dollars now that they have. 24 Million People will have health care. There you go. Whatever you think. Whatever youre reading. Whatever youre reading, probably continue with happy to get maybe 1 growth for the next eight years but now, the president is supposedly saying, if they wont work with us, well have to find ways to work with democrats. Yeah. They seem very amenable to that. Well hear some comments from him saying theyll be willing to schumer, i saw the compromises. We can go single payer. We can do drug cap price. Nothing was compromise, just solely democratic position. President trump is the closer. He will be able to work with democrats to make