Road map begins. Stocks still on the high despite hiccups. Donald trump blast the nfl. Its having huge ripple effects and could have a large corporate impact. Facebook settling a lawsuit with investors but its trouble far from over. Revelations about what the company did and did not know when it comes to russian interference in the u. S. Election. Futures are moving lower have a positive week for stocks despite the dow being in the midst of a two session losing streak. Global markets reacting to developments out of germany. Merkel wins. The far right party will Enter Parliament for the first time, one of the cofounders says she will not sit in the caucus in the boon to stocks. Theyve got internal politics to work out over there. What a weekend of news, jim . Yeah, this european news i felt is collaring our markets much more than people realize. Why are these markets not reacting negatively . I think the more nationalists win, the more the parties in power feel like they have to spend,
You. Thank you. So, when you were with us on august 7th, you said the market is fully valued. From then until then the Dow Jones Industrial average is up 6 , the s p up 4 we overvalued now . Not yet, no i would say that, you know, basically bull markets ended over valuation and i dont think were overvalued use whatever adjective you want to describe it the market is not cheap and its not expensive. So as i think ive been saying, i think were kind of approaching normalization, and to me normalization is a 17 multiple on earnings and the trick is what is the earnings youre looking at . You know President Trump and the republicans get their way, and we have a tax package, you can see earnings next year in the s p about 150 and the 17 multiple and 150, i think its 2550 that would be fair value, full value but fair values, and, you know, most bull markets end over valuations so took another 10 to 15 to that number. The trend is favorable and the conditions that normally lead to a big market
Resolution for inspectors at the chemical attack in syria. Moscow had to postpone the event until next month after the weapons watchdog issued its october 26 report. U. S. Ambassador nikki haley pushed for the vote today, saying the Security Council overwhelmingly supported extending the inspectors mandat es month after Hurricane Maria struck puerto rico, the Tourism Industry is practically nonexistent. About a third of the hotels on the island remained shuttered. Restaurants and shops are still without power. Swimmingre closed for because of possible water contamination. In high season begins december, and tourism officials are hoping to lower some visitors. Ist depends on when power fully restored, and how quickly attractions can repair the damage. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Julia i am julia chatterley. Joe i am joe weisenthal. Scarlet fu is off today. Julia we are 70 minutes from the c
David einhorn says it is putting inadequate and dangerous products on the road. Betty not one to mince words, David Einhorn. May be it is frustrating him overall because it is an example of the stocks that had been lifting the market that he has not been a part of because he is a value investor. I wanted to show a chart for our which showsbtv 440, you how much value stocks have lagged behind. More than half, in terms of growth over the last year, behind the growth stocks, the. N. G. s, the tech stocks. Buy into stocks like amazon and tesla not the boring old value stocks. Yvonne he is not the only Hedge Fund Manager that has been lamenting this. Is he waving the white flag too soon, given the rotation we saw . We did see more buying into the value stocks like the financials, theyre are up 15 in september alone. Going the other way. Perhaps he is speaking too soon breaking outelds to 2. 4 percent. Could be adding fuel to the fire in this bank rally. Betty i would be curious to hear what
Chipotle, express scripts, Texas Instruments, just a few of the names set to report earnings in just about an hour we will have our hands full at that time but lets get straight to our big story. The strength in the market today from the Big Industrial companies cat and 3m getting that boost on earnings driving the dow higher ge and ibm trading lower, bob pisani give us some more. Well, heres whats going on. Theres a very unusual divergence between the dow and the s p. Its happened a lot this year, actually 70 points or so. And the reason that is is the dow is price weighted and when you get certain big name stocks, big price stocks moving, that moves the dow. This is the really eye opener of the day. 3m now, they had good numbers and they raised their guidance for the year about 1 , which is good generally you get a little pop on that. But folks, not 7 . Look at that thats 15 you know what that means for the dow . Thats 105 points for the Dow Jones Industrial average 105 points due to