On wall street, and squawk alley is live good friday morning, welcome to squawk alley. Im Carl Quintanilla with john fortt, Morgan Brennan is at post 9 for the hour, sara eisen is off. S p 500 tech sector is the best performer this year by a long shot, up almost 40 . The question is, will this continue into the new year mark mahaney joins us to start off the hour, just published his 2018 internet sector outlook mark, always good to get your take happy friday good morning, carl. Whats the headline on this one . Going into 18 we have three constant and one change. At least for the internet aspect, theyve been extraordinarily consistent and we think those Revenue Growth trends can continue into next year second, the multiples are the same they havent changed over the last three years, which should mean the outperformance weve seen in the stocks to date, its all bottom line driven or Revenue Growth driven. Theres less downside risk, despite the outperformance going into 18 and the third th
Josh, tell me. How do you think the markets are going to react now, assuming this passes as early as next week, according to the president . Yeah, you know, its really something. Were now going to get a massive fiscal stimulus which we could have used seven years ago, but well get it now, and its squarely aimed at probably the one area of the economy that needs it the least, corporate profits, but, fine they are going to give it to us, and its going to be great for stocks and maybe some of that is already priced in, but were going to get that on top of still having very, very historically low interest rates. No rush in terms of the rate at which rates will rise. Somebody from the fed yesterday said they are not going to counteract fiscal stimulus with what they are doing to Monetary Policy so maybe there will be some space in between where that can actually take effect. Look, the most important thing you just said is whether you debate, and there are others weighing in, whether its Jef
Quintanilla with Morgan Brennan and john fortt on the New York Stock Exchange the social network looking to emphasize posts from friends and family Mark Zuckerberg writes, i expect some time on facebook and measures will go down. As facebook deprioritizes news, the former president obama was on the First Episode of lettermans new show on netflix, where he addressed the issue of news on social media listen to that whatever your biases were, thats where you were being sent, and that gets more and more reenforced over time thats whats happening with facebook pages where more and more people are getting their news from. At a certain point, you live in a bubble and thats part of why our politics is so polarized i think it was a solvable problem, but i think its one that we have to spend a lot of time thinking about. Two conversations here this morning, one is about the ad revenue impact and the share price, obviously, were going to coff cover that but longer term its a question whether or n
Of ways to describe this incredible rally. Its incredible, and its a little scary, but you cant be scared, and, know, you cant wait for a pullback because market timing is so difficult to do and very few can do it right. Its okay to get in here . I actually added some positions it a i had. Which ones . I added to delta which i bought earlier in the week and bought back united which i sold at 68. Right. Dont real like the company but the momentum in the transports and the airlines in particular are so strong where there hasnt been any for years, thats not going to quit right now and one of the cheapest sectors used by the market i also bought some kbr, part of the Engineering Construction theme and whether we get the structure or not, the economy is so robust and im trying to use some of the others well, eme is one, but the volume is so light that its difficult to get a position in it, but they are more domestically focused and also leveraged like kpr to energy, and i still think you ca
Busy morning the president delivering his first state of the Union Address, applauding the work his administration has done on the economy, on jobs, on health care, and taxes. We enacted the biggest tax cuts and reforms in american history. Massive tax cuts doubled the Child Tax Credit we slashed the business tax rate Small Businesses have also received a massive tax cut roughly 3 million workers have already gotten tax cut bonuses the president mentioned taxes 15 times in the address, most since obamas 2012 address where it was mentioned 31 times. For more on all this, joined by microsoft ceo steve ballmer, founder of usa facts and owner of the la clippers good to have you good morning to you. My pleasure thanks, carl, good to be here. So much discussion this morning about shackles being taken off business, whether through taxes or regulation, incentives to invest, thats why we are seeing the stock market for the past month where are you, what business and economy are doing and how st