Good wednesday morning welcome to squawk alley. Im Carl Quintanilla sara eisen is here as well the dow is down 59 points following the best day since april. And techs best day in just over a week nasdaq is now lower for four of the past five trading days for more on all of this, we are joined by the chief Investment Officer john rutledge. Good morning, carl. You put more credence on the action yesterday or today, john . I think the risk is the thing you have to watch out for. So i guess that means today. And it is really event risk. Event risk is something investors dont think about very much, but it is like lifting a dumbbell big left, big right, nothing in the middle so you have good economics, bad Politics Around the world, and then its adding up to a lot of risk and makes me want to be cautious. You take risk on or off here . Were keeping risk on, carl our opinion is this is not uncommon over the last 8 1 2 to 9 years. This has been the most remarkable process of recovery, now norm
It seems are just written in stone, judge, you fade whatever the fed whatever movement you get out of the fed day, you fade that. We were down 130 yesterday. If you would have faded it, boy, did you have a nice comeback today. To your point, moving up 150, 160 points, looked like it could overtake 20,000. The same sort of thing, the pullback, well see if the pullback in the bonds because that is one of the things that we and jeff have cited over and over again, if we blow right through 260 and head to three in a hurry were not set up for that. Europe at 260 but 80 points away from dow 20,000. Josh, you have 31 new highs, bank of america, goldman, jpmorgan the banks just continue to rip. The same stocks that got us here. One of the things youll hear a lot about now is the dollar, and overnight obviously things got a little bit dramatic. Now were talking about euro parity. What will help listeners and viewers navigate that conversation as it develops which is there is no signal contained
Regulatory reform. Why were you interested in that role . You know, i honestly am sort of surprised so much is being made of my being named to that. I dont think it really changes what ive been doing. You know, ive known donald for years. Hes an extremely bright guy. I backed him for the presidency. And, i mean, its almost like talking about i know theres talks about conflicts and im sure that youre going to talk about that and ill just say this, that its almost as ridiculous as saying, you know, if that donald shouldnt talk to a jamie dimon about Bank Regulation because theyre ceos of a bank. I do own companies in every area, but as far as im concerned i dont have any specific duties. What im going to be doing is basically talking to donald as ive talked before and i do think its important, extremely important, for this country that theres absurd Regulatory Environment is toned somewhat. Im not against regulations at all. I sort of believe that you need a rule of law. But its become l
Kayla is live at the 2017 ideas festival in san francisco, and joining us also at one market, brett taylor, a cocreator of google maps, and from palo alto, good morning to everyone. Jeff sessions in the hot seat on capitol hill facing the Senate Judiciary committee on day one. John harwood is in washington watching that. Were now past the Opening Statements and into the questioning of Jeff Sessions under a question from dianne feinstein, the veteran democratic from california. Jeff sessions just said that legalizing abortion four years ago was wrong. He says he respects the law of the land and that is the law of the land. The most prominent charge is the one that sunk his nomination in 1986 to be a federal judge under ronald reagan, and that is that he harbored racial animous. I was accused in 1996 of failing to protect the Voting Rights of africanamericans. And of condemning civil rights advocates and organizations and even harboring, amazingly, sympathies for the k. K. K. , these are
Mario, we talked about the banks on this show almost every day since the election and for good reason, they have soared. What do you think of this particular call that may be the skys too blue . Look, the answer is the following. As goldman is a subset of whats going on in the entire ecosystem of stocks. After the election capitalism beat out socialism as a way to thats good for people who want to have assets protected under the rule of law. Now were putting back innovation and creativity. Goldman is terrific at that. Secondly, the notion of the whole notion of fiscal stimulation to augment Monetary Policy which is slowing down. Goldman is going to benefit from that. In addition to that, corporate love making goldman will benefit from that. In addition to that, tax reduction, reg reforms, individual taxes coming lower, Corporate Taxes coming lower. A lot of Little Details in between. I dont see any reason to not think it will do quite will over the next few years. Is answer is i bought