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Transcripts For CNBC Mad Money 20160607

Environment drives stocks highers, isnt it . Over the average either at or striking distance from the year, dow gaining 18 points, s p advanced. 13, nasdaq inched down, we have to go over what allows us to reach these levels. The backdrop thats conducive to higher prices for the overall market. In short, whats so special about stocks right now that we are at or near or challenging these high s . First, investors like to see low inflation. When you have low inflation, that means the longterm value of stocks, the future earnings streams youre buying are going to be preserved. High inflation erodes that value because it means those future earnings will have less purchasing power. Last friday we gotten a employment number that signalled there is no inflation in the system other than the mandated inflation that comes from higher state and local minimum wages. Tame inflation means that all stocks are worth more so even if you hear that the stock market is expensive, it might not be as expens

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