Come to a pause when it reports earnings on monday. I can never tell if you are trying to help me or destroy me. Dont be so dramatic. Were just trying to help you protect yourself its time to risk less and make more the action begins now. Lets get right to it the bond blood bath continued as the yield on the u. S. Ten year hit its highest level since 2014 the 2. 6 area has been the line in the sand over the last ten years. Will history repeat itself or will we see rates tick higher. Lets go to carter. Critical levels by all accounts what is interesting still is we have really made no progress despite all the excitement im skeptical. Lets look at a few things and go from there. Here is your chart its very clear in the lines, the highs are clear, how it has ascend lets put in those lines what we know is that today for the first time, ever so slightly, we moved above this level. So a year and one month ago 264. We closed at 266 the question is as it breaks out, does it help the financials
Arrival . First we start off with what were calling judgment day for the rally. The fed is expected to announce the end of the experiment known as qe. The beginning of the end starts tomorrow this as stocks hit a fresh record high, today the dow higher for eight straight sessions what will the fed do how will the market react tomorrow guy adami. I do think its extraordinarily important. Dan is going to yell at me i hope he does. If the fed were to have made this move a few years ago it could have caused a dramatic move in the equities market. The market is telling us now that were going to move from monetary stimulus to hopefully fiscal stimulus. I said to wait for me to finish. I think thats what the market is pricing theyre saying, theres a very good chance that President Trump and his administration will put through some of the initiatives that they want and this is why i think the market maintains its alltime high despite the fact that the fed is now reversing what has been eight y
What should you do with your portfolio . Well tell you. But first, we start with trump tweeting and the market listening. After calling out boeing last week, trump took on lockheed marin this morning, saying the costs are out of control. Billions of dollars can and will be saved on military and other purchases after january 20th. The stocks paid attention. Lockheed pulling nearly 3 . Northrop grummond, General Dynamics. Who could trumps next target be . First of all, on defense. Guy, investable or not . Yeah, i think its ininvestable. When he went after carrier, obviously the united technologies, one of the things we said was, they were in the crosshairs now, hell move on to the next target. United technologies, by the way, made a 52week high and closing on levels we slaft saw a yearandahalf, two years ago. Following in the after market, what is an alltime high. And i think the same thing is going to happen with lockheed martin. In the case of lockheed, it might take longer. This is a
Can we clap for her . Great to be here, thank you. The answer to the question is yes, financials continue to lead. Im not going to submit ive been some raging bull on financials. I will say this. People say theyve run too far, too fast. If you look at a chart, maybe. What people arent looking at is the fact that in 2007, a lot of these financials were trading over two times book. I dont think were getting there for you. But at 1. 7, 1. 8 times book, for example goldman sachs, which is currently 1. 3, just to it there, 1. 8, consider a 300 stock, which is probably another 15, 20 higher than we are right now. Can they continue to go higher . I submit they can. If the economy improves, cant the book get better too . They could have a better loan portfolio. Their tax situation could be better. A lot of things could get better. Not so much the repatriation, thats not so important for them, its like a onetime thing. America doesnt even have that much exposure. But a stronger book and higher
News for twitter. We start off with the retail getting dragged down. Trump euphoria, colder weather, it should ben nirvana for these guys. Until we get tax clarity, is this group suddenly a notouch, guy . I think it is. We get a lot wrong, this one i think we all got collectively ride. Nordstroms, for example, this stock had a tremendous run up to 60 in november. We talked about it and said, the run in nordstroms, too much, too fast, all the shorts have gotten forward. At 20 times forward earnings, theres no way the stock should be there. We stayeaid, look for a pull ba. All this summer, 48 1 2. Magically, here we are. I dont think you can go out and buy it on this level, but at least valuationwise it makes a little more sense than it did even two weeks ago. You had two things today that hit these retailers. You had personal income come out, which was essentially flat. Its been decelerating since 2014. You also had an mpd group report out saying holiday sales were running 4 below last