The fed added a third rate hike for 2017 or the median forecast adds to the third hike up from two. Our fed survey was at twoandahalf. So the market didnt fully price it. Yellen also and i put that word bless on trumps policies. Thats rick santellis words. He didnt bless it or criticize it much, but didnt bless it and the market wanted to hear these things will lead to better growth. And she said more worried about inflation, pointing out that when her counterparts were calling for what she and bernanke were calling for fiscal policy, it was a lot higher than now. Slack in the economy. Now i asked her at the press conference whether or not trumps tax cuts were the kinds of things that she could bless, because they raised productivity. Heres what she said. Tax policies can have that effect. It really depends on the specifics. I dont think theres anything that i could say in general about what tax policy would do. But that and i really cant tell you what the feds response would be to any
75. 62. 5 basis points is where we are in terms of rates right now. You can see where we are in the markets, which did sell off after Janet Yellens decision or the fed decision and the european markets, up across the board. I always do like to see spain and italy, thank you very much, control room, for throwing those in there. Tenyear note yield the key here. We eclipsed 2. 5 yesterday after the fed meeting. Where do we stand now . 2. 587. Crude oil is down on the morning over almost 2 . Our road map this morning starts with the step back in the rally. Stocks slipping after the fed raised rates for the first time this year. Plus more on trumps meeting with big tech, the fallout and the upsides from mega caps in silicon valley. And yahoo discloses a new data breach affecting 1 billion accounts does it put their deal with verizon in jeopardy. Lets start with the fed raising Interest Rates by 25 basis points. First time this year, second time since the financial crisis. They also signaled
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
Are actually seeing the euro turning lower here. Looking at crude, the picture in crude, wti down by 0. 4. Date to for brent crude. Heres big stories that we are watching today. Another wild trading session for the worlds oldest bank. Shares of monte dei paschi tell 7 in early trading after the embattled lender admitted there are no anchor investors taking up its share sale. A state bailout is expected with any losses forced on to bond holders. The president elect is tapping carl icahn as a special adviser. The billionaire investor will work on rescinding what he calls excessive regulation on u. S. Businesses. The Transition Team says icahn will not be a federal employee, and he will not take a salary. Another well known face to cnbc viewers is getting a job in the Trump Administration. The president elect is hiring economist Peter Navarro to run a newly formed National Trade council. Navarro is the author of death by china. He backs a hard line approach towards relations with beijing.
To go around. Crisis, crisis, ladies and gentlemen, thats giving everyone a giant hangover. Well explain as power lunch begins now. Welcome to power lunch. The dow moving lower again today. Take a look. The Dow Jones Industrial arch now, its lower by 34 points and we were roughly 95 points away from the dow 20,000 level. There are still some notable standouts in the broader market. Nvidia, microsoft hitting record highs, melissa. Heres what else is happening at the hour. Freddie mac says the average rate is 4. 3 . Boeing says it delivered its 500 dream liner jet and a major winter storm is closing in on the plains. It could bring blizzard like conditions by christmas day. A busy two hours as we kick it off with a news alert. What were watching, shares of Energy Transfer partners. The big pipeline operator. They are moving higher. The brief spike just about now. On heels of dow jones headline, saying private equity firm blackstone is possibly in talks to take a stake in assets. Not the