a recession is potentially in the cards. the focus will switch to the federal reserve. there s mixed opinion as to whether another rate hike could be in the cards. some economists saying this tells us the fed should not raise rates again. others are pointing to the inflation data which is still hotter than expected, which tells us perhaps the fed will move by 25 basis points next wednesday. how does the stock market react to this? i think there s a growing narrative that the fed may pause. you are seeing stocks higher by triple digits. the earnings reports from hilton, visa and american express are showing the consumer is strong. more people travel there s still areas or pockets of the economy that are showing strength and perhaps leeading to green across the screen. that wraps up the hour for
watch and we ll get into it more. this president does not want to go to war. he s not a war kind of a person. he wrestles with these in a very, very serious way. he doesn t want to do this. as he has pointed out, sometimes you wind up having to do stuff you don t want to do. so what are some of the collateral stuff that you might not want to do that you have to do? i m thinking oil, i m thinking money, sanctions. like what is the collateral? that would be the other damage that would come from taking action. not so much in the world of oil necessarily. i mean, i think the world is awash in oil. we have plenty of it. that s why we didn t see the stock market react sharply. so it s not really about that as much as that this is just a continuation and an escalation. it s not about this one incident in saudi arabia. it s about the fact that they are provocating more and more in
so many of those farmers who are already impacted live in trump country. they put him in the white house. you re seeing the stock market react. but from the president s perspective, what must be more disconcerning is how this is impacting pocketbooks, wallets, all across the country. how risky is this on behalf of the president? and 401(k)s. the president loves to talk about how people have gotten richer under his presidency. the effect of his tariff announcement is that the stock market has really dropped and may continue to do so because this trade war he has now made clear is going to continue and probably continue up until 2020 and until his election. he has sort of signaled that he thinks maybe china is trying to outwait him, if joe biden or another democrat were to win in 2020. but you ve got these very, very high tariffs now and costs going on, products that are imported into the united states, this
the two are so closely connected. home prices have come back dramatically. new home sales are up. home builders that reported earnings in the last two weeks amazing. the data has been amazing. the only problem we have is not enough homes. maybe a victim of its own success. maybe the prices are going too high. the fact of the matter is housing is going gangbusters right now. sandra: they are softer than analyst expectations. you hate talking about that. it affects the way stock market react. a little disappointment there otherwise big picture stock market. are stocks cheap? stocks have become very cheap. we re in the middle of earnings season. every three months companies report card and tell us how well they ve done. one of the best earning seasons ever. might be too good. last monday caterpillar said it was the high watermark. stock was up. it came crashing down.
amendment perspective and president attacking the media perspective, and now as you introduce, it is a problem in that the president is choosing companies over other companies. there are consequences to this. this can go further. without question. we have seen the stock market react to this. amazon stock was down yesterday around 5%. down almost 10% the last few weeks. sources say he is seriously considering cancelling a pending contract that amazon has up forbid with the defense department. they also have some very large federal contracts that donald trump would like to revoke. that could hurt amazon s bottom line. we are talking billions of dollars that he wants to exact pain on amazon with. and that to me again is troubling that the president would use personal an moimosity dictate a private company. this article is worth reading. it is a big deal that the