I like it watch weeks later. Its relevant yeah. The wisdom. Absolutely. Global markets report lets check in on how were coming out of the overnight session. Looking at u. S. Equity futures the dow, s p a bit lower implied for the open same for the nasdaq. Coming off records again yesterday. How about overnight in asia. Well see how they react to the feds tightening yesterday which did not phase markets. The nikkei is up 0. 2 . I believe they had an earthquake in japan overnight as well the shanghai down about a quarter of a percent european equities, seeing how the theyre continuing, green pretty much across the board. France and italy leading the way with a half percent of gains ftse just a bit higher crude is coming off a flinday win streak you know, crude for wti is over 50 a barrel brent over 56 a barrel both down a quarter of a percent. Small declines for nat gas well talk about Hurricane Maria. Just thinking, japan, mexico, maria. Think about the last 30day period i know. Normally on any given month you do not see five or six of these catastrophic the volcano this is like i wont tie it to this biblical numerology end of the world is that supposed to happen saturday that happening again . Theres a lot of stuff happening. The real problem about that, if it was any one year, all that happened was Hurricane Harvey, we would still be talking about harvey and raising money for harvey irma. How do you split the attention of the National Media between harvey, irma, maria, the mexican earthquake 1,000 people possibly dead japan, too. Especially with social media, you hope all of the attention and money gets to where it needs to go. This one is not over, maria. The storm is regaining strength after pounding puerto rico that entire island is without power. Puerto ricos governor says it could remain that way for months maria unleashed winds and flooding across much of the island the storm is getting stronger as it pulls away from puerto rico i hope it stays out that way it is heading for the dr, the Dominican Republic well get an update from puerto ricos congressional representative at the bottom of the hour get Additional Information that we can from the congresswoman. We are also following the latest out of central mexico this was a massive earthquake that killed hundreds rescuers are frantically trying to find survivors buried under mountains of rubble. At least 230 people have been killed hundreds of deaths in mexico city alone and the worry is the death toll could get above the hundreds and into a thousand. I dont know t will be a while before we know how bad it is google is betting big on smart phones the Company Buying htc for 1 1. 1 billion in cash. Google sold motorola three years ago. The gigs division of htc manufacturers googles smartphones today. Google will gain 2,000 employees. Google shares just bit lower. Albertsons announcing it will buy plated, the Meal Kit Delivery service the privately held Grocery Company faces increased competition from those discount european chains, like aldi and lidl and amazon following the acquisition of whole foods plated launched in 2012, is one of the top five Food Prep Services, following blue apron and hello fresh. Blue apron is up about 2. 5 now on this news maybe albertsons plucks off plated, apron after having its valuation dropped could be plucked off. Eager to see how about albertsons played for plated. A pair of economic reports this morning weekly jobless claims at 8 30 a. M. Also at 8 30, look for the september philly fed survey. Any time something happens, it overshoots, it undershoots should be interesting. Youre not watching a rerun, theres a healthcare vote coming up in Political News Senate republicans announced plans to vote next week on the latest bid that they put together to scrap obamacare. President trump and republican supporters of what is now known, the latest version, as the grahamcassidy bill. Theyve been working to secure enough votes to pass the bill. President trump said they have about 48 or 49 or 47 or 48 out of the 50 senators necessary ive been watching this so closely. I know everybody involved. Susan collins has not said no yet. Likely no. Murkowski was supposedly going to be a no but theyre offering some things. Mccain is on the cover of i will stop mentioning this horrific blog. Is it the Huffington Post. I have to look at it to see what are they absolutely spinning to the enth degree on any story that can make republicans or trump look bad. In this case, its a terrible picture of mccain that says its coming down to john mccain again. Theyre putting pressure on him seems like he wants the limelight. I have all the respect in the world for him. They called him he said that they said last time you didnt vote for it because you wanted regular order. You wanted regular order in the senate are you still there . He said i still want regular order. So now theyre saying maybe hes a no rand paul, if you look at how he voted for the skinny repeal he has no idea where he stands now basically kept 100 of oba obamacare taxes. This keeps 90 voted for the 100 , but he wont vote for this because it keeps 90 . The logic isnt there for him either a lot of these guys love the clock is ticking. If they dont need this by september 30th, they need more than 100 votes to do it. They can do it again. It would take longer they want to get it done. They want to say they got something done and push and jump over that hurdle now they have also seen the reaction to the last failed effort we might go down and mccain might get do it again. What dewihe did with his hand s dramatic i think he likes that. Its crazy. Evercore gave it a 10 chance feels like the squept sickeptica good thing you used to say, oh, theyll finally get it they say they dont. Not anymore. No. Not with these republicans now its like, theyll find no Everyone Wants to be the star of the show. So nobody gets anything done theres no group play. You also dont want your state to suffer. If youre kentucky you wont benefit under this as other states is it about your state or belief. A bit of both or about your reelection a bit of both term limits theyre related if your state is going to benefit thats the holy grail term limits. Everything else solves itself. You need one commandment they can still get decent tables at the washington theyre not even living in d. C they have to go back to their hometown, back to the Hardware Store where they came from thats so thoughtful. The United States is weighing whether to abandon the iran nuclear deal. President trump told reporters he has made a decision on what to do about the agreement. But he wouldnt say what hes decided. Irans president has vowed that his country will not be the first to violate the agreement under the program iran agreed to restrict its Nuclear Program in return for the loosening of economic sanctions that crippled its economy. So were not saying we dont know whats happening on this yet . I dont know it seems pretty i dont know. What i saw this morning is that macron who had been france, obviously, staunch backer of the deal, now saying if it cant be monitored, we may need to do something different. The president s language was so strong. Almost like hes coming around on the notion amazing how this is back in the forefront. North korea knocked this completely they were the biggest beneficiary of north korea. Even took their eyes off them. Its not anything that happened out of iran per se, just that the president emphasized this time and again when he had the opportunity to say it, it was a horrible idea he did it in front of the u. N. The latest wall street journal nbc poll is out john harwood has some of the numbers for us i have to ask a question, you mentioned the clock was ticking. I heard something that joe said in the interim, did you say the world is ending on saturday . I was referring to the biblically, john, there is some reason with numerologists that is all around that the 23rd could be the day. I might spend today and tomorrow differently if thats going to happen. I dont think i would we have grasso here, hes a trader do we raise cash, john do we for what . I think you raise some cash if it is on saturday, do we know if its before or after the duke carolina Football Game . Are a couple of i wanted to see sc play they play cal. Theres some teams youre praying for the end of the world on saturday. If this happens, my plans will be all messed up. Im hoping it doesnt. Joe, heres the thing if it ends on saturday, it will end on an uptake for President Trump, our new nbc wall street journal poll is out this morning. It shows that in the wake of that bipartisan deal with democrats, also in the wake of his administrations handling of hurricanes harvey and irma, that President Trump has taked up to 43 . Thats up from 40 in august his disapproval has ticked down by 3 points at the same time thats a positive development for the white house. We also have numbers on tax reform that indicate the ground is soft for argument on this issue, and theres a possibility for republicans to make this progress if you ask the American Public what would you do on taxes for various groups, you see majorities of people, more than 60 say they should go up on the wealthy. 55 say they should go up on corporations on the other hand, if you ask about Small Business, they say taxes should come down that is an indication that republicans, if they focused their argument on Small Business, will make headway. Secondly, when you ask people if there is a big business tax cut, will companies expand and create jobs to that argument 54 say yes, they will. 40 say no again, linking it to job creation will be a positive for the republican side. Now, when you take all options and put them on the table, we find split opinion, just 4 say there was a Corporate Tax cut only just a quarter of people say an individual tax cut only. Another quarter say well, we should cut taxes on both the Largest Group of people, 42 , say dont cut taxes at all. What that means is both democrats and republicans have a chance to move the ball on this argument and i have to say this grahamcassidy debate which were going to that you and kelly talked about a moment ago, thats a distraction from that argument on tax reform which republicans have been hoping to make this fall well see how quickly they turn to that after the senate decides one way or the other it looks more likely than not it will go down next week if we make it to next week thank you very much. Thats right. I think maybe all cash but then what do you do with why wouldnt you go long . If the whole thing is going to end you got to go long. Buy the end of the world dip taf happeafter it happens, iy everything on the cheap. Its going to end, but youll be around to buy everything cheap. Have you seen joes house he can live out there for six months im buying water, obviously water and gold. We make fun of this only because it happens every year arthere are a lot of eventually it will be right can only happen once. Thats true lets hope there are not zombies. You know what i mean youve been watching the show, youve been prepared for it. Got a couple rounds of ammo left no any way, the dow and s p rising you got shoot them youve seen walking dead right . No. You have not seen walking dead . Game of throwns, game of t,d all seven seasons in two months. I never traded better. I dont know how it all fits in. Lets get you caught up on the broader markets. Joining us is Chris Zacarelli from cornerstone wealth. Hes not in the studio i think hes in charlotte, North Carolina on set, ed keon. Our guest host is steve grasso, cn bshgs krshgbc fast mron trao. Every day guys need to generate content that people need to click on if you go to zero hedge first, its a good one it says the next financial crisis is starting as they unwind will the unwinding by the worlds central bankers of all this accommodation, thats one idea the other day we had someone on who said it will be fine ray dalio said the thing to worry about is that they raise rates too quickly. They successfully put in enough cash where you needed to do that it was necessary and that they did save the world. It wont be an event unwinding which is it. I have confidence in the central bankers. However why because i think they get through the crisis the worst didnt happen. I think the key is that right now there is the greater chance than normal of a policy mistake because youre coming off an unprecedented situation. Would the policy mistake being go too quickly or not quickly enough either way. We never had negative Interest Rates around the world policy rates have been 3 to 5 . For 500 years if you look at the bank of england. We never had a situation as aggressive as it was, now you try to come off that because you dont have a historical precedent the odds of a mistake are high i dont think theres a Crisis Brewing any time soon, but the odds policy mistake, the odds of engineering continued prosperity are higher when you are going someplace you have never been before. Because if they dont move quickly enough, they may have already cast the dye in the wrong direction for waiting this long so asset bubbles im long. So im confident that well get through this okay. The next couple months will be tricky, the data will be influenced by the tragedies because of the hurricanes. When you say the next couple months, how long does this take . Theyll take years and years. Theyll do it very slowly. We wont have an answer when were out of the woods thats right. It will be years, i think, before theyll do it so slowly that it will be quite a long time. Theres still tremendous demand for fixed income products. Theres plenty of buyers on the other side eventually some kind of shock will hit the system. Right now im bullish. Ive gone long equities. Chris comments on you have your own comments on this you agree with ed . Disagree agree with some of it . All of it . Sure. I think all those points are well taken in the short run we dont have to be too alarmed. They communicated what theyre doing well theyll go slowly. Ultimately because were moving from quantitative easing to quantitative tightening, as they continue to raise rates, you have that problem of eventually if they do overshoot and cause the next recession, thats what i would be worried about right now i dont see signs of recession, as we go forward, watch the yield curve, make sure treasury bills are not going higher than the tenyear note. Right now theyre at 1 versus 2. 25 theres no sign of an inverted yield curve at this point. But keep an eye out of it. The next recession will most likely derail this bull market if i had to wait for the economy to overheat and rates to start going up to where you choke that off and you get your normal classical recession that sounds like its a long way off. Is there any reason to think theres a recession on the horizon when rates are this low . I mean, you know, to the point that its been unprecedented territory that makes it harder to forecast. Right now i think were a ways away were long as well it makes sense to be long at this point in the cycle i think you want to continue to let your equities run. But you have to be careful of whats around the corner i think 4 to 6 months out seems like everything is fine. Longer than that, harder to tell this market could go for another couple years or if things heat up quickly, we could have a melt up, stocks could move up quickly in a short period of time, maybe after tax reform or fiscal stimulus if the market overheats that ends the cycle quicker than if otherwise you just wait for a normal recession to come thats what were watching here. Everybody says recessions dont bull markets dont die of old age. Thats consensus now maybe you can die of old age tightening policy on the qt where is mac . Is mac mac, do you hear theres a drill. Theres a drill. Do you hear this drill its not a hammer. Theres a drill. Do you this could be the beginning of the 23rd. Im not sure its a drill can you hear it . You feel better someone else hears it could start with the drill and go to a hammer, which we dont want any way taking it in stride we are. Were good. Oh. Chris and ed, thank you both steve, youll be with us for the rest of the hour. For the rest of the hour more hedging strategies sure. Possible end of time gold maybe t bills. Tax reform lessons from the state of kansas. Kate rogers has a report on what went wrong with the tax policy they scrapped. Thats when squawk box comes back not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. Did you hear directvs latest deal . Its cheap and gets you all the big games. It starts at sixty bucks a month, but jumps to over 100 after 3 months. Cool i think . And jumps again to over 150 after a year. Noooo. And ends up costing over 3500 bucks over 2 years. Youre cleaning that up. Dont get caught off guard by directv. Touchdown. Get the best with xfinity. The Trump Administration is pushing its agenda for tax reform including parody between corporations and Small Businesses with a top rate of 15 . Critics point to what went wrong in kansas where a tax experiment was reversed kate rogers has more from kansas nearly 5 years ago the state of kansas underwent a real live experiment in tax reform as the governor reduced income taxes for individuals and did away with them altogether for businesses mccracken was able to save thousands of dollars and reinvest that money back into her business the realization of several thousand dollars, which goes back into the business in the forms of hiring other Small Businesses to help with our website, do seo, hire another employee, most recently we made a durable equipment purchase but in the wak