Josh, you said, we talked about this yesterday. Its at 84, up more than a 4 1 3 . When a mega cap name like a wart has a gap up open like this it doesnt slow down so easily. Think about the sheer amount of buying that it takes to get a stock like this of this size to do Something Like a 4. 3 gap and roll and again, this is a high we havent seen in this name since march of 2015. Thats 2 1 2 years of consolidation. Heres the president today meeting with Henry Kissinger at the white house moments ago. If you look over the last 25 years through numerous administrations, we were on a path to well get that tape squared away. The president does have a busy day meeting with Henry Kissinger at the white house. Hes lunching as well with secretaries tillerson and mattis, which should be interesting just given the back and forth over the last many days about mr. Tillersons future. The president also sparring lately with senator bob corker, once again this morning on twitter. So well be following all of that and what it all means for the future of tax reform and this rally with the dows up 33 points. Here it is, in fact. Thank you. Secretary, do you worry that were on the path to world war iii. Thank you very much. I dont think so. Were well on our way. Its very the people of this country want tax cuts. They want lower taxes. Were the highest taxed nation in the world. Our companies are not leaving so much now because we have them coming back. You see what happened. You see the announcements from companies building car plants in michigan. Theyre going to various different states. Theyre picking some additional locations, but just last week five plants announced theyll build in this country. But i will say that were the highest taxed nation in the world. People want to see massive tax cuts. Im giving the largest tax cuts in the history of this country in addition to that theyll be reform. So i think that its politically very positive. The people of the country want it. Were also bringing back 3 trillion from offshore. Money thats been there for years, that wants to come back in the country but the tax situation didnt allow it to happen and the bureaucracy and thats going to come back as part of the deal. 3 trillion. It could even be more than that. People want to see tax cuts. They want to see major reductions in their taxes and they want to see tax reform and thats what were doing. And well be adjusting over the next few weeks to make it even stronger, but i will tell you that its become very, very popular and ill also be signing something probably this week, which is going to go a long way to take care of many of the people that have been so badly hurt on health care and theyll be able to buy, theyll be able to cross state lines and theyll get great Competitive Health care and it will cost the United States nothing. Take care of a big percentage of the people were talking about too. So with congress the way it is, i decided to take it upon myself so well be announcing that soon as far as the signing it concerned. But its larged worked out. Its very simple in one way but very intricate in other. Itll be great, Great Health Care for many, many people. A big percentage of the number of people that we were talking about for failed obamacare. Now, well have to do something with obamacare, because its failing. Henry kissinger does not want to pay 116 increase in his premiums but thats whats happening and its actually getting worse. Itsgetting worse by the minute. So well have to do something with obamacare and that will work out but very importantly, a big percentage of people will be able to get health care and theyll be able to go across state lines, theyll be able to buy from many, many competitors and meaning the insurance companies, and it will not cost our country anything but theyll have great, Great Health Insurance again. Did you undercut the secretarys state today with the iq comment no, i didnt under cut anybody. I dont believe in under cutting anybody. Thank you very much. You still have confidence in secretary tillerson, sir yes. Thank you. That of course the president of the United States at the white house with Henry Kissinger talking tax reform. The president saying will adjust the tax plan in the next few weeks to make it stronger also saying that his ongoing dispute with senator corker will not effect tax reform. Eamon javers at the white house. Also the president just saying there that he has not under cut anybody, referring to secretary of state Rex Tillerson who the president will be dining with in less than 30 minutes. Reporter importantly, there was a piece of news that was not played on that tape. In the very beginning of that meeting were told by Kristen Welker that the president was asked by bob corkers comments, that the president is potentially leading the United States down the path toward world war iii, the president responded, i dont think so. We were on the wrong path before, now were on the right path. So disputing bob corkers assertion, that his tweets, particularly the one that seem to be baiting foreign leaders are potentially the cause of international war. You heard the president saying that he doesnt believe in under cutting people, that is in terms of Rex Tillerson. He doesnt believe that his tweets saying that tillerson is wasting his time pursuing negotiations with the north koreans, saying he was not under cutting tillerson. He says that he does have confidence in Rex Tillerson. Thats important because as you were just pointing out Rex Tillerson is going to be meeting with the president little bit later on at the white house along with jim mattis. The two men will be meeting with the president but this is not the first time that Rex Tillerson will have met with the president since last week. Im told that the president and tillerson met in the oval office at the white house last week discussed a National Security matter at the white house last week, not told whether or not they aaddressed this moran flap in this facetoface meeting but the air was cleared between the two men late last week, so we dont expect to lead to any kind of flareup of that situation again, but its one to watch because the secretary of state has been at odds here with the president , forced to call a press conference to say he was not going to resign. So all of that in the air today as the president s meeting with former secretary of state kissinger and with the current one tillerson here at the white house. Ill throw one more at you, another battle that the president has been involved with and im going to ask you a question because the news is just moving now and that is the president s battle with the National Football league. The dow jones that nfl owners are considering a rule change that would require players to stand for the national anthem. So the president was tweeting again about this this morning, about the tax status of the nfl. Jerry jones one of the most influential owners in the league and a contributor to the president s inauguration says that any cowboys player would be benched if they didnt stand. The president finding himself on the right side of this issue, giving what i just told you dow jones is report the. Reporter the white house will feel very much that theyre on the right side of this issue given that information. They will feel that the president is very adept at finding the weaknesses of his opponents and in this case, the tax status of the nfl and all the tax deals that have gone into building their stadiums does appear to be an area where the nfl is very sensitive. The president invoking that this morning and were seeing some movement on that this afternoon. One of the questions i would have, though, is whether that kind of a rule could withstand constitutional scrutiny. Its a workplace issue because these nfl players are clearly at their workplace and i dont know if its been tested in the courts or not and a legal scholar could correct me on this whether or not a workplace can force employees to stand for the national anthem. We have to wait and see how that would all be adjudicated. I think the white house would feel very much thats that a win for them. Thanks so much. Well follow this story and the developments that are literally happening at this very moment. Eamon javers for us at the white house. Lets get back to the market. I think were getting this walmart conversation were having. For those of you who are just joining us, walmart is having one of its best days in years. Its coming off its analyst day today in which they talk about a number of initiatives theyre making and wall street and investors are clearly liking what theyre hearing today. Theyre executing on their strategy that they set forth two years ago when the stock tanked when they had to heavily invest and those investments are starting to payoff. Revenue growth at 3 is what theyre guiding for. That was a positive surprise. Numbers been reiterated. That was actually okay. Whisper numbers out there that they were going to have to lower numbers and margins are staying firm, that theyre not really being pressured by the macro on the margin side, that really speaks volumes to their strategy. 40 ecommerce growth is what theyre expecting for next year. These are really good stats. Stocks had a nice run. Its not cheap but it keeps going. People have to remember we had people on the show debating us for jet. Com. How much market cap has walmart added since jet. Com . And please dont tell me you think theyd be talking that 40 esmers comps if not for the Silicon Valley type of talent that theyre payable to bring in. Ceo jet. Com is the one thats driving exactly. How many entrepreneurs can say that they fought bezos and won. Theyre Digital Strategy is, it was all targets the one thats spending their Digital Sales are the ones to keep an eye on and its walmart that appears to be the winner in the whole thing. Can you imagine, judge, a better 3 billion roughly the number that was thrown out there, which would you rather have beets or jet . I think jet is making a much bigger impact for walmart than beets is and that was also a 3 billion thats why im saying apples to apples. Does this keep going for this stock . Yes, yes. They said all kinds of good stuff at that investor day. It keeps going and stephanie and josh and john are outlining the fundamental story. Sales growth, 2. 5 last quarter. If you look back eight quarters, the average was only maybe about 40 basis points of improvement. The fundamental storys there. Think about Consumer Staples for a second. Consumer staples are up 6 for the year. They have a 6 waiting in the s p. This is a market that is about being diversified. Thats not the conversation now. Its also about momentum. If you are a money manager and youre looking into the consumer staple space, where you going to find a mega cap, a 250 million company, a consumer staple thats up 20 . Youre not going to find it. A retailer thats not in the fetal position. Part of the point i made earlier, maybe you agree or disagree, what youre seeing today in part say bit of relief rally. What i said on squawk on the street this morning, what retailers affirming the high ends of anything other than the market knew this. We talked about it yesterday as a break out in progress. The market sniffed this out before the news came. The 20 billion buyback might have been a surprise but everyone knew it was analyst day and everyone knew this was an energized company. The market knew. We talked about the breakout yesterday. Online delivery from 1,100 stores by the ends of this year, another 1,000 next year. Those are big surprises to many folks, i think it bodes well for walmart. What a day for though shares. Dramatic day in cincinnati, proxy vote taking place for Proctor Gamble shareholders today. Activist investor nelson peltz vying for a seat on the board. Preliminary reports showing he came up just short. Sara eisen who is live in cincinnati and spoke with nelson peltz exclusively a short time ago. Hes not ready to concede just yet. Reporter absolutely not. Nelson peltz says its too close to call and hes contesting the results. This is a near 50 50 split. Two out of three for index funds went for peltz. It was the retail mom and pop that turned out to be the swing potentially in p gs favor. So i asked david taylor ceo and chairman of the board of p g, since it was so close, would you still consider adding nelson peltz to the board even if it was a slight also. Heres what he said. No. The shareholders will vote, well honor the shareholders vote. Hes a large shareholder. We will listen to him as a larger shareholder. Whats that relationship going to be like this got a little messy at certain times. I think the media got it more messy than it did between the two us and throughout the process ive talked to him. Ive met with him six times, ive talked with him many times and in all times i treated him with respect and he treated me with respect and were going to keep it respectful. It ought to be about ideas and things that will make a difference for the company. And certainly it was a contested proxy contest. I understand that. You did call him dangerous for the company. Do you regret that not him. I said some ideas i think would be very harmful to the company. I want to separate that. Im not calling nelson peltz dangerous. I respect him. Hes a successful investor and a major shareholder. There are ideas that he advocates that i do not think are in the best interest of the short, midand especially the longterm of the company. So taylor said theyll still be edge gaugement with peltz who is a top shareholder of this company with 3. 5 billion worth of p g stock. Peltz says it a different way, even if he doesnt win, which he doesnt think is the result right now, this should send a message to other companies loud and clear especially big cap companies, this was the largest ever company to face a proxy fight. Heres what peltz said about it. There might be arrows in my back temporarilily but were a pioneer, the fact is there is no company today that cant be called to task. Not one. And heretofore all of these companies you couldnt get near them. You could buy something from them if you were private equity but you couldnt call them on the carpet. Thats changed. And thats changed forever. So he says he will continue to hold the company to task, continue to fight for a board seat and scott, you can bet that bothsides are still going back and counting even that most preliminary tally did point to a p g victory capping what was months long very expensive on both sides proxy battle like we have never seen that came down to plus or minus 1 . Sara, thank you so much. Live outside p g headquarters. Stocks are up. The dow hit all time highs. Lets bring in jpmorgans equity strategy, hes also ranked number one in both portfolio strategy and Quantitative Research by Institutional Investor in their new rankings which are just out today. Congratulations. Thank you. Good to have you on the show. So people should listen to what you have to say and you say that the s p could go to 2,700 if not higher. Yes. The price is still 2550. 700 is really incorporating a tax scenario. If we do get progress out of seat on the tax front that would be a clear booflt for eps and we think the market can move higher. David of Goldman Sachs and said 65 of tax reform is in the market already to which i was taken aback because that sounds high to me. Maybe im wrong. What do you think . I think that some is priced in the market but not as high as 65. I think a lot less. If you look at eps estimates based on consensus for end of 17, end of 18 today versus where it stood on the date of the trump election, its only come down. It hasnt gone up. If you look at a lot of plays linked directly to tax, they havent regained much of the gain from earlier this year or late last year. I think from that angle there is some priced in so if tax doesnt go through, will it be a disappointment, yes it will. If it does go through, i think theres a higher leg in the market and theres a potentially very big rotation that could take place in the market from your growth trade, from multinational to domestic, from large to small. Thats an interesting concept. Josh has been highlighting for us that if you look i believe its 20 , the average world equity index is up so far yeartodate. You look at that to see the u. S. Dollar down 10 , we seem to continually talk about the fiscal policy of the u. S. , the Monetary Policy but is the real story the economic recovery and possibly the removal of the stimulus outside of the u. S. And if that continues, is that really where the opportunity is in your opinion in the emerging markets which are so under valued relative to the u. S. On a longer term perspective . We generally held as a house a positive. We have seen some reversal in dollar trend which is caused i think em under performance. Globally yes, em, europe certainly have more upside than the u. S. But if youre talking specific catalyst like tax, infrastructure, i think u. S. In that case takes the lead again, at least over a short period. We have been seeing this rotation that youre talking about, we have been seeing from growth not much. Small caps have actually hit new highs. Im wondering, some of this is priced in, it feels like a lot is starting to get priced in. You think theres even more to go. You definitely seen some of this reflation rotation take place last month when you compare versus the fuller year, growth still dominates the market leadership. Growth, multinational large gap. Youve only seen the early stages of this rotation take place and now its pausing. I think its pausing because you need more clarity on the tax front. You cant get a multiple expansion in the market without taxes. I think its becoming increasingly more difficult and in an environment where the fed continues to tighten, normalized Balance Sheet and we need to see what happens with Central Banks aboard. If those join the bandwagon with the u. S. And continue to tighten, then i just dont see how thats a positive for the multiples. Multiples have benefite