Flyer will join us power lunch starts right now welcome to power lunch earnings feeling a big earning today. The dow up triple digits, fueling it caterpillar and 3m, adding 100 points to the dow just by themselves 3m higher by 8 . H r plunging 20 the office maker beat thing at earnings estimates its coming in well short of expectations whirlpool shares are tanking on news that sears will stop selling the brand. Stanley black decker rallying. The toolmaker also raising its full year outlook. Tyler . Thank you President Trump meeting with republican senators right now pushing his tax reform money, which he says will generate 12 trillion in economic activity. This after getting into another war of words with bob corker the president has already arrives at the capital for the Senate Republican lunch hes attending, take a look at the video of the arrival of the president. He walks inside alongside Mitch Mcconnell. Thats called the ohio clock position, just off the senate floor, a normal walk in, but an unusual incident happened a few moments ago. Somebody throws something in the general direction of the president , and screams something along the lines of trump is treason or Something Like that, that protester has been detained and removed from the capital complex. The secret service will want to get a little more information on that moment. This is all in the context of a day in which the 3rez has been involved in a war of words with Bob Corker Corker earlier today said the president has been dividing the nation our stock market just hit another record high, its the highest its ever been in history by far, weve created about 5. 4 trillion only in stock market value. 5. 4 trillion. And were very happy about it. Sorry, that was obviously the president talking about the stock market today, something the president likes to do on days like today when theres a big move in the market corker did talk about the president , heres that many people, i was one of those that hoped he would rise to the occasion. And aspire to lead our nation, instead of dividing it, its obviously his political model and governing model is to divide he has not risen to the occasion. Of the presidency it 168. The president firing back in a series of 2w50e9s throughout the morning. Five tweets over the course of three hours this morning, isnt it sad that lightweight senator bob corker who couldnt get reelected in tennessee will fight tax cuts plus. The president there raising the prospect that corker would be against the tax cut bill when it ultimately hits the senate floor. Not clear thats the case, i talked to white house officials here who say, they believe that ultimately despite this feud, between corker and the president , corker could end up voting for tax cuts, its something hes campaigned on and is in his interest as a republican, guys over to you. A few days ago, we all celebrated dow 23,000, now were nearly halfway to dow 24,000 up more than 200 points. As we get bigger, these big numbers get a little easier, its still kind of exciting. It is i wish it was a Broader Market rather than what weve seeing, look at whats going on here the dow is diverging from Everything Else on the planet. Thats a 70 basis point divergence, thats a lot for the dow versus the s p 500 because companies have been raising guidance and the markets are loving it right now. Particularly 3m, which has twice normal volume here put these two numbers together, these two companies, theyre 165 points in the dow. Two companies, united tech also raised their guidance. We have a rally on two stocks, breadth is what i dont like here new highs, 200, thats fair, not expanding. Lets just say the reason things are holding up well is the guidance we have here. Caterpillar raised 25 thats eye popping you dont see that very often. The rest are more typical. They all raised about 1 , thats good nor a little move up, but in the cases of 3m, the move was much greater here. Why does this keep happening the reflation trade, thats what these companies are involved in. They get their money outside the United States, 3m makes 60 of its revenues caterpill caterpillar, about 93 beware of chasing stocks on earnings remember ibm its been floating down for the last couple days, guys, back to you. Lets talk about caterpillar and 3m, which are responsible for todays moves in the dow, morgue ing brennen has been Digging Deeper into whats driving those stocks morgan . Beats and raises thats whats the driving force today caterpillar getting the most attention after a huge earning earnings beat. 3m is having its best trading day in eight years, up more than 7 right now even United Technologies which is falling on weaker than expected margins, thats the second time thats companys done that this year here is what is driving the sector. Industrial production has picked up, Commodity Prices have picked up Global Growth picked up sales have begun growing, and were seeing this across different businesses for these companies, factoring smarter manufacturing investments, new products, Companies Like cat and 3m are beginning to reap the rewards, more than a dozen industrials are hitting all time highs today, including cat 3m. Also, Rockwell Collins and honey well, the exceptions, lockheed martin, even though the defense contractor also raised guidance and General Electric, which is after dismal results last week, increasingly appearing to be the outlier in that sector the stock hitting a fresh multiyear low today. The dow up 19 not so long ago that cat was a dog. Absolutely. Dont forget that when you look at ge today im not saying im not predicting anything, but these forces can turning around. And a turn in the economy. Absolutely, and the industrials are cyclical for a reason, right . Yep, morgan, thanks another cyclical company, General Motors reporting strong earnings much better than expected earnings from General Motors, it beat the street by 20 , the focus is the fact that it earned 1 32 a share the focus is the future when it comes to technology, ride share platforms, what does gm see there, this is their cruise automation, one of the test vehicles out in san francisco. On the Conference Call today, the company says its making progress when it comes to selfdriving cars. Ceo mary barra says theyre keeping their options open in terms of what happens next we very much believe we want to maintain the relationship with the customer, so were exploring many options, and we could partner with someone, partner with many, or work on our own. As you take a look at shares of General Motors, mary barra also mentioned theyre evalua evaluating acquisition opportunities. Compare the optimism with General Motors theres plenty of optimism there for shares of seau, but during the companys Conference Call was asked point blank about all of the optimism for the automakers when it comes to selfdriving cars, he said it succinctly, dont believe the fluff, its going to take a long time and a lot of investment, before the Tech Companies know how this will play out thats something to keep in mind as the auto stocks pay off when it comes to selfdriving cars thanks very much. We have breaking news out of washington, with regard to tax reform House Republicans have set a date for the release of their tax bill, it will be november 1st, according to a source on political, researches had said they would not release their tax plan until a budget is passed. The house is scheduled to vote on that budget on thursday theyre assuming this is going to sail right through without any opposition from the conservative wing of the Republican Party earlier this morning, paul ryan said he was grateful for the president s leadership on this issue. Even as President Trump arrives here on capitol hill for a lunch with republican senators that is expected to be very contentious, a date for that tax bill, november 1st, back to you. Another news alert, julia borstyn standing by for that mike hopkins is stepping down, hes becoming the head of Sony Pictures entertainment. You have hulu ceo going over to sony television. Randy fleer had been on the hulu board of directors hes been president and ceo of Fox Networks Group since 2013. Theyre making their own shows such as the mindy project. Julia, thank you very much, even as the market roars to record levels, black rocks chairman warns investors not to get used to this years returns. Black hawk Investor Institute cake out with a 10year forecast of 4 that was with a pooled portfolio, thats how low it is. I think its going to be closer to 6 . Its not going to be what we saw 8 or 10 ago is larry fink right ron. Does larrys forecast sound right to you, or too low well, if youre just in the u. S. And youre thinking a balanced portfolio which in my world, thats 60 40, i think that could be so, i think its more because of the bonds than the stocks i just saw leon just in the hallway here, and he stole some of my thunder where bonds are the bubble, and ive been saying that with you for a while. Bonds are the problem, not stocks, and Global Growth were bullish on the world, our major thing for years and years is that we dont hear about caterpillar takings share from deer theyre both adding to sales because of the Global Growth, as long as the world keeps growing, these Companies Including boeing and apple have more clients and customers who are bullish on that a rising Interest Rate, especially in some kind of pool bond account, weve seen the best of those days opinion. Is ron right . Address the overall issue, whether you think a 4 return is a reasonable expectation over the next half decade, and is ron right, and has he nailed the point here, which is the sandbag is bonds not stocks . No, i guess hes right about bonds, but i think he may be the equity story, we have to hold things in context you look back at the last 10 years, which included the great recession. Stocks have delivered a 7 1 2 in the s p 500 whats been the anchor is fixed income has helped you we had a higher Interest Rate its very hard to get to 10 or 12 with 40 of your portfolio has a 2. 5 return. The total return could be less than the yield if Interest Rates go up. Of course lets assume you have the underlying bond for the full ten years. On the equity side, you have two things that are going to drive the future, which is it a current starting point valuations around the growth underlying going do support it now, at the valuations were at, by every measure were at the top 20 of valuations, its hard for growth to keep up. Theres nothing wrong with the average investor anticipating a 4 if we do better, great, they should look at the portfolios and equities, i completely agree the growth comes from global investing, you can do that with the s p 500, most of the companies have operations offshore that you should be assessing your own risk and making sure you can with stand set back as long the way ron, you get thats unlikely to be the case for the next ten years. If you remember, tyler, we talked about thinking that alibabba was amazon on steroids, they make a deal with marriott, because in the next 10 years, the biggest travelers in the world will be the chinese. American companies will do well, the worlds growing. The middle class is growing, its a bullish world and you have to pick your sectors, you cant just be benign and do indexes, you have to be astute, we think that stocks still have a way to go. Thanks very much, gentlemen President Trump and bob corker in a war of words this morning. Why is the president picking a crucial fight . Because we know you want more. More great camera features and more power. And more than just unlimited data, we give you unlimited plans with hbo included for life. Because you deserve more entertainment. And more spokespeople. Talking like this, saying the word more. At t. Its time for more. Am i too close . I feel like im too close. Get the iphone 8 and with all at t unlimited plans, get hbo for life. Only from at t. The strikingly designed impolexus nx turbore. And hybrid. Lease the 2017 nx turbo for 299 a month for 36 months. Experience amazing at your lexus dealer. Headlines breaking moments ago. A tax bill will be revealed november 1st President Trump and corker are doing a power lunch with senators the latest feud between trump and corker breaking out on twitter again this morning opinion is this going to crush any reform he needs every vote he can get on tax reform, bob corker is not running for reelection. When youre not running for reelection as a member of congress, your calculus can change dramatically. Is it possible he pisses off corker so much, he loses this vote i think to mccain not voting for Health Care Reform i wonder if trump being mean to mccain is part of Health Care Reform its possible i doubt it i seriously doubt it, corker doesnt like trump, trump doesnt like corker. Im tempted to say, whats the phrase its sound and fury, but much ado about nothing . Signifying nothing. That was shakespeare i hope i get that right. I dont think its going to matter to the vote, i doubt it very much, theyre letting off steam, i dont know why it continues, i dont get it, i dont know remember john mccain was asked the same thing, though basically, do you hate the president enough that you would do something you would normally do just to spite him i think his answer to that reporter was, thats a dumb question you think he goes with his zb op head and not his antitrump fight . I think the gop is right. John mccain split, right . He was against the health care, which surprised a lot of people he did voight for the Senate Budget resolution. At the end of the die the really important question for me is bob corker going to take a knee when they serve the advertisers today . One of the clips asked him if he was going to the trump today. Corker said, its my lunch is that right have you seen this rally in the industrials today . Yes, a large portion of this is because of donald trump, what do you think is driving this rally . Is it earnings the numbers are good profits i think thats the biggest case you go through cycles. Were going through a cycle now that makes the trump tax cuts very doable. I think thats great, however. I would have a caution here, theres some issues, im hearing stuff from the house leadership, i dont like, im hearing, they may not use a 3 growth baseline, which is worth several trillion, they will use a joint Tax Committee baseline, which means no dynamic scoring will cost them a fortune. They cant have that. Theyre going to have the jct, they cant do that, that takes out the dynamic scoring. It throws a hand grenade to the room and runs off. Its one of the things. Kevin brady mentioned it last week, i dont know how insistent or what, but as a process issue, youre exactly right, it blows a whole in the entire story. And we really dont yet know about the cbo. Are they going to be beholden to the cbo scoring, which is going to blow another hole or not . The only way they can get this done, i first have to admit is a 3 growth path, which is worth 2 1 2 to 3 trillion in revenue. Thats the mother of all paid fors without that, they cannot do, and they really need to collar phi that. They cant do it and stick to the 1. 5 trillion in the budget resolution yes, someone was calculating if they go with cbo, the Corporate Tax may be 28 or higher, thats not acceptable. Lets talk state and local taxes, i want to understand clearly whether you expect the bill that comes out on november 1st to exclude the ability of individuals to write off, not just their state and local income tax, but their local property tax as well that would inflame a lot of people. For sure. Theyll go crazy. And the realtors will go crazy. Property tax, im in a high property tax state, weve already the 5. 3 trillion in stock market returns the president was talking about, that will be lost in the capitol i dont like any of this. In the house i dont like any this, all i want to do is business taxes and growing the economy at 3 . This is not really a tax reform bill like in 1986 if they go down that path they will fend off the property taxes, can i raise one point . Sure. This story in the journal mike pence interviews a potential fed chairman, that elevates the story. Pence is trumps closest adviser, and pence is seeing warsh, jay powell. I guess he didnt see yellin, of course, the president did. Im just saying, that his name seemed to be lagging, i would put back back into the first tier its going to come out of mr. Trumps head 12k3w4r thank you, larry larry kudlow. Shares of whirlpool are leaving investors feeling a little sunk today theyre down over 10 , well tell you why after a number of tough years for brick mortar retailing, are we finally, actually, sort of kind of near the bottom for retail, ithe reaiinors ermo pn store . Well find out power lunch returns right after this looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Todays power rundown focuses on retail. There are three big topics to hit with courtney reagan, whos live at the ceo summit, a bunch of big names from fashion and retail are t