The dodgers you dont score like that. This was a great series played out to game seven the perfect ending would be a great i remember when the reds won, i didnt want a nail biter. You just want it over for houston fans, they love the 51. For everyone else the franchise never won before i was hoping for something where where you stayed up late. There they are. I didnt get to see it. Im happy for them. Somebody said the dodgers are celebrating in these strange orange jerseys larry king was not happy theres jim crane. Had him on as a guest. Did you see larry king behind home plate i did not scowling. I think thats his natural face im becky quick. Joe kernen is here andrew is out today. Weve been watching u. S. Equity futures. Yesterday we saw the nasdaq hit an intraday high during trading. It ended up giving some of that back by the end of the session the dow and nasdaq ended higher. This morning there are a few givebacks. Dow futures down by 14 points. S p futures down by 4. Nasdaq off by 10 points over fair value theres a lot of news today that will move these markets. We think it will be powell well get a tax plan today all of that in play. Lets look at treasuries yesterday the tenyear yield dropped slightly this morning looking at 2. 378 thats exactly where we closed yesterday. Overnight in asia, the equity markets there, you will see the nikkei was up once again another half percent gain to a 21year high a gain of 120 points hang seng down by a quarter percentage point in europe, this morning, with some of the early trading taking place, things are mixed. Relatively flat for the cac and dax. Ftse is up slightly. In italy, stocks are up by a half percentage point. Things are flat in spain as well wow im prereading my this is long i dont know you may need to take over here we have some sound bites in there, too yeah. Look at this really before i get into this, markets seem a bit i dont know, a little tired up a bit yesterday the tax plan comes out what will the reaction be its already been telegraphed. Isnt that the way it works buy on the anticipation . On the rumors sell on the news im already seeing this criticism. All of it complain complaints, and representative king saying he wont vote for it. A lot of things they say theyre whimping out on. It will be phased in over several years. And vegetables, they dont want to eat their brussels sprouts. I dont like them either brussels sprouts are good if you roast them 400 degrees, for about 20 minutes. Okay. Thats what i was thinking we had such great 26 , 27 . This is the hard part they took it away earnings just in from dow dupont okay. The company earning 55 cents a share for the Third Quarter. Revenue was a little below estimates. This is the first report since the combination of dow and dupont the comparisons to the street forecast are complex well watch this, dig through some of this i think its 55 adjusted on a 42 estimate stock is unchanged here are the corporate stories. Shares of facebook slipping despite an upbeat Earnings Report much better than expected results. On the call, Mark Zuckerberg pledged to ramp up Company Spending for a lot of reasons, but also to confront the problem were seeing with the lugs election meddling, adding 10,000 additional employees to review the networks content. I am dead serious about this. And the reason im talking about this on our Earnings Call is that i directed our team to invest so much in security on top of the other investments were making that it will significantly impact our profitability going forward. Not expected to impact it going backward like we always say, the future is much harder to predict. You know, just by definition. Predictions are hard, especially about the future expenses, they did say, 45 to 60 growth due to that revenues slowing that sent the stock lower. Hurt the nasdaq. Tesla shares are down after the Company Posted its worst quarterly loss in history. The electric carmaker losing 2. 92 a share in spite of the subsidies versus an expected loss of 2. 29 revenue slightly better than expected at under 3 billion. Tesla spent heavily to ramp up production of their new model 3 sedan. They were supposed to do 1500, then did 200, they were supposed to get to 5,000 by the end of this year. It will be by the end of the first quarter. I cant believe people are surprised that there are some snafus along the way i dont know why. With the stock thats priced like that, i dont know why you wouldnt initially even make predictions that were further out than you were likely to deliver. Instead of ones you always miss. Elon musk addressed production issues on the Conference Call. He said the company was deep in production hell. Lets say level nine is the worst. We were at level nine. Were now at level eighth. I think were close to exiting level eight. I thought we would probably be more in level seven by now its obvious what we need to do. Its work to get there working seven days a week to do it we have it covered it will take us a few months longer than expected guess he was talking about levels of hell there hes all over the place down at rio at a thing, now courting some other starlet. I dont know well hear more of musks cements later this hour. Not all about tesla. People have personal lives his is colorful. Interesting i was going to say. A little more interesting than mine we have mike jackson who will be joining us mike jackson from autonation he will join us from 7 00 to 9 00 as a guest host. Gop lawmakers will be rolling out their tax reform bill today for a look at what to expect, lets get to ylan mui. The reduction in the corporate rate will be temporary. The rate will still go down to 20 , but it will expire within ten years, perhaps as soon as eight years. Thats according to one source i spoke to getting to 20 is one of President Trumps red lines, but to keep the cost of this tax plan to the 1. 5 trillion thats required by the rules republicans want to use to pass this bill, they have to make some tradeoffs, and this is one of them. Privately the initial reaction im hearing from the Business Community is they are holding fire for now, and letting this process play out house ways and Means Committee chairman kevin brady told reporters last night that he wants to make this corporate rate cut permanent but that it could take several steps to get there now some other provisions that are in this bill, the u. S. Would move to a territorial tax system and nbc news reporting there will be a 12 repatriation rate on cash and 5 on other assets there would also be a 15 minimum tax on foreign income. Now, for passthrough businesses, only 30 of their income would be able to qualify for that new 25 rate. Again, according to nbc. Those full details are expected to come out midmorning with debate beginning in committee next week. So there is time for changes, but this is just a taste of some of those tough choices that republicans are going to have to make if they want to do comprehensive tax reform this is the brussels sprouts back over to you thank you our other big story. President trump expected to announce jay powell as the next fed chair. Steve liesman joins us now with more hes dovish, but maybe even more inclined to deregulate the Financial Sector, steve . Is that why . Why not just leave her in. That would be the reason i think thats the question i dont think hes more dovish than yellen what does this mean for Monetary Policy and Bank Regulation lets talk about Bank Regulation many believe he will bring a lighter touch. The postcrisis Reform Program has been mostly completed. And has mostly been successful its our obligation now to look back at it and say which are redundant and which should be protected down to every level, but there will be some adjustments. Powell looks to follow the current framework of gradual hikes. He does not share the republican criticism over the feds postcrisis easing policy. After a tumultuous decade, the economy is close to full employment and price stability the problems that some commentators predicted have not come to pass accommodative policy did not generate high inflation or excessive credit growth, but returned full employment and returned inflation to the 2 goal the current discussions of normalization are a result of that success joe, its hard for me to answer your question i think he pressure on the right. Pressure also within the white house there of economists who want a change, who dont want a continuation of yellen who was a democrat appointed by obama. By the way, powell also appointed by obama i dont want to politicize things, steve. No. Far be it from me did you see the latest atlanta fed forecast yeah. What are you going to do are you going to take a couple of years off or something . What if you get 3. 2, 3, then 4 . I would tender your resignation if that happens . Why because im yanking your chain. That would be bad if that happens. Why would that be bad, joe . It would signal maybe some of these progrowth market oriented policies as opposed to, you know what we got for the past eight years, maybe they are bearing fruit. Maybe you would have to connect the dots that something good is actually happening somewhere in there it profits you to make viewers think that i oppose those things. No. No no. You dont exist in the absence of a straw man i am in favor of a lot of that stuff. I keep trying to tell you i like this stuff, you keep saying i dont like this stuff. All right just a perception ive got i will spend a minute here and talk about the atlanta fed, which is a weird thing it takes a bump a jump takes a village from the ism manufacturing to consumer spending. Its an outlier for the moment well have a real wrap up at the end of the day i would temper your enthusiasm a bit now. Im all in favor of higher growth and pro growth policies and i always have been whatever you think, joe is wrong about that even though i like joe all right steve. I knew i could get you good morning. Today is like a friday for me im off tomorrow my horoscope said i need to be a team player. This is you trying to be a team player . Im engaging you. Engage. Thank you. Appreciate that. And we have to prefer to keep our distance from people working with others doesnt have to be a pain it could be fun, steve it can even be fain. Change your outlook on life doesnt have to be a pain. Just i just proved it can be fun for 6 15 in the morning this was exciting Economic Business financial television. So exciting the producer is telling me to move on. Thanks. Pleasure. The price of bitcoin topping 7,000 for the first time ever. Up 4. 25 bubble not a bubble fraud, not a fraud lots of people to talk to about that lets get back to the broader markets. Were joined by david bianco and ed keon, Portfolio Manager from qm qma. Gentle men, what steve was talking about, this fed nomination f its powell, how does that affect the markets represents continued annuity of policy, markets dont like surprises. I think it will be received positively a lot of that is priced in, but a positive surprise not that impactful for now. David, i think thats the case you agree . Yeah, continued annuity, slow fed hikes from he continuity, s hikes from here. John taylor for vice chair might keep markets confident in the transition in terms of the tax bill that joe was pointing out, weve seen the expectation, the good news in the markets that could come from taxes it gets more difficult when you talk about details i think the details are disappointing. I dont think we get the tax cut until the spring spring . Spring. They moved thanksgiving to the spring its been one year since the election you dont think its thanksgiving i dont think its before the end of the year or in january. I think thats going to royail the markets. There are things being proposed that are astronomical if youre talking about the life cycle being eight years thats the only way to do it. Its not just that, but can they get to a 20 rate i dont think they can without a phasein the big thing is what they do for Small Businesses the simplest thing to do is get to a 25 tax rate, and any company, Small Business that wants to grow, defer dividends will choose to be a c Class Company rather than having this regulation it sounds like its not simplification sounds more complicated. And they need to get rid of this global minimum tax and deemed repatriation, it will do nothing more than panes to call their lawyers and say we want to redomicile now if this is disappointing as you think it is, how does that play out in the market i think this market is at great risk to 5 to 10 dip, as weve been saying for several months, but the enthusiasm for the tax plan still seems to be there amongst small caps, but the reality will set in at best we get this Corporate Tax cut in the spring and hopefully by then, this is simpler and truly an effective tax rate for corporate america. Are you as pessimistic about it i dont know whether well get a deal done or not its too complicated to call if we get a deal done by the end of the year, it will be a positive for markets we could get a 5 , 10 correction at any time for any reason that is typical market behavior. On balance, despite the fact that valuations are high, we think the surge of earnings and the fundamentals and Global Growth is Strong Enough to keep the market trending higher if we have a correction along the way were willing to live with that for upside opportunity. The whole continuity thesis, i dont know if i buy it. Continuity of the fed of everything continuity, we want hillary. We dont want changes. Sometimes youre not going in the right direction. Sometimes disruption is exactly what you need. And that explains the 27 rise in the Dow Jones Industrial average. Both of you guys are in the investment business, so you rub low Interest Rates all over yourselves every night you cant get them low enough. You would like minus 10 if you could get them not quite i dont expect to hear this is still a challenge for bikes. We would like to see higher shortterm rates continuity policy is to slowly tighten the market. That would be good cop bad cop. John taylor would be there if things got totally out of whack. I dont know about this continuity thing the question is what is normal thats the question, nobody knows what normal is does it feel tight to you in the world now . It does not, but its in the process of tightening. Gentlemen, thanks for coming in coming up, facebook posting a big earnings beat but the numbers are overshadowed by the companys Spending Plans well dig through those numbers. I think hiring 10,000 people is good well be 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. That song is triggering me were playing this. I like it. Theyre spending a lot of money. Facebook got it. Facebook out with Third Quarter results beating on the top and bottom line. The companys Spending Plans for 2018 were more ambitious than expected facebook expects costs and expenses to grow between 45 and 60 year over year Capital Spending will be roughly double as the company ramps up video content and adds people in technology to monitor content. Joining us is Eric Sheridan managing director from ubs the news this week has been, you know, coming out of washington i dont know how much money were talking about, but its a big deal everybody is taking it seriously in terms of interference how much of that accounts for the big increase in expenses i think clooearly the compan wanted to send a message that they acknowledged what went on the last couple of months. They wanted to address it headon and a substantial amount of investments are targeted at security and areas where content could be monitored, accounts could be monitored, and you could have a cleaner better format and community in which people could feel safe that content is real and people can engage in a way thats respectful okay. Is zuckerberg 30 yet north of 30 you look at what is considered suitable content on College Campuses its strange who is allowed to speak, not allowed to speak. What do we feel about Mark Zuckerberg and his colleagues and associates deciding what the whole idea, it sounds like censorship, the whole idea is rife with the possibility that i will be getting information thats totally subjectively censored by these people i dont know if i agree with what they think. Should i worry about that . 10,000 new people . Who will they be how do you hire the right people is it just to see if its real, not fake are they telling me how to thing about things the Natural Inclination is to think that facebook acts as referee. Theres processes of understanding that User Accounts are real and not bots, and whon septemb concepts of who is propagating advertising, what advertising do you see as a user. The algorithm responds to what you respond to from a content standpoint if i like the New York Knicks i should trust them they wont try to mold someones thinking twitter does twitter will ban people yet the number of trolls on twitter doesnt go down. I think theyre trying to create the idea that what people are seeing is more real. Do you like this move i do leaving aside recent issues, theyre trying to build a massive video business and trying to pivot thats what i would spend the money on more facebook and instagram of your own time youre seeing video as a user. I think theyre trying to go to that i think its putting pressure on margins and content is expens e expensive. This is the right play . This is the right play, as far as credibility and building the type of business they wanted in the longterm youre bullish . I am. Price target . 208. Could get to 209 or stop at 207. 208 208