Cramer and david faber futures on the move off the highs, retail sales are solid and 2year hits 2 Bank Earnings as a highlight as earnings season kicks in europe is mixed and oil is giving back gains. Our roadmap begins with the big banks beat jp morgan and wells and black rock with better than expected quarterly earnings. Wall street is eyeing fresh record stocks getting a boost from strong corporateresults and a bullish sign for the economy. West wing vul garts, the president mixing a bipartisan immigration deal and denying offcolor language. Jp morgan chase, wells are both mixed and jp morgans released, jamie dimon expresses optimism about the new tax law. The enactment of tax reform in the Fourth Quarter is a significant positive outcome for the country. U. S. Companies will be more competitive globally which will ultimately benefit all americans. The cumulative effect of retained and reinvested capital will grow the economy and growing jobs and wages we have always invested even in difficult times in our employees and customers and communities. And as a result of the tax plan we will be increasing and accelerating some of those ve s investments. We expect an announcement in the days and weeks to come. Why does he get ahead of it and say this is going to be a great year in terms of what we do buy back and dividend you cant. That would be in front of jay powell you have to let him get this right. It was the Consumer Bank that chimed there was one loan that was bad. Well talk about that later but the main thing, i see Net Interest Margin going up i like that. But i dont like the fact that trading fixed income trading, it just disappeared. It did. They gave us a preview of that at some but it was worse than usual. Was it worse . They were talking 15 and it was down 17. Look, Interest Rates are going up it was what we want, if youre jp morgan. Did it ever come back the times has a piece sort of questioning whether its gone forever. That incredible revenue stream that came from so long from trading fixed income instruments and the lack of volatilities we talked about as well Goldman Sachs in the past which we havent heard from yet but well hear from. The Business Model is so good for them anyway, commercial bank was extraordinary. Every day that they turn the lights on, they are making big money. And Net Interest Margin as a business versus fixed income ill take it any day of the week when you have that deposit base and fed starts raising rates, its really good stock going to come in because there was no real upside surprise and didnt give enough, reiterate fort res bank share. Fortress Balance Sheet. Right. In the end, do you want them to raise dividends they cant do that i like the quarter i dont have a problem with the quarter but its a little harder to understand because of all of the changes. Weve got all of this lumpiness regarding the hit on their Deferred Tax Assets and wells is the exception with deferred tax liabilities that benefit in the quarter the wells quarter, theres a couple of charts, the deck, the interest noninterest expense and linked quarter, 16 billion thats up 27. Terrible quarter. Wells was terrible. I have a note here saying slide 21 on the supplement should drive the stock take a look at slide 21. Slide 16 and 17 of the document will move the stock its a battle of the slides. They are guiding towards full year expenses and in this year 53. 5 to 54. 5, includes only the typical operating losses of 600 million and excludes litigation. The street is at 53. 7 or at the low end of that range. Look, if the stock hadnt run to 63, i would say yeah, exactly. Wells is not the standout. A share of revenue, the target they gave in may was low 60s, they are running mid 70s. The Expense Ratio is abysmal. Its not normalized. We have to see it normalize. The stock were at 59 it would be a 59 but its at 63 so it can come off a little bit is it a disaster quarter no, its just that after the run you would have liked to see something upside. Commentary will be important. Jp morgan call began at 8 30. Keep hearing good things about the conference call. Do you . And the analysts will have so many questions around tax reform and impact as they try to figure out models, because thats all they care about. They want to plug in numbers. Because the teachers pension from ohio demands that is that what it is . Ohio state pension fund never ending on the Conference Calls but it is of increasing importance because theres so many unanswered boxes when it comes to tax reform. Tax reform. Fed being much easier, makes it so if jp morgan comes down, this is a great opportunity. You were talking about it going to 100 by christmas. I remember that time and again now its 11 beyond 100. My sources at jm morgan were saying dont get too aggressive. I was right. You still like it here . Of course. Even though its well above the number. It sells ats 13 times shares earnings do you have a problem with that . I might i dont know. Took it to 115 like last week or the week before were almost there. I have to pump my price target its no boeing boeing is up again. Boeing is unbelievable. Boeing is again the best dow stock, 11 . This year. Still beating ge. Those guys are like come on. You have to bring that up see the new note from jp morgan saying that the red flags of the people being fired i love steve tussa did you think flannery would keep anything given how poorly they did . Is it a red flag they got rid of everybody . Theres a couple of holidays coming up, mlk, spending more time with family and then washingtons birthday, president s day. Look, the families been starved how hard they are working. Its only fair dont you think . Yes im going to say yes because you ran through so many different places there im going to bring up retails sales, up. 4 in december capping the strongest year for growth since 14. Cpi which some worried would have a downside surprise because of what wholesale inflation did, comes in 1. 8, a tenth above expectations. I think that the story matthew boston said it in the upgrade of kohls, the middle class is back. This is something that kb holmes talked about too they are saying 90 of the people are getting a tax cut of course im looking at one person whos not. No. Definitely youre probably an aberration, you dont get the comcast 1,000 i typically am an aberration. I embrace that. With the prepond rans of people doing better and jobs better, its spelling a positive quarter for department stores. I think macys is going to be the big surprise next. I like i like retail very much its hard to find anyone in retail the only company that is doing poorly in retail is sears. Thank you. The spread between diplomat stores and nonstore retailers widened again. Yeah. Couple of months it had begun to retrench. I know the seminole changes havent changed but the big picture is still not good. Dollar tree and dollar general, the two to bank on, right . Because they actually come in under amazon and the death star is as strong as ever. Death stars numbers are going to be truly extraordinary. Youve got the November December, the strongest November December twomonth average in seven years got to go back to 2010 to have a better Holiday Season. Kohls had the best numbers since 2001 wow. And kohls has good bopus. What . Buy online, pick up in store. Got it. Plenty of commentary continuing, and the effect of markets and on earnings. The marketplace is rallying because theres a new recalibration, thats a one time thing. A lot of this runup is a recalibration how corporate earnings are going to be and youre going to just now your stock price to the new eps level. After that one time event, now we have to see, does a tax cut stimulate for growth, more demand and that will well see that in the revenue line. Interesting that contrast finks comments with say dudley who says the tax cuts going theres no free lunch. This is all going to come at a cost to the economy down the road. Youre looking at a man, fink, i happen i really just respect him tremendously hes created a juggernaut. But the real story with fink and blackrock, money in. The endless pouring in of s p money created a floor on the stock market that keeps going higher because the just the kind of just basically plain vanilla money by Retail Investors convinced by the w warren buffetts, should put money in its the great story, continuing story of the passive investor. Until the day those reverse one day it will happen i dont know when. I dont know. I dont know when. You see some of these targets long term targets tom lee talking about a bull run that lasts 10 to 20 years, millennials the largest ever generation acting as a structural tail wind for stocks. Never heard that demographic, larger than the baby boomer, suddenly the millennials now. Its an experiential thing to put your money in an index fund. What i do like is the stock shortage you look at the big cap stocks and how little stock they have trading versus what they had a few years ago. You look at wall mart, the amount of stock theyve crunched and walmart is exemplary of a lot of countries when things finally get better, boom i think that the stock shortage and index fund money is what keeps thats the real story of why the market doesnt go down it would be high Interest Rates that would destroy that money. Because then you would say, you know what, i can get 4 or 5 from treasuries, i dont need to risk to get 2 not to 3 to bill millers point. That will force people he believes to sell bond funds because they are dropping in value and put more money in the stock market. And takes you back to tepper, make me up when its four, right . I think tepper and miller have been right. Lets go with them do you think amazon is going to be hurt by higher taxes . By higher Interest Rate . No, lower taxes more money to amazon there is an effect lower taxes will be more retail if its more retail its going to go to amazon because both Amazon Web Services which is the de facto way the retailers are playing it i thought that kohls was supposed to be destroyed by them. When i spoke to mr. Manziel, they are great partners with amazon its incredible. The death star is everywhere. Yes theres a lot of buzz surrounding the political firestorms this morning. The president denying he used pro fain language in a bipartisan meeting about a proposed immigration policy. Eamon javers is watching all of that. Reporter theres confusion whether the president is or is not denying the comment he was quoted as using with democrats and republicans yesterday. Heres how the quoted lts president , the presidency why are we having all of these people from ship hole countries coming here, prefer to see from norway rather than haiti and west rafrica the white house issued a state not denying the president made a comment. Certain politicians choose to fight for Foreign Countries but President Trump will fight for the american people. That prompted a response from the haitian ambassador who had this to say. The remarks were regrettable and based on cliches and stereo types, this is not the view of the american public. The haitian a. Mbassador said the president has been tweeting again on this subject. Heres the latest tweet, denying the conference never said anything derogatory about haitians other than haiti is a poor and troubled country never said take them out made up by dems, i have a wonderful relationship with haitians, probably should record future meetings, unfortunately no trust i asked a white house aide a few moments ago whether or not the official white house policy is to now deny that the president made that vulgar comment, the white house aide unsure now what the official policy of this white house is, they are scrambling here to figure out whether they are now denying he said that or some other position in between the president s tweet seems pretty clear denial here and the staff scrambling to catch up and figure out where they can go for the rest of the day on this one. A political furor and it throws the immigration debate tore a loop the president was on track for a deal with daca with democrats and republicans and now scrambled entirely well see where we go. We look forward to that maybe some news about his medical exam later on today. Eamon javers, thanks. Its going to be a rough morning for facebook in reaction to the news they are overhauling the news feed. I think we may talk to them later in the morning stocks down almost 6 . Take another look at the premarket. S p and nasdaq up 7 of 8 nasdaq having the best month since july of 16. Back in a minute facebook is down sharply in the premarket on track for worst day in a month and a half. Making major changes to the news feed cutting it to a hold we have the analyst coming up at 11 00. I think there are only three holds on the street right now. This is one of them. Its tough to talk about ang because ang is the new akr nim. No f. Hes basically getting rid of autoplay which everybody is disturbed about and front run of the government which is going to say listen, why vrnt you more social, why are you more news . Hell make the User Experience which is has helped the company. The analysts will not be able to resist, they have to downgrade because they are about the next three weeks, not the next three years. When he talked about fixing it trying to get in front of the fact facebook is slowing opposed to instagram he had to do it. He takes the hit short term and the advertisers will ultimately pay up even more the viewer will keep coming back and facebook will start growing again at the pace of instagram i thought it was brilliant, of course the analysts have to take it down. What else do they do raise numbers, thats all they care about if there are fewer bra eer bd posts, fewer paid marketing spots viavailable for advertise. Doesnt that raise concern about the revenue desell race for investors . Do we think there would be a way to continue the momentum if the ads are intrusive and you just say ive had it with facebook maybe even the price of the ads goes up exactly scarcity value of the ads goes up because youre reaching billions of people they are going to again to monoties whats app and work being on video and he has to do this you dont want to be in front of congress, why are you the fake news place where are you on eps in 18 and 19 21 times 21 times 19 or 18. 21 times 19 earnings, i can take this hit. It came in with a full head of steam. It will take that away what are you going to do if youre zuckerberg youre thinking ive got to always be on the side of the consumer. And where is that stock going with that mantra do you really want to doubt this man . Has this man not been ahead of every single trend and have the analysts other than on apple, i mean, they dont downgrade apple dont downgrade fa Facebook Like apple. There was a kerfluffle and im having a company that puts it in the pocket so the parents cant do it. Suddenly that fellow that attacked me, cramer has got that, on the take for them i dont like that fellow, im not going to mention his name. His name is like teppen, faber no, thats you. I do think facebook, its not going to be ang and bang which would be broadcom. It is going to be facebook again and it will be faang let these guys say how brilliant with the stevele note. Look at the substance of that. We dont know what to do so well downgrade. Theres too much uncertainty related to the Economic Impact of this pending change for us to be comfortable retaining a buy. What a long term view they are taking i mean, are they kidding me . Look, snap, there was numbers came out in snap today downgrade in snap too. I thought snap would do 2 billion, they are hopeful to do 1. 2. Well look back and say that guy sold down and got sold down to 170. I let it happen. Didnt look at it. It was my opportunity. Why did i sell it . Because improved the user xperps he got rid of auto play. Is auto play how much do you hate autoplay . Tell me. Ill tell you who doesnt hate it, people who are pivoting to video trying to get traffic. That kind of video, no one is watching let me give you news flash i think this is going to be play good for facebook but analysts cant handle it. They have to downgrade it. And uncertainty, how about at 19 when peter was out a lot of uncertainty at 27 when they didnt do a Good Conference call and at 50 where it got back to where it happened and now we have uncertainty we have to go or i would keep talking about how faang will come back and its ang for the morning. Ang for the morning. And not boeing or broadcom. Bang would be good if you put boeing in. Bang has been strong. When we come back, well talk more about the snap downgrade and get e thmad dash and opening bell in seven minutes. Tomorrow, its a day filled with promise and new beginnings, challenges and opportunities. At ameriprise financial, we cant predict what tomorrow will bring. But our comprehensive approach to Financial Planning can help make sure youre prepared for whats expected and even whats not. And that kind of Financial Confidence can help you sleep better at night. With the right financial advisor, life can be brilliant. Upeace of mind. S we had a power outage for five days total. We lost a lot of food. We actually filed a claim with usaa to replace that spoiled food. And we really appreciated that. Were the webber family and we are usaa members for life. A lot going on between fed speak and macro data but the s p and dow on pace for the seventh weekly gain out of eight opening bell minutes away. Well, its earnings season once again. Yeah. Lot of Tech Companies are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from Td Ameritrade. Weve got a minute and a half