All that and more on making money. Dagen is a rollback in tariffs in the cards to get a trade deal done with china . Both sides reportedly weighing that option as they get closer to putting pen to paper. Edward lawrence, live in washington with more. Hey, edward. Reporter good to see you. Feeling of goodwill between the u. S. And china over trade is starting to seep into tariffs. People familiar with the talks are telling us china would roll back tariffs as part of a trade deal. In an oped in Chinese State media says cancellation of u. S. Tariffs already imposed should be a necessary condition for reaching an agreement. The moneys writer said to be close to the trade talks on the chinese side. The chinese have been working throughout the process to get tariffs removed or repealed, especially tariffs set for december 15th. Those are still set to be added. The trade talks are still happening almost daily. In phone conversations at the deputy level, the two sides are trying to find a location to sign a phase one trade deal. Once the language gets finalized of the President Donald Trump mentioned iowa. Iowa senator Chuck Grassley chairs the Senate Finance committee. Director of communications for that Committee Says this, quote, senator grassley would welcome a visit by President Trump and xi to iowa. Farmers have been hit by the trade war and and. Still a spokesperson for the Chinese Foreign ministry not rule out a trip to the u. S. By the chinese president. He says that the two president s remain in contact through various means. Dagen. Dagen edward, thank you for that, Edward Lawrence in washington. How likely is it that the United States will roll back the tariffs to get china on board . For all of that, welcome former trump trade and jobs advisor curtis ellis. Does the president know that the economy is his ticket to getting reelected next year and if he wants to keep seeing new alltime highs in the stock market something needs to get done and now . Youre right, the economy is his ticket to getting reelected. Look what were having. Economy defies all expectations. From the moment he first imposed tariffs on china, people were rechecking the sky would fall and economy would stall, stock market would crash, unemployment would skyrocket. None of that has happened. What were seeing as jobs come back to america and wages increase people have more spending optimism, could be super optimism and Small Business optimism is a high. That is propelling the economy. China wants to push tariffs. That is only thing gotten them to the negotiating table. Dagen manufacturing, i was one of those naysayers, not saying that the sky wasnt chicken little but again manufacturing contracted three months in a row and it is the u. S. Consumer holding up the economy right now. Tariffs talked about being, pulled back, cutting tariffs, 15 on the 111 billion in chinese imports, that was imposed on september the 1st, it is those very tariffs that retailers and apparel producers were worried because it hits the consumer directly. This would seem like not only to use that word appeasement of china or, basically giving something to get something in a trade deal but also good to make sure that the consumer stays healthy . Remember you cant be a consumer unless youre first a producer. You have to earn money to spend money and that is what President Trumps policy is all about, boosting american wages, boosting buying power, consumerring power if you will of the American Population by increasing jobs and increasing the opportunities here. So that is what America First policies is about. It is about bringing jobs back to this hemisphere, to this country. We have to keep that in mind. Now when, apparel was made here, when a lot of these things made overseas were made here, people had more buying power. Dagen what is the harm rolling back tariffs if it means getting phase one done. Is think any is there any . Dagen any harm rolling back tariffs. Could be seen as appeasement, a sign of weakness on china this is the only thing gotten them to the negotiating table. We need to get them to stop stealing and cheating and living up to the agreements they made. In a sense weve been here before. We thought we had agreement in may. We were ready to sign it, everything was expected. They pull back to the and pull back and hope inertia and momentum make them sign less than optimism agreement. Dagen do you think investors getting out over their skis . They could be. They could be. Well have to wait and see. All anonymous leaks, that is very suspicious. Bob lighthizer runs a very tight ship. He does not leak. Anybody who leaks in washington, as you know, dagen is trying to advance their own agenda. Dagen well see what happens with those tear riffs. Thank you so much, curtis. Thank you. Dagen curtis ellis. Can trade optimism alone continue to lift the markets . To discuss welcome divine ceo danny hughes, and phil blancato. Good to see you both. Danny, i asked curtis this, are investors getting out over their skis or is there enough good news in terms of strong earnings, strong consumer, job market, wage growth running 3 above inflation . Is there enough out there to justify where the markets are at these new all times highs . You hit all of the big points, dagen. Jobs growth has been phenomenal. Octobers numbers really hit it out of the park. Then we got an uptick in august and september as well. In the face of all this growth we have the fed cutting rates. You would think investors have anything they ever wanted on the buffet plate. But Earnings Growth hasnt been what we wanted it to be. Were clocking in now on 3 4 of Earnings Growth declines in the s p. So that is something to keep an eye on. We expect in the Fourth Quarter to see Earnings Growth declines as well. It is not until first and Second Quarter of 2020 that analysts are expecting some kind of growth. Dagen phil, but you have look at the rest of the world. I know it has been a different scenario in recent weeks. So far this year, the United States stock market has been head and shoulders above the other stock markets. It has been outperforming europe, china, emerging markets. 20 up for the s p 500. Do you put money, seems like the markets play catchup in recent weeks . Where do you allocate money if youre in equities . If youre in equities somewhat problematic. We could rotate toward value because they were cheaper. Growth stocks certainly not inexpensive. You look at the composite, the entire marketplace is not cheap to the point that earnings are not great. You have to be methodical. Pay to wait around. By companies you can earn income. Price matters. Look for Good Companies fairly priced if they exist and they do but you want to earn money. Want to pay a quality dividend. Dagen every single sector in the s p 500 are up yeartodate. Where would you go for income producing stocks . Cyclicals. Think of staple like costco or walmart where i get a big dividend or verizon. Where will i get a decent dividend to allow me to participate but earn. That is the key. When things get expensive, you dont want to spend on something with downside risk, we get a big headline, xi wakes up, im not ready for this. We get a real downside. How do you avoid that . Get some income. Be paid to wait around. Dagen 11 sectors done the best yeartodate through yesterday, up nearly 40 thereabouts, those Expensive Companies have actually continued to do well like an apple. Target even. Those stocks are up 60 or more so far this year. A lot of companies are knocking it out of the park. Chipolte is up 90 this year. Dagen right. To your point, youre preaching to the choir. Earning money while sitting and waiting even throughout the small utility we can really expect over the next quarter. Dont forget last year on Christmas Eve we did not get what we expected. The market fell apart at the seems. It was not expected by anyone. We had a. Have shaped recovery but that could happen anytime. That is volatility we should expect and be in names solid waiting wait. Add on that. You cant go neutral. What is neutral . Balanced account, 65 or 68 equity, go back to 55, 60. Earn profit. Take money on the table. There is a chance. We get another december. Granted Fourth Quarter, election year, all positive stimulus. At least earn a little money and rotate. Dagen where do you allocate . Longerterm treasurys, the 10year . Asking where it was. 1. 8 fixed income too expensive. It worries me on the long end of the curve. Earn point 1 2 on short end. Buy two year duration etf if i want or Corporate Bond from mutual fund that will pay a decent money market, 1. 50, 1. 75 to be paid to wait around see what happens. Dagen you pointed out the christmas selloff. But the selloff started early november last year. The trigger, one of the triggers was the 10year yield was at about 3. 25 . I think it peaked 3. 24 last november. Because again, the world woke up, realized we cant have longterm Interest Rates at these levels because were not only indebted in the United States but indebted world. Look where it is now. Is that something you worry about, much higher longerterm rates here . I think the sky was falling mantra happened a lot when the yield curve inverted. Everybody was thinking this portends a recession, everyone was saying that were going to get a recession. Dagen we have historically. A lot of that thats right. Tough look at global scene. What is going on in fact, in some countries in europe theyre paying you to take out a mortgage. So Interest Rates are so low theyre negative in other countries. Money is flowing over here to the safety which is driving yields down. Get something right. The fed did something right. Cutting rates three times. So they finally gotten that where banks make money. Borrow on short end helped on president and fed made comments that pounded on market. Youre right, Interest Rates spiked this was more headline driven. Will earnings, s p up 24 that is not great. That is not the situation where you want to dump a bunch of money in the equity market unless you get a catalyst to drive earnings higher. That catalyst has to come on number of fronts. Resolution with china. Dagen do you worry about the headlines . Drip, drip, transcripts, volcker and sondland transcripts coming out . One day different individuals. Do you worry about the impeachment risk at all . Yes. 100 . I think there is a big concern about that headline risk. I think that weighs on the market. I also think of the dripping of optimism around what could happen with china, keeps us at the end of the tether. Eventually something has got to give. Impeachment i think it is nonsense. The senate will never vote to impeach president in fourth year. You might get a moment on congressional side. Maybe they get there they have as much to lose than gain. Markets climb a wall of worry. Take some profits. Take an opportunity to mutual fund to earn money. See how it plays out. Dagen thank you, fill, danny. Top company experiments with a fourDay Work Week and productivity skyrockets. Could a short Day Work Week go mainstream . Polls today with 2020 election one year away. Is this a referendum for President Trump and the economy . We break it all down next. Heading into retirement you want to follow your passions rather than worry about how to pay for longterm care. Brighthouse smartcare℠ is a hybrid Life Insurance and longterm care product. It protects your family while providing longterm care coverage, should you need it. So you can explore all the Amazing Things ahead. Talk to your advisor about brighthouse smartcare. Brighthouse financial. Build for whats ahead℠ when you rent from national. Its kind of like playing your own version of best ball. Because here, you can choose any car in the aisle, even if its a better car class than the one you reserved. So no matter what, youre guaranteed to have a perfect drive. [laughter] vo go national. Go like a pro. See what i did there . Shes the one the one for you when you know you just know she isnt perfect but shes perfect for you love is rare loves unique love is her love is him love is us the vera wang love collection designed for zales, the diamond store. And my side super soft . Be firm . With the sleep number 360 smart bed you can both. Adjust your comfort with your sleep number setting. Can it help keep me asleep . Absolutely, it intelligently senses your movements and automatically adjusts to keep you both comfortable. And snoring . No problem. And done. Will it help me keep up with him . Yup. So, you can really promise better sleep . Not promise. Prove. And now, during our veterans day sale, save 1,000 on the new sleep number 360 special Edition Smart bed, now only 1,799. Only for a limited time. Dagen breaking right now, walgreen stock surging on a report that the drugstore chain is thinking of going private. Reuters reporting that walgreens held talks with large private equity firms putting together what would be the largest leveraged buyout ever. Walgreens is valued at around 55 billion, with around 17 billion in debt. Moving on to election day not next year but today. Four states deciding major state offices today. Governors being chosen in the states of kentucky and mississippi and state lawmakers are being elected in new jersey and virginia. But both parties are looking to todays vote as some sort of referendum on President Trump and to test voter enthusiasm ahead of 2020. Joining me now, Fox News Contributor deroy murdoch, Liz Harrington and democratic strategist, laura fang. I end with you begin with you, laura. What do you think . Amazing were talking about these state as bellwether, deeply red kentucky and deeply red virginia and a state went with the nominee for president in last three elections. Im looking for trend line among particularly demographics, looking at white women, married white women, suburban white women, white women without a college degree, are they turning out, who are they voting for . We saw almost three categories moving away from the trump in 2018 election and well be excited to see if that continues. Dagen liz, i note in the kentucky race governor matt bevin trying to defend his the governorship from democratic attorney general andy beshear, he has been running ads tying beshear to the National Democrats leading the impeachment charge. Could we read into that at all . Absolutely. Americans are sick and tired of democrat tactics trying to impeach this president before he was even sworn in. That is what weve seen. I would point to the data that weve seen speaks real trouble for democrats. In the past two rallies President Trump when he went to mississippi and kentucky last night, a quarter of attendees were registered democrat voters. That is because the democrat party, their race to the left has left millions of voters behind. Theyre joining our ranks. Were expanding our base. Dagen donald trump, deroy, won kentucky by 30 points. It shouldnt be a squeaker but maybe goes to matt bevins personality. Only President Trump can be President Trump so to speak. Battle of tough personalities, right . Exactly. This will determine, we wont know if its a referendum until wednesday morning. If things go well for President Trump, media will forget about this, shout about impeachment. If it goes badly and republicans should run away. Media will forget about if gop does well. If the gop does badly, they will maximize this for left ring purposes. Dagen laura, how do you expect the economy to play out though . In the state of kentucky for example, the current governor, bevin, doesnt have, he has got some personality issues, well, just, i think there was one column in the wall street journal referred to him as aabrasive, unpopular. Nevertheless in the state the economy added 93,000 jobs since bevin took office after losing 12,000 during the last three years of his democratic predecessor. Just happens to be the democratic nominees father, if you keep up with that. How does the economy play in mississippi i last looked had 49th highest Unemployment Rate in the nation . Well you know the economy is really a personal thing. People with stock portfolios may be feeling confident. People have to work two of those jobs make the unemployment numbers so low, feeling a little bit different about it at the Kitchen Table. Get back to white women for a second dagen laura, i got to correct you. That is not how the Unemployment Rate is calculated. The unememployment doesnt factor, that is not the way it works, aoc made that mistake. That is not what im saying. What im saying politically if youre working a couple jobs you will not feel like the economy is working for you. That is the point. I think to get back to the swing voters that are white women for a minute, democrats are coming after white women like faith hill after tim mcgraw in tight jeans. Theyre talking about Kitchen Table issues, talking about wages. Talking about health care. Talking how the economy comes home daytoday with moms and their kids. I think that will be the measure of todays election and of things moving forward. Because it is not just the aggregate economic numbers we like to talk about here. How it is hitting h