WE DON'T HAVE ANY MORE
INFORMATION THAN WHAT HE
PROVIDED YOUR
>> THE MARKET WELL ENOUGH FOR
THE MOST PART NOW DOWN 231.
MARK HAMRICK AND JAMES FREEMAN
FROM "THE WALL STREET JOURNAL"
ALL HERE IN THE STUDIO.
ONE OF THOSE DAYS WHERE YOU HAVE
A LOT SWIRLING AROUND.
WE'VE BEEN COVERING THE BREAKING
AREAS OF THE SUSPICIOUS
PACKAGES.
TEXAS INSTRUMENTS MAY BE ON THE
CONCERNING TYPE WOODY MAKE ABOUT
THE CROSS CURRENTS?
>> EQUITY TRADERS ARE PEOPLE
LIKE THE REST OF US ARE THEY SEE
THIS STUFF ON THE NEWS IT
DOESN'T MAKE YOU HAPPY AND
OPTIMISTIC AND CERTAIN LAME SOME
PRECURSOR IS OBVIOUSLY GOING TO
DO IN THE MARKET.
I THINK AS WE LOOK WHAT IT IS
TODAY, MOST OF THAT IS EARNINGS
CONCERN.
TEXAS INSTRUMENTS KIND OF
SOMEWHAT NEGATIVE OUTLOOK ON THE
OTHER COMPANIES.
BASICALLY THESE CORPORATE
EARNINGS WHICH HAVE BEEN SO
AMAZING I STILL REALLY GREAT,
BUT MAYBE JUST NOT QUITE AS
GREAT IN THE EARNINGS OUTLOOK IS
NOT QUITE AS GREAT AS EXPECT IT.
CONNELL: ON A COME TALK ABOUT
RATES IN A MOMENT, BUT ON THE
TEXAS INSTRUMENTS REPORT, WENT
BACK AND LOOKED AT THE
CONFERENCE CALL COMMENT.
THEY DIDN'T SPECIFICALLY SAY
THAT TERRITORY PROBLEM FOR THEM.
DEMAND IS SLOWING DOWN.
IT WOULD BE FAIR TO SAY WHY
WOULD DEMAND IS SLOWING DOWN.
>> I WILL SAY THIS.
THE ECONOMY IS GOOD RIGHT NOW,
VERY GOOD.
MARKET PRICE IN THE FUTURE.
RIGHT NOW THERE IS A DEBATE
ABOUT FUTURE GROWTH.
A DEBATE ABOUT WHETHER THE
CORPORATE TAX CUTS AND PRETTY
PUNY INDIVIDUAL TAX CUT WILL
PRODUCE ENOUGH GDP TO SUSTAIN
THE TYPE OF EARNINGS WE HAVE
RIGHT NOW.
I DO KNOW ANYBODY THAT COULD
DISAGREE WITH THAT.
EVERY TRADER, LONG AND SHORT,
BULLISH, BEARISH AGREES WITH
THAT.
WHERE YOU COME OUT ON THAT
SPECTRUM AND YOU MAY COME OUT
DIFFERENTLY THAN SOME OTHER
PEOPLE DEPENDS ON WHETHER YOU
BUY OR SELL THIS MARKET.
RIGHT NOW I'D LOOK AT A GLASS
HALF-FULL.
I JUST DON'T THINK THERE'S
ENOUGH -- OR IS IT HALF EMPTY?
IT'S HALF-EMPTY, I'M SORRY.
I'M NEGATIVE.
I THINK THAT -- SORRY.
EVERY NOW AND THEN.
MAYBE EVERY NOW AND THEN I MAKE
A MISTAKE.
THE REASON WHY WHEN YOU CUT
CORPORATE TAX RATES THIS MUCH,
AND THE EMPHASIS NOT ON
INCREASING SPENDING IF THERE'S
ONE PROBLEM WITH THE TRUMP TAX
CUT IT WAS A PUNY INCOME
TAX-CUT.
>> WE JUST COMPLETED A SURVEY
THEY SAID THEIR PERSONAL
FINANCES HAVE IMPROVED OVER THE
PAST YEAR SINCE THE GENERAL
ELECTION.
>> HE WAS DOING, I DO GET PUSHED
QUITE OF -- GET PUSHED OUT.
GET OUT ACROSS THE REST OF THE
COUNTRY AND DO WHAT IT LIKENED
HIM TO.
WE ARE LIVING IN DIVISIVE TIMES.
THE ECONOMY DOESN'T LIST ALL
BOATS ALL AT ONCE.
WE ARE HOPING THE EXPANSION
CONTINUES TO LIFT MORE.
>> TITLE INC. THEY ARE
PHENOMENAL IN KANSAS.
THERE ARE AREAS THAT ARE
TERRIFIC.
SOME ARE DRIVEN LIKE WHEN I WAS
IN TAXES IT WAS LIKE A LITERAL
BOOM.
IF YOU WANT TO SEE BOOM TIMES.
I WAS AT THE COWBOYS TRAINING
CENTER IN DENTON, TEXAS.
I HAVE A FRIEND WHOSE FRIEND WAS
JERRY JONES.
IN ANY EVENT, BY THE WAY, AN
AMAZING PLACE YOUR CORPORATE
OFFICES TOYOTA, ANOTHER.
TEXAS IS A PRO-GROWTH POLICIES.
THE QUESTION IS FROM A FEDERAL
LEVEL, HOW GOOD OF A BANG FOR
THE BUCK ARE WE KIDDING.
>> MAYBE JAMES WILL TAKE A STEP
THAT WE SHOULD BE ASKING.
THE MIDDLE OF ALL THIS IN YOUR
NEWSPAPER THE PRESIDENT TOOK
ANOTHER SHOT AT THE FEDERAL
RESERVE LAST NIGHT WITH TRISH
REGAN WHEN HE WAS ON FOX
BUSINESS TRIP LAST NIGHT IT WAS
SOMETHING TO THE EFFECT OF JAY
POWELL LOOKS HAPPY WHEN HE IS
RAISING INTEREST RATES.
I WAS IN THE MIDDLE OF THIS
WHOLE DISCUSSION.
>> I THINK THE FED IS ON THE
RIGHT TRACK RAISING RATES WHEN
YOU LOOK AT PRICES.
THE PRESIDENT IS RIGHT TO BE
CONCERNED AND THEY'VE BEEN
INVOLVED IN A LOT OF FINANCIAL
CATASTROPHES OVER THE YEARS.
FIND EXAMPLES BOTH WAYS.
HE LOOKED AT THE 1930s AND IT
WAS REALLY BEEN MISDIRECTED.
>> I WAS DIFFERENT.
I WAS IN THE FACE OF AN ASSET
BUBBLE.
JUST TO GET BACK TO THIS, AND
THE BULLISH CASE IS THIS WAS A
PROGROWTH TAX CUT BECAUSE IT WAS
NOT DESIGNED BY A LOT OF WEIRD
WASHINGTON STIMULUS PROGRAMS TO
PUT MONEY IN PEOPLE'S POCKETS TO
GET THEM TO SPEND MORE.
IT WAS FOCUSED ON LONG-TERM
GROWTH AND MAKE IN THE CORPORATE
RATE COMPETITIVE THE REST OF THE
WORLD WAS AND ENCOURAGE
INVESTMENT.
THE CAPITAL EXPENDITURE YOU SEE
ON THE PRODUCT COMMITTEE.
ALMOST EXACTLY THE LEVEL.
>> THAT'S NOT BECAUSE OF THE TAX
CUT.
IT WAS A RIDE OFF ON CAPITAL
EXPENDITURES.
THIS IS A SMART THING TO DO.
>> THE TAX CUT THAT IS LIFTED
WITH CAPITAL EXPENDITURES.
THAT'S A BIG PART OF IT.
WE CHANGE THE INCENTIVES.
>> LED TO MASSIVE CORPORATE
BUYBACKS.
I'M TELLING YOU.
>> ALONG WITH HIGHER CORPORATE
SPENDING.
>> YOU'RE NOT MENTIONING WAGES,
BY THE WAY.
TAKE IT FROM THERE.
OBVIOUSLY THAT CONTINUES TO BE
THE UNFINISHED WORK.
WHEN WE CAN'T BREAK ABOUT 3% ON
AVERAGE HOURLY EARNINGS AND
MONTHLY EMPLOYMENT REPORT, THAT
TELLS YOU THAT PEOPLE ARE STILL
ASKING SHOW ME THE MONEY.
CORPORATIONS ARE NOT SPENDING
MONEY ON INDIVIDUALS.
>> AT THE ONE CLEAR WHETHER WE
ARE IN SOME SORT OF FAITH THAT
IS 100% NORMAL.
BUT THIS IS THE START OF
SOMETHING MUCH LARGER.
WHAT IS YOUR TAKE ON THAT?
>> ONE THING THE PRESIDENT WAS
TALKING ABOUT THAT IS RIGHT
ABOUT AND WHY YOU MIGHT THINK
ISRAEL IS UNLIKELY.
WHEN PRESIDENT OBAMA WAS IN THE
OFFICE WHERE YOU HAD THE FED
BEING ACCOMMODATED GOING TO SEE
HER FOR YEARS AND YEARS.
THIS HAS BEEN HAPPENING WHILE
MONETARY POLICY IS BECOMING LESS
ACCOMMODATED.
CONNELL: CHARLIE THAT WE'VE GOT
A RUN.
>> NETFLIX BORROW $2 BILLION TO
BUILD OUT MORE CONTENT.
THINK ABOUT THAT.
A MONEY-LOSING COMPANY WITH CASH
FLOW PROBLEMS CAN GO TO THE
MARKET NUMBER $2 BILLION.
THAT'S THE REASON FOR RATE HIKE,
JUST SO YOU KNOW.
>> THAT'S TOO SIMPLISTIC.
>> THAT IS WHERE THE FED CAN RUN
INTO TROUBLE WHEN THEY MAKE THAT
KIND OF ANALYSIS.
>> YOU DON'T KNOW.
WE WILL KNOW IN HINDSIGHT.
WHAT YOU DO ABOUT NETFLIX.
WHICH IS GOING --
>> ALAN GREENSPAN WILL TELL YOU
HIS BIGGEST REGRET IS NOT
RAISING RATES IN 2005.
>> THE FED NEEDS TO HAVE MORE
AMMO IN THE GUN BELT.
WHEN THE NEXT RECESSION ARRIVES
THEY WANT TO BE WHERE THEY ARE
RIGHT NOW BUT RIGHT NOW ABOUT IT
LEADING TO LOWER GRADE.
THAT IS SPEAKING IN THE BACK OF
THE MINDS OF MOST FOMC MEMBERS
AS WE ARE NOT AT ARMAGEDDON WE
NEED TO GET BACK TO NORMAL.
>> THESE TECH EARNINGS ARE
INTERESTING.
NOT ONLY TONIGHT, BUT TOMORROW
NIGHT.
SOMEONE TOLD ME EARLIER NOT