LINDSEY, LET ME START WITH YOU.
THERE WAS ONE GREAT NUMBER AFTER
ANOTHER AFTER ANOTHER.
REALLY PHENOMENAL STUFF.
>> THE MARKET IS ALWAYS
SURPRISED BY THESE GREAT
NUMBERS.
CHARLES: THE MARKET HAS BEEN
GOING UP.
IT FEELS LIKE ALL THE EXPERTS
ARE ALWAYS SURPRISED.
>> IT'S THE EXPERTS AND A LOT OF
NAYSAYERS OUT THERE.
EVERYONE IS WAITING FOR THE
NUMBERS, BUT IT JUST KEEPS GOING
HIGHER.
20-YEAR HIGHS AND A LOT OF
DIFFERENT STATISTICS.
WE ARE GETTING INTO EARNINGS
SEASON, TOO.
IT WILL BE THE THIRD QUARTER OF
OVER 3% EARNINGS GROWTH.
CHARLES: I REMEMBER THE FIRST
QUARTER OVER 20% WAS SUPPOSED TO
BE THE HIGH WATER MARK.
>> THAT WAS IN 2010 WHEN WE WERE
COMING UP AGAINST THE FINANCIAL
CRISIS.
BUT THIS IS BEING DRIVEN BY TAX
REFORM AND FISCAL STIMULUS AND A
GROWING ECONOMY REACTING TO ALL
OF THAT.
CHARLES: WE UNLEASHED SOMETHING
HERE.
THE ANIMAL SPIRITS IN THIS
COUNTRY WHERE WE NO LONGER ARE
OKAY WITH MEDIOCRITY.
230,000 JOBS.
WALL STREET ESTIMATED 180,000.
MY FAVORITE AREAS.
DIRTY FINGERNAILS, GOODS
PRODUCING.
THIS IS APHASING.
FOR MIGHT GOES -- THIS AMAZING.
IT GOES BACK TO THE HEARTLAND.
>> THE WHOLE DYNAMIC IS WE WERE
SO AFRAID THIS WOULD ROLL OVER.
I THINK WHAT THE ADMINISTRATION
HAS TRIED TO DO IS SET UP A
DYNAMIC.
IT'S NOT JUST THE JOBS NUMBERS.
IT'S THE PRO GROWTH AGENDA.
I WOULD POINT TO THE ROLLBACK OF
REGULATORY OVERREACH THAT
WEIGHED ON THIS ECONOMY FOR OVER
A DECADE.
CHARLES: THERE ARE ORGANIZATIONS
OUT THERE.
IT DOESN'T ROLL OFF THE TONGUE.
BY THE HAS HAD A MAJOR IMPACT.
>> IF YOU ARE LOOKING FOR
EARNINGS, MARKETS TEND TO FOLLOW
EARNINGS.
WE ARE LOOKING AT -- WE CAN'T
SUSTAIN THE 20% GROWTH.
BUT WE CAN DO 8%, 9% THE NEXT
COUPLE YEARS.
OVER THE LAST SEVEN CONSECUTIVE
QUARTERS THE AVERAGE ANNUAL
GROWTH RATE IS 22.2% FOR SEVEN
QUARTERS IN A ROW.
THE PREVIOUS SEVEN QUARTERS
MINUS 9% QUARTERLY.
WE HAVE MOMENTUM EARNINGS
GROWTH.
CONSUMERS --
CHARLES: WHERE DO WE GO FROM
HERE.
>> CONSUMERS ARE IN EXCELLENT
HEALTH.
PRODUCERS ARE PRODUCING BECAUSE
CONSUMERS ARE BUYING.
>> 8%, 9% IS PRETTY GOOD.
PRETTY GOOD GROWTH.
CHARLES: TWO OTHER PEOPLE JEROME
POWELL AND CHARLES EVANS.
THE HEAD OF THE FEDERAL RESERVE
AND A KEY VOTING MEMBER OF THE
FEDERAL RESERVE.
WHAT CHAIRMAN POWELL HAS SAID
REALLY ECHOED.
HE SAYS THIS IS THE BEST ECONOMY
EVER.
BUT POWELL SAID THIS IS
UNPRECEDENTED WITH RESPECT TO
MODERN HISTORY.
WE HAVE NOT SEEN THIS IN RECENT
YEARS.
IT IS SOMETHING SPECIAL.
>> IT TRULY IS.
THAT'S WHY HE HAS THE ROOM TO
MOVE UP THE FEDS FUND RATE.
YOU GO BACK IN HISTORY.
YOU USUALLY SEE THE FEDS FUND
RATE RUNNING IN LINE WITH
NOMINAL GDP.
THE REASON WE SAW THE 10-YEAR
YIELD SPIKE UP TO A SEVEN-YEAR
HIGH WAS BECAUSE OF GROWTH.
NOT BECAUSE OF INFLATION.
CHARLES: THE BOND YIELDS ARE
GOING UP.
INVESTORS ARE LEAVING BONDS.
BUT WHERE DOES THAT MONEY GO?
DOES IT GO INTO THE STOCK
MARKET?
>> IT PROBABLY DOES.
THAT'S A CHALLENGE.
YOU CAN'T PUT ALL YOUR MONEY IN
THE STOCK MARKET.
SO WE'LL HAVE TO FIND WHAT IS
THE ASSET CLASS THAT WILL OFFSET
RISK IN THE FUTURE.
ONE THING, EVERY TIME THE MARKET
GETS SO EXCITING.
PEOPLE ASSUME THERE IS A
GIDDINESS.
BULLISHNESS IS BARELY ABOVE BEAR
I SHALLNESS.
ONE OF MY GREAT FEARS IS SO
MANY PEOPLE MISSED THIS RALLY.
BUT IS IT TOO LATE?
>> A LOT OF INSTITUTIONS HAVE SO
MUCH MONEY ON THE SIDELINES,
THERE IS PLENTY OF MONEY TO MAKE
THE MARKET GO HIGHER.
CHARLES: LET'S SEPARATE THE
MARKETS FROM THE ECONOMY.
THIS IMPACTS EVERY ONE.
SO DOES THE STOCK MARKET.
BUT THE ECONOMIC BOOM AND WHAT
IT MEANS FOR JOBS.
WE GOT THE JOBS REPORT COMING
FRIDAY.
I AM SUSPECTING COMING INTO THE
WEEK, CONSENSUS, 180, 200 IN
THAT AREA.
THE EMPLOYMENT PART OF THAT
ALL-TIME RECORD.
>> I THINK THE NUMBER MIGHT --
THE REASON THE NUMBER IS LOW ON
FRIDAY IS BECAUSE OF THE
HURRICANE WE JUST HAD GO THROUGH
THE CAROLINAS.
THAT DOES IMPACT EMPLOYMENT AND
IT WILL BRING IT DOWN.
THAT JUST MAKES TODAY'S ADP
NUMBER ALL THAT MORE IMPRESSIVE.
IT'S AN INDICATOR WHAT WE CAN
EXPECT.
CHARLES: A BIG QUESTION A LOT OF
OUR VIEWERS HAVE.
IF EVERYTHING IS SO GREAT, WHEN
DO THEY START TO SEE IT IN THOSE
PAYCHECKS?
>> THAT'S THE MILL DOLLAR
QUESTION.
IT'S COMING.
I DON'T THINK IT WILL COME IN A
FLOOD.
IT WILL BE INCREMENTAL GAINS.
THERE ARE PLENTY OF JOBS GOING
WANTING FOR PEOPLE TO FILL THEM.
IT'S A MATTER OF THE JOBS THAT
NEEDED TO BE FILLED AND PEOPLE
NOT HAVING THE EDUCATION OR
TECHNICAL SKILLS TO FILL THEM.
THAT WILL KEEP WAGES A LITTLE
BIT SUBDUED.
F THAT MEANS WE'LL HAVE SOME
INFLATION, BUT NOT ENOUGH TO
WORRY THE ECONOMY.
>> I THINK RIGHT NOW --
CHARLES: YOU THINK 3% YEAR
OVERYEAR HIKE WE COULD SEE THAT?
>> I DON'T KNOW ABOUT FRIDAY,
BUT YOU WILL SEE IT IN THE NEXT
COUPLE.
CHARLES: IT SHOULD HAVE HAPPENED
A LONG TIME AGO.
CONSIDERING THE JOB OPENINGS AND
DYNAMICS.
>> AMAZON IS RAISING THE MINIMUM
WAGE TO $15.
TARGET IS AT $13.
ENOUGH TO MOVE THE ECONOMY.
CHARLES: THE MARKET, THE
ECONOMY, THOSE BIG RIGS.
DID YOU SEE THE SEPTEMBER
NUMBER?
THE LAST QUARTER.
THE BEST QUARTER EVER FOR BIG
RIGS.
REV UP THOSE DIESELS.
UP 92% YEAR-OVER-YEAR.
THOSE ARE JOBS.
THOSE ARE 45,000 TRUCKS, 45,000
JOBS, 45,000 PEOPLE TO DO
MAINTENANCE ON THEM.
45,000 PEOPLE TO CLEAN THEM.
THOSE ARE AMERICAN JOBS.
>> YOU ARE SEEING THEM HAVING A
HARD TIME FILLING THOSE JOBS.
SO THEY WILL PROBABLY HAVE TO
INCREASE THE PAY FOR SOME OF
THOSE JOBS.
CHARLES: THE FIRST YEAR OF ONE