AT FOX NEWS SENIOR STRATEGIC
ANALYST RETIRED GENERAL JACK
KEANE IS HERE AS WELL.
A BIG SHOW COMING UP.
KICKING OFF THIS HOUR WITH AN
EARNINGS ALERT.
UNITED HEALTH OUT ITS
FIRST-QUARTER RESULTS.
REPORTED EARNINGS OF $3.4 PER
SHARE OF $55.2 BILLION IN
REVENUE.
BOTH PROFIT AND REVENUE BEAT
EXPECTATIONS.
JOHNSON & JOHNSON AND GOLDMAN
SACHS BEFORE THE OPENING.
THE GLOBAL ECONOMIC SENATOR JON
HILSENRATH.
THANKS FOR WEIGHING IN HERE.
I WAS PRETTY STRUCK WHEN I
REALIZED WE ARE TALKING ABOUT
19% GROWTH IN TERMS OF S&P 500
EARNINGS.
WE WERE EXPECTING 17 NOW LOOK AT
19% GROWTH RATE PRETTY GOOD
QUARTER.
>> I'M LOOKING AT EXACTLY THOSE
NUMBERS YOU MENTION.
YOU STARTED A WEEK AGO SAYING 17
WE ARE ALREADY AT 19.
WHAT IS REMARKABLE IS YOU WERE
JUST TALKING ABOUT JPMORGAN HAD
ALL-OUT NUMBERS.
THE MARKET IS REALLY HAVING
TROUBLE MOVING ON THESE NUMBERS.
THERE'S A COUPLE REASONS FOR
THAT.
ONE IS EXPECTATIONS ARE ALREADY
SO HIGH AFTER THE GREAT THAN THE
MARKET HAD LAST YEAR.
THE OTHER IS ALL OF THESE
JITTERS GOING ON ABOUT TRADE AND
WHETHER THE GLOBAL ECONOMIC BOOM
WITH GOD IS GOING TO BE
SUSTAINABLE.
>> THE PRESIDENT WROTE AN OP-ED
THIS MORNING.
WE WILL TALK ABOUT THAT.
IT WAS IN "USA TODAY."
HE TITLED AMERICA'S ECONOMY IS
BACK IN WORRYING THAT PEOPLE ARE
WINNING.
"USA TODAY" WRITES THIS.
THIS IS THE LAST YEAR AMERICANS
WILL FILL OUT OUTDATED
COMPLICATED TAX FORMS IN THE
YEARS AHEAD BECAUSE I FIND ONE
OF THE LARGEST TAX CUTS IN
HISTORY AND THE MOST SWEEPING
TAX REFORM IN A GENERATION.
MANY AMERICANS WILL COMPLETE
THEIR TAXES ON A SINGLE SHEET OF
PAPER.
AMERICA'S COMPETITIVE EDGE IS
ALSO BEEN RESTORED.
WHEN AMERICAN WORKERS COMPETE ON
A LEVEL PLAYING FIELD, AMERICAN
WORKERS WIN.
THE NEW NBC "WALL STREET
JOURNAL" POLL SHOWS THAT LIMITED
SUPPORT FOR THE TAX CUT IS STILL
IN PLACE.
IT'S INCREDIBLE THAT NOW YOU'RE
LOOKING AT A 6% OF THE PEOPLE
POLLED SAY IT WAS A BAD IDEA.
WHAT DO YOU MAKE OF THIS?
>> I WOULD SAY THIS IS A GOOD
NEWS, BAD NEWS SITUATION.
THE MOST IMPORTANT PART OF THE
TAX REFORM IS ON THE CORPORATE
SIDE BRINGING DOWN CORPORATE
GRACE WHICH WERE VERY
UNCOMPETITIVE GLOBALLY.
SO THE ECONOMY IS ON A GOOD RUN
RIGHT NOW.
THE PROBLEM WHICH OF COURSE THE
PRESIDENT DIDN'T ADDRESS IN HIS
OP-ED IS A GARDEN ELEMENT OF
GROWTH HEADED TOWARDS TRILLION
DOLLARS DEFICIT AND IT MIGHT BE
THE AMERICAN PEOPLE SEE THAT.
THEY SEE THIS DEFICIT DRIVEN
GROWTH IN THE PRICE TO PAY DOWN
THE ROAD.
>> WHAT ECONOMIC INDICATORS ARE
YOU LOOKING OUT OVER THE NEXT
WEEK OR SO TO GIVE YOU ANY
INDICATION?
I KEEP GETTING CONFLICTING MIXED
SIGNALS ON WHERE WE END UP IN
GDP GROWTH, WEATHERS 3%,
THREE-POINT PAPERS SENT.
AND THEN WE HAD CHOPPY JOBS
NUMBERS.
>> THE GROWTH OUTLOOK IS KIND OF
TRICKY RIGHT NOW.
THE ESTIMATES ARE 3%.
IMF WILL BE COMING OUT WITH
GLOBAL GROWTH.
I EXPECT THEM TO BE PRETTY GOOD
LATER TODAY.
THE ATLANTA FED JUST REMINDED
THE ESTIMATE FOR LESS THAN 2%
FOR THE FIRST QUARTER.
THE FIRST QUARTER IS USUALLY
SOFT BECAUSE THIS TIME OF YEAR
THE NUMBERS ARE KIND OF MESSY.
THE ESTIMATE IS 3%.
RIGHT NOW IT DOESN'T LOOK LIKE
WE STARTED TO HEAR OFF ON REALLY
GREAT FOOTING AS TO WHAT I'M
LOOKING AT.
I'M REALLY LOOKING AT ANYTHING
THAT SIGNALS WHAT IS HAPPENING
ON THE BUSINESS INVESTMENT
FRAUD.
INDUSTRIAL PRODUCTION NUMBERS
COMING OUT.
WHAT'S REALLY GOING TO MAKE THIS
ECONOMY RAN IF THIS EXPANSION IS
GOING TO KEEP GOING ANOTHER TWO,
THREE YEARS OF GOOD RATES AT
BUSINESS INVESTMENT PICKING UP
EVERYBODY KEEP LOOKING FOR THOSE
NUMBERS.
>> THAT IS WHAT IS BEGUN TO PICK
OUT.
WE SEE SOME ACTIVITY BECAUSE
BUSINESSES PUT MONEY BACK IN THE
ECONOMY.
WE'VE GOT A GOOD CHURCH TAKE.
A LOT OF ANNOUNCEMENTS YESTERDAY
ANNOUNCING COLOMBIA AND PIMCO
ADVISER RICHARD CARITA AS VICE
CHAIRMAN OF THE FED AND
REGULATOR MICHELLE BOWNESS
GOVERNOR.
YOUR REACTION TO THESE NEW
NOMINEES.
HOW DOES THIS CHANGE THE MAKE UP
OF THE FED?
>> WHAT'S IMPORTANT HERE, WHEN
HE WAS A CANDIDATE HE WASN'T
AFRAID TO BASH THE FED AND THEY
WOULD COME IN AND TRANSFORM THE
PLACE.
HE HAS BEEN.
JAY POWELL, THEY'RE PRETTY
MAINSTREAM.
THEY ARE KIND OF DOWNLINE