tv Mornings With Maria Bartiromo FOX Business April 12, 2019 6:00am-9:00am EDT
right now. first quarter earnings season ready to get into high gear this morning. we're waiting on results from two banking heavy weights, jp morgan and wells fargo. we'll have those numbers as soon as they hit the tape. the first look at uber's financials this morning ahead of its ipo, the ride hailing giant facing slower growth. what is expected. senator elizabeth warren's war on big business continues. she wants a new tax on r corporate profits and is calling out amazon. disney takes aim at netflix with a new streaming service. find out how much it will cost to see your favorites from the house of mouse. "mornings with maria" begins right now. ♪ it's been one week since you looked at me. ♪ dropped your head to the side and said i'm angry. ♪ five days since you laughed at
me. ♪ maria: good friday morning, everybody. let's kick it off with a look at futures. we are looking at a rally underway this morning. investors are waiting on first quarter earnings. they've got optimism there. take a look at the dow industrials, dow futures up 160 points, s&p 500 up 11 and-a-half right now and the nasdaq up 28 points. big rally going into the first quarter. jp morgan and wells fargo earnings are out this morning. we will get jp in any minute. we'll bring you those numbers. federal reserve, national economic council director jerryy kudlow weighed in on his support for herman cain's potential no, nomination. watch this. >> it's well-known the president does not agree with the last couple of rate hikes. i agree with the president on this. i thought they were unnecessary.
now, again, the fed is an independent central bank and we aim to keep it that way. i don't think rates will rise in the foreseeable future, maybe never again in my lifetime. whether they will fall, i wouldn't mind them falling. the president said he continues to stand behind mr. kane and we will be consulting with the senate banking committee. they will do their own vetting. my goal here as any senior director is to make sure the processes are going fine. the president has indicated if the spending caps going all the way back to the 2011 deal are not met, then we will sequester across the board, both defense and nondefense, excluding entitlements. we will run by those rules. that's tough stuff. maria: joining me right now is wall street journal's global economics editor, john hilsenrath. a lot there from larry kudlow yesterday. let's talk the federal reserve. rates are not going of to go
higher in his lifetime? >> he might have been exaggerating a little bit there. but that's actually a view of some people ironically on the left like larry sommers who say we're in this period of secular stagnation, where the economy can't just -- just can't grow fast and we have an extended period of low interest rates. japan has been in that environment. so i hope he's wrong because if he's right, that means an economy that just doesn't deliver in the long run. maria: we've got breaking news. chevron is announcing it will be acquiring an darko. they're talking about the deal price, good for both sides. you're looking at -- we want to show you chevron stock this morning, down 1%. it is just coming out with this news as we speak. that it will acquire andarko, and we've seen this move in oil prices. interesting to see an acquisition now when you're seeing oil where it is, up near the highs of the year at $60.47 a barrel.
it's up -- i'm sorry, andarko petroleum is up 30% right now. oil is up to $64.48 a barrel, john. you've got a huge premium being paid for andarko and the stock is up 30%. what's your take-a? >away?>> we do have a fracking n united states. this might be a play by chevron to place bigger bets on the fracking. maria: that's a good point. we've seen the president talk a lot about the u.s. being the number one producer in the world and so you've got a backdrop which is pretty positive for the oil sector, right? >> well, you know, the united states is on thing verge of becoming a net exporter of oil for the first time in many years because of the fracking boom. we're importing a lot less. so a play on u.s. energy. you could say makes some sense. i think the broader story with
this deal is that i think it's good news for wall street if we're seeing deal volume pick up, because the market's just been soft, all this talk about the fed and global slowdown. if we're seeing more deal activity, that will be good news. we've got earnings coming out for jp morgan and wells fargo later today and deal volume, ipo volume is one of the factors that i think is going to hold back those earnings numbers for them. maria: that's a good point. we're getting those numbers momentarily. jp morgan expected to report the first quarter within this hour. wells fargo's going to report at 8:00 a.m. do you think a sort of stable or weak quarter is priced into the market at this point as we kick off the first quarter with the earnings season, with the banks? >> i do think it is priced in. you know, the average estimate for jp morgan is for profits, earnings per share being down slightly from a year ago. so i think what's really going to matter for jpm, if they're
even flat from a year ago, i think the market will see that as good news. and then jamie dimon really has become the voice of wall street over the last few years. i'm really interested in what tone he's got. it looks like the economy hit a soft patch but then as we got through the quarter it might have ridden through that and i'm looking to hear what jay i my diamond has to say about the outlook for the rest of the year, if he's positive on that, i think we could see a good undertone on the jpm numbers. maria: we'll be watching that. chevron and andarko, this is a $33 billion deal, this values andarko at $65 a share based on chevron's closing price yesterday. this deal is subject to shareholder and regulatory approval. it's expected to close in the second half of 2019. chevron said it plans to boost its annual share buyback if this in fact is approved to $5 billion, that would be up from $4 billion and this
transaction they say is going to unlock significant value for shareholders according to the cfo and the ceo. chevron's chairman said the story is developing. andarko shares are up 33%, chevron shares down 1 and-a-half percent. big story, breaking as we came on the air. chevron will acquire andarko, a $33 billion stock and cash deal, valuing chevron -- valuing andarko, rather, at $65 a share. john hilsenrath, thank you so much. we will see you a little later. we want to get to disney. yesterday, unveiling details of its new streaming service. dagen is watching that with more on disney plus. dagen: r2d2, where are you? he's coming at you in november. let's a take a look at disney's announcement about disney plus, its streaming service. it will launch with content -- i know we have a chart if we want to show everybody what is coming up in disney plus. it's launching in november on
november 12th. the price of it is going to be $6.99 a month. that comes out to $69.99 for the year. there we go. disney plus details. launching november 12th, $6.99 a month with pixar and star wars film content, that's for loyal viewers, jeff and stacy. all content can be downloaded offline. disney expects 60 million to 90 million subscribers four disney plus by the end of fiscal year 2024. that's when it will be profitable. i want to note that disney plus is kind of part of the plan coming from disney. it's going to manage three separate streaming services. so disney plus, then the company already offers espn plus, as a complement to the sports network and then hug hulu, the establisd service which has 25 million subscribers. disney is talking about likely bundling all three of these,
offering them at a combined discount price maybe but we were really waiting for that disney plus and $6.99, by the way, that's very cheap compared to netflix. it's nearly half the cost of a netflix subscription. meantime, i've got to bring this to you. in terms of the tv bundles that people were flocking to, the streaming bundles because they were cheaper than cable, well, they're not as cheap as they used to be. front page of the wall street journal today, this is my personal favorite, youtube tv started just two years ago, its monthly rate is going up by $10 to $50 a month as it added channels yesterday of discovery, hgtv and the food network, to name a couple. t-mobile is launching a wireless service, the wireless carrier is launching a tv service that starts at $100 a month. it's got more than 275 available channels. by the way, youtube tv has more than 70 channels but it's significantly more expensive
than it was when they launched it two years ago. maria: david zaslau was talking about the bundles and where he sees growth. he figured out a path to grow this company in the face of huge content elsewhere. dagen: i thought these additional channels were an extra $10 a month. what am i getting for it? i love the youtube tv interface. it's very easy to use. the algorithms are great at predicting what you would want to see and watch. i like it. i like the interaction there. but again, at 50 bucks a month, it ain't cheap. maria: no, it's not see you in a bit. we just told you about the major deal announced a few minutes ago, chevron acquiring andarko for $65 a share. that's $33 billion. we've got more information coming up. boeing completing nearly 100 test flights of the max 8. cheryl casone with the details on that in headlines now. cheryl: another stock to watch
this morning, maria. boeing's ceo says crews have made 96 flights to test the software update for the troubled 737 max jet. >> i joined our boeing p test pilots last week aboard a 737 max flight for a demonstration of this updated software. during the flight, the crew performed different scenarios that exercised the software changes in multiple flight conditions. the software update functioned as designed. and i was impressed by the work and professionalism of our team. cheryl: he says more tests will be made in the coming weeks since thasthe company attempts e regular a laters to -- regulators to let the planes fly again. southwest airlines announced they removed the max 8 from its schedule through august 5th. they say removing the aircraft through the summer months will return reliability to a schedule that's been unpredictable for some customers in the last few weeks over the 737 issue.
carlos ghosn, he is going to remain in jail, at least until april 22nd. a tokyo court extending the detention of the former chairman of nissan motor and renault, following his arrest on april 4th. ghosn taken into custody for the fourth time on new charges of financial misconduct after being released on bail less than a month ago, right before he was supposed to sit down with you, maria. ghosn denied any wrong doing. ghosn's defense team says their client's latest detention is making his chronic kidney condition worse. finally, this, a major milestone for elon musk's spacex. the falcon heavy rocket successfully lifted off, marks the first commercial launch. falcon heavy is the world's most powerful operational rocket. this is the first time the rocket's reusable boosters returned safely to earth. elon musk celebrated on twitter, luckily you it wasn't about
tesla, it was about this. maria: what a busy friday. chevron a acquiring andarko, waiting on jp morgan and wells fargo earnings this morning. market rallying this morning. there's andarko up 33% on this acquisition, this is a 30 plus percent premium, values andarko at $65 a share and in the face of that you've got a rally underway ahead of first quarter earnings which will kick off today with jp morgan. as soon as we get those numbers we'll tell you what they are doing as well as how it's impacting the stock market. dow industrials looking to open up 160 points. let's slip in a quick break and then continue. we're looking at the war on big business this morning. senator elizabeth warren's new tax at corporate profits pointing at amazon. and right add and the cb -- rite aid and cbd trend, the store offering limited products.
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it's for my family, its for my self, its for my future. annuities can provide protected income for life. learn more at retire your risk dot org. maria: welcome back. we've got a big program this morning. coming up my exclusive interview with the chairman of the s.e.c. he's here ahead of his meeting with president trump. former pennsylvania governor, ed rendell joining us this morning along with former architect of romney care is here this morning. tom holin is here, along with nile gardner joining us this morning. roger crystal also with us. we want to kick off with taxes in focus, massachusetts democratic senator elizabeth warren out with a new tax proposal this morning aimed at corporate profits. this plan would only apply to companies reporting more than $100 million in profits.
the 2020 presidential hopeful singling out amazon for one for paying no federal income tax last year. she says it would cost the company $698 million. joining the conversation this morning, james freeman is here. former investment banker, former nfl star, jack brewer, our nfl insider. good to see you, jack, james. >> good to be here, thanks. maria: thanks for joining dagen and me this morning. elizabeth warren out with another tax proposal. what do you think? >> well, maybe we should see this as progress, if she's doing this instead of the unconstitutional wealth tax she rolled out a little while ago. maria: that's true. dagen: it's not instead. are you kidding? she wants to tax the rich, tax the companies. maria: this is in addition to. dagen: hello. continue. >> former harvard law professor rolling out the unconstitutional wealth tax, embarrassing. not that she'll be embarrassed or harvard will be embarrassed. she should be.
maria: you saw how the banks had their butts handed to them. we've got that and the pharmaceutical companies on edge, the markets have been reacting to that, given the fact they're trying to drive prices lower and come up with new plan and now the tax -- you know, the tax burden plans as well. this is what the next two years are going to look like. dagen: elizabeth warren is so chock full of policy ideas. she's got the biggest policy platform of anybody. there was a recent poll out of new hampshire, she's not even in the top three and she lives in new england. i think the order was -- it might have been biden, bernie sanders and pete budidehch. i'm not sure if that's the exact order. i had a conversation about it yesterday. it's like an a.m.t. for corporations. she seems to half understand what the problem is. she wants to make sure that wealthy people pay more in
taxes because if they shelter their money in other ways, other than just regular income, that she kind of figures out some crazy way to attack it, the same thing with these corporations. but what the corporations will do is figure out a way to cap what they report to the federal government, right, in terms of income. they'll figure out a get around for it. she's trying to rip up the tax code as we know it. that's why it will never fly. it's not resonating with voters. maria: they never liked the tax cut plan, james. >> really, the heart of it has been the corporate rate cut. the business rate really ought to be zero. i think next time tax reformers take a look at it, we ought to go for taxing people, not businesses. you want investment to happen here. she's got a difficult time getting out of the pack. you've got biden and bernie at the top of every poll. maria: yeah. >> she frequently trails kamala harris and sometimes budidehc as
well. dagen: she created a problem by lying about he her ethnicity big dea.maria: big deal in the eney sector, chevron acquiring andarko. this will cause more deals in the sector. shares of an disdarko up 32% rit now. when we come back, hitting the brakes, what uber's slowing growth means ahead of its ipo. we have all the financials that were filed last night on uber ahead of the big deal coming. winter almost here, great deals have already arrived. we take a look as fans count down the days before the game of thrones premier. we've got details. back in a minute. ♪ young heart, run free. ♪ never be hung up, hung up like my man and me.
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maria: welcome back. it the deal of the day on wall street this morning. we just told you a few minutes ago chevron announcing it will acquire a anadarko for $33 billion. the stocks are moving this morning. anadarko's up 31%. chevron is down 3%. this is a premium and of course illustrates what has been going on in the oil sector where oil prices are up and the u.s. is going to be exporting more and more. joining us right now, anderson capital management cfa, peter anderson. thanks for joining us. i want to ask about broader markets. first, let' talk about the deal. what's your reaction to chevron acquiring anadarko? i know this has been talked about for years. chevron has been looking at anadarko. i remember years ago, looking at -- rumors of it. >> i think it's a super positive
piece of news. i think it shows that the economy is super strong instead of spending a lot of time thinking about the trade wars, it's finally nice to see a good old fashioned deal that makes total sense. anadarko's balance sheet is weak, chevron's is stronger. it's a great marriage. maria: chevron says it's going to be accretive to free cash flow and earnings one year after the close. they're expecting the transaction to close in the second half of the year, proposed deal for $65 a share. enterprise value transaction is $50 billion. they're talking about this being accretive to free cash flow earnings, one year after the close. >> it could be as you suggest the start of a trend, fracking over the last decade or so, kind of the american energy revolution, really been driven by the smaller players, lately the oil majors getting into it in more of a big way. maybe this is the start of -- not that anadarko's a small player, but companies like chevron and exxon playing more of a role perhaps going forward. maria: chevron is going to be
divesting 15 to $20 billion of assets between 2020 and 2022. >> we'll know more with the so-called rolling disclosure as we get more details about the deal. i'm positive the markets will react positively to this. maria: go ahead. >> i was going to ask. you mentioned how you think it's a sign of a good economy. we've had this phenomenon of earnings expectations being pushed way down this quarter, down far enough? do you think this is kind of a nice environment as we get this news over the next few weeks or -- >> i definitely do. i think the smart people are looking beyond what you just said and are looking for opportunistic deals and this is a great time to do deals. i think the expectation that earnings are going to be weak, really we should overlook that for the next one or two quarters, just because there's so many moving parts happening right now. we don't have the trade resolution done, the barriers to immigration, all those things are distracting us from the basic fundamentals of what's
attractive out there to buy. maria: then there's interest rates, dagen, the inversion happened, if you blink you missed it, the two year and 10 year over a two-day period last week. your thoughts? dagen: i think that's what one of the things that we're going to be looking into the bank earnings that are coming out with jp morgan, wells fargo this morning, is the overall impact on the business even though it was short-lived where you have shorter term interest rates higher than longer term interest rates. that basically up ends a bank's business because they want to borrow from customers on the short end and make loans at a higher rate on the longer end. i think that in the statements that we get from wells and jp morgan we might get some insight into that and also you mentioned what jamie dimon has to say about the overall health of the u.s. economy. maria: you had real opinions on the inversion, peter. >> i do. just before we talk about the inversion, one of the things about rin reg fd and all thate
cfos have to be highly scripted with earnings reports and interviews. while we're interested in what they say, i think they can't really go off script. that's an issue we have to live with. in terms of the inverted yield curve, i think that's been over-analyzed, analyzed to death. we should relax a little bit. the rules are a little different now. it's not like science. physics can predict that black l hole, right. but an inverted yield curve doesn't necessarily predict a coming recession. maria: by the way, the reason the market is so strong this morning is because of this china economic data that came out overnight. the exports were up 14.2% versus an estimate of 6.5%. so we're seeing a little improvement in the china -- chinese economy and that is setting a firmer tone. expectations that that whim help the global economy. there's the ipo story. wall street has been waiting for uber, out with its financials last night. the filing revealed the growth
leveled off recently. the ride hailing giant admitting a string of public scandals and increased competition has weighed on plans to attract and retain riders. the valuation is $100 billion, down from $120 billion. >> i tend to stay away from ipos. i know they're very exciting and interesting from a general investment perspective but the documentation that was released last night, there's a lot of pages in that and a lot to digest in a short time. and just like lyft, i think that we have to wait and see. say after the break of about six months, whether or not that company is going to be really an attractive investment. maria: you don't do ipos? >> i do not. maria: what about jack? >> usually not. you see a deal done by chevron expected to bring in $2 billion a year. you talk about uber, i don't use
uber as much anymore. i use juneau here. maria: the competition has expanded. would you buy stocks here, real quick? >> yes i would, absolutely. maria: on the backdrop -- good backdrop on the economy. good to have you on the program. when we come back, julian assange is facing extradition to the united states, one day after his arrest in london. marijuana in america, we will tell you about a startling new study on the number of workers who use marijuana as rite aid joins other drugstores with new cannabis products. the controversy, coming up. ♪ islands in the stream. ♪ that is what we are. ♪ no one in between, how can we be wrong. ♪ sail away with me. ♪ to another world. ♪
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it is 6:30 on the east coast. a major deal announced chevron will acquire anadarko. this coming as we await bank earnings, 31%. and and it is a credence to flash flow with integration. and they have 10 minutes time, stay with us, that to be a market mover. wells fargo is out at 8:00 eastern so we have those numbers but down the stressor up 159 points largely the tone was set out of china that should've chinese exports are up 13% much better than the estimates.
that set the tone for the rally. the s&p of 121/4. and a big deal like the chevron one and the anadarko deal we are talking about is positive for markets, it does indicate we could see further deals in the oil space. take a look at the close yesterday with down industrial down 14 points and the s&p was basically flat. and and one half of 1%. and the dax index is up one half of 1%. and the markets are mixed, the shanghai composite down a fraction. that was before we saw the data come out which was better than expected. a startling study on the number of workers using this, don't head to rite aid, as they
phaseout sales, we will tell you about it. winter finally coming for game of thrones fans. final season premiere, and we will a deals you can get ahead of game of thrones. julian assange facing introduction to the united states, the wikileaks founder taken into custody in london yesterday on charges he compromised classified us intelligence, donald trump spoke about wikileaks yesterday. >> i know nothing about wikileaks. it is not my thing. there is something having to do with julian assange. that will be a determination mostly by the attorney general. we will be making a determination. i know nothing about him. it's not my deal in life. maria: joining us is clear politics white house reporter,
good to see you, thank you for being here, your reaction to julian assange? what happens the we are expecting his extradition? >> the president's response, his opinion depends on what is happening. we saw the president say he doesn't know anything about the organization but back during the campaign when they were releasing information from the dnc, the president said i love wikileaks so he clearly moved a little bit on this one and that will be an interesting political question but what will happen now is something to keep an eye on, how does julian assange bleed, a lot of the analysis i am seeing is he might try to graham male the united states government and say he will hold back. and keep it out of legal filings in exchange for leniency going forward and perhaps strike a deal. dagen: we will see about that.
house intel committee, ranking member devon nunez says, referral noticed to william barr, with potential violations in the russia probe. we told you earlier nunez told me about those referrals, he talked about conspiracy, lying and leaking could. here is devon nunez from sunday. what can you tell us, tell us as much as you can about breaking this news this morning that you are prepared to send eight criminal referrals next week. >> 5 of them are straight up referrals, referrals that name someone and name the specific crimes. those crimes are lying to congress, misleading congress, leaking classified information. there are three that are more complicated. the first is fisa abuse and other matters, there was a conspiracy to lie to the fisa court.
by numerous individuals. the second conspiracy one involves manipulation of intelligence, that could inspire many americans but third is what i call a global leak referral. there are a dozen highly sensitive information leaked to only a few reporters over the last 21/2 plus years. maria: the combination, no secret that the trump administration was spied on and leaking and conspiracy to mislead the fisa court. i don't understand why there is such shock and surprise and being stunned on the part of the democrats and we know this
took place. >> know one father would go this way. for two years we had a heightened drama where we expected the report would drop and there would be these bombshells. that didn't happen and what is interesting is republicans are looking at that unexploded ordinance saying there needs to be a moment of accountability and it is not surprising you have folks like devon nunez and folks in the administration saying wait a minute for two years we had to answer for all sorts of questions that were not always based in fact. they want there to be a reckoning not only when it comes to political opponents but some of the journalists who move forward with these stories without examining them critically. dagen: or all the time. no surprise to me. it is pretty outrageous. did you see jim comey? dagen: the boy scout -- when i hear him.
>> his position didn't know anything. we are handled by other people. dagen: that's why i keep bringing it up. i bring up the bret baer interview where jim comey says i don't know for sure the dnc and hillary clinton paid for the dossier. i read about it in the media. that is a dereliction of duty, much bigger ball of wax. >> we want the moment of accountability before the next election. it is a shame we just had an election and people weren't told before hand there is no collusion. maria: how long do you think robert mueller knew there was no collusion? how long did he sit on that before he released it, before he got a real a g to hold his feet to the fire? >> andy mccarthy has done some good writing on this and it is a huge question.
back to polling healthcare was the big issue but there is no doubt collusion or the claim of collusion has been a shadow over the administration, let's get that accountability before we vote again to make some informed votes next time about how this happened. maria: if you were watching this program you knew what was going on and how they set him up in the administration but did they know there was no collusion before the midterms? did they not tell us? >> they had to. if there was no proof of collusion you had no reason to believe there was. maria: they went along with this. the public speculates and the media drives the bus on it, before, throughout and after the midterm election. dagen: if they had done a thorough two your investigation and come out with conclusions early on, would be more outraged by the media, they wouldn't have believed them. i don't want to get deep into the mueller report.
we will get to read it but very early, they know there was no collusion. maria: thank you, we want to look at big bank and focus, we are standing from earnings from j.p. morgan and we will have those numbers for you and wells fargo later this morning. oh, don't worry. voya helps them to and through retirement... ...dealing with today's expenses... ...like college... ...while helping plan, invest and protect for the future. so they'll be okay... without me? um... and when we knock out this wall imagine the closet space? yes! oh hey, son. yeah, i think they'll be fine. voya. helping you to and through retirement. dear tech,
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the details. cheryl: overall drug use at a 14 year high. the research showing positive tests for marijuana for workers and job applicants has jumped 10%. the data coming as more states legalize pot for medical and recreational use. right aid piloting sales of cbd product tuesday, oregon and washington, growing number of people turning to cannabis infused products. there getting a major boost, donald trump signed off on a farm bill that allows him to a large-scale, and stopping sales of is cigarettes. oh boy, only two days left until the much anticipated final season of game of thrones kicks off in buffalo wild wings, spicy chicken wings for the occasion. they will be available only on sunday for season premiere of
the show. the creamery bringing back game of thrones ice cream from different shows and there is game of thrones wine. hbo conducted vintage wine in 2007 and these new varieties and body the spirit of the characters from what i know about the show means you drink a lot. maria: jpmorgan numbers are out, earnings and revenue better than expected. earning coming in at $2.65 a share but in the estimate of $2.35, revenue at $29.85 billion, better than the estimate, $24 billion. joining us is the director of equity research, thanks for joining us. looks like this is a pretty strong quarter. your reaction? >> this is a tremendous performance. they gained market share. this was a very weak quarter
for the large banks. they are not firing on all cylinders and capital markets were down. the print year over year was difficult. from jpmorgan to deliver these numbers means they gain significant market share versus the other large investment banks. dagen: it is important to note some contacts, last time jpmorgan reported earnings, it missed analyst expectations for the first time in three years and previously beat expectations for 15 straight quarters. this beat looks like an easy beat on earnings and revenue is important to note. the stock has done okay this year, up 9%, 8.8% going into this report, that is below the 13% performance of the large commercial banks as a group and significantly lower than 15% gain for the s&p year-to-date, it is up to present. maria: you want to about the
guidance for the year. what would you expect given what we know? >> they will first communicate that we started awful in january and by march things were getting better but from the corporate market and global when you look after the rest of this year it is the velocity of the capital markets as discussed before. interest rates are not going to do it and 50% of total net revenue, you got to get that velocity from capital markets. and in this news on mergers and acquisitions like chevron and anadarko. dagen: net interest income, $18.6 billion, given the interest rate environment. >> how about getting back to right now. does this, is a stronger in the second and people have been estimating? >> probably was and for
traditional banking especially the consumer, the household is very healthy and we are seeing very high credit card fee and also seeing for the first time mortgage origination and financing kicks in. we went from november to march from just under 5% to a 30 year fixed-rate mortgage, 4.2%. the first time you we hear from jpmorgan and wells fargo later today about mortgage origination taking into growth. maria: you make a good point because we have better-than-expected numbers on jpmorgan, good china data up 14.2% on exploits, good jobs numbers out last week. where is this recession as we talked about? jamie dimon is talking about the quarter, and $1.7 billion up 10%.
$14.6 billion up 10%. record net income. first 1:45,019, the quarterly reported revenue of $20.1 billion managed revenue of $29.9 billion. dagen: the bigger overarching statement from jamie dimon in the earnings release as you were talking about record revenue and net income from performance even amid global geopolitical uncertainty, the us economy continues to grow. wages growing up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong. no mention of recession. in the letter last week jamie dimon said we are prepared, not predicting a recession. no mention, maybe something on the call but no mention of
recession in this report which -- >> they say average lows up 4% in the commercial bank. i don't know if that is the best meeting of the economy generally but what does that tell you about businesses, not just wall street but mainstreet? >> business is healthy, two is higher, commercial and industrial loans. the other component is commercial construction lending. the likelihood, 4% print is overthinking and consumer probably higher. the us economy is great and 60% plus of jpmorgan net revenue. maria: what is your impact on rates at this point given we have seen rates move lower? >> it is not going to be the engine for growth in 2019 and we have to recalibrate how they drive growth and that is in lending.
we get to spreads on loans, deposit datas, competitive in the markets to keep the positive holders. it is not great but not bad but what it does it is a high percentage of net revenue, you've got to do so much better than other businesses. dagen: jamie dimon and jpmorgan are making moves that our response to the political climate that clearly those ceos were facing this week. you mentioned in the earnings report $350 million new skills at work focused on getting people ready for the transformed workplaces. maria: he announced that two weeks ago and focused on it. dagen: they mentioned advancing black pathways, expanding,
helping create economic opportunities for black families in the united states, students, businesses and the like, highlighting that in the report. maria: does this educate in terms of what the rest of the earnings period looks like? the first one out of the gate for the first quarter? waiting on first-quarter earnings for the rest of the s&p 500 and expecting them to be down. >> looks like the economy is in better shape than expected especially the month of march and that is critical and bringing it back to the banks, ceo confidence is pessimistic but it is better than it was in the last snapshot in the fourth quarter. all that is pointing to upward movement. the question is whether expectations are ahead of what could be the outcome for earnings. dagen: because of the underperformance, jpmorgan was up 9% before this report, wells fargo up 3.6%. compare that to the double-digit return on the broad markets particularly big
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maria: welcome back. good friday morning, everybody. thanks so much for joining us. i'm maria bartiromo. it is friday, april 12th. your top stories right now. we have a busy morning. markets are rallying, earnings are out from jp morgan. jp morgan kicked things off with a double beat and the stock is up this morning, almost 2%. wells fargo earnings will be out in about an hour. meanwhile, a major deal this morning out of the oil patch, chevron is acquiring anadarko for $33 billion, that value anadarko shares at $65 a share. it is up 30% right now on anadarko shares. they think the deal will close second half of 2019 and they're talking about this being accretive to earnings and cash flow within the first year of
closing. we're taking a look at rally in stocks this morning. dow futures up this morning, 171 points, no doubt getting a boost not just from better than expect china data out overnight but these earnings from jpm and this deal in the oil sector, up 171 on the dow, two-thirds of 1%, s&p 500 up 13, one half of a percent and nasdaq up 29 points, a third of a percent. this after the markets were little changed yesterday as investors waited for the start of first quarter earnings, dow industrials down 14 points, s&p 500 was flat, nasdaq was down 16 yesterday. european indices are higher this morning. fq100 in london, we've got a rally there of 29 points and the cac in pai paris is up 16 pointd the dax index in germany is up two-thirds of 1% and that is 68 points higher. in asia overnight, mixed performances, flat pretty much as you can see, the best performer was japan, up three
quarters of 1%. alexandria ocasio-cortez is under fire again, she slammed american hero, fellow freshman n rerepresentative dan crenshaw. the masters, tie at the lead, that could change with phil mickelson. joining me to break it down is dagen mcdowell, james freeman and the ceo of the brewer group, former nfl star, jack brewer. great to see everybody this morning. i love days like this, rip up the runway, we've got breaking news. let's go for it. what a day. i love it. dagen: jp morgan beating on earnings per share and on revenue, big-time. you see that's kind of one of the big headlines and then the major deal you mentioned as well. maria: chevron acquiring an car hacquiringacquiringanadarko. that's good for markets. >> a lot of good news.
larry kudlow saying yesterday they want to go back to those spending caps enacted in 2011, wouldn't that be nice. dagen: he's talking about the fed needs to cut interest rates by half a percentage point. don't think that really helps the narrative. maria: what is larry kudlow saying, rates are not going to go up in his lifetime? >> dagen: wall street journal economists, based on a survey they do regularly, they see the federal reserve on hold at least through 2021. maria: what does that mean for markets? >> they also have kind of a down view of the future. maria: giddy up. >> i hope larry lives a very long time and he's going to be wrong. maria: jp morgan numbers this morning, we're looking at the numbers with ken leon. you said the numbers indicate something more than just jpm. >> we're seeing great performance. the u.s. economy looks to be much better. that's the driver i think in
today's report, a across traditional bank lending, consumer, commercial, all very good. capital markets, a little bit different. even though we had levi strauss and the ipo of lyft, down 40% for overall m&a in the first quarter. what it means, cross-border deals, mostly u.s. and europe, down a lot too. they're gaining market share. jp morgan's gaining market share. i think that's going to be part of the conversation management has with investors on the call. dagen: it was a 5.4% gain in quarterly profits and one of the reasons was its net interest income which came in at $14.6 billion. thats was up 8%. so that's a very healthy sign for a bank of this size. >> especially so much conversation about the inverted yield curve, essentially what they're doing is their book of business, their spreads are great and we're seeing that in the first quarter results. it also means that they're
getting increased customer accounts, investor and traditional banking. that spurs higher net interest income. dagen: you were very early on this to question, because peoples heads were exploding about the three month treasury being higher on the yield versus the 10 year. it only lasted for five days. so march 22nd through march 28, we got our crack team of one man charlie brady on thi. you were early to say wait a minute. is it really always an indicator of a recession? how do we read this? your guest came on and said it would take a quarter, who told you they would need see it last for a quarter. maria: yeah, this week. dagen: rick ryder, you asked him about it as well, he said all the supply's been on the short end. maria: relax with your hair on fire about this recession, that's not happying right now -- happening right now. you've got the yield and 10 year
at 2.55%. it came back pretty quickly. >> it did come back. ceo confidence, which is important for m&a, has improved slightly. still pessimistic. the one that's amazing, you can't always trust surveys, the cfo confidence levels, back in october -- hasn't been updated yet. 92% of cfos surveyed in the us said there would be a recession by the end of this year. so quickly things have changed and obviously i think it starts with march, it's a much healthier environment, and everyone's going to be talking about a stronger pipeline in terms of announced deals and just able to do business that none of us have really saw going back to the last few months. maria: wells fargo's a different animal. they've had so many issues. do you think we'll get a good number? they'll be out in less than an hour. >> they're going to show
probably healthy performance in the traditional bank, despite all of the issues that we have seen. maria: okay. >> i think the outlook for wells fargo, there's going to be more questions related to the strategy, given that there will be a new ceo. so i think investors might be more patient because there could be a catalyst for change. the traditional, again, mortgage originations is picking up for the first time. the bo big one in that market is wells fargo. maria: that helped the housing market for sure. good to have you on the show today. we want to move to the feature of 5g, president trump holding an event at the white house with federal communications chairman to highlight u.s. leadership in 5g networks as well as providing internet access to rural areas. this follows calls by the president for faster 5g networks. joining me right now is the federal communications
commission chairman. good to have you on the program. thanks so much for joining us. >> thanks for having me on. maria: what are your expectations for 5g as this faster technology comes into play within the next, i don't know, when do you see it, couple of years or next year? >> i think it's coming online soon. we already see american carriers doing trials across the united states. that's in part because we want america to be the leader in 5g. that's part of the reason why the president and i are doing this event to highlight early success america has had and to forecast some of the steps we're going to take to continue the momentum. we want america to continue to be the leader in the next generation of wireless connectivity. maria: you've got a big job. things are changing fast, mr. chairman. you know that. we're reporting every day about how youtube and hulu and netflix and all of these relatively new players are on the scene right now and it's got to be creating something of of a dilemma for you and your colleagues in terms of the regulatory environment. mark zuckerberg says facebook should be regulated.
what is does the perfect world like look in your view? do you want to see regulation of things like facebook and google, youtube? >> well, that's a question that congress is wrestling with. we want to put building blocks in place so we can have the fastest possible network so all applications can operate at scale. we think p america is the best home for this innovation and investment. if we t get it right, especially with a transformative technology like 5g, we're confident we'll see more come tigs and more innovation -- more competition and more innovation and that's what others will have to think about in terms of the appropriate regulatory framework. there's been serious issues raised about privacy and the like that congress is wrestling with when it comes to regulation of silicon valley. maria: it's also expensive. second story in the journal, online tv bun l tells are getting more -- bundles are getting bigger and more expensive. it's led millions to cut the cord. youtube raised its price to
$50. that's a significant number. everybody's cable bill is getting bigger as well. what's your reaction? >> in some ways it's a complicated marketplace. on one hand, consumers have more choice than ever before. they can watch content when they want on whatever device they want. a lot of businesses are struggling with the appropriate business model. we're long past the days when you had three broadcast channels and a wired telephone and that was your outlet to the outside world. that's part of what businesses are struggling with. in an era of scarce capital, fiercer competition, how do we make business models work. that's a question that the march he get's going to be sorting out. maria: let me ask about digital privacy. huawei reportedly looking to partner exclusively with apple, one of its biggest rivals, to bring the 5g chips to the u.s. there's no indication that apple is interested, potential ban on u.s. -- u.s. ban on huawei technology could pose obstacles here many this comes amid
comments earlier this morning from a huawei spokesperson who hit back at the u.s. what's your reaction to huawei? should the u.s. be partnering with huawei, a chinese telecom company? >> the fcc and across the united states government, we want to make sure that our networks, especially our next jen ranges 5g networks, are secure and reliable. we do have concerns about any company, any entity that may have to comply with requests from the intelligence services of a foreign country. that is essentially what is one of the concerns that has been raised here. that's why the fcc, i propose banning the use of federal funding, extended by the fcc, from being used on equipment or services that come from companies that have been determined to present a national security threat, especially as we emerge into the 5g environment where some of the networks could be managed from abroad using software tools. we want to make sure our networks are secure. that is the base level expectation i think that any government should have. maria: look at huawei and all
of the settlements they've had. how many companies in america have sued this company for stealing trade secrets? sis suecisco sued them for steag router, t-mobile, microsoft, where 90% of the people china are using the microsoft operating system and only 1% pay for it. what is the u.s. supposed to do about that? >> i think from our perspective, we have to think seriously about what types of equipment and services we include in our networks here. we're working with some of our counterparts around the world to emphasize to them how important it is to think about the security of these networks. the united kingdom for example recently put out a cyber security report about that company that i would certainly bring to people's attention. these networks are critical for national competitiveness and national security. we need to make sure they are as reliable as possible. maria: let me ask you this. more and more people are getting their news from things like twitter, google, apple news. do you see these companies as
media companies? >> that's a great question. i think increasingly they are gathering and distri continuing content in a way that would be very akin to media companies. there's been a traditional debate in washington from a regulatory perspective, does that make them a media company and should they be regulated as such. part of the issue is, a lot of the companies have been exercising editorial controls over their platforms. to the extent the companies have not been transparent -- i talked about the fact that twitter and other silicon valley companies aren't transparent about how they do business. we need to have more insight in order to understand exactly what kind of company they are. maria: so you're looking at that? >> that's one of the issues that congress is looking at, the fcc talked about. there's an important conversation to be had across the aisle and across government. maria: real quick, i have to ask about robocalls. they are getting worse. i just got five of them yesterday, three of which came on my cell phone. the fcc slapping fines on
robocallers totaling $208 million since 2015. but it's collected less than $7,000 of that amount so far according to the journal. is the problem getting worse? are you not getting the money when you're targeting these guys? how do you stop it? >> two different parts of our plan. first is taking aggressive regulatory action. we have told the industry that we expect them to adopt what is called call authentication, a digital finger print for every phone call this year and if they don't the fcc will take action to make sure they do. in terms of enforcement, we have imposed fines you pointed out. we referred the case toss the department of justice which is in charge of collecting the fines. this is one of our top consumer protection priorities. we need to send a signal to all the robocallers, this is not going to stand for american consumers. maria: this is a big deal. we plesh yates you joining us -- appreciate you joining thus morning. we'll be watching your event
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major problems. so the he snow is going to continue to fly across these areas. the upper midwest, great lakes for the next 12 to 24 hours. temperatures will remain cold. all those areas that are without power, they have to find somewhere where it's warm. back to you. maria: thank you so much. janice dean on that. we'll keep checking back as news develops there. we're looking at the opioid crisis in america, talking about the ways doctors are battling with epidemic with cannabis and vending machines. tesla changes how it will sell the model 3, the impact on business, next up. ♪ i said i was through. ♪ but i'm dying inside. ♪ got my head in a mess. ♪ girl, i confess. ♪ i'm leaving, not coming back. ♪
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maria: welcome back. now we want to turn to the opioid crisis in america. the open pee dic epidemic claims a day. narcan was created to help reverse a suspected overdose. it's become more available in vending machines. my next guest is the leading inventer of narcan. joining us now is dr. roger crystal. dr. crystal, good to have you on the program this morning. we were talking about fentanyl, that's the key substance in an opeopioid. it's 50 times stronger than heroin. >> fentanyl is an opioid. it's 50 times stronger than heroin. it's now contained in over 55 percent of opioid overdoses, results in death, we have 130 every day, almost 50,000 in. maria: i want you to assess where we are in the opioid crisis. jack, you've been on the program a number of times. in the nfl when you're hurt,
when you're down, they give you an opioid. you said why not just prescribe marijuana, cannabis. tell us what you believe. >> just from my personal experience, i know cannabis cannot obviously solve all the issues that you would treat with opioids but i think there are some pain related issues that can be controlled with cannabis. i know i've experienced that. i have hundreds of friends who have really deep chronic injuries and things that they deal with that they don't use opioids for. so you have that. i think when you start using opioids from a young age like some of us are prescribed, you get into a habit and you get used to that feeling and that sensation and that's something that's really hard to kick, from what i've seen. so you combine that and then also you look at the culture of the recreational use of opioids now, i mean, if you go on and turn on a hip hop song you'll hear people talking about
popping molly and percocet and recreational uses of opioids. that's also a big issue as well. >> absolutely. the crisis at the moment has got to where we are because of a big contributing factor being the widespread over-prescribing of all of these opioid pain killes and wherefore we are has evolved from people taking these to heroin and now fentanyl. it started with a lot of the prescribing. i'm a surgeon from the u.k. originally and barely prescribed any of these opioids there at all. dagen: that being said. are the prescription rates now falling given the government crackdown at the local level and at the federal level? i mean, that's a concern for people who legitimately need objectiooxycontin to treat bonen related to cancer. >> absolutely. dagen: are the prescription rates falling at this point and now the addiction problem is not really falling on the shoulders of the doctors. that's my question. >> we're certainly encouraged by
some of the guidelines put in place where more appropriate prescribing of opioids appears to be taking place. in terms of how that's translating into numbers of prescriptions, i don't yet know. within the last few years, certainly still about 30 million people in the u.s. received an opioid prescription. we're still left unfortunately with minimum 2 million, estimates up to 6 million people who have an opioid addiction. unfortunately for these people, they have this addiction, they have this chronic brain disease that needs treating. we're in a fentanyl crisis, the issue becomes the widespread availability of this compound -- dagen: that's coming in from china. >> a lot is coming from china. two months ago there was a seizure at the border of mexico where they seized 50 mil 50 mils of fentanyl. we're looking on a reversal agent that we think could be better suited for a fentanyl
overdose. we've got funding from barda, focused on counter measures for chemical attacks. their concern is might we experience a chemical warfare attack. maria: the president did get the chinese to agree to start singling out fentanyl and saying what it's for. the chinese pushed backed and said we can't bar all fentanyl because fentanyl is used in chemicals like weed killer and other things like that. i mean, what do you think about -- how has china's response been? >> the response is encouraging to see they're providing a response. i think we'll see how that plays out and for me as a physician and someone who is trying to develop counter measures against this opioid crisis, we'll see how that plays out in numbers. maria: digo.maria: go ahead, . >> even if narcan is there and able to be administered, it couldn't safe some because
sometimes the drugs are too powerful, that is what the research is about? >> we're observing that more amounts of naloxone is required to resuscitate someone from an initial overdose. with fentanyl, you talk about the window of intervention being shorter than perhaps in the past with heroin. the other risk is once the naloxone wears off there's high levels in the blood. we believe the follow-on product has properties that can address this. maria: dr. crystal, thanks for being on the program. please come back soon. disrespecting an american war hero, congresswoman alexandria ocasio-cortez being called out for criticizing dan crenshaw over terrorism. we've got that. and then golf's biggest tournament is under way, later this hour, the highlights from day one of the masters, right here, back in a minute. ♪ i asked myself how much do
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maria: welcome back. good friday morning, everybody. thanks so much for joining us. i'm maria bartiromo. it is friday, april 12th. your top stories right now, 7:3. bank earnings are rolling in. jp morgan out with a double beat, the stock is on the rise, up 2.5% after the company reported earnings of $2.65 a share on revenue of $29.85 billion. wells fargo due out in about half an hour. we will have those numbers. stock is up going into the report, 1.5%. a major deal this morning, chevron is acquiring anadarko for $33 billion. the stock is up 30%. they are expecting the deal to close in the second half of 2019 and they're expecting it to be accretive to cash flow and earnings within the first year. chevron shares are down 5%. markets are higher. futures indicate a gain of almost 200 points out of the
gate, dow industrials up 178 points, s&p futures up 14 and the nasdaq futures up 3 a 5. yesterday's close really little movement as investors are waiting on first quarter earnings to begin. dow industrials were down 14, s&p was up a fraction, and the nasdaq was down 17 at the close yesterday. european indices are higher across the board today. take a look at the fq100, up 25 points, a third of a percent, cac is also up a third of a percent in paris, 21 points higher and the dax index in germany up 77 points, two thirds of 1%. in asia overnight markets were mixed, mostly higher as you can see. walking off the job, thousands of stop and shop workers are on strike this morning after contract negotiations stalled. and tesla's $35,000 model 3 no longer for sale online. we'll tell you about the other major change elon musk is making. tesla shares are up almost 1%. the masters enters day one today, a pair of golfers sharing the top spot on the leader board. phil mickelson could change all that and make history.
we'll bring you the highlights. first, the top story this half hour, congresswoman alexandria ocasio-cortez is being slammed this morning after she criticized fellow freshman lawmaker and war hero dan crenshaw. you refuse to co-sponsor the 9/11 victims compensation fund, yet have the adas a adas at thio drum resentiment with completely out of context quotes. in 2018 right wing extremists were behind almost all u.s. domestic terrorist killings, why don't you do something about that, she writes. this starts from a controversy from ilhan omar who said some people did something, referring to 9/11. yes, we lost 2,977 americans on that fateful day. joining us right now is former dnc chairman, governor ed rendell. it's always a pleasure to see you. thank you for joining us.
>> good morning, maria. maria: you've got an opportunity right now to denounce alexandria ocasio-cortez and ilhan omar's comments, being anti-semite and all the rest. you have an opportunity to he denounce them. go ahead. >> well, i said when omar made her first comments about -- owl abouallabout the benjamins, refg to jews in america, that was worthy of condemning by name. as an american jew, i can tell you there's nothing more hurtful to us than having us linked to money and saying all we care about is money. that's the holy grail when it comes to insulting jews. so i think she should have been taken to the wood shed by name that time and i was disappointed that the democratic caucus didn't do that. and all of this recent stuff, look, we're forgetting what congress is supposed to do. he congress is not a battle
ground. it is not a debating society. it is trying to get things done and insulting fellow members, whether they are right or wrong, that type of rhetoric, attacking fellow members isn't going to produce anything valuable in terms of moving bills on infrastructure, on immigration reform, on repairing the aca. we've got a lot of serious work to do in congress and we shouldn't get involved in name calling. justified or not justified. it doesn't produce one good thing. maria: i agree with you. but why is she attacking 9/11 victims? why is she making light of the worst terrorist attack america has ever seen? all of us are very hurt by this. we were there on 9/11. you know how hurt we all were. you were hurt. what do you want to say about what alexandria ocasio said about 9/11. omar said somebody did something.
>> it's incomprehensible. we know what happened. muslim terrorists -- this doesn't condemn all muslims, but muslim terrorists attacked the united states and caused almost 3,000 deaths. a lot of them died in pennsylvania, in western pennsylvania in a field. i remember watching that day when people jumped from the 103rd floor because the heat behind them was so intense. it's a dan day that i will ner forget and most americans won't. to minimize it in any way is dead wrong. dagen: what you see, governor, is congresswoman alexandria ocasio-cortez trying to turbo charge the outrage and i said this before. desperation is the world's worst perfume. and it seems like that she -- it's not enough just to back away from comments, that you have to turn up the outrage and the anger, if you will, because there is no civility. what she said about congressman
dan crenshaw is really incomprehensible. so she's accusing crenshaw who served combat tours in iraq and afghanistan, and if she hasn't taken look at him, he lost an eye. she's alerting that after 9/11 he hasn't done enough for the victims of those terrorist attacks on that day and that is just -- this needs broad condemnation and another thing, the fact that ilhan omar, any criticism of what she says, not just by her, but others, her allies, any criticism of what she says is immediately called an incitement of violence. that also needs to stop. because again, you're using your gender and who you are as a sword and a shield, to quote the wall street journal, and that's got to end. >> i agree with that. but all of this stuff has got to
end. i'm not a media basher by any means. the media bears a little responsibility for this. because they give aoc and omar, every word they said gets publicized. we elected four women congressmen, new women congressmen in southeastern pennsylvania. they're all smart. they're all mature. they're all experienced. they're all qualified. and not one thing they'ved said about any issues -- and they've said some interesting things -- has been published anywhere in the national press. maria: the moderates in the democratic party have a big issue here. you're being hijacked by this kind of talk, james, i mean, and it's not just comments like this. it's also the actual policies like the green new deal and medicare for all. >> i think that's the point here, that it's not just a media decision to give attention to freshmen lawmakers who are normally back-benchers. the alexandria ocasio-cortez
green new deal was endorsed by every senate democrat running for president. these are influential people in the democratic party. this is a problem, right? this is not the media over-covering them. this is basically a fringe group of lawmakers who right now, like bernie sanders, exercising a lot of influence over democratic policy. >> you have to look at the l poll that was out in the new york times at the beginning of the week, showing that the rank and file democrats, the vast majority of democrats are moderate, slightly left of center individuals. they don't want this type of rhetoric. they want to get things done. they want to be able to work and attack the problems, the real problems that are facing america. and that's the problem. the problem is we focus on twitter-verse, we focus on what the beltway people say. we don't go out and listen to real people. we made a big deal about what joe biden did. the vast amount of democrats,
80, 90%, thought it wasn't anything that would change their opinion one iota. dagen: governor, that's the way we cover the joe biden comments. i think that certainly from my perspective, very fair. in materials of the people who spoke out in favor of him. >> i didn't say you were unfair. i didn't say you were unfair. dagen: back up what you said, the democrats took 40 seats in the house and retook the house because of the moderates, particularly who won in the midwest and nancy pelosi has very suddenly and quietly tried to tell these kind of extreme freshmen in her party that -- maria: back down. dagen: the green dream and the -- she's subtly trying to send a message to them, this is not how you keep the house less than two years from now. >> i wouldn't want nancy pelosi's job for all the money in the world. dagen: nancy pelosi can take care of herself.
she's plenty tough. i think she showed the world that. >> no question. >> governor republica rendell, s i listen to the rhetoric coming out of the democrats, i've been a life long democrat, i don't consider myself a democrat anymore. they have a double standard they've taken on as the culture. if half of the things were said by someone on the right they would stand up against them. now it seems like every time one of these ladies make a comment they're given a pass. at the same time, all they want to do is point out the fact that our country's being more divided because people that support trump are dividing the country and that rhetoric has to stop because if you look and you listen, really hard at what these ladies are trying to do and the messages that they're putting out, it's so did divisie and like dagen said, behind a shield. to me, that's worse. >> i denounced when republicannings like the
secretary of dhs went out for dinner with her family and i assume progressive democrats started yelling at her in the restaurant. that stuff has no place in american politics. we've got to get back to some level of civility. but i do blame the president because the tone is set at the top. and he is setting a horribly divisive tone. that doesn't excuse our congress people who speak out and say things that make no sense that are divisive. but the tone is set by the top. when i was governor, i set the tone on every major issue that confronted pennsylvania. maria: it's no secret that the whole media landscape hates the guy and attacks him morning, noon and night. but your point is well taken, maybe as the president he should not respond to that. governor, on the policy front, what's the easiest thing to get done between republicans and democrats in the next two years, if anything. >> infrastructure. we need to do it desperately. infrastructure. everybody should bite the
bullet, invest the money we need to repair the american infrastructure. maria: and nancy pelosi said yesterday she wants an infrastructure plan totaling $2 trillion. i was surprised to see that. governor, good to see you. thank you. ed rendell. stay with us. back in a minute. the lexus es. every curve, every innovation, every feeling. a product of mastery. lease the 2019 es 350 for $389 a month for 36 months. experience amazing at your lexus dealer. metastatic breast cancer is relentless,
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stalled contract talks. stop and shop says it has made, a quote, reasonable offer that includes raises and improved benefits but the union says the company is seeking unreasonable cuts for both their wages and their benefits. supermarket chain has contingency plans in place to minimize disruptions for the customers in the three states. now to tesla, they're halting online sales of the cheaper standard range model 3. now the least expensive model you can buy is the standard range plus. that's $49,500. features like music streaming and heated seats have been disabled on this version. can you unlock it for an additional fee. also tesla not offering the vehicle on its site. it must be bought in stores or you have to call directly to get ahold of it. the stock is higher in the premarket. finally, check this out. these are giant pizza hamburger and donut blankets. yes, folks. congratulations, you're going to have this for the weekend.
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mickelson. mickelson at 48 years, nine months old, in position to become the oldest golfer ever to win a major. he sank birdies on five of seven holes yesterday, under par on all par fives, shot a 67. >>67, bestfirst round since 201e masters. tiger wasn't won a masters since 2005. tiger shot a 70 yesterday. look at that. all three times tiger shot a 70 in the first round of a masters, he's won the masters. he's under par in the first round for the first time in six years, two under, four shots back. brooks kepka, 28-year-old looking to follow up 2018 titles with one at the masters. he went on a run yesterday in the back nine, five straight birdies to finish six under, no
bogies. brison from california fired an opening round 66. check out the shot on 16. he nearly aces the second. watch this, right off the pin. watch his reaction to seeing how close it was. >> let's look at it. just wanted to get something started in the middle of the green. oh, my gosh. i guess i should have pulled the flag stick. jared: wow, was he close. a physics major said the terminal velocity was just too high and he couldn't get the pin to rattle it and slow it down for the width of the l ball. this is the way that he thinks. so take a look at the leader board. brison sitting atop the leader board with brooks kepka, one better than mickelson. tiger just back, ian poulter and dustin johnson are a couple shots back. great masters. sports line does a prediction,
10,000 runs to see who is going to win. they say tiger woods is not in the top 10. dagen: what does one eat and drink when you watch the masters at home? dagen: good question. >> pimento cheese sandwich, for example. maria: not beer. dagen: do people know how you make that cheese? it's cheddar cheese, mayonnaise and pimentos. maria: that doesn't sound very good. >> i had a bowl of cocoa crispies watching the masters. maria: you can eat whatever you want. >> i'll watch the highlights until sunday and then i'll watch the master. dagen: bourbon goes with cocoa cryingchris youcrispies. it goes with everything. maria: i want to go back to something we were talking ed rendell. he's blaming the president for some of the comments coming out of omar. you all reacted on-set. >> i mean, it's -- for me, it's
one of the most pressing issues we're taking on as a society. we talk about all these issues. every day i go online and i challenge our viewers to do the same thing on your google alerts, putting in shootings. there's been 65 people that have been shot in chicago in the last five days. this is a city that's ran by liberal leaders, in liberal policies, going even farther left. these are things that we've got to talk about. we can't just ignore them. you see there's a huge thing going on now, obviously nipsie hustle, we lost this guy. we don't point our finger at the problem. let's talk about it. maria: rendell said i blame the president for the rhetoric. when you look at his policies, criminal justice reform, tax reform, that's actually lifted people out of poverty.
>> 100%. april, he just named april is first -- no other president, liberal, no matter who they are has done more for criminal justice reform than president trump. thank you, drum. maria: we'ltrump.maria: we'll. 2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. . . ( ♪ )
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maria: welcome back, good friday morning, friday april 12th, 8:00 a.m. on the button east coast. wells fargo due out any minute, jpmorgan kicked things off earlier this morning with double beat on revenue. stock is up 2 and a half percent as a result. we will wait for the wells fargo number and bring it to you as soon as it hits the tape. major deal this morning. chevron for $33 billion, values are shared $55 a piece. markets are rallying this morning.
better than expected economic data out of china, exports were out, that set firmer tone, dow industrials 170 points, two-thirds of 1%, s&p and yesterday s&p was flat. indices higher across the board. cac quarante is up 18 and dax 73 points, wells fargo is out, looks like a beat on earning, 1.0 a share versus 109 a share. just hitting tape on revenue, $26 billion versus 21.01 billion on wells fargo, shares are up 2 and a quarter percent and moving with the numbers hitting the tape. this is breaking right now, we will get into it and take a look at what drove the quarter and what the ceo was saying in terms of guidance going forward.
asia markets look like this overnight, flat session as you can see there, nikkei average in japan, best performer up 3 quarters of 1%, battle at the bored continues, white house reportedly wants to release illegal detainees in sanctuary cities, the controversy. uner financials this morning ahead ipo, what it means to ipo, expected to be the largest since alibaba. all the stories coming up and joining me to break it all down dagen mcdowell, the assistant editorial page editor james freeman and ceo of brewer group, jack brewer. maria: comments from chicago. thank you. >> this is the only station that you will see, 55 black people got shot in the last 5 days in one america's cities, we have to treat everybody the same, we have to highlight and have memorials for these folks too. maria: breaking news this morning that we want to get to,
wells fargo coming out beating the expectations on both revenue and earnings, and earnings of 1.26 a share -- i'm sorry, wells fargo shares better than expected on earnings and on the revenue, we will get the numbers up right there. the estimate on wells was 109 a share, came in much better than estimates on earnings at 120 a share, joining the conversation this morning obamacare and mipe economic's professor, former director of u.s. immigration and customs enforcement tom along with former foreign policy adviser nile thatcher. first stop story this hour, bank earnings in focus, wells fargo and jpmorgan reported double beats this morning as doug point strategist david nelson, your reaction to wells fargo number
to 1.20 a share? >> it's a beat for sure. they are more focused on what the future is going to look like. nonwall street bank that everybody warren buffet, he doesn't want to see wall street banker. everybody will look for the bar to be reset. highlight was jpmorgan, outstanding quarter, big beat on top and bottom line, banking goods, the only line item i found, maria that was negative was capital markets, that was challenge. maria: net interest beat up 4%, better than expected. >> everything. maria: including 100 million-dollar charitable contribution. >> i mean, we do look at jp as
bellwether but i'm wondering if this is the start of the trend, is it telling us about the company or the wells results say maybe customers aren't as angry as you might think. >> i don't think you can have a bull market without banks participating in some way. i'm actually not look at the hardline banks, i think the asset managers are much better play. last time i looked, the s&p 500 was well over 20% in the christmas eve lows, they're paid like i am, they are paid under management and estimates would have to go higher with markets up as much as they are, so blackrock, all names that were involved in. dagen: wells fargo, about 2 and a half percent in premarket trading, we should point out the stock was barely up year to date, only 3.6% gain that was less than jpmorgan which underperformed the large commercial banks and the whole group had underperformed the broad market with double digit
gain for dow and s&p, nasdaq up almost 20%, wells fargo net quarterly income only up $72 million to $12.3 billion, not much of a move on in the interest income, big question with wells fargo that -- on the earnings cost that got to talk about permanent replacement for tim sloan, ceo that stepped down. >> yeah, he had to step down, he had been with the company requester 31 years and i don't want to comment on his tenure of ceo but he had a target on his back and wells will shed a lot of businesses there and they will have to reform the company, this is a very challenged company and in competitive business. dagen: they were using customers. story was not broken by regulators, it was broken -- maria: la times. what about the broader earnings period, what are you expecting
in terms of s&p 500? >> the good news revenue will be up and bad news is we will be challenged on the bottom line. everybody knew that. part of it is good news, maria. something that we have been trying to get. it challenge it is bottom line right now, we still have all the usual suspects that ceo's are worried about, we have trade, we are trying to get a dade -- trade deal done. i think president xi will drag his fit on key issues, intellectual properties, 2020 is not that far away, he can drag his feet hoping for possible change in the white house and maybe getting a better playing field for him. >> wow, people thinking the end of this month, you're saying not this year or next for china trade deal? >> look, the body language points to something, you know
what's victory going to look like? i'm not really sure. this is adversary in every sense of the world, not just trade, foreign policy, militarily, exact copy of lockheed martin f-35, intellectual property is part of their dna, it's their business model, are they going to walk away from that it's going to be tough to do. maria: it is a culture, i don't disagree with that. that's what is holding up the talks, the fact that trump administration is trying to get an enforcement mechanism in place that can snap back tariffs or whatever it is to -- to should the chinese steal again and go back on the promises that they are making but they both want a deal, i would say a deal happens. >> well, the math does not work for them and i think they understand that and they want a deal, but they have a history of dragging their feet and enforcement will be a key issue here, can we really enforce them?
we will be back at bargaining table at some point. maria: all right, david, great to have you insight. european union clearing the way for former trade talks with the united states according to reuters after president trump threatened to slam $11 billion in tariffs on the eu, joining us right now director of heritage foundation, margaret thatcher, center freedom and foreign policy adviser under margaret thatcher, nile gardner. the president has been using tariffs as ledge and by in large it's been working in terms of -- in terms of moving big decisions here in terms of trade and getting u.s. in better position. markets are word about european goods, how do see you things? >> well, first, the is right to call the european union, the european union is protectionist,
and clearly pointed out the eu's bad behavior on this point and when president trump says that the eu has been brutal in terms of behavior on trade, he's absolutely right. i disagree, though, with the view of some of the administration that tariffs are the way forward. ting tariffs -- i think tariffs are attack and the u.s. should make 100% clear there will be no movement whatsoever in trade deal unless the european union ends all subsidies and tariffs against the united states. the u.s. focus should be on working with nation states within europe as opposed to european commission.
and basically bypass brussels and directly apply pressure on germans, french, italians, et cetera, and i think that at the end of the day dealing with european commission it's not really going to get the united states anywhere because europe commissions are dominated by unaccountable federalists and they're not going to budge on this issue, but i think the pressure should be directly applied to european leaders themselves, national level and at the same time the united states should end decade's long support for what is known as the european project, the idea of a federal europe, a federal intrurp isn't in -- europe isn't in u.s. interest. fully backing brexit, for example, brexit is really the way forward for europe and
brexit threatened the idea of federal european to the state and the president support the brexit i think is being absolutely tremendous and very powerful. >> nile, james freeman with the wall street journal. the president is sketching out what the model of free trade agreement would look like? >> that's a good point, you know, the president has been consistent on this issue. the u.s.-uk free deal would be great for the united states and according to britain as well. i think trump turned down on this issue saying that brexit is a great development for america. i do think the administration has actually taken set in terms of early negotiations with the british government on this issue. there's also tremendous movement on capitol hill and already you have 19 senators who signed up
for the new uk trade caucus in the senate, but it's pushing for a us-uk free trade agreement, the administration is doing anything possible to back up a us-uk trade deal. movement has to be on the british side here, britain has to get out of the european union. i think that is the first thing that needs to be done here. maria: we will see if that happens any time soon, we have been waiting for that. >> absolutely, i think that unfortunately, you know, we have seen poor leadership from theresa may as british prime minister, she is the weakest prime minister in decades, we need a new british leader that believes in brexit and will deliver it. maria: sorry that it's a little abbreviated with all the breaking news, please come back soon. >> no problem. >> coming up major deal this morning, chevron acquired for $33 billion, what it means for other names in the industry,
hitting the brakes, ipo reveals revenue growth slowdown, leveling it off, what it means for the wall street debut, the ipo on the horizon next did you know with vanishing deductible, you can earn $100 off your deductible for every year of safe driving? sing that. ♪ vanishing deductible, you can... ♪ ♪ earn $100... ♪ earn $100 off... ♪ off your deductible. ♪ deductible. ♪ for every year of safe driving. ♪ ♪ for every-- for every-- ♪ ♪ for every year of safe driving. ♪ what are you-- what key are you in? "e." no, no, go to "g." "g" will be too high. not for me. ♪ vanishing deductible. oh, gosh. sweet, sweet.
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this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence. maria: welcome back, deal of the day on wall street, gerri willis with more details, gerri. >> hey, maria, chevron paying 33 billion, shows real confidence in this industry, hey, oil prices have been higher but not as historic highs, take a look at what is going on in the room, up 6.9 and chevron ceo says the acquisition was solidify and that's the name of the game here, major buying into fracking, fascinating story.
chevron trading down, i want to talk about uber, revenue from ride-hailing, minus incentive payments to drivers, fourth quarter down 1 million, why is this important, you expect this industry to have massive growth, uber numbers here at the top not necessarily showing that, that's because they are in competitive war, uber's ride sharing, comparing negatively to lyft, 26%, back to you. >> thank you so much. quick break, battle at the border, the white house reportedly looking to release immigrant detainees into sanctuary cities, we will talk about that when we come back, elizabeth warren going after big business, new tax proposal aimed at corporate profit, the man behind obamacare, he will weigh in on that, new book on tech if
maria: welcome back, border battle, white house officials reportedly putting pressure on border officials, there was a story in the washington post that said that they were asking to put detainees in sanctuary cities, this is from the washington post. the report saying that the administration officials suggested the plan twice in the past six months but so far it has been robust and reportedly no longer under consideration and the white house never agreed that they even said that. joining me right now u.s. emigration enforce meant, tom,
good to have you on the program, thank you so much for joining us. have you ever heard the story? >> no, i just recently found out about it. that idea was never brought to me when i was there. maria: characterize the situation on the border, what is this administration going to do about surge and caravans that keep coming to the u.s.? >> the president has hit the reset button, he has fresh ideas, what i think they should do and i've had discussions with folks over there, if the courts are going to rule against the president every time he tries something and congress isn't doing anything, they haven't offered up one fix and not willing to close the loopholes, we need to do whatever we can. first thing i will do, ice needs to get out, nationwide operation, look for the single adults in family units, people demanded to get asylum, 9 out of
10less their case, when they get order from the judge, orders need to be executed. if the orders don't mean anything, there's no integrity. open the border up. once you that, i did that 3 and a half years ago, plane loads going home, that sends strong messages. the numbers went down on the border, i think ice, hsi ought to increase presence in working, and just the nail criminal organization that are moving the groups from the southern border to northern border. step up enforcement against the cartels. >> tom, james freeman of the wall street journal, obviously want to prosecute violent criminals but i'm wondering for as we think about perhaps maybe too hopeful some kind of immigration deal where we would have more legal immigration and better enforcement. is there work to be done on the assimilation part, i mean, i
know this is not directly your field but i'm wondering as you're thinking about better way to have people come legally, not illegally, do we need to do more to make sure people come in and are ready to embrace america and limited government rule of law, the things we cherish. >> i think that's a great question that doesn't get out. this president actually supports more legal immigration. you know, if they do a fix for daca, they can do a fix and do address, all the immigrants coming in right now, population in 10 years, so if you're going fix daca, you need to have a strong response to stop because these are children brought. the president supports more
legal immigration, i think the white house is working on it, look, if their unemployment rate is going to continue to drop, we may need foreign workers, congress needs to fix it, fix the law, if we need work nester the country, then the company needs to justify that to the department of labor and bring in workers on guest-worker program or temporary worker program, fix the system, but what's not acceptable is congress, not a priority, ignore them. we can't do that, we can't ignore the law. law enforcement officer who is are doing their job. >> tom, immigration officers have apprehended people from over 50 countries at the mexican border. i mean, that number is huge. so people clearly like you mentioned the cartels someone is organizing with people all over the world to know thousand get to these weak ports of our border, i don't understand how the issue is bipartisan at this
point. >> i don't think if -- care if you're republican or democrat, everyone on the hill should be protecting the american nation and american citizens, there's no downside unless legal immigration, the criminal cartels are controlling everything. they are operating in méxico. you look at the stats, 1 and 3 women are raped. we need to step up law enforcement, vetted units which we vetted already and attack the cartels, attacking because you're right, thousands of people in central america, this is coordinated. maria: do you think it's the right move for the president to cut off aid to those 3 countries? >> i think the first thing he should find out -- the aid we gave to the countries, where did it go, did it go to where it needed to go or did people line
pockets? i support the president, we need to have consequences, we need to show the countries, we going to help you to treat business and opportunity but the money needs to go where it needs to go and not line the pockets of dirty politicians. maria: one and three women raped at the border, wow. >> that's an ice number, that's not dhs. these people are not politicized in any way. that's astonishing number. the democrats are turning a blind eye to it. >> all right, tom, great to have you on the program, tom homan, waiting on report due in 2 minutes, we will get the numbers when we get. elizabeth warren going after big business, the senator and 2020 hopeful unveiled tax proposal in profit profits, economist jonathan, the man behind obamacare, le weigh in on that plus new book of tech in
maria: welcome back, good friday morning, everybody, thanks so much for joining us, i'm maria bartiromo, it is friday april 12th, top stories right now 8:32 a.m. on the east coast, breaking news this morning, march import-export prices are out. import prices are up, export prices are up 7 tenths of a percent. markets have been strong throughout the morning but they are above expectations, dow industrials up 226 points. s&p 50 is up 18 and nasdaq up 40 points, one half of a percent. we are looking at big rally at the start of trading this morning and a lot has been happening just in the last 2 hours, bank earning season ticked off on high note, jpmorgan and wells fargo reporting double beat better than expecting on earnings and revenue line. wells fargo up almost 1% and jpmorgan 3% higher, pretty good boost to dow industrials.
chevron is acquiring, boosting shell production, up 31% right now. sixty-five dollars a share. chevron down 4 and a half percent, markets oversea this is morning also higher. dand index in germany up 78. asian markets, fractional move across the board, best performer was japan, nikkei average up 3 quarters of 1%, all the stories coming up, first top story this half an hour, jump-starting america, coastal cities are home to top jobs in technology, the rest of the country is being left behind according to our new guest, jonathan gruber, targeted over 100 different cities which could be the next tech hubs,
investing in the cities across the country will jumpstart the economy, increase growth and lead to job creation, joining me right now former obamacare architect, mit, board economic's professor and coauthor of jump-starting america, jonathan grubber, thank you so much for joining thus morning. i have to say you and i have sparred in the past on health care, but this is something we agree on and i'm happy to say i completely agree about investing in tech, we are number 35 in secondary school, tell us about those cities across the country that you think have potential to actually see big investment on this trend. >> here is an interesting fact, maria, cities that are big, well-educated and affordable housing, 80 million americans living in them that can be next generation tech hubs, the problem is growth in the country has been concentrated and few sets, boston is one, seattle,
san francisco, they are creating the wealth and taking the jobs and the rest of the country can't afford to move there, housing restrictions make it impossible to afford houses there. instead of trying to jam more and more people in cities, let's take the technology and move it to where jobs are and people want those jobs, look at the bidding for amazon hq2, 230 american cities, bent over backwards, tax breaks to get amazon hq2, they want to be the new tech companies. maria: we were at mit increasingly, incredible hub, great people working on innovative things, is that where the people are? >> you know, the people can be in many places, let's look at what happened in seattle. when microsoft started, it started in albuquerque, new mexico. they only moved because bill
gates was from seattle. maria: wow. >> all about where, history and effort by the federal government, establish technology hubs throughout the history. maria: in the book you criticize companies to invest in certain cities on inceptives alone, you mention amazon hq2. would serve the nation and not on basis of tax breaks but the basis of technology, heavily in new science and application. we are already being overtaken in key sectors, respond now or again be risk being left in the dust of rival nations and you make a good point because china is ahead of us in things like block-chain technology, ai. >> this is what's fascinating, examples in the books of
technology that were created in america, perfected in america, the government with basic science went away to researching and now they're going to other countries. mit, we invented, for example, artificial -- cure for malaria, invested in biology, china is taking the lead. we need to get back to the model that worked after world war ii. what was the model, maria? partnership between government and the private sector. the private sector has to lead in america, we know that, the private sector is interest in making interest not in expanding the scientific opportunities for our nation. the government needs to give them incentives to do so. maria: government should do incentives for several cities that are not typically seen aztec cities -- as tech cities.
>> the center of micro simulation computing in america, the largest university in america u, 200 out of 300 people is orlando, florida, government investment flu -- through the navy in design for military, paired with the university of central florida, medium-size not leading university to create central florida research park, third largest research park in america. east orlando, largest university in america. maria: such an important point that you make, i'm really glad that you make it because this is a priority and should be much bigger priority for the country particularly in age that we see ai and so many innovations take place outside of america. i have to ask you about health care while you're here. obviously this is one of the top issues for americans now the president has said the republican party will become the party of health care, what is your solution at this point now
knowing that obamacare was way too expensive? >> well, i disagree that obamacare is way too expensive. the solution is that we recognize that single-payer -- >> you say it's not happening, all the democratic contenders for 2020 have endorsed medicare for all, have endorsed bernie sanders' plan which wipes out the health insurance. >> first of all, not all of them have, several, the democrats recognize aspirational goal which i think we should have is to cover all americans with health insurance, but they recognize that there's many ways to get there. the affordable care act i continue to believe that it's positive step in the right direction even with attacks to have opposite party covering 15 million americans, we need to build on that, we can't get the right away, we can't move to single-payer in america because 180 million americans don't want to give up private insurance. maria: what does bernie sanders not see? 180 million people covered by private insurance industry, if you got medicare for all, that
wipes it out. >> aspiration to get to a nation -- maria: but it's not just aspiration, jonathan, it's an actual policy proposal. >> i don't know them, i haven't talked to them but i presume they are smart enough to understand that it's not happening this year, next year and the year after, this is about goals of get to go a nation where all americans are guarantied affordable health care and not be discriminated. maria: the goal to wipe out the private insurance policy. maria: a big government plan that will provide your insurance, right? >> think of aspirational notions. maria: that's what all democrats say like aoc, green new deal, she says, this is just broad strokes and yet it's not, it's an actual proposal that she put, she puts -- it's a bill. >> you know, how washington works to start a conversation. look at the green new deal, look at the green new deal, lamar
alexander, except one, research and development to come to the book, there are assets of these proposals which can and maybe become law. bernie, i presume that it's not going to become law. maria: he's talking about it so much. >> because it's getting the conversation started around set of critical issues. maria: there's a conversation around taxes, jonathan, a lot of these -- a lot of the proposals have been very divisive, massachusetts democratic senator elizabeth warren out with new tax proposal today aimed at corporate profit, the plan would apply to companies reporting more than $100 million in profit, she's a 2020 presidential hopeful and singling out amazon, they pay no federal income taxes last year and she says that there should be more tax on big corporations. >> once again, i want to come back to my book, the answer here is not about taxing -- separate
conversation about taxes, the answer is to get america growing more rapidly so there's increases. maria: does she know that? >> i think he does. the key proposal in our book, set up technology hubs, let's have the government capture some of the upside, for example, by owning the land around the technology hub, so they take the money and give it back to all americans. maria: if you're all about growth, would higher taxes lead to growth? >> i believe higher taxes in the range don't really affect growth to be honest. if you look at the evidence, there's not a lot of evidence taxes matter. what matters for growth and you know this is investment and technology. >> how do you explain the 2 billion-dollar hole in the budget that andrew cuomo is complaining about? >> i'm not an expert. maria: you said taxes do not affect growth. taxes in new york state are among the highest taxes in the country and he says that a lot of people are fleeing new york for lower-tax states like
florida and texas, so clearly taxes are driving people out of new york. that's take get away growth, so it's hard to say taxes do not have impact. >> let's be clear, depends on what it's spent on. if you raise taxes and invest that in education, invest in new technology, i think -- maria: cuomo not investing in the right thing? >> i don't know about his budget. i think -- maria: come on, give me a break f a person has higher taxes and they don't want to pay that, they wanting to to no-tax state that obviously has direct impact on growth. >> maria, bottom line if you look at testified, overall higher taxes amounts to significant -- yeah, they matter a little bit, some people leave. maria: huge flight. >> fundamental drivers of growth, fundamental drivers of growth are not the tax laws.
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underway, stuart varney. >> maria, was that jonathan gruber, i just saw, didn't he called all the fools dupes or something. maria: we had a fight the last time he was on and held his feet to the fire about the american people and i didn't think the viewers needed to replay fight but i was focused on the book but i was struck that taxes do not impact growth, come on. stuart: i heard it, i heard it. i heard that one. you could have probably heard me and you're a couple of floors away me but you could hear me ranting. maria: thank you. stuart: bob iger is emerging as probably the best ceo in america today. his plan for the streaming service is going down very well, look at that. near 6% gain for the stock. i understand that when the deal was announced and they came to the price 699 a month, it was
audible gasp of that price was announced because it's what, it's about half the price of what you pay to get netflix, that looks to me like a real winner, the market agrees and ceo bob iger is emerging as a real super star among ceo's and rightly so too. maria: yeah, you know what, he keeps extending his tenure there because he's doing such a great guy. >> how could they let the guy get away? paying 100 million. maria: you will have more at top of hour, join stuart and fantastic panel every day. first, we are looking at rally in wall street, what's moving up markets? back in a minute.
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maria: welcome back futures pointing to sharply heir opening this morning, better than expected earnings jp morgan and wells fargo, we need money moving into ety -- equities, good to see you. >> we thought we had scary numbers. fundamental growth is pretty strong even though we are having slowdown, we think about 2% growth for the u.s. and we also think that global economy is bottoming out right now after slowdown. maria: so much so that you put large cap growth back in portfolio back in december when you had the big selloff.
>> the markets seemed to be oversold, too pessimistic on the numbers and risk coming from the fed and trade and we actually put more money to work in u.s. large cap, we thought it was oversold. dagen: you have microsoft in all-time high and some of the stocks, facebook is up 35% in earning season, is the risk there? >> valuations have certainly improve and certainly recognize that there's risk there, but there's fundamental shift going on the with technology, technology is really spreading out through all sectors of the economy, digitization horizontal as sectors are ramping up trying to be more productive. maria: that's going to impact productivity. that's a big deal. >> companies are looking to become more productive, both because it's an arm's race to be more productive and bring in more technology and also increased bli tight labor markets, companies are having hard time finding people and
they are looking for ways to get more productive. >> we had earlier guest on the program saying that dictator xi and china will try to wait out president trump through 2020, let's assume for a moment that we get a deal soon, what does that mean for the economy, for markets in your view? >> well, we think that -- maria: you think we will get a deal? >> we think we will get a deal because it's in both countries' interest, we think it's pretty much priced in that some sort of a deal comes along. the upside surprise if existing tariffs were removed. it's in both country's interest to get the deal, we think it's going to happen. >> what does this do to foreign direct investment? the bankers on the street that i'm hearing from say that a lot of capital for years, what do you think? >> foreign direct investment is interesting because we do need a lot of more investing companies
are hitting cap x, in terms of foreign direct investment depends on the dollar. we think right now that it'll be flat because is fed is unhold. maria: we will be right back rm . brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term 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 what's ahead℠
maria: all right. welcome back. what a morning. chevron, jpm and wells fargo earnings better than expected. we will be up 240 right out of the gate this morning. >> i know. i'm going to read jonathan gruber's book because there is some coming together in this book, in terms of -- you could really lift people out of poverty in the rural areas of this country if you force these technology companies to train people and to relocate to these areas where the jobs are -- maria: it's about education. we are 35 in the world. secondary school, grammar schools, we are number 35. we need to start teaching our kids what they need to thrive in this economy. >> maybe more competition in
education would be nice, too. maria: that's right. teachers union won't allow that, james. >> we are 35 but imagine what we are if you look at our inner city areas versus our suburbs. it's pretty bad. maria: great to see you. james, always a pleasure. dagen, have a great weekend. "varney & company" begins now. stuart, take it away. stuart: seize the day. good morning, maria. good morning, everyone. what a way to end the week, big rally. what a way to start the profit reports season. very strong so far. look at this. a half hour from now, the dow will be opening with a gain of well over 200 points. the nasdaq's going up big-time as well. we are getting awfully close to the dow's all-time high. now, there is a big buy-out in the energy industry. that's helping. so, too, are some individual dow stocks, and the banks. first off, look at disney. they have announced plans for their upcoming streaming service. now, there was a g