tv Mornings With Maria Bartiromo FOX Business October 19, 2021 6:00am-9:00am EDT
let's just assume the answers is nowhere good. and let's be glad that guys like captain vanderpol and his crew toil away on the high seas for the benefit of us all. because even in international waters, that's how america works. maria: good tuesday morning, everyone. thanks so much for joining us. i'm maria bartiromo. it is tuesday, october 19th. your top stories right now, 6:0. relocating migrant children in the dead of night. you heard it here first on this program weeks ago and now the new york post this morning has photos showing how the biden administration is flying illegal immigrants from texas to new york under the cover of darkness. we will get into this morning. markets are higher ahead of major earnings coming out, three
dow components reporting this morning. we'll have those for you and the sentiment is lifting markets. dow industrials up 95, s&p 500 up 15 and a quarter and the nasdaq higher by 41 and-a-half. stocks finishing mostly higher yesterday when all was said and done, shaking off inflation worries by the close. nasdaq and s&p 500 boosted by big tech and growth stocks. nasdaq up 124 at the close, almost 1% despite the dow closing lower. european markets can this morning are mixed, take a look at the fractional moves in the eurozone, ft 100 up 3, the dax higher by 6. in asia overnight green across the board. hong kong was the best performer, the hang seng index up 1 and-a-half percent. "mornings with maria" is live right now. ♪
maria: now some of the top stories we're watching this morning. down to the wire, still pushing, president biden hosting a group of democrat lawmakers today at the white house as he tries to save his stalled spending agenda. it comes as we told you yesterday an october 31st vote is unlikely on this bill. senators bernie sanders and joe manchin facing reporters after a closed door negotiation last night. >> we're talking. we're talking. >> you're going to have a resolution by the end of the week? >> we're talking. we're talking. maria: sanders is still pushing for $3.5 trillion but manchin is looking to cut many parts of it including the climate change provisions we now calls non-starters. democrat leaders are vowing to get a framework agreement by the end of the year, pushing out the deadline from the end of the
month, october 31 was nancy pelosi's target. north korea launching a ballistics missile off its coast yesterday. the range and altitude of the test not immediately known, this comes ahead of a planned visit so seoul by the u.s. special envoy to north korea. and the fda t reportedly ready to greenlight mixing and matching booster shots for fully vaccinated americans, this could come as soon as tomorrow when the agency is expected to the officially authorize booster shots for moderna and johnson & johnson. after a study revealed antibody studies rose exponentially for people given a moderna booster following the single jab j&j shot. the third quarter earnings is a sentiment booster, the nasdaq is up 41. earnings season so far highlighted by netflix reporting after the bell, dow components johnson & johnson, procter &
gamble and travelers among those reporting this morning. netflix shares this morning are up a fraction. as you can see, the company's reporting this morning -- companies reporting this morning are mixed, best performer, travelers, up three quarters of 1%. we are standing by for economic data, we have the september housing starts report and housing starts and building permits out in two and-a-half hours. let's talk about investing today with wealth advisor president and founder, mark avalone. joining the conversation all morning long, angela morabito, along with the ceo of er shares, joel shulman. thank you for being here this morning. mark, kicking things off with you. your thoughts on the earnings period, is that going to be a boost for markets? what are you expecting to hear? >> well, thus far earnings have been a boost to the market of those reporting, over 80% have beat expectations. a lot of those were financials and financials are not really
impacted by supply chain disruptions or even covid and they have been benefiting from movements in the yield curve and rates rising. it was a great first inning, if you will. i'm not sure it's going to be across the board, in unison, looking at each company can. each company today, the ones you mentioned, they have a specific story, whether it's j&j on the health can care or netflix. the disparity between what's going to be reported is going to depend a lot on what industry they're in. if they're impacted by supply chain disruptions then i think you're going to see more cautious tone, more cautious outlook, something like a netflix you might see something much more positive in terms of winter coming, flu season, people -- and great new content and people willing to stay home, get back on the couch and watch so the dynamics for each company are going to be what drives earnings reports today. maria: yeah, it's a great point.
the banks give us a good window, though, into the macro story and we spoke with brian moynihan yesterday, chairman and ceo of bang of america, who said loan demand was up, capital markets was up you, pretty much all of his lines of business very strong at b of a. does that tell you anything about the macro story, even though we are looking at things like inflation and the supply chain disruptionses? >> well, we've talked about financials before and i've consistently been positive on them. i think the improving credit quality in a rising yield environment sets the table for community, regional and mega banks and then when you look at what brian moynihan's managing and banks like jp morgan, you add capital markets activity, huge asset management activity, and they're in all the right sectors. i think there is strength in the underlying economy. the consumer is strong. look, we went into this pandemic with a very strong economy and the stronger a patient is before they get sick, the stronger they are when they recover.
so once we got the vaccines, we just picked up right where we were with a roaring economy. so i do think to some extent financials tell us where we are. the problem is what's on the horizon. we have a lot of talk out of washington that is not pro-business. we have the potential for tax hikes. we have more regulation. we have m&a truth any coming into play -- scrutiny coming into play and under the surface, these huge regulatory agencies are adding layers of cost and it's not a pro-business environment and i think that investors are shrugging off the twin impact of taxes on the bottom line of corporate earnings and higher taxes for the -- from the desire from investors to be investing and taking on risk. so i think when we look forward -- maria: we'll see that. the president -- yeah. the president president's going to be meeting with democrat lawmakers at the white house today. he's trying to save this
spending agenda. democrat leaders are vowing to get some kind of a framework on the agenda for that reconciliation bill. they were looking at october 31st. now they're moving the goal post out towards year-end and you think this d.c. drama is a growing risk, right? if we were to see the capital gains tax go up to, what are they talking about, 39.6, 43% for capital gains, does that trigger a selloff in stocks, year-end? >> tell you what, if you on some stocks that are big gains this year, it might make sense. the problem is, they may retroactively make the capital gains tax. look, higher taxes are a headwind. that's a flat-out case. i know we could face only a few cents to earnings but they're talking about taxing both individuals and corporations. the infrastructure bill, if it's the right size, a very modest amount targeted could actually help. if you noticed industrials and materials have flat-lined since march, april when the talks
realized they weren't automatic. i think what happens out of washington if it's a modest package could be positive it's just the other factors that are concerning to me. maria: right. yeah, unfortunately the democrats want to tie these bills together. they don't want to get infrastructure done without reconciliation. so it's unlikely we're just going to see infrastructure get done, mark. but we'll be watching and talking with along the way. thank you very much for your insights this morning. mark, thank you. your morning mover, check out robinhood, the stock is up after the securities and exchange commission's report on the gamestop trading craze. the stock is up 2%. the report from the s.e.c. says the frenzy should lead regulators to consider whether brokerage apps encourage investors to trade too much. obviously robinhood has been a big beneficiary of the day trading. we're just getting started this morning. when we come back we're looking at china and its testing of the
hyper sonic missile on president biden's watch. the white house says it welcomes the, quote, competition. general jack keane is here on why this could be a military game changer. then, migrant children are being flown to the northeast in the dead of night. you heard it here first. now we've got pictures to prove it. tennessee senator bill haggerty calling for a new border czar to replace vice be president harris. the republicans want to see action. former kansas city federal he reserve president toms mass thog is here. shortages on everything from chicken to lunch tray,s, you how schools make sure children do not go hungry with the supply chain crunch taking a toll. don't miss a moment of it. you're watching "mornings with maria." we'll be right back. ♪ ♪ shine bright like a diamond.
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maria: welcome back. now to the spending bill negotiations, no deal, moderate democrat joe manchin meeting with progressives yesterday but the only comments following the meeting from both sides were, quote, we're talking. manchin also hinting that congress will most likely not pass legislation by house speaker nancy pelosi's october 31st deadline. we told you that yesterday, that's after congressman ro khanna first moved the goal post in my interview on sunday morning few churs. joining me now is arc a saw congressman and financial services committee member, french hill. great to see you this morning. thank you very much for being here. how do assess things? where are we on the negotiations with the two spending bills. >> well, there's a standoff in the democratic party, maria, by
the far left led by khanna, aoc, bernie sanders in the senate, and centrists like senator manchin, kyrsten sinema, and the thing i think americans should keep in mind as they assess the comings and goings over the next few weeks, is it's not the total amount of money that's the problem, it's the policies that are a problem. of course, i don't believe we need to spend 5.5 trillion on the green new deal and new spending programs on the democrats on top of the 4.5 trillion we spend every year but when you look at what's in the bill is concerning, amnesty is in the bill, funding taxpayer abortions is in the bill, the green new deal is still in the bill. and so it's the policies you accompanied with trillions in new taxes that i think are not the right approach. maria: yeah. i mean, you mentioned so many important items in that bill, for people to understand what's
happening here, it looks like the democrats want to fundamentally change this economy and they want to push this through very quickly. tell me the odds from your standpoint that nothing gets done. >> it's possible that we end up with a continuing resolution which would be continuing spending into the next fiscal year at the donald trump levels, the last year of his administration, if they can't find a path forward with all democratic votes to support this massive spending and policy mistake. or they could end up with a massive omnibus spending bill at the end of the year, where they attempt to whittle it down and be forced to come negotiate to some degree with the republicans in the house and senate. both those strategies end with up with, in my view, with trouble for the democrats and that's why the american people don't support these policies and don't support this spending. maria: yeah.
that's right. how important is this irs surveillance item in this bill? i know that biden's proposal is going to require banks to report any transactions over $600 to the irs. bankers have united against this and yet it's amazing to hear treasury secretary janet yellen defend it. yesterday, we had on the chairman and ceo of bank of america, brian moynihan. of course he basically said, yeah, we're against it but we're going to follow the law of the land. here's brian moynihan yesterday. watch this. >> being a regulated institution, being subject to the laws of the united states, if congress passed a you law, this is a matter of policy and congress is going to decide what to do, we'll have to follow it, all the banking industry. as you look at the banking industry, our clients and chamber of commerce and others have made their positions clear but at the the end of the day we have to follow the law if it becomes the law so it's a policy decision for congress. maria: what will congress do?
how critical is that a portion of this bill, congressman? >> well, i wish he would have pushed back more effectively. of course, i expect him to be a regulated institution and follow the law. this is a bad idea. it's an invasion of privacy on people all over the country and it will hurt farmers and self -- self-employed and pass-through entities the worst. small business will face a 46% pass through income tax. the plan is targeted at the heart of small business because they want to look at the flow of $600 or more but here's the deal. it's a bad policy. it's an invasion of privacy. $2 or $2 million, the policy is bad. it can't be defended. and republicans in the house are fighting back. we're introducing legislation to this effect. we've written letters to the ways and means committee had a
meeting yesterday and those republicans have also written the treasury secretary about what a bad policy idea this is. i hear about it everywhere i go in my district from funerals to city council meetings to luncheons, they're all talking about this bad idea. maria: yeah, no, i understand that. but real quick, do you think that their going to jam it in? biden wants $80 billion to hire 80,000 new agents. if they say, well, they're not going to do that, it's probably not true. if they hire 80,000 new agents that's what they're going to do. so is that a must have in the bill for them? >> for joe biden, he thinks he can fill up his coffers for this green new deal by you auditing people more effectively with the irs. in my view, if they move the number to $10,000 a year it's still a bad policy idea and if they add the agents to go after self-employed people in a new aggressive way, that's exactly what they'll do even without the
$600 rule. that's exactly what they'll do. they will increase the cost for small business. maria: that's right. congressman, it's great to see you. >> maria, thanks. good to be with you. maria: congressman french hill joining us this morning. we will take a break. when we come back, you heard it here first, secret flights for migrants in the dead of night. i reported this weeks ago. now, the new york post has photos of it. we're going to get into it. stay with us.
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but you'll notice the difference. and now, miracle-ear is offering a thirty-day risk-free trial. you can experience better hearing with no obligation. call 1-800-miracle right now and experience a better life. maria: welcome back. well, the biden administration has been secretly flying plane loads of unaccompanied illegal immigrants from texas and the border to new york in the dead of night among other big cities. you heard it here on this program first. now, the new york post has photos of those charter planes flying into westchester county airport, since at least august. after they arrive, some are being driven by bus to new
jersey where migrants meet up with sponsors or relatives. others are being brought to long island, the bronx, brooklyn, queens, and parts of connecticut. the new york post is reporting that planes have also been making stops in jacksonville, florida. the department of health and human services responding to the report yesterday, acknowledging that in recent weeks, unaccompanied children pass through westchester airport. this is absolutely incredible. we heard this first from marsha blackburn, angela, and she came on the program, senator blackburn, and told us that she understood that they were flying people into tennessee and then i had heard from a source that it was more new york and other big cities. but we even now have the admission from the department of homeland security that they're doing this and they're doing it in the dead of night. your thoughts? >> this policy turns every state into a border state. this does not fix the problem.
it just relocates it to the rest of the country. and by the way, maria, i'm wondering where our border czar, vice president kamala harris is. she's got some work to do do here but it appears she's too busy making videos with child actors to actually pay attention to this national crisis. maria: what do you think the bigger picture is here? i mean, obviously the administration does not care that we are seeing illegals come in and move into your neighborhood and that will put pressure on the overall government in terms of benefits needed. but are they trying to just change the country fundamentally? is this all about getting new voters? i mean, how is it possible that the president of the united states completely ignores the wide open borders of the country? country?
and the impact? >> there is some strategy here from the democrats. they are not only saying we will aallow you to come through our southern border, they're saying show up at the southern border and we will help you get elsewhere in the country. so anything that this administration has to say about oh, we told them not to come, that's got to be dismissed out-of-hand. because, look, actions speak louder than words, right? and all of their actions are about promoting illegal immigration instead of putting a stop to it and protecting our border. maria: yeah. joel, i know that you're looking at investing and i'm wondering if you think that this has any impact whatsoever on markets or on the investment story, because this is a humanitarian crisis. >> right. i don't see the direct relationship to how it affects corporate profits. clearly there's going to be some issues, those states that have to assume or handle these immigrants and all the social
services related to it. so indirectly, you're hearing business people commenting about when there are laws pushed back in terms of eviction notices and things of this nature, when the public sector transfers financial obligations to the private sector, it hits home. and we've seen time and again through this administration that the small firm owner is handling a lot of these problems and so when you bring in additional immigrants, you'll eventually -- those costs transfer down, trickle down to private sector and they have to pay more costs whether it's taxes or other obligations to handle it. that's where we'll see the effect. maria: we're going to take a short break and talk about one of the biggest adversaries of this country and yet the biden administration says it is welcoming the competition. that is the response from the white house after reports of
china testing nuclear missiles. general jack keane will join me with reaction when we come back. and then upgrade from apple, the new product from the technology giant that you may want to add to your christmas list. we'll talk about it. stay with us. ojts means m new prneect . yo yohire.. ojti nea iee id. prneect . ywhouenpons s yo ojho of quality cdi cdate, tes, ywhouenpons s os sumes nds ndtc h maurh yourh y.
maria: welcome back. good tuesday morning, everybody. thanks so much for joining us, i'm maria bartiromo. it is tuesday, october 19th. take a look at markets this half hour, we've got a rally underway this morning, we're in the middle of earnings season and futures are indicating a gain of 131 points this morning on the dow industrials, several dow components reporting earnings before the open this morning. s&p 500 is up 19, nasdaq right now higher by 50 points. stocks finishing mostly higher yesterday. shaking off those inflation worries. we just heard from johnson & johnson, the earnings were better than expected but the revenue looks light. the nasdaq yesterday was up 125 points, also boosted by earnings in big tech, growth stocks
certainly driving the day there. the s&p 500 yesterday up 15 points. european markets this morning are mixed. take a look. we've got fractional moves pretty much across the board in the eurozone as you can see there, biggest mover is the dax index in germany, up 20 points. in asia it was green across the board, hong kong did well, it was the best performer, the hang seng index up 1 and-a-half percent. the others up about two-thirds of 1%. meanwhile, people across the country pushing back against covid vaccine mandates. for some, it means losing their jobs. lauren simonetti with the details now. >> sure does, maria. washington state firing football head coach for failing to comply with the state's covid vaccine mandate. he is the first major college football coach to lose his job for refusing to get the jab. four of his assistants also fired. he initially said he would
comply with the mandate but later applied for religious exemption. clearly, he did not get it. meanwhile, in chicago, wow, about a third of the city's police officers failed to report their vaccination status. chicago officials set last friday, october 15th as the deadline for all employees to report their status or risk being paid on un-- being placed on unpaid leave. the head of the union pushed back urging members to defy the mandate. with the rising crime in chicago, fewer police officers is not what the city needs. amazon is looking to fire 150,000 workers for the holidays, 50% increase interest last year. the job postings are concentrated in 20 states including new york, texas and virginia. average starting wage, 18 bucks an hour. more than amazon's $15 minimum wage. and get this, seasonal workers, they're eligible for sign-on bonuses and hourly bonuses for some of the shifts. amazon shares up fractionally, about $5 in the premarket.
and apple finally unveiling their new mac book pros, the first upgrade to the laptop in five years. they come in two sizes, 14-inch and 16-inch. they're powered by m1 pro and max shift with better battery life, up to 21 hours on one charge. more ports for adding external devices like monitors. the starting price is $2,000. apple rolled out third generation air pods, they cost 179 bucks. they'll be available next week. take a look at apple shares, after rising yesterday, they're up again by 97-cents at 147, 51 in the premarket, maria. maria: lauren, thanks very much. we want to take a look at what's taking place with china right now. white house press secretary jen psaki would not comment on reports that china tested a nuclear capable hyper sonic missile. she instead had this to say. watch this. >> we've made clear our concerns about the military
capabilities, that the prc continues to pursue and we have been consistent in our approach with china. we welcome stiff competition but we do not want that competition to veer into conflict and that is certainly what we convey privately as well. maria: china launched the missile back in august, according to reports. it is denying it, though. instead, the ccp saying that it was testing a spacecraft. joining me right now is fox news senior strategic analyst, general jack keane. general, we've talked about this in terms of the capability of the ccp for some time now and you were the first on this program to take note of the strengthening of china's navy in particular, the fact that it is actually bigger than the united states'. what are your thoughts on this hyper sonic missile launch?
>> yeah, well, first of all, hypersonic missiles, we've been talking about them for a number of years. china has operationalized conventional hypersonic missiles that are capable of taking down our maritime fleet in the pacific and literally all of our bases and we don't really have adequate defenses against the missiles because the very nature of those missiles that come into the zone from space and they're flying at five times the speed of sound and they have complete maneuverability to avoid a missile hitting it. so russia also has developed that capability and the united states is rapidly testing that cape act. we -- capability. we are clearly behind china. what makes this news worthy is the fact that china has taken that hypersonic missile, strapped it to a rocket, and orbited the earth with it and it's capable of housing a nuclear weapon, according to the financial times.
there's no confirmation of this by china and there's no confirmation of this by the united states and the audience needs to understand that. but if true, that has changed the nature, then, of nuclear proliferation in the world at large. the united states, the soviet union agreed during the cold war not to nuclearize space, not to have satellites or space stations with nuclear weapons. that was an agreement we entered into. china appears to be opening up a new chapter to weaponize space and to nuclearize it. so our audience understands, while that would give china an advantage, it doesn't mean china would use those weapons against the united states. certainly they would know full-well that if they did, the united states would destroy china. that has always been the issue with an exchange of nuclear weapons, certainly, and that is what has kept us from ever using these very lethal we pons against one another.
-- weapons one another. this is a new chapter in advanced technology. the fact that we have the press secretary of the united states of america saying that we welcome this competition is an outrageous and also an irresponsible statement. maria: but general, it's not just jen psaki. you know that. joe biden continues to say china is a competitor. you and i have spoken about this umpteen time that this is a serious adversary. everybody knows how i feel about the ccp. i talk about it every day. i've been raising my hand on the ccp now for years and yet this administration continues to look at china as a competitor. it's absolutely outrageous. so the question becomes are we ready, are we prepared for this kind of an adversary. we're now talking about hypersonic missiles regarding china. we heard from former defense secretary robert gates, he spoke out about the tensions between
the u.s. and china in an interview on 60 minutes. take a look at this. i want to get your reaction. >> i think this is a place where president trump got it right. he basically awakened americans and i would say especially the business community to a china that the assumptions about which we had gotten wrong and the you assumption for 40 years was that a richer china would be a fryer china. -- freer china. that's clearly not going to happen. maria: yet all you hear out of this administration is let's try to do an economic deal, let's see what they're doing and compete. it's all about this competition. are they not understanding the real threat of the ccp, general? >> no, i do think they understand the threat. i think they wanted to turn down the rhetoric and the language so it doesn't lead to some kind of confrontation. i think secretary gates is
correct. i mean, the biden administration has embraced trump's position on china. i mean, they don't say that. they'll never give trump any credit but they've strengthened the alliance that trump he revitalized in the quad and they have also given nuclear propulsion technology with the united kingdom to australia as a matter of policy. obviously, they don't have it yet and they're shoring up our relationships with he vietnam, singapore and malaysia and also with the philippines, our other allies in the region, certainly japan, australia and india are already there. they have moved in the right direction. but this polite rhetoric, it can be very disturbing and frustrating when we're not willing to use the actual terms that are defining our relationship. it's killing much more than a competition -- it's clearly much more than a competition. we have a super power in china that is determined to not only dominate and control the pacific
region but replace the united states as the world's global leader. why do we know that? because president xi of china has said it time and time again and he has the most rapidly advanced military in the world. you asked me a minute ago, are we ready. i have said time and time again since i was on the congressional commission in 2018 that said no, we are not ready. we are outgunned and we're outmanned and we have to up-gun ourselves in the region and do it with a sense of urgency and move our allies in the same direction. we have made some progress. i'm not saying we haven't. i'm not wringing my hands here. but we have to understand with determination and resolve and looking at this budget that's about to come out from the biden administration on defense, it doesn't go far enough in terms of establishing china as the priority and really pumping the finances in there to he get us the needed capabilities that we
need to match china's capability. maria: look, general, you're a gentleman. i know you're a gentleman. but you're being way too kind, frankly, okay? the defense budget actually is a decline in defense spending when you consider inflation. there's absolutely no awareness that i can see of the threat that is the ccp. you talk about the quad, fine. but let's not forget the fact that we just left huawei off the hook, the cfo who was in -- under house arrest in canada is now back in china. they're not putting the companies that are tied to the ccp military on the black list, in fact, they're removing them from the entity list and you've got all of these wall streeters funding the expansion of the ccp with, you know, no pushback whatsoever from this administration. this is outrageous. we need an administration that's going to start fighting for america and start recognizing the threats. i think we all need to start saying it right out and i must
have heard you say we are out-gunned 50 times, okay. 50 times, you must have said that to he me in the last two years that we are out-gunned in terms of the ccp and their military aspirations and what their capables are right now -- capabilities are right now. you've been raising your hand. i've been listening. i wish the administration would listen. that's all i can say. because we're just going down this road that is quite dangerous, in my view. >> yeah, we've got a lot of work to do here, maria. there's no doubt about that. and it's got to be a whole of government approach. we're going to get some insights in terms of the kind of resolve this administration has. what's going to happen here within a few months, the secretary of defense is going to come out with his national defense strategy. the strategy that we actually were critical of back in the congressional commission under the trump administration. we didn't think it went far enough then and so we're going to pay a lot of attention to
this now when this comes out. if those priorities aren't there, if the financing is not there, then we're falling behind. and we have to catch up. maria: for sure. >> not fall behind. maria: yep, general, good to talk with you as always. thank you, sir, we will certainly watch for that report forth coming. general jack keane. stay with us. we'll be right back. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ when you're driving a lincoln, stress seems to evaporate into thin air. which leaves us to wonder, where does it go? does it get tangled up in knots? or fall victim to gravity? or maybe it winds up somewhere over the bermuda triangle.
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tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner. maria: welcome back. google's ceo calling for more on cyber security. he's urging governments to adopt a geneva convention to address the cyber threat. he says the u.s. needs to invest more in technology. my next guest is looking at at what's happening beyond earth in terms of cyber security. joining he me now is spider oak ceo david perri. thank you for being here. you're working on addressing security practices to avoid importing cyber problems we have on earth. tell us about the threat. >> well, thank you so much for having me. i mean, the threat is real. we set up a fourth branch of the military, the space force, because both private and nation states are coming after our
businesses and our government and we have a huge opportunity here to really step up what we're doing and it's not going to be necessarily genetic warfare, we're talking about coming after our entire infrastructure and we need to protect it. maria: but why aren't we doing it? i mean, this is one of those other obvious things that seem to be a serious threat, a clear threat. we've seen hacks repeatedly from russia, from china. so why aren't we doing it, do you think? >> well, look, we keep doing the same things from technology over 30 years ago and expecting a different outcome. we keep putting up perimeters and thinking the walls can't be breached. companies are being breached like amazon's twitch service was hacked under two weeks ago because fundamentally the
insensitives aren't necessarily aligned because people think that building applications is very different than protecting them so there isn't the correlation even in the insurance industry to ensure that the incentives are in place and the government needs to take a leading role and just like you called for, they need to step up in innovation. maria: so let me ask you about the runway in terms of investment here. you're predicting hundreds of billions of dollars will go into this market in this decade, growing number of satellites in space. how likely is it that we're going to see hacking and can companies avoid this? do you think that there is an investment opportunity for those people saying i want to invest in this, it's a money maker, but it's also something that's critical for the united states? >> i think the market's going to be over a trillion dollars and when we talk about any new frontier, we know that the frontier push is back. i mean, right now all of the energy is focused on getting satellites and other
infrastructure into space but that's going to be a juicy target for both nation states and hackers. so what you have here is the inability to protect even the networks, we're talking about air and the vacuum of space and so there's no geek squad in space to go up there and deal with a problem when it happens. we need to do better. maria: yeah. so we just heard from jack keane, the general's talking about the increasing capabilities of china. china's strategy in a conflict is to blind others by disabling satellites. will the technology do anything to help the united states with that? >> yeah, so, a small but growing number of companies is taking a new approach to cyber security, we don't believe setting up walls. we believe in encryption as the solution for the next generation of cyber security. so we're utilizing the same technology that powers bitcoin,
call it block chain or distributed ledger as one of the best choices for protecting ourselves. maria: all right. we will leave it there. dave, great to have you this morning. thanks very much. we'll be watching your efforts. stay with us. we'll be right back. thanks for coming. now when it comes to a financial plan this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab. (sfx: video game vehicle noises, horns beeping,) (engines revving, cars hitting one another.) (sfx: continued vehicle calamity.)
seen for the last six months carry his dog down from the elevator, then carry six blocks to the park a because he's you afrayed he might pick up -- afraid he might pick up a disease on the sidewalk. it's a whole different era. when i grew up as a kid you let the dog walk to the park. nowadays, i don't understand it. i don't know, if one of my employees asked for time off, we'll to have a chat for taking care of a pet. maybe a couple days. maria: if one of your employees' dog or cat were sick and they needed time to take them to the vet, you would say okay, right. >> >> sure, no problem. yeah. no problem. maria: how about this. there's my little dusty. and i'll tell you, if i needed a day to take care of that fur baby i'm going to need it because she's too important. an atlanta area man going to extreme lengths, meanwhile, to show his love for chipotle. that's another one we wanted to
check with you. he went and had chipotle in every state. we'll talk tell you about it coming up. big tech earnings on tap. the effect of the supply chain crunch and bitcoin etf hitting the exchange. we're breaking it down with the word on wall street at the top of the hour. it all starts right here. "mornings with maria" is live on fox business. an official message from medicare. did you try it yet? comparing plans? oh yeah. they sure can change year to year. i found lower premiums and lower prescription costs. that'll save you money. so uh, mark? on medicare.gov now. open enrollment ends december 7th use the plan finder at medicare.gov to compare medicare health and prescription plans. comparing plans
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maria: welcome back, good tuesday morning, everybody. thanks so much for joining us. i'm maria bartiromo and it is tuesday october 19th, your top stories right now 7:00 a.m. on the button on the east coast. under the cover of darkness, new photos from the new york post confirming what i have been reporting on this program for weeks. the biden administration has been secretly flying under-aged migrants from the texas border to suburban new york and other big cities. the plane trips happening in the dead of night raising more questions how the white house is
dealing with the on going border crisis which i just saw firsthand last week. we are following this all morning long this morning, we will have the latest for you. markets meanwhile are rallying, we are looking at triple digit gains for dow industrials, all on earnings, johnson & johnson reporting a mixed third quarter and raising full-year guidance. dow industrials up 176, s&p up 22 and the nasdaq higher by 60. we are waiting on two more blue chip companies, proctor&gambler and shook off inflation worries, nasdaq and s&p 500 boosted by tech and growth stocks. up 125 at the close yesterday. european markets this fractionally moving. take a look. pretty much across the board. fractional moving, movements except the dax index is up about 25 points. that's the best performer and the biggest mover in asia
overnight, green across the board, hong kong was the best performer, up 1 and a half percent on the session. mornings with maria is live right now. some of the top stories that we are watching this morning. democrats no closer to a spending deal, in fact, there's a standoff among democrats. president biden hosting a group of lawmakers today as he tries to save his stalled economic agenda. it comes as we told you yesterday in october 31st vote on the bill is unlikely. senators bernie sanders and joe manchin facing reporters after closed-door negotiations yesterday, take a listen. >> you will have a resolution? >> we are talking. sanders pushing for 3 and a half trillion dollar price tag and manchin to cut many parts of it including climate change
provisions which he's calling non-starter. framework agreement by year end pushing the deadline for the end of the month. north korea launched a ballistic missile off the coast yesterday. the fifth weapon's test in the last few week. the range and altitude of the test not immediately known all this coming out of a planned visit to seoul by the u.s. special envoy to north korea. fda to green light mixing and matching booster shots for vaccinated americans. approval could come tomorrow when they are officially that authorize booster shots. it comes after study revealed antibody levels rose exponentially in people who were given a moderna booster following a symbol jab j&j shot. time for the word on wall street. top investors watching your money this morning. ceo joel schulman, denise garthman and payne capital management president and host of payne points of wealth podcast.
ryan payne. great to see everybody this morning. joel, kicking off this earning season. so far pretty good. netflix will be reporting after the bell today. the streaming giant getting a boost from the widely popular squid game show reportedly worth $900 million that hit series, netflix's biggest show launch ever. what are you expecting from netflix and how do you see the earnings period evolving. >> squid game is a game changer for this company. it's about $282 billion of market cap and the big story behind netflix is that the margins have incraned more than two times, 10% to 22% to bottom line. so what's interesting with squid games, the best return on investment they've had maybe ever and it's only been about a month and created value of
$900 million. the margins are relative, it's been extraordinary. half of -- i'm sorry, half of the revenues come from overseas. half of the 22 million from u.s. and canada the other chunks from europe and then latin america and asia. to have a south korean program like this is really game-changer for them. i'm expecting good things for them. they focus on bottom line better than any other large cap company out there. maria: yeah, squid game. and i thought the crown was a big deal for netflix. this is a real game-changer apparently. >> yeah. maria: let's talk about north america's largest con taper port facing backlog as the crisis chain crisis continues and approximately 200,000 shipping containers are gridlocked.
they are gridlocked off the coast of la and comes day after port of la will run a 24/7 operating schedule and i don't think anybody thinks that's going to put a dent in anything, denise. what's your take? >> it's a long time before we resolve the problems and we have a trucking problem. you can't have find trucks drivers. the last mile. almost 30% from a year ago and 50% from two years ago and that's a problem. that's -- cargo moving at the margin from the west coast to the east coast. this is in the going to go away any time soon. trucking companies have been on a bull run and continue to be on a bull run and i see every reason to think the problem is going to go early, at least until middle of next year maybe a longer period of time than that. when you restrict the number of
hours that truck drivers are able to move their cargoes around the country and get stuff from the east coast to west coast and the east coast to the midwest and you're allowed to drive 11 hours when they used to drive 14 and 15 hours. maria: the restrictions go even further than that, let's face it. people are leaving their jobs, they are getting fired because of the unconstitutional vaccine mandate so there's that. real quick in terms of impact and our money, do you think this is priced in or surprise to markets when company have to wort weaker than expected earnings because they can't get the products that they need? >> the earnings going into next year because of the problems with getting product moved i think earnings will be overstated thus far and discounted going into next year. so i think the problem are 6 months, 9 months into the futures. earnings will be lesser in 2022
than 2021 because of this problem. it's not going to resolve itself any time in the near future. maria: well, nonetheless, we have a pretty good rally underway, ryan. i want to talk about bitcoin. big day for bitcoin as we are waiting for the etf. crypto currency in all-time high as future etf is debuting on the new york stock exchange today. is that what's boosting the price of bitcoin right now, what's behind this? $62,000 right now. >> it was 30,000 just a couple of months ago. i don't know if we are ready to party or cry here with it doing so well. my question is what has really changed? it's still used for elicit transactions, it's not a great medium of exchange. i still can't buy anything with bitcoin. i don't know if you can. if you do something with bitcoin, i would be curious, it's completely unstable. the volatility has been tremendous this year the way it's just been -- look at yoyo
up and down the prices and can't transaction prices efficiently and i don't think the dynamics have changed here. but what this speaks to is money pouring into everything right now. in my podcast this week i will be talking about the mother of all melt-ups because what we are seeing here, maria, money pouring into the stock market and pouring into every asset class and not being discerning at all and i think this is indicative what you see when you have a melt-up and when you're in the later stages of the bull market. i said ignore the strategists, they are talking about a big correction that we will get in the fall. morgan stanley said it, ryan payne said ignore it and that's exactly what is happening here. money is going to pour in no matter what. strategists are talking about a target of 4600 in the s&p, that's 2% higher than today. i think you will see more like 5,000 because i just think what we are going to see right now money has to go somewhere.
i said it here first, again, so i think don't sit in cash and get invested an this is why bitcoin going up, money is just pouring in. maria: yeah, look at the chart in the s&p 500. that's looking good. s&p 500 is up and apparently we do feel like we are in the middle - a melt-up, denise garthman, ryan payne, great to see you both. joel shulman, you're sticking around all morning long. glad to have you. nighbrant children moved across the country in the dead of night. they are being transferred from the border to new york. something that i've been reporting for weeks now. senator bill haggerty to talk more about this on the program. access denied, darrell issa why he was barred on visiting afghan refugees in qatar, we will get the story, joining the
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maria: welcome back, moving illegal migrants in the dead of night. the new york post now reporting that the biden administration has been secretly flying underaged migrants into new york before shipping them off on buses to where they want to go. you heard about these moves first right here on this program and i just returned from a trip on the border where i saw the crisis firsthand and i spoke with migrant. joining us right now tennessee
senator bill hagerty. senator, hagerty, good to have you this morning. thank you very much for being here. i know that you sounded the alarm on this months ago on the administration's secrets in terms of transporting migrant into your state, tennessee, we also heard from senator marsha blackburn about this. what can you tell us about what's going on? >> well, first i want to thank you, maria, for bringing so much attention for what is happening in the southern administration and they want to ignore this and look the other way. as we said, we saw this happen first in my home state of the tennessee. the biden administration began to bring children in the night and they put them on the bus, they send to undisclosed locations. one of the locations we did find
out had to shut it down and zero transparency from the biden administration and force the biden administration to inform governor of what's happening. are they going to be overwhelming our school system, they will overwhelm our law enforcement? we have zero information. now we are seeing it happen in new york, new jersey and other parts of the nation. maria: it's unbelievable. look, we are showing pictures of our trip last week because i was able to talk with rancher and talk with other border officials to really get a sense of what has taken place here. if they didn't want to do this under the radar, they would be doing it in broad daylight. instead they are secretly dropping migrant off in the dead of night. you're not even allowed to fly after midnight and yet these flights are coming in to private airports after midnight at 1:00 in the morning. so they're purposely trying to mislead, is that the point?
they don't want people to understand that they are flying migrants, illegals to different places in the country. this is outrageous. >> that absolutely seems to be the theme of this administration, maria. flying these migrants after curfew and sneaking them in on the dead of night. it's like they are trying to manage this massive spending spree in washington, you must pass it to know what's in it. they are doing everything that they can dissuade us. maria: biden is trying to save the spending agenda. where do you think this goes now? he's meeting with the progressive and moderate democrats today at the white house and i know that joe manchin and bernie sanders had hair own meeting and came out saying we are talking, we are talking. this means there's absolutely no deal.
manchin says, look, it's likely we will not see a reconciliation obviously by the 31st. i reported that this week. the 31st is clearly unlikely, do you agree with that or do you think that something can get done in terms of a vote on the table by the 31st and what's the chances that nothing gets done? >> the chances that nothing gets done is very high. nancy pelosi is going to hold it hostage and keep creating this crisis and they are going to continue the firing squad entirely in the democrat party. you notice there's no republicans involved in the discussions, there's no bipartisan whatsoever. this is the democrats trying to get at what they think they can shove the throats of america on a completely partisan fashion using a parliamentary trip calling reconciliation, it's bad for america. i think democrats constituents are realizing this and pushing back hard. joe manchin and kristin sin ima are pushing back in the senate. i think they will encounter a lot of problems in the house as well. maria: so where do you think
this goes then if they don't get a reconciliation package with all of this spending through, what will they do? will they do a continuing resolution? >> they'll have to do that. maria: how does that work? >> they will have to do another resolution and move into next year and as we do, inflation is going to continue the rage. i think we are going to see another spoiled thanksgiving and christmas thanks to the inflation the biden administration is throwing to the american people. russia and iran, surging, we are going to navigate through thanksgiving and christmas with these mandated positions and cause all types of system disruptions, the price of food, it's threw the roof again. i think it's difficult thanksgiving and christmas for people and i don't think the biden administration will farewell at all. maria: this is absolutely extraordinary, senator. i don't -- i'm trying to figure out what they're doing. they are ignoring the border and
pushing through to fundamentally change our economy. they're ignoring the crisis in afghanistan. we still have people behind enemy lines there with the taliban running things and then you've got censoring speech, you have vaccine mandates, i mean, talk about totalitarian government. i mean, senator, thank you very much for being here. we will keep watching it. thank you, sir. >> thank you, maria. maria: senator hagerty. chicago police fighting back for vaccine. kanye no more, he's changing his name. it's making a buzz this morning.
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lashing out at police commune to induce insurrection as officers risk losing their retirement if they don't comply. the head of the police union firing back, watch. >> all i could tell you if our officers hold the line, there's going to be a lot less officers on the street if they are going to send them home with no pay. maria: and that is the reality of it all. in seattle officers are displaying don't threat on me flags over patrol cars in protest of the state's vaccine mandate deadline. angela, the consequences of this unconstitutional mandate are real and we are seeing resignations across industry. when you see border agents and the police also saying i'm not doing this, i'm staying home. i will risklessing my job, then you're talking about the american people safety, your thoughts? >> you're exactly right.
chicago of all places cannot afford to be losing police and as you mentioned, this is so much bigger than one place and industry. i'm very concerned about what's coming up next month when the mandate for tsa workers to be vaccinated kicks in. only about 60% of them are right now and if we lose tsa workers going into the holiday season, this is going to affect just about everybody. big organizations that i'm afraid are about to lose the hard way. you can have man and date but you can't have both. maria: joel, i'm not against the vaccine and ii got vaccinated but i understand if you have
medical issues and just the question of the vaccine in and of itself. typically it takes 10 years to produce a vaccine and this one was out in ten months to mondayate it. -- mandate. it's having a real impact. >> one of the most dangers cities in the country, chicago,lessing police officers right before the holidays when they needed them the most. as you mentioned it takes a long time normally to develop a vaccine and rolled this out in a year or two. we have all encountered that would rather not take and those people who have got covid, you'll have better antibodies than those who have taken vaccine, it's a controversial issue. you are losing police officers, those who have protected us at a critical time and dangers city and it's problematic and we are seeing the problems unfold throughout the country. maria: yeah, let's take a break and then get into the supply chain crunch. north america's largest port now
gold. agile and liquid. a proven protector. an ever-evolving enabler of bold decisions. an asset more relevant than ever before. gold. your strategic advantage. maria: good tuesday morning, everybody. welcome back. thank you very much for joining us. i'm maria bartiromo and it is tuesday october 19th, take a look at market this is half an hourment we are looking at a rally underway following earnings reports better than expected but the highs dow industrials up 200 points, one half of 1 percent and nasdaq higher by 72. strong earnings lifts sentiment as was the pace yesterday shaking off inflation worries. nasdaq and the s&p 500 boosted by big tech and growth stocks pushing the nasdaq up 124 by the close.
the s&p was up 15 and dow industrials were lower yesterday but the week before we had strong numbers from the banks on the third quarter. european markets are moving fractionally. not much action here. it is pretty much across the board fractional moves with the biggest mover up 27 point on the dax index in germany. in asia overnight, green across the board as well. congress honing was up, 1 and a half percent in the session overnight. back in the u.s., fbi agents are on the ground in haiti to rescue missionaries mostly americans. lauren. lauren: haitian officials telling wall street journal that a local gain is asking for a million dollars for each person. that's $17 million total for their release. five men, 7 women and five children one as young as 8 months old abducted at gunpoint by gang last week after visiting orphanage outside of port of prince.
members of ohio-based christian aid ministries. jury selection has begun in the ahmed aurbery trial, gregory mcmichael and his son are charged with assault, murder and federal hate crime in connection with the killing. they have pled not guilty to all charges. arbery was jogging in february of 2020 when prosecutors say the men armed with guns chased him through the neighborhood and eventually killed him. well, evaluation as high as 1 and a half billion dollars. the rental company slowly recovering from last year's shutdown. will make nasdaq debut for wednesday of next week. well, weddings are back.
event planners seeing bigger guest lists, demand for venues and wedding items. increasing prices for those hopping to tie the knot where one wedding planner saying they are spending 5 to $15,000 more before the pandemic. one predicts that 2022 could see the most weddings since 1984. pinned up demand, maria. maria: yeah, exactly what i was going to say, pinned up demand. lauren, thank you so much. the supply chain crisis not letting up any time soon. nearly 200,000 shipping containers are gridlocked right now off the coast of los angeles. even as the port works 247/to try and get rid of the bag lock as high inflation continues to impact the prices, the consumer spending, of course, is very strong. joining us right now former kansas city reform president and ceo former fdic vice chairman and distinguished senior fellow at marqueta center, thomas.
thank you very much for being here with me this morning. >> thank you. maria: issues from inflation to supply chain disruptions. give us your assessment of where we are in all of that and it impact? >> well, i think it's -- you described it well. we have a very significant supply chain interruption, if you will, globally, that's an added factor in what we used to think of transitionment i think we have to add another word, long transition if we are going to see this corrected, it will take some time. that's obvious because it is global. we see it in energy and across manufacturing. the supply side of this will put upward pressure on prices for some time to come and that's complicated by the aggregate demand side. consumer demand seems to be strong but we have had over a decade period where the fed has put pretty significant amounts
of liquidity, we have seen asset inflation for some time. but now with 2020 and 2021, covid legislation that created enormous transfer or payments to individuals across the country, that is actually accelerated demand on the demand side and now we are going to see a mapping of that and pass that inflation into price inflation generally and the combination of both the supply side and the demand side means i think it could become a longer-term issue and become more embedded in the economy and in economic thinking, so it is -- it is a matter of concern. i would also point out that i think the fed will be slow to begin to address that in a significant way through interest rates if they start their tapering in november as they
say. that is not a reduction or increasing supply of liquidity, it's merely a slowing and i don't see them accelerating that before the middle of next year and i don't expect them to raise interest rates in that period so we will have that momentum carrying us forward. the outlook for inflation i think is more of the same. the transition will be long and we need to, i think, adjust to this new environment. maria: but tom, i mean, some of these numbers are really extraordinary. i've got a note here. i'm looking at inflation september 2020 versus september 2021 and you look at things like meat, poultry, fish, eggs up 10 and a half percent. new cars up 9% and then you've got gas up 42% overall energy up 25%. used cars and trucks up 25%.
we saw the consumer price index of 5 and a half percent since september 2020. what are your thoughts in terms of the impact on the economy? does this kind of inflation cut down expectations for growth? >> i think in time it will. immediately people are still now spending, we still have this strong demand and that's why you're seeing inflationary numbers but, of course, this kind of inflation is a tax on -- on the consumer, on the public, on businesses and it will have -- and regressive tax so will over time undermine the economy and undermine growth but it will take some time and i think -- maria: yeah. >> what the fed is hoping for if that's the right word is this will eventually recede but i think it's going to be a while before it does. i think there's some real risk for inflation going forward. maria: thomas, i've got to get
your take on what is going on within the federal reserve. i recognize you may not know the details of any of this but now we have reports that fed chairman jay powell reportedly sold stock in the middle of a selloff. he sold between 1 and $5 million worth of stock right before the market tanked in october 2021. - 2020 and others stepped down after reports that they were trading and the news comes down on president biden whether to nominate jay powell for another term. i mean, what were they thinking, selling stock right before the market crashes? >> i can't speak for them. i do know that you have an appearance issue here obviously. now whether they were -- some of the explanations are these were planned actions before there was
nothing unusual about that. i can't speak to that. i just don't know and i know that they have the ig or the inspector general beginning to look into this but i think it does have and the optics are not good and that's unfortunate. whether it's technically wrong or not, i don't know, but appearance wise an issue for certain it is. maria: i think you handled that beautifully. you're absolutely right. it's optics, it's appearance. i mean, god, we are losing trust in so many institutions. we have since 2007 and now this. okay. i want to talk about -- >> it is unfortunate. maria: totalitarian government. we have vaccine mandates and we have bank surveillance. we've got censorship of speech. you know president biden is pushing for this surveillance of the irs, of our bank accounts, his proposal would require banks
to report any transactions over $600 to the irs. i am shocked that treasury secretary janet yellen was defending this, okay and i know how you feel about this. it's absolutely invasion of privacy but i want to talk more about it after you hear what bank of america chairman and ceo brian monohan told me. he joined me yesterday, listen to this. >> regulated institutions subject to the laws of the united states if congress passed the law. this is a matter of policy and congress will decide what they do. we all have the follow, all the banking industry. if you look at the industry and our clients and chamber of commerce have made positions clear. at the end of the day we have to follow the law if it becomes a law. it's a policy decision for congress. maria: yeah, so -- so where does this go, thomas, your thoughts on the impact of this surveillance by the irs in our transactions and our bank accounts? >> well, i think as i said it's
terribly unfortunate and if you put it into context it's really quite overreaching. if you think about the number of accounts and so we have -- let's say 280 million adults in the united states. you have multiple accounts and i have seen estimates that 400 million accounts that would be monitored under this rule and think about it. so you have 400 million accounts. let's say that just 10% of those have a transaction that is spiked from this year over last year, now that's 40 million accounts. what are you going to do with that? you will have some kind of priority. that's 4 million accounts and then you have to decide if you're going to audit that. i mean, this is a massive not only intrusion of privacy but
massive cost and for an end that's not all that clear. they talk about it being for only gross receipts and legitimate expenses, well, the only way that you can judge that is you have to know the individual transactions which they say they're not going to do. that's just a math of time to look into that. maria: yeah. >> i hope that it is challenged quickly if it is passed in the courts to -- to prevent this from being an overreach of government. it is truly a monitoring kind of action that is, i think, totally to our founding principles of the country for privacy and the right of the individual. and if i may, i will just tell you one other thing. they are talking about
collecting $460 billion over a decade based on finding $160 billion of unreported income at 28% tax rate so that's 40-some billion a year and that assumes that you get everyone. well, that's a big assumption. the numbers are way overstated in my judgment and we are doing for marginal increase. they already received interest reports, interest income reports, 1099's, w2's, the treasury also gets the activity reports and -- maria: it's outrageous. >> it's never ending it's what it says. maria: let me just add one more hypocrisy to it. they want to raise the $400 billion so that they could pay for the salt deduction so they want to put the salt deduction back in so they can help the people of new york and new jersey and zero in on everybody else's accounts to do
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the pandemic bringing mental health to the forefront, globally roughly 1 billion people are affected by mental health disorders. clinical stage biopharmaceutical company aim to go transform treatment by using psychedelic compounds. also celebrities including william payne. joining me right now founder and ceo. you're coming from the milton conference. i want to get your take on where we are before going into compounds and long run way that you have in terms of growth expectations. where are we in terms of understanding the brain and mental illness? >> so good morning, maria, thanks having me. very excited.
you summed it up perfectly. we are in this mental health crisis, actually 1 billion people that you mentioned, this was the number before covid so actually the increase we will definitely see in the number because of covid which hasn't been coming, the number is higher than that. the good news is we are finding new treatments for mental health and psychedelics are the biggest opportunities or biggest potential that we have and all of that is because over the last years we do understand the brain much better so as you might know and as viewers might know some e of the psychedelics had been medication in the last century. in the 50's and 60's and for pure political reasons has been vilified and the opportunity for us to bring them back now into the medical world as treatments for mental health issues is also
because we can show by brain scans and many ways how it works. it's not in the 60's, oh, these people are doing something funny but the next day they healthy, they are better but now we can show what is happening in the brain, what are psychedelics really doing and why are they helping and it's a big part of our sort of push we do with the regular to bring the substances back into the medical world. maria: i want you to explain psychedelics because you have projects right now that atai is working on. some programs are in phase 2. even some data readout anticipated at the end of the year. i like to talk a lot about in the program about we mapped the entire genome and we understood better that smoking causes cancer and eating poorly leads to heart disease and diabetes.
we did not understand the brain back then. there was no mapping of the brain but we are understanding it better. explain psychedelics. >> so that's a big question. so the way to put it simply, psychedelics have two effects on your brain. while you're in a session and colloquial of why you trip, this allows yourself, like psychological trip or psychological session with a therapist, it allows yourself to look at you and all your trauma and problems which might have led to the mental health condition that you're in. maria: i see. >> rather than a third-party point of view and i want to add because it's very important to understand that we want to make it medically available but together with the therapist because these are very strong experiences, you are depending
on the substance because there are many psychedelic and you're tripping like for some hours and you have the very profound deep inside but you need somebody doing it with you, so we making the substances medically available but together with the therapist. so the other thing which is happening which is practically working together is what we call neuroplasticity in the weeks and months after so literally your -- maria: i see. christian, we are going to be watching. we are going to be watching your company as you create scale and continue to get the cash to create more scale, christian, thanks very much. founder of atai christian angermayer. we will be right back. ♪ ♪
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maria: welcome back. time for the morning buzz. so kanye west no more. the rapper legally changing his name from kanye west to just ye. the name change approved by la judge after kanye cited personal reasons for wanting to change his name to ye. it is also the name of the rapper eighth al yum. joel, what do you think are you down with ye? >> i think it's a good move and every time he goes to the sporting event and the crowd goes ye, he can wave and say they are seeing this to me. i think it's a good move. maria: that's true. angela, what do you think, you're in on it, ye? >> no matter what we call him, i'm grate with ye as long as he keeps cranking out the best workout music. you're not going to hear any complaints from me but this is just more -- he's a performer on and off the stage. he's an entertainer to the core.
maria: well, listen, he can do what he wants? it's a free country. i mean, freedom and liberty, right? oh, wait, okay. we will take a break and then we are going to take a look and capitalizing on cannabis, we are introducing you to one marijuana company who has completely gone remote during the pandemic. mornings with maria live on fox business. ♪ ♪ ♪ thanks for coming. now when it comes to a financial plan this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.
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♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ . maria: we'll we'll, good tuesday morning. thanks so much for joining us i am maria bartiromo. it is tuesday, october 19 your top stories 8:00om on the east coast under the cover of darkness, new photos from "new york post" confirming with what i have been reporting on this program for weeks the biden administration secretly flying under wage migrants
from texas border into big cities including new york, happening in dead of night raising questions how white house is dealing with ongoing border crisis, something i saw firsthand for the third time last week when we took thes show to the border following all morning longest markets rallying we are near highs of the morning, with a triple-digit gain on dow industrials, due to strong earnings this morning, the dow up 171, s&p up 23, nasdaq higher by 56, dow components procter & gamble and travelers reporting double beats this morning j&j in this cased third quarter results raising guidance j&j shares as well as traveling among big movers this morning stocks mostly higher yesterday off inflation worries once again optimism with earnings third quartile coming better than expected after banks reported blowout numbers week before yesterday dow down 36 nasdaq up 124
boosted by big tech growth stocks european markets not so much, we are looking at fractional moves this morning in the eurozone, as you can see, here it is across the board in europe, fractional higher moves, in asia overnight green across the board there as well, hong kong best performer overnight hang seng up 1 1/2%, "mornings with maria" is live right now top stories that we are watching this morning, democrats no closer to a deal in fact there is a standoff among them president biden hosting a group of democrat lawmakers today at the white house, as he tries to salvage his stalled economic commended we told you yesterday october 31 vote on this spending bill unlikely, senators bernie sanders, joe manchin facing he reporters yesterday after closed-door negotiations here is what they said. . >> we're talking we're talking. >> you are going to have a resolution by the end of the week. >> we're talking we're
talking. maria: talking all right sanders pushing for 1/2 dollar price tag manchin pushing to cut many parts including climate change provisions he is calling nonstarters democrat leaders vowing a framework agreement by end of the year pushing up that deadline from nancy pelosi's initial target october 31, north korea launching a missile fifth test last few weeks range altitude not immediately known out of a planned visit to seoul by u.s. special envoy to north korea. the fda reportedly ready to green light mixing and matching booster shots for fully vaccinated americans could come as soon as tomorrow agency is expected to officially authorize booster shots for moderna and johnson & johnson. comes after a study antibody
levels rose given a booster following single jab j&j shot markets rallying this morning due to strong earnings smack dead in the middle of the third quarter reporting season largely better than expected dow industrials up 172 right now s&p up 22, and nasdaq up 66, netflix will take center stage tonight when it reports he quarterly numbers after the will be stock up a quarter of one percent right now dow he component procter & gamble, travelers beating expectations take a look at stocks, in the news, j&j down as will traveling and png travelers unchanged as you see stocks of the companies reporting earnings this morning, we are standing by for economic data we've got to september housing starts building permits out 30 minutes too many, joining me right now he strategic ceo jason trennert to talk more about allocating capital macro story joining the conversation
angela, joel shulman great to see you. thank you for joining the conversation your take where we stand how would you view a earnings season so far? and what are you expecting to hear from corporate america overall on third quarter. >> well listen, it is so far, so good. looks like earnings third quarter s&p 500, will be up at least 28%, that is kind of where we are starting, we are the -- opening gun started, we think by the end of it could be up as much as 33 or 34%. i will say that so far most of the companies of that reported tend to be more domestically oriented not entirely i think important as earnings season goes on to really look at how perhaps some of the supply chain issues are affecting costs, and the ability of those companies to pass on those costs to consumers, but
so far, it pretty o the earnings an off to a great start. >> i am glad you as he mentioned supply issues i was fully expecting companies in third quarter to come out and use that excuse, for missed expectations i was thinking they would say we can't get products that we need to sell, so we're going to lower our expectations for the next quarter. but barely we've only heard really from a couple major dow o components major banks wasn't an issue may be will it will become an issue talk about two things with regard to earning macro story if expectations, supply disruption. >> it will become an issue increasingly an issue into fourth quarter, the earnings, mid-january, if you remember, atlanta gdp now, is down as one handle of it, down to 1. or 1.3% something look
those lines so there has been a significant slowdown, and i would caution a little bit, about reading too much into earnings thus far because banks are have dominated news of banks doing extraordinarily well largely on the back of on one m&a activity, but there is no question, the price prices don't lie. when and think commodity prices i think shipping costs all of those things, are real, and observable in real time real time hard not to believe will this impact on third quarter, as well this quarter will be good, i just -- i would caution people really a guidance that is going to be more important, in my opinion, about the fourth quarter and beyond. next year. maria: yes, so have your expectations changed in terms of the broad macro story?
we talked when i was at the border about the potential politicization going on, at the federal reserve we know that so many agencies win politicized we have seen evidence of that. but seeing the fed potentially politicized is troubling then it also story this morning jason that now we understand, according to this report jay powell sold more than a million dollars of stock as market was tanking? i mean, really? just the office of that alone is wow, what are thoughts on federal reserve telling us inflation is transitory? is that true does he just go along with line of the government so that he gets reappointed? what is your take. >> two things on that maria the first i would say, not to even be overly conspiratorial, in my opinion, looks more like soviet style hit on people and
fed between -- and powell, jay powell sold stock in october well before market tanked i only know one of four people personally one person in know personally is a man of incredible integrity, and i would just urge people to be take a deep breath because there is a political agenda here, to make the fed far more dovish, in my opinion, is potential problem because i think jay powell is about as dovish as you can get, have fed remain -- maintain some credibility. if you get some other people that are being discussed in that chair, it could be a real problem, so i am not going to argue optics of it. they are terrible. there may be something there untoward i would kind of caution also think about where
stories are coming from and why coming out now. politically -- >> i am really glad you said that, because us there is an effort to get bring in there you know would be a much different situation, because of the potential policy that would come out of a fed run by brainard. >> i think at the very least fed vice chairmen financial regulation would step down could have top chair i think the nature of the fed would be very different the fed has been largely apolitical for a long time it is a political organization to the extent in washington, d.c., but has very good, among people on both sides of the aisle largely have been left out of this, i think now given enormity of
the biden campaign, biden administration plans, they need he the fed to real be on their side i am not quite sure where this is coming from as far as o some of these -- revelations about people on fed i would caution just coincidence i don't really belief a coincidence, as far as your other question transitory. maria: they are trying to -- they are trying to take down jay powell what i hear you saying trying to take down jay powell and would be a real negative for the economy and -- put summon someone else in there important point you are taking your thoughts on bitcoin near all-time high you futures bitcoin etf going to be on new york stock exchange would you buy that. >> i wouldn't, i have to say i am agnostic about crypto, i am a financial market person so i am trying not to make big
value judgments on it, in my opinion, i don't view bitcoin as having real sustainable value. because no cash flows associated with it i also think that the regulations that are going to be brought to bear -- um -- by federal government central banks are going to be so enormous that it is going to be very difficult to transact as honest person in bitcoin. so the appeal of it, in my opinion, is not going to be particularly long-lasting that is my opinion. if you want to if you want to hedge currencies would i stick more traditional i think wise to hedge but i would stick more with gold, real estate, commodities overall. >> you made so many great points today thanks very much, by the way, we know it is your opinion that is why we invited you on the program we want
your opinion, jason thank you so much, sir. >> thank you. >> good to see you jason trennert joining us quick break expectations of the economy ceo dan barkley is here, will weigh in on what investors are watching ongoing supply issues affecting children in school, hitting school cafeterias, you are watching "mornings with maria" live on fox business. .
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go online to transfer your services in about a minute. get started today. . maria: we'll we'll. state department inspector general launching a probe into biden administration's botched afghanistan withdrawal the review focusing on resettling afghan refugees the chaotic vehicles of the u.s. embassy not to mention abandoning
bagram air carries joining me right now california congressman darrell issa member of judiciary as well as foreign affairs committee congressman it is very good to see you this morning we have much to talk with you recent took a trip to the u.s. base in qatar, you were denied access to afghan refugees, what happened can you tell us more? >> well i think, it boils down to they didn't want to be further embarrassed they were happy to have me tour physical base not in any way go to alternative fast more than 3400 people will soon be in united states are staying that is out of over 60,000 that passed through qatar admitted a lot of things that i think your viewers should know they mitdz that the majority of the people who came in had no documents that were indicate that they should come to america, in other words, tens
of thousand dollars on planes in many cases not documentation not signage piece of paper not even-afghan id card shoveled off to germany or united states without vaccines without the any kind of activist, the last 2300 they said only waiting for measles other vaccinations really no reason to see them, of course, i wanted to see them to look at make-up of them because i still have constituents stuck blue card passport holders american citizens that are still trapped in afghanistan keep waiting to be on these so-called lists, and flights come flights go americans are still trapped in thank you afghanistan because they were left behind by this administration. maria: unbelievably. congressman thank you for all your efforts all that you are doing, but really, can this get any worse? you've got you know the taliban deciding who comes to
america, who leaves who doesn't leave why you have got american citizens behind enemy lines you've got this administration, secretly dumping illegals in private airports from private jets all in our big cities like tennessee, new york, et cetera, you've got totalitarian government where there is you know mandates on vaccine this is extraordinary. >> you've got irs deciding they should dramatically increase your personal life they look at today 600 dollars tomorrow may be a penny. look. the answer is yes, it can get worse, this is a systematic use of modern technology against us, quite frankly,, the basics things that we expect like you want to get u.s. passport issues you may wait months. you want a visa for a spouse,
trapped over seas may wait years, you want to get a legitimate guest worker won't get appointment this calendar year and yet, tens of you thousands come over border every day given free passes to fly as to city near you. that is what happening. so can it get worse? yes. systematically it is getting worse. maria: congressman all this well real crimes are ignored look at russia hoax how they lied to american people saying that donald trump colluded with russia, which is ridiculous ex-british intelligence christopher steele doctored, going along with it sat down with abc news george stephanopoulos for a new documentary watch this. >> most of the world -- five
years ago island -- up until now give me a decollartive sentence christopher steele is -- >> a patriot. >> a patriot congressman. >> well, look. people who sided with british in our revolutionary war against george washington considered themselves patriots there are two sides to patriotism the fact is he was on the side of a -- in order to make everything line up you needed hillary clinton money dnc, and the obama white house help him make that hoax a reality. so was he a patriot to those three organizations? absolutely. was he an american patriot in putting out the truth rather than outright lie? no. and you know instead of going in front of abc he should in fact be going in front of a congressional panel under oath
so we could actually get him to admit what is the truth which is he was paid by hillary clinton and dnc, to smear the president, and even today, five years later it is still part of their -- way of doing business, that they are not going to admit the lie that has been proven they are going to continue to say it wasn't true and george stephanopoulos who i have known since a young man in the clinton administration, is part of that cover-up he is a willful member of the democratic national committee always has been. also a will be. >> i will go one step further say there are many newspapers major papers that are also part of the cover-up got pulitzer prizes will not admit faulty reporting they are shameful congressman it is good to see you. thanks very much for being here and thank you for standing for truth darrell
issa joining me this morning, a crisis hitting the school cafeteria what you need to know we've got a live report when we come back. . this isn't just freight. these aren't just shipments. they're promises. promises of all shapes and sizes. each with a time and a place they've been promised to be. a promise is everything to old dominion, because it means everything to you. (sfx: video game vehicle noises, horns beeping,) (engines revving, cars hitting one another.) (sfx: continued vehicle calamity.)
maria: we'll we'll the supply chain crisis taking a toll on school cafeterias schools nationwide struggling, as they say delays shortages originally from chicken to lunch trays outside of philadelphia right now with jeff flock with more. >> google to you from location at loading doc wrigley high school in pennsylvania awaiting delivery as we speak runs food service for 5,000, daily battle. >> yes daily bale hoping they arrive. >> everything from chicken to plates you serve on. >> serving trays hard to get
five compartments you think that is not important if you try to serve food to a kindergartener whachz. >> catastrophe kids trying, simply items we can't get. >> i understand you go to grocery stores when you don't get o delivery and buy at grocery store. >> grocery stores he larger warehouse suppliers get whatever we can get, to make it happen, for our students. >> going in our own vehicle to like you go to costco or whatever that costs a lot more how do you pay for that. >> three times more, we are hoping at some point able to ref more reimbursement to subsidize that difference in increase of goods, right now. >> supply chain everywhere trucks, those are lids cups, right everything in short apply these days maria, you
know kids need nutrition. >> they do we are here to provide it hopefully we continue to receive delivery, coming on regular basis and have items that we need. >> maybe the truck will show up that they are waiting for this morning i think bread. >> we are waiting for it by delivery. >> the latest, from the nation's schools, pennsylvania as you point out maria everywhere across the country, problems that is. maria: that is incredible thank you jeff flock we appreciate it we will talk soon look at state of the housing market when we come back take a look at impact of supply chain crisis septembering housing starts building permits out right after this. .
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building permits out much worse than expected lauren simonetti with the latest. lauren: let me start with permits number this is future ground breaking on new going to be maria, what a disappointment. the numbers fell by 7.7% from the august, in september coming in seasonally adjusted annual rate 1.589 million units that goes to show you severe shortages of materials needed and labor so maybe we got a report earlier this week that home builders confident seeing big the demands could get through this may be they are pausing future ground breaking on new homes the other part from commerce, that is housing starts actual ground breaking that number surprisingly fell by 1.9% last month to seasonally adjustedual rate of 1.55 million. maria, back to you. maria: wow much worse than expected market off best
levels of the lauren thank you very much dow industrials up by 148 but this is a much worse than expected report on you housing, we also have oil prices higher this morning, another pressure, on building as well as the overall economy and, of course, we are seeing a supply crunch in so many, many materials including naturalgas electricity across the globe as rises in prices are creating tension in the system joining me expect a market ceo dan barkley dan great to have you thanks very much for being here i want to get your thoughts on all of this, you talked about energy transition as you are seeing prices move higher, how would you assess the market right now with regard to energy? >> i think really look at you over next little while i think going to see this, supply crunch a period of time in energy business where capital -- we haven't seen new
investment new supplies energy demand continues to grow economy comes over covid we are seeing a draw on energy needs i think there is a mismatch between x,y, demand, in markets i think prices go up. maria: yet, dan, you are ceo of capital markets you've got opportunity talk about big business what you are seeing as a result of investment opportunity around this. >> so, i am happy -- happened to be at milken this week. really, really encouraging to listen to people that want to put money to work to find new business new ideas, when we think of energy trajection at bmo, talking about moving from higher densities energy businesses into -- when i look next five years i think that transition amount of capital
that needs to move probably one of the most opportunities we have seen a shift investor sentiment where demand is is where opportunity is looking transition new supplies energy across the world i think really interesting exciting time next few years. maria: you are seeing people actually invest in this on individual level as well as institutional level, your benefiting at bmo, i want your take how building a business big business around stocks we heard from major banks last week in terms of quarterly, capital markets obviously, a big trend he what kind of m&a trends are you seeing in this recovery at bmo? >> we talked about -- lots of money /liquidity out there we
have seen private equity, i think over 400 spaks looking for things to dry that driver of m&a looking forward in the future, has created enormous activity in capital markets over the last 18 months, corporations recent asked whether private equity looking for money to work we've now seen we go quarterly numbers last week enormous m&a boom happening through 21, it might drait still really elevated levels over few years driver behind that people seek opportunity in the future. maria: yeah for sure, let me bring joel shulman in. >> so we've seen spaks have little trouble last few months leverage discussion the best sponsors are only ones getting fund what is your take on this you do you think spaks that
have it bottoms are going to turn the corner come back? i do, i do whether replacement for ipo, is actual great vehicle certainty of execution, as you look forward, we probably had too many too much froth, normal market circumstances things adjust, and now when we come back those are good sponsors finding right businesses at the right place are going to be very good for the market. maria: so, dan, i know you talked about esg trends in speech at milken conference yesterday what are the other major topics that you are learning there at milken? and you said you are moving away from system shifting toward incentive system what else are you hearing at milken. >> so i was on panel yesterday talking about how do you invest in sustainable
businesses, i talked earlier, in revolution here quite a few times lower carbon future amount of money that is who move into it what we saw in industrial revolution when taking a look at psychology behaviors of our leaders in our corporations where we were two years ago was concept that, you know, you are going to be in -- forced to do bad things, and what we're seeing say opposite looking at different ways to run business if you find a way to do something good for the climate or good for economy and business a program drops, increases cash flows, yesterday, a win-win, incentive system if you want to invest do a transition makes your business better in long run if you are a public
company drives share price up that is the cycle of innovation that weigh we like to see right incentives right behaviors right orange counties people will be he in cented to do right things if paid for it great innovation great pace of change. >> thanks for getting up early for us we appreciate it and we will talk soon dan barkley ceo bmo capital markets live at milken gloenl kvrns this morning introducing you to a company betting big, "mornings with maria" live on fox business. .
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jay lee joining me founder and ceo karl sherman thanks very much for being here tell us more about the company, and your expectations, for growth. >> yeah, you got thanks for having me on this morning, we are really excited about the growth of this industry this year we are going to grow 23 billion next year about 30 billion, what we do at flowhubiden point of sale xhiengs compliance automation for dispensary we power with software to stay compliant with state regulatory system report data to state on a daily basis real-time basis we are also developing cool payment products. maria: so, don't you need the -- the -- the governments to buy into this cannabis is
legal in many stated but not all what do you see in terms of regulatory backdrop here? >> yeah, you know every state is different, you have to imagine every state like its own country in cannabis the laws are different, the regulatory bodies governing bodies over that legal industry that markets are different and the way they manage these -- you know, the supply chain you different if you go to california the purchasing limits there for consumer are different than they would be in colorado, as an example, so, you know, this is a difficult to sort of thing build a platform that essentially solves business problems regulatory hurdles across all these different markets, i think it is important to note, right, consumers want cannabis the latest gallup poll shoes over 60% americans want legal cannabis in their markets this is an industry only improvising from here, right?
i mean, look at the tax revenue generated in state like colorado that money flowing into schools for building new schools, cash, so it is amazing to see whole industry from a black market where you know -- people always bot cannabis globally two trillion-dollar global industry here we are legalizing it, bringing into regulated system safer products for consumers systematic right? tax dollars for communities a really exciting time, you know to be alive working in this market as it develops. maria: yeah. i am glad you mentioned colorado because i know that the governor told me they raised so much money, billion dollars or some he overall since -- legalized it being used in other ways, to help the public. i am wondering what happens in
other states president we've got cannabis analytics company headset reporting imitatives xaelz to pitt 23.6 billion dollars expected to rise 29% to more than 30 billion in 2022 but companies even with this growth they have limited access to mainstream financial systems, relying on cash, for business and customer transactions, what about that what about an opportunity in the market that you may see in terms of financial transactions? will these companies be able to do banking? >> yeah. it is a great acquit one that we've been dealing with many years, are you know. in this space very hard to come by that this is why legislation like safe banking act at federal level you know we believe will provide safer banking solutions better banking solutions for small businesses this industry is flush with cash, right? if i look at just our business
software process over 3 1/2 billion dollars a year in cash through flowhubiden they pay taxes with cash we would be banking -- this is something that we are kind of uniquely qualified for working on, this data from point of sale can walk into institution say we've got so much data we can prove these are legal transactions, that this is legal commerce happening no money being laundered here consumer checked into software, a license, a sales associates in the space serving that consumer, licensed by state, so a very transparent profession i say we track cannabis better than we track uranium it is incredible how transient this
is, not -- the point is you can verify it is real important for financial institution who is wanting to bank the space, because they want to know this is not you know, money coming from illicit market. >> bud tender funny i saw in california recent i saw looked like apple store i couldn't believe infrastructure around it, so you know you are seeing infrastructure created and a real runway here we will be watching thanks very much for sharing the story with us we appreciate it thank you so much. >> great, maria, thank you. >> we will see you soon. >> you've got to be kidding me you on "sunday morning futures" look at that kitty, the buzz of the morning we show you more when we come back. stay with us. . rement income is complicated.
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. maria: we'll we'll morning have movers vaccine makers biotech off better than 4%, as you can see, fda preparing to approve mix and match covid-19 vaccine back and forths this week pfizer moderna rising moderna up two and a percent johns "jaws" mixed third quarter results did not raise full year profit guidance up a third of one percent procter & gamble hears this morning, down despite reporting better-than-expected third quarter results png warning of a bigger hit to 2022 profits
watching the show. what do you think of this? >> the cat is a big fan of yours. we don't know if futures were going up or down but maybe we could find insights down the road or how the markets perform. maria: next up, angela, and atlanta man going to extreme lengths to show his love for chipotle, they traveled 18,000 miles in 50 states. chipotle offers so many potential combinations. >> reporter: this is wonderful project. being at campus reform i'm inspired by the creativity and dedication.
the passion for this project strives to do something new for good text messages. this is a great thing all around. maria: we wanted to end with humor in the face of what has become serious issues for the country. thank you for being with me. the market is up despite those horrible housing numbers. stuart: good morning, bernie sanders is not going to like this. aoc, senator warren, the progressive caucus, when they see these profit reports they will pound the socialist table. america's corporations reporting strong results. so far 83%, have done better than the expectations of profit and revenue. they have not undermined the performance of big business.