>> announcer: from fox business headquarters in new york city, the new "wall street week." gary: welcome to "wall street week." trish: i'm trish regan. the markets continue to react to donald trump. 178,000 jobs were added last month and the unemployment kicks down to 4.6%. this is the last economic indicator we are seeing before the federal reserve meets to decide whether to hike interest rates. gary: joseph fahmy of zor

capital joins us now. >> i think we are starting a new bull market it's been in consolidation for 18 months and we are moving to new highs. even those s & p hasn't corrected. a lot of second towards got decimated the last 18 months. now we are just coming out of that, and in anticipation of better economics, i think we are headed into a new bull market. gary: the actual numbers are $1.7 trillion have come out of global bond funds since the election and $685 billion in global equities. aren't we pulling a great deal of anticipation of economic growth?

>> that money is going to go somewhere that's coming out of bonds. i think it will go into equities. we are coming out of six consecutive months of low earnings. i think earnings will continue to improve. trish: you have may be in an interest rate environment now that the fed is going to do what it says it's going to do. it may move higher and continue the trajectory higher. in light offal higher interest rate environment how should they be thinking about fixed income. >> all of this movement has been about the fed providing liquidity to markets. joe mentioned the market being in consolidation for the last 18 months. earnings were in consolidation primarily due to the energy sector. over the last four or five

quarters there has only been one quarter where earnings have been down x energy and they were down 1.5%. not what i would call a bad rescission on earnings. the key is earnings. the fed can raise rates and markets can go up. that's -- trish: is that an opportunity for the first time we can actually see the market moving higher based on these economic fundamentals of the core foundation of the economy of as opposed to say earnings creation via tools that fed provide? in other words, cheap money enabling some of these companies to acquire others and immediately, attributed to earnings. >> i watched the survey from the federal reserve board look at banks. are they easing oral tightening

lending standards. and they have softened up the last two quarters and easing credit conditions. that's pretty bullish for capitalists and industrial production, et cetera. so the trends is actually more favorable even whole bonds yields have gone up since july. gary: controvers tow last decemd short-term rates and the yield curve flattened. do you think that will happen again? the stock market had a violent reaction to that. what do you anticipate will happen this time around? >> i think it's priced in. to your point about the fed. everyone is saying this rally is only because of the fed. there is no quit's been a globally coordinated effort

worldwide to keep interest rates low. but the fed right now is telegraphing this, and i think they will go slow with interest rate hikes. this upcoming nuke december is priced in and i feel they will continue to go gradual going forward. what do you buy in this environment? knowing that we have a shot at real funds amountal growth in this economy because of the policies that will help get us there. what sectors does that favor? >> financials. you saw that -- i would describe is as a violent move with fingss. they were firming up ahead of the election. as interest rates go up it will be beneficial to the big center banks and the regional banks as well as they anticipate easier lending and credit and so forth.

gary: you also expect the banks as the yield will make moral money on their deposits. >> i sure do. >> we separate them from banks within financials. we'll separate drirls from integrated oil companies and energy. the last one year, 10 years or 2000220 years. gary: we'll take a quick break and "wall street week" will be right back.

this is your daughter. and she just got this. ooh boy. but, you've got hum. so you can set this. and if she drives like this, you can tell her to drive more like this. because you'll get this. you can even set boundaries for so if she should be here, but instead goes here, here, or here. you'll know. so don't worry, mom. because you put this, in here. hum by verizon. the technology designed to make your car smarter, safer and more connected. put some smarts in your car.

gary: this week president-elect trump chose form wall streeter steve mnuchin as treasury secretary and wilbur ross as the commerce secretary nominee. trish: some in the media have been critical too many people in the trump cabinet are too wealthy.

including this headline from politico. "trump's team of toda of gazillionaires." what's wrong with having a lot of money? >> there isn't anything wrong with it. trish: the media is having a problem with it. you are putting in billion airs. what are we missing? >> i think they are missing that real life experience is better than lifelong politicians. steve mnuchin talked about gdp growth. they have a concrete plan in place. he talked to gdp going to 3 to 4%.

it moves needle a year oh two with earnings and with the entire economy. gary: i argued this week that mnuchin having been a trader on wall street and having run the mortgage operations at golden action, that's positive. he understands how the capital markets work. if we are going to get this kind of growth trish was talking about we'll need the markets to function in a her fluid way than they have in recent years. >> one of the concerns i had when george w. bush was president, some of his treasury picks didn't have wall street experience. but thank god you had hang paulson when the crisis hit. having wall streeters in the treasury area. i know some people don't like that, but you need people are knowledge and experience in markets. otherwise you are doing it

straight out of the academic classes. i'm canadian and i didn't vote for nick in this election. i'm not even allowed to vote in canada. but the concept of having thoughtful people who have been there, seen crises and able to react to them, those are positives. trish: this is the first time you have a real businessman. an entrepreneur in the white house. and you saw what happened this week with carrier and his willingness, his ability to get something done on that front. i know he didn't save every job, but you are talking about saving 800 jobs in indianapolis. that's a big deal for people who are there. gary: we all understand that and most of the viewers who are investors understand that. the people at "vanity fair" don't understand that. don't lose any sleep over the fact that "vanity fair" doesn't

like the fact that there are business people in this administration. if we are going to get economic growth we need people who understand the markets. trish: people mono way it's like to be faced with all that red tape and regulations. gary: we talk about financials, but there will be major areas of the economy where the regulatory hurdles will be taken off. >> lower the regulatory and tax policy, small businesses, one of the two things they are most worried about is taxation and regulation. take the government off their backs, they will be willing to hire and spend money developing their businesses. one of the proposals 100%, first year depreciation off capital investment that won't be subject to losing the deduction for a lower tax rate. that's very -- i call it the exciting for a small business

person saying i can go out and buy this $100,000 piece of equipment, and a construction contractor buying a new machine. there will be some investment increment in capital goods because of that. i think some of the hype around the infrastructure story has taken these jobs too far. gary: you made a big call called the dow 20,000. some people were ridiculing you. how could you make that call. we have 28 days left in the month. are we going to get there? >> i think we'll get there by year end. the point of the call is we are going higher. i made the call for five reasons. tectechnicals, fundamentals, poy and a new administration. sentiment shift in the market. i wasn at the conference in may

and people i respect western very negative. i wanted to jump into lake bellagio. i want to know what others are thinking. a lot of the speak i spoke to wanted nothing to do with this market. trish: now you are scaring me because everybody is suddenly positive. >> sentiment has shifted and the market has gotten ahead of itself. thank you. we are going to take a quick break and we'll be right back. >> announcer: donald trump's treasury pick is telling maria

bartiromo on fox business -- >> there will be a large middle income tax cut that will help this country. >> announcer: can they get it down in the first 100 days of the trump presidency? ♪

(ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore,

yet another innovation, only at a sleepnumber store.

>> we are already sitting down and discussing this with congress. this will be something that happens within the first 90 days of this presidency. we'll have a major tax reform. the biggest tax reform since reagan. it will be a cut in corporate tax and a large middle income tax cut that will help this country. trish: donald trump's nominee for treasury secretary steve mnuchin calling for the largest tax overhaul in the united states since ronald reagan. he said it won't be a net tax cut for the upper income because many deductions will be eliminated. gary: charlie gasparino and megyn mcdowell. charlie, this is good.

they know how to get tax cuts through, and this is good news. charlie: i think one of the best things about president-elect trump is a pro growth agenda. i always said if he got elected he would be greet poteially for the markets because he wants to cut taxes, cut regulations and bring free markets back. the real issue with trump and i think the markets because they are now factoring in the less regulation and tax cuts. he's rationalizing the spending he wants to do on infrastructure which dagen pointed out as bonds spike. rationalize that and his anti-trade record. if he goes and rear negotiates nafta those are things that are not good for the markets. gary: thinking about long-term investors and investing. is this a good thing or bad thing?

>> it's a good thing if these guys, mnuchin and wilbur ross execute in the way the markets are factoring in right now. the markets are factoring in a broad-based tax reform. take the corporate tax rate down. you get money back into this country. however, if they start going down the path of protectionism, trump talking about this past week about consequences. if you try to take jobs out of this country. that could be a problem. also -- business. if you are going to go out and tell me you are going to borrow a trillion dollars. that's horrible for the deficit. they are saying they are not. wilbur ross is saying we can gets to a trade in spending by offering tax breaks. trish: you have the uber capitalists going out and saying

look to these companies, you have got to start doing more to protect these the jobs here. think about it, just like the took an anti-communist like nixon to go into china, it's taking the billionaire entrepreneur to negotiate with these companies. charlie: donald trump has never been a guy that risked capital like an entrepreneur. he use the levers of government throughout his career to obtain -- >> he got somewhere -- charlie: don't think of it as jobs. [all talking at once] gary: a good entrepreneur looks at the system and sees how to take advantage of what the system gives you. reporter: friday the "wall

street journal" editorial page said conservatives be careful about back up donald trump on rhetoric about trade you will rue the day you got behind him. one thing steve mnuchin said. when he talks about no absolute tax cut for the wealthy. and they got on his case and said stop the squeamishness about giving wealthy people tax breaks. gary: you heard joe and tobias that everybody is bullish now. is that something to be worried about? charlie: i think it's good to be bullish now. but for the reasons she points out, dagen pointed out. be wary. the market is spiking not because it's saying we'll have a great economy in the future.

they are saying we may have inflation and huge deficits because you have to rationalize everything donald trump is saying. by the way, long-bond traders are generally smarter. the bond mearkt is always smarter than the stock market so you have to pay attention. reporter: mortgage rates are going up, that will hurt someone who want to refinance or buy a home. some tech stocks have fallen out of bed. so there is no bull market. trish: the stock market thought clinton was going to win. charlie: all those liberal tech companies are scared of trump. i'm scared of donald trump. that may not be real. gary: thanks for joining us.

we'll see you then. no matter how the markets change... at t. rowe price... our disciplined approach remains. global markets may be uncertain... but you can feel confident in our investment experience around the world. call us or your advisor... t. rowe price. invest with confidence.

sydney. john: washington is a swamp because insiders use their clout to rig the system. >> i need a bailout. john: those who want to compete with the actual entrepreneur said they get politicians to ban competition. but even entrepreneurs get handouts. $500 million from the government from tesla and 500 mil