stuart: generous as i am, i'm going to hand over to neil cavuto, and i'm handing him a rally for the ages. it's yours, son. neil: i love it when you call me, son. stuart: you do. neil: we're not that par apart. when you say son, i feel like calling you pops. stuart: do it. neil: all right, pops, thank you very, very, very much. stuart, i don't know what you started here but we have a big ol' rally going on here. if this advance over 21,000 continues, looks like now there is nothing stopping it, it would be tie a record for the quickest 1000 point advance going back to 1999. it was a different environment back then, the middle of the internet boom. this is what they're calling about the trump boom. a lot of it based on optimism he will get what he wants, such is the read from his treasury secretary who i chat ad few

minutes ago. in a second. latest from new york stock exchange, with nicole petallides. a lot of green arrows. what is going on here? >> the dow, s&p, russedow transporttation index all hitting record highs today. there was some talk overnight during trump's speech we didn't see a big spike in futures. after 2:00 a.m. they started to spike, never looked back, in fact gaining momentum. the dow is up 255 points right now. since 20,000 it is up nearly 1000 points. what took us from 20,000 to the 21,000 mark which is about 5%? apple 114 points. goldman sachs, 114 points. biggest gainers since 2000, johnson & johnson. retailers not participating in this rally. they see store closures, less demand, competition. not seeing foot traffic. retailers are not really participating.

other than that, financials, energy, health care, technology, all booming, zooming, whatever you want to call it, neil. we spoke to the traders around the floor, and they talked about the speech last night and they were saying america first. he never went off script. it was strong, he was presidential. perfect, inspiring uplifting, the adjectives were never-ending and the optimism continues here on wall street a a record day and great for the 401(k)s and iras. neil: thanks very much, nicole petallides. as nicole pointed out a troublesome day for retailers. a lot could go back to the idea after border tax, import tax, whatever you want to call it, didn't look likely. it is very much on the table because they would be impacted by that because their customers would bear the burden of that and pay for more goods on the shelves. that may be a quick reaction to something that has yet to come to fruition, but that is out there. reaction to the president of the

united states and his bold agenda. some say so bold and so expensive it really doesn't add up. i took up that issue with the treasury secretary of the united states, steve mnuchin, who says it will add up and it will get done. take a look. after the president's speech, a lot more people seem to be confident, judging from the market reaction that he will get a lot of what he wants done. do you think he will? >> absolutely. i think he is committed to it. i think he is going to deliver on it, and i think you saw last night the excitement in the room. one of the things you just probably couldn't see on tv is feel the energy that what is in that room. it was really quite extraordinary. such addresses i guess, secretary are not meant to spell out a lot of details, some that expressed concern that there were very few if any details. for example, how he would pay for a lot of the things he wants to do, including trillion dollars infrastructure program.

he obviously means that as of this year event, right? >> he does, so i mean, first let me say, this was an address to the american public. i think it was very clear. it was about unification. it was about optimism. it was about the goals that the president wants to accomplish. i think he did an unbelievable job delivering that message. i think you've seen the reaction to that. neil: but this year for the trillion dollars? >> absolutely. neil: where will that economy come from? >> the trillion dollars, it will be a combination after a public and private partnership. it doesn't necessarily mean that it will be trillion dollars off of the government's balance sheet but the president is determined that we will do a infrastructure plan that will be very significant. one of the most significant we've ever seen. and we're going to rebuild america. neil: now, part of that whole address was also still stands by these tax cuts, still stands by boosting military spending by $54 billion a year. one of the means which he would pay for that, secretary, was to cut the state department budget.

that was a nonstarter in lindsey graham's view. it wasn't going to go anywhere. mitch mcconnell, senate republican leader, senate leader saying much the same. what did you think of that instant reaction, that no, not there? >> wl, let me st say the budget process starts with the president and the administration. you but it goss through congressional appropriations process. this is the start of it. the administration will work with congress. i think the president wanted to deliver is loud and clear. he wants to rebuild the military. it is important to do it, and we're going to pay for that by cutting other things and not just by ballooning the deficit. that message is loud and clear. neil: the option for the state department cutting wasn't enough to compensate for that increase, and that option is taken off the table, where else could you go? what else could you -- i know upa was mentioned but even that

would raise a fraction of money you're adding to defense. >> this was just a start. it is a start of the process. i think what is important is the message. the message is, the president wants to spend more money on military, make our military build up competitive, and we're going to pay for that by cutting other areas. like any other discussion or negotiation, you know the president is the best negotiator in the world, we will, we will work through these numbers. so i think what is important is the message. we'll work with congress to figure out how it is funded. neil: the defense thing was curious, sir, because in just two phone calls the president was able to shave significant sums, hundreds of millions of dollars, maybe billions over the years between the air force one contract and a jetfighter contract. so that, that was what he was able to do to trim excess or maybe unnecessary spending in defense, just in a day. so why add 54 billion when maybe

you could multiply that out and extract even more savings? you don't have to increase the budget at all? >> first, not only is the commander-in-chief but he is negotiator in chief. he is proud of in two telephone calls he saved a lot of money. he will continue to do that. this is not just about cutting back the cost. this is about adding additional resources, making investments, getting the military back to where it needs to be, so that it has the proper facilities, to protect the country. neil: is it your since that the tax cuts hinge on getting, first of all the obamacare the affordable care act repealed and ultimately done first? is that unequivocal stance? if that gets into trouble that is another issue but that first, still stand by that? >> first of all we'll get it both done.

the reason why we did obamacare first was, that is the priority right now and we need to time. neil: do you regret the priority way congress is handling it. >> not at all. not at all. in fact -- neil: were you surprised the president said this was enormously complex, much more difficult than he thought. were you? >> no. these are complicated issues and we're working through these complex issues we'll get it done. we're working closely with congress to get it done. i think that obamacare will get done first. and i think tax, we're working very closely with the house and the senate on coming up with a combined plan. we will be coming out with that in the near future, and our objective is to pass tax reform bit august recess. and i think that is a verying aggressive timetable but realistic and something the president and i are very committed to doing. neil: by august, voted done and agreed. >> and signed. neil: retroactive to the

beginning of the year? >> it is too early to tell whether it is retroactive or not. those are types of details we work through as we get to drafting. neil: all right. the reon i go back to obamacare, sir, this feeling, i wouldn't call it a revolt, difference, dramatic difference of opinion we're playing out on the hill between those who like speaker ryan's plan, complete with tax credits, to help people buy insurance and others say that is obamacare light around will be a disaster. there is not much wiggle room, right? two senators, senate obviously, 22 house members, in the house. so, are you worried that this is slipping away? >> not at all. not at all. i mean i think this is only natural in the sense of there is a lot of different, good ideas. and i think one of the things that you see from president trump is, he is willing to listen. he is willing to listen to people who have different ideas. he takes it all in, then he

figures out what he think is the best plan, being open-minded to these views and getting it done. you have seen this in regards to it, we met with lots of different business leaders. he has had manufacturing ceos, he has had airline ceos, he has had auto, he has had small businesses. this is a president willing to listen before he makes decisions. neil: still, as you know, secretary, jamie dimon, jpmorgan chase, pricewaterhousecoopers ceo this morning, expressing concerns about that timetable. both saying it appears increasingly unlikely, at least way they're looking at things, that august time frame, even this year, time frame is not on the tax cuts. any message for that. >> my comment when you come out with very aggressive plan you want to get done, of course you start with the view that it is unlikely. this president is not sitting

around having an agenda that is conservative and likely. this is a president who wants to get things done and wants to get -- neil: the trouble -- >> on a fast timeline. neil: wall street community, still expressing great admiration for you and what you're doing but says i don't know, this year maybe not. >> we'll see. we'll deliver on it. i think it is aggressive but we'll get it done. neil: do you agree on the broad parameters. i talked with kevin brady housewares and means secretary, he said you have broad agreement on some bigger issues, seven rates down to three. cutting corporate from 35%. , maybe you guys want to go lower. is that right? is he right? >> i had many meetings already with chairman brady, with the senate finance committee and

we're working together to come up with a joint plan. this plan is not just the administration plan. neil: but the joint plan to those guidelines and parameters? >> this is plan where we work with the house and senate, very broad agreement across the board what we're trying to do. now we're working on details. and we're working on a process to make sure that we have a plan that everybody's bought into, so when we come out with the full plan, we're going to have the support of congress and we'll have the support of the president to get this signed. neil: is it your wish, secretary , again whatever you come up, signed by august, it is retroactive to january 1, on both corporate and marginal rate basis? >> that is detail too early to determine. what is important here, we want to deliver middle income tax cut, we want to simplify personal taxes, and make business more competitive. our businesses are uncompetitive. they're not on a level playing field. and that's why we have trillions

of dollars of cash sitting offshore. th is y we have jobs being moved out of this country. we are determined to make u.s. business competitive. that is big business and small business. we're listening to what people have to say. we'll incorporate that into the plan. neil: they say to me, some of those businessmen as well, make it retroactive we'll be more competitive more quickly. >> of course if there is a tax cut, people will want it retroactive. again these are all the different things we're trying to price out and we'll figure it out. neil: all right. as you glenned there, markets ticking higher. we have a lot more of that interview to come with the treasury secretary but comes hell or high water he is making it clear that the obama administration will conquer hurdles repealing and replacing obamacare around getting the tax thing done by august. that doesn't mean getting it out of the white house, but into congress and voted on and approved by august.

whether it is retroactive but they will get the thing done. markets are seizing on that and a lot more to come on how this shakes out for virus income groups, including upper income who might not want to party just yet. we go to congressman jeb hensarling of texas, house financial services committee chairman. good to have you. >> thank you. neil: timetable it is aggressive sir, you indicated to me it is aggressive but you can get it done. the treasury secretary indicating you will get it done. markets expecting to get it done, all doable to you? >> no, i do think it is doable, it's a heavy lift, no doubt about it. that is why you haven't had fundamental entitlement reform in a generation. fortunately on the basics, house agrees, senate agrees, clearly clearly along with getting rid of obamacare and moving to affordable, portable patient-centered health care, it is clearly two top priorities of the administration. congress is in concert with

that. so it isn aggressive schedule but it is a doable schedule. neil: when you talk about being a doable schedule gets back to the health care move around try to get it repealed and in place in short order but already we're hearing not everyone in your party is copastetic how to go about that. many are sort of wincing at the prospect of tax credits to pay for insurance, that that, that is a nonstarter to some members of the so-called, conservative caucus and others. is it? >> well, it's a little surprising to me as a former chairman of the republican study committee, conservative caucus in the house, we had plans in the past that incorporated various aspects of tax credits in those plans. i wouldn't want to be the republican standing in the way between the president, the speaker, and the majority leader, much less my constituents in getting rid of obamacare, so we want to get rid

of the mandates. we want to make sure that people can choose their own health care insurance. now we can debate whether we ought to use exemptions or credits, at the end of the day i think we will unify, hopefully in fairly short order to get this done. because we promised the american people we would do it. more importantly the whole system is he collapsing in front of us. we don't have a choice. the co-ops are imploding. the exchanges are imploding. neil: i understand that, chairman, but i guess my confusion is sounds like some of your colleagues might not go along, vote for this thing and we can move forward here and that some of them might not like this -- >> i've been in congress for a number about years. it is rare we see unanimity. but i think the overwhelming majority of republicans end up supporting the package, whatever the legislative package -- neil: you need all of them, right? you need all of them.

you have two in the senate, maybe 22 in house, right? you can't afford too many peeling off, right? >> you can't afford a lot but at the end of the day, there is a moment to be seized here. we don't have a choice. we've had conservative plans in the past that incorporated tax credits to empower people to buy their own health insurance. and i hope and believe we're going to get it done. neil: all right. in the end will there be a package or penalties for those who get company sponsored plans, that they have to kick in more for that? that they're going to be taxed on either a portion or depending how high up -- >> neil, i don't know the answer to it. as chairman of the house financial services committee i'm not writing the health care bill. neil: how would you feel about that? would that bother you on that level because that is a -- >> well, i just want to see what the full package looks like before i make that opinion. i mean there are obviously going to be things i like, things i don't like. but at the end of the day the question you ask yourself, does

it take question you want to go, or take you in a direction you don't want to go? believe it or not even in washington you hope at some point the math has to play a roll in this so the math will have to play a role. i look forward to see what they come out with. i look forward to supporting it. it is a moment we have to seize. neil: you said we have to look at the math part of it. i know you got to go, chairman, because i'm curious about this, the president outlined aggressive agenda including a trillion dollar infrastructure plan. the big plan to boost military by $54 billion. no clear way as of yet to pay for it. i'm wondering if you're worried about that? if you're worried as david stockman was telling me last night this is going to make the debt problem much worse and it could be a big problem? >> well, as you know our previous administration doubled the national debt. my ipad is awash ever reports saying our spending trajectory and national debt are

unsustainable and clearly they are. so, i want to take a look what the president has in mind for infrastructure. i don't know. but i think a lot of people are going to have a lot of trouble in supporting a package that is not, that ex-exacerbates the debt. in national defense, we have republican governance, providing for the common defense is the number one priority for the government. we have more government than we need. we've got government we don't want to pay for. we live in a very troubled, very threatening world and we've got to get our soldiers and sailors, airmen, marines, the equipment they need to do the job. so it is clearly time to increase national defense as, you know, the budget has been decimated under president obama, but again, we can not ex-exacerbate the national debt. one of chairman of former joint chiefs of staff said, the greatest threat our country is

our national debt. i agree with that. i will look very carefully at the numbers. neil: chairman, thank you very much for the time. we appreciate it. >> thank you. neil: jeb hensarling, house financial services committee chairman. by the way as the good congressman speaking, the dow is continuing triple digit advance, well into record territory, well over 20,000 right now. among dow stocks hitting all-time highs, home depot, goldman sachs, jpmorgan chase, travelers, unitedhealth group, 3m, boeing, apple, visa. it is rare where virtually a third of the dow is not only going along for the ride higher but into record territory right now. we'll have more after this.

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lower than td ameritrade, schwab, and e-trade... you realize the smartest investing idea, isn't just what you invest in, but who you invest with. ♪ >> our objective is to pass tax reform by the august recess. that is a very aggressive timetable and realistic, something the president and i are committed to doing.

neil: so by august, voted, done, and agreed? >> and signed. neil: all right, so still doable, august. what do you think, charlie gasparino? >> great interview by the way. i think you pushed him about as hard as you can push him without getting him annoyed and walking off the set on timing. neil: does seem like, this is a real aggressive timetable. everything has to fall into place. >> he kind of punted. he said this is very aggressive but we're going to try. neil: right. >> i thought that was interesting. the retroactive aspect of taxes is interesting. he won't commit to it. neil: kevin brady when asked about this, if you push it well past july, the odds diminish making it retroactive. so that would mean probably not. >> okay. here's what i would say. neil: but who knows. >> yesterday was, last night was an amazing night for this president. he did things that the market likes, which is show that he is presidential and tweet and say crazy stuff but he can also -- neil: what was his tweet?

this morning -- >> thank you. neil: that's it. >> that was a great tweet. showed he is presidential and markets loved that. so when markets start seeing presidential, he's, he's got it together, he has a plan in place, they think he will do the right thing going forward. neil: that is interesting that you, i agree with that observation. >> right. neil: that it isn't so much the particulars of what he said but how he said it, how calm he said it. and not going off, you know half-cocked here. >> agreed. neil: that is something that he was very presidential. >> it was lineal, right? it moved from one topic to another to another. it seemed like, he had a narrative. he made sense. here's where the rubber has to meet the road at some point. we have you dow 21,000 now. okay, great day in the market. i'm glad i bought stocks when donald trump got elected because i knew free-market capitalism ulmately would work, he is espousing free-market capitalism. neil: by your to your credit you

were saying along with maria bartiromo in middle of selloff on election night. remember futures were tanking. you were not of the opinion that was representative of what really should be happening. >> i never thought donald trump was going to win, but two things i thought, if he did win and republican congress, there would be some selloff but i would be a buyer on the selloff because you have to buy free-market capitalism. now here is the second part of the equation which is more difficult. you have to put free-market capitalism into place. fiscal polly has to be put into place. dow believes there is a corporate tax cut and taxes. neil: do they not care about the trillion dollar stimulus if i'm not minimizing that because that is a lot of money for infrastructure. normally they worry about spending like crazy. normally they worry about deficits at least in the near term could get worse. not so now. >> not so now. people are buying our treasury bonds.

they're banking america being a world class economic power. neil: that is not diminished? >> we have to see where details are. that is where it gets crazy. is it a trillion of infrastructure? neil: by the way that was supposed to be public/private thing. i don't know how the breakdown will go. >> if it is mostly repatriation for money, that could be positive for the markets. i have to tell you, neil, the fiscal policy has to at some point equate dow 21,000 in terms of taxes, spending and regulation cut. and at some point the market is going to demand that. now last night was a great night because the market said we have a stable, smart guy you know may say something every now and then something crazy, but he can play the role as president. neil: a lot of prominent democrats guess were expecting the worst and curse out people in the well of the house. >> talking about fake news or sothing crazy. neil: he didn't do any of that

he caught them off-guard. now whether this continues, but even those who hate the guy, begrudgingly gave him respect and obviously the market responds to respect for that but how long do you think it lasts? it always go back to the details, right? >> the details have to come out. right now the market believes, rightly so, donald trump, president trump is stable man and serious about the job. not just a guy that will rail about fake news 24 hours a day. neil: i think he is growing in it you know what i mean? >> correct. neil: you came to tell vest from print. >> remember i never shaved and showered. neil: we accept the good with the bad. >> yeah. neil: it takes someone a while to grow into -- >> this is a serious job. neil: your job or the president's? >> both. [laughter]. that is a good point. i think it was his more than mine but it's a serious job but sometimes, at some point the rub are will have to meet the road,

neil, mr. mnuchin will have to live up to all the stuff he punted about. he punted on a number of things with you. neil: most certainly did. >> see the devils in the details. point out jamie dimon was saying last night, ceo of jpmorgan chase, smart guy, not a trump hater by any stretch of the imagination but not a trump love iruphill climb. >> market is overbought then. neil: if it is pushed off. thank you very much, charlie gasparino. he is the best. love him. in the meantime, charlie got into this a little bit, we have a lot more of that interview with steve mnuchin, including the upper income. so if you are in charlie gasparino's rarefied world of the top 10 or top 1%, i have got some potentially disturb tooing news for you. that big ol' tax cut you're looking forward to, not so much. afr this. as soon i left the hoital after a dvt blood clot,

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neil: their top rate will go from roughly 40% now to 33%. and yet the argument out of the administration has been, the upper income will have kind of like a wash. it will be offset by limiting deductions, et cetera, they won't see a big tax cut. it confuse ad lot of folks. say it confused me. it didn't add up, because i

raised that issue with treasury secretary steve mnuchin a short time ago. i want to get a clarification. upper income tax cut. you have referred in prior interviews that taking the top rate from roughly close to 40%, more than that, if you add obamacare surtaxes down to 33%, that the rich still will still see that offset by limits in their deductions and writeoffs so they don't net-net really see a tax cut. is that right? do you still stand by that? >> well, let me first say that obamacare and the obamacare surcharges are going to be dealt with as part of the obamacare legislation and not tax legislation of the as part of tax legislation, okay, our main objective is a middle income tax cut on the personal side. and our objective is if we lower top rates we will offset that with reduced reductions. neil: all right. but even if you take away those

deductions, it is still a big tax cut for the upper income. are there other things you would do or phaseout to compensate for that? because we've crunched numbers where take all of those deductions, charity deduction, take mortgage deduction away, they still come out way ahead. so what, what calculation has you saying that net-net they wouldn't see a tax cut? it would be simpler, cleaner, but it wouldn't be a net tax cut? >> let me first clarify. we're not taking away the charitable deduction and we're leaving mortgage interest deduction as is. neil: for upper income as well? >> absolutely. we think those are both very, very important. what we are going to do we're looking at other things where the reduction in deductions will offset the rate. you will see, when we come out with the plan -- neil: seven percentages points to adjust. >> you see when we come out with the plan. it is a bit preliminary to talk

about these results. when you see the plan, people will judge the plan and will look at the entire plan. it will stand on its own. again we'll see if it fits the objectives. the objectives are very clear. middle income tax cut. simplified taxes. make business more competitive. that's what we want to have the plan judged on. when we come out with the final plan, people will look at the distribution and everything else and we'll see if it fits the objectives. i think it will. neil: so when you talk to your old, wall street friends, your hollywood friends, many in that upper, upper echelon, who are expecting a tax cut but might not see one, how do you break it to them, or do you break it to them? you're going to get a simpler tax rate, you won't need as many accountant but you're not getting a tax cut? are they not getting a tax cut? >> again, i haven't spoken to any of them who expect they're getting a tax cut. neil: virtually everyoneer i

talk to -- 1%er, expect as tax cut. >> you're speaking to different people. neil: they know i'm not going to get a tax cut? they're okay with that? >> again when we come out with the plan, there will be a tax cut on an absolute basis. we are looking. neil: for everybody? >> yes. neil: not for upper income? >> on absolute basis. when we come out with the plan, there will be distribution tables and we'll show what this is intended to do and how it fits in. neil: i don't want want to belar the point and you've been very patient. if you're not taking mortgage deduction for anyone or charitable deductions readjust the percentage you can do there, i'm wondering where else you could compensate for a cut of such magnitude on the upper end? >> i promise you when we come out on the plan, i'm happy to come back on your show, we can talk about the details. okay? we haven't released the details. and these are the types of

people in're working on. the tax department in this building, that are crunching numbers 24/7, okay? working on these things. so these are all the details we're looking at. neil: you will flesh them all out? >> absolutely. neil: whether that means the well to do will have to settle with simpler but not a net aggregate tax cut. that remains to be seen. the treasury secretary making it clear that just could be the case. again we don't have the details. therein lies maybe the devil. meantime a little later on we'll get to his push to address the debt at the same time he is addressing all that spending and tax cutting, is that doable? other presidents promised similar things of different magnitudes of course. it has worked for some. it has not worked for others. historical perspective on all of that with doris kearns goodwin after this.

neil: all right, how about having a market like this with wind at your back with a big, big offering coming tomorrow. snapchat expecting to go public. launching 200 million shares, it could be, an doesn't cheryl casone know it. they will give details after the close of the market today, right, cheryl? reporter: they will, neil. what is interesting about this, we heard this overnight from our partners at "the wall street journal," that the pricing went up overnight. we thought the range was 14 to 16 per share. now we're looking 17 to 18 a share. this is based in venice, california, somewhat gritty part of l.a., $25 billion. this is becoming anti-facebook. mark zuckerberg at facebook up in silicon valley. in venice beach, there are no snapchat signs. buildings are anonymous. walking around with i.d.s. 1800 employees will be wealthy tomorrow.

all this unevan spiegel. a little bit about this founder of snapchat. he is 26 years old. he didn't want to have a traditional technology company. this is new age in his opinion. not a lot of communication. there is criticism after the ipo he will have too much control because frankly, neil, we've never seen this in an ipo, he will have total control. anybody that buys shares in snapchat tomorrow will not have ting power. folks in venice not really happy about snapchat. there is actually a protest planned for later this afternoon. we'll be covering it. honestly, neil, one of the things about snapchat they're trying to change who they are. they don't to be an app where the pictures disappear. they used to be famous for inrat pictures exchanged between teenagers. they want to be a camera company. came out in fall of 2016. glasses with a little camera. we heard via reports that they will be moving into drone technology. so drones with cameras that i guess you can snap off of.

you know, neil, i will send it back to you with this thought, is this all worth $25 billion, buying into a company when you don't have any voting power, yet wall street, up in arms. can't wait. it is going to be a huge event whether that stock prices tonight and starts trading tomorrow morning on the new york stock exchange. you wouldn't know it from the excitement here in venice but it is all happening a block away from me right now. neil: all right. i have no doubt, cheryl casone, thank you very much. to cheryl's point, one of the things they're trying to avoid after facebook after it launched, so many insiders sold the stock. they hope to control that by controlling a quarter of the float or offering preventing from those owning stock from selling it upwards a year. they would be locked into it for a year. for those working at the company, they need the money right away, some are getting loans based on value of their stock. but the rule would apply.

they can't sell the stock, to avoid what, typically happens with an ipo soon after its launch, when it tumbles, that was the big problem with facebook they hope to avoid that. so that i think they have taken all the precautions to avoid a debacle at the opening. but again, when this thing keeps getting ratcheted up in price and get as valuation north of $25 billion, even a stock soaring, technology stocks are soaring that is a lot of cool things going at same time, you don't need the company's spectacles to say, this looks a little heady. we'll have more after this.

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neil: very presidential. the market view, very impressive. sort of summation of president trump and his performance before

a joint session of congress. it was important for him to make a powerful statement. my next guest knows how important that is to any inming president. gosh knows she has written about a number of them. i was going through all her incredible best-sellers, team of rivals, bully pulpit on theodore roosevelt, no ordinary time looking at the roosevelts. lyndon johnson and fitzgerald, carters. doris, good to have you. thank you for coming. >> welcome, welcome. neil: what did you make of, that was collective read i was giving from the market world, from those who anticipate this is the kind of trump they want to see, kind of president they wants to see, they like more measure approach, one liberal blog said they even liked his choice of ties. what do you make of that? or were, and i had, democrat tell me this last night, kind of thing, well, our expectations

were so low, he beat them. now i resented that because i built a career on that, but what did you think of that? that he was presidential? >> no, i think that if the tone and if the words and if the measured, more inclusive language becomes a dominant tone for him in the way president trump addresses the congress and country from here on, then we will have seen something that history will record perhaps as change from somewhat discordant voices and different tweets we've had and coarse dialogue of the campaign. the real question will be is that voice one that becomes dominant, the tweets stop and or they become less and he only tweets when he is happy, rather than when he is mad. then can this be translated into action. historians remember those first addresses by congress, to congress from presidents when they do something, like for example, lyndon johnson went incredibly before the congress

on joint session, said no memorial would mat more for jfk than was passage of civil rights bill. he risked his whole presidency on passage of the bill which is produced. why. fk calls for man on the moon it happens. ronald reagan calls for tax cut after his assassination, assassination attempt in emotional speech and he gets it from the congress. we'll look whether priorities president trump set out last night will move congress. especially infrastructure plan and there was so much motion. some say not now, 2018. that is where presidents have to play. neil: presidents become crossover presidents that go across from their base. john kennedy reached out to republicans to get a tax cut that came to fruition after his death. this president seemed to go beyond his republican base, that he might be taking for granted because they're not all on the

same page repealing and replacing obamacare. having said that, there were clear overtures to democrats. did they connect? i still saw a lot sitting on their hands and not clapping. what do you make of that. >> well i think there is no question when he talked about jobs, when he talked about poverty, when he talked about the importance of making a whole class ever people feel like they have dignity and a chance to make knit america, those are crossover themes and that's what helped to win him the election. and again that is why i think he will have to figure out the priorities he wants to strengthen the military budget. he wants to have this huge infrastructure thing. he wants this big wall in mexico. and he wants a tax cut. and a lot of republicans are going to worry about what happens to the deficit and order of doing those things will matter. the interesting thing, lbj first got the tax cut about he got the civil rights bill and before he got the great society, because he knew he needed to get the economy going again.

if that gets the economy going and pie is bigger than you can do the bigger things. the priority is what he has to think about the the next weeks ahead. neil: you're looking at wall street reaction. stocks racing ahead of my interview with the treasury secretary. he is confident this will roll out. i'm not trying to be a crepe hanger for him or be a denier but everything has to fall exactly into place to go to the administration's fruition here. i'm not so sure about but markets are buying now and presumably ask questions later. do you see problems with this, in that, the further it potentially could get pushed back, there might be some disappointment here? what do you think? >> you make promises to your constituents and he made promises and you have to worry about overpromising. if your constituents feel like you went in one direction, with

the tax cut, which many republicans might be happy with as well, what happened to the infrastructure? that brings us jobs and dignity, a sense of family moving forward. those are will have to be difficult choices that he has to make. it is interesting when he talked about lincoln, he talked about lincoln in terms of tariff protection, but he could have used lincoln, lincoln was huge infrastructure guy, huge as mr. trump would say. he ran for first time at office 23 years old, promising what he called internal improvements. he used it as economic opportunity. we need rivers and bridges and markets so poor people can get their stuff to market so community could rise up toking bib cities. he could use lincoln in that way. he could use lincoln by understanding you don't have to talk all the time. lincoln hardly ever spoke extemporaneously. he would make a major speech like mr. trump did last night. he would stop and come back make another one.

then make a public lecture. he was afraid to say something that he could be taken wrong. there are a lot of lessons to be learned from lincoln, not just tariffs. neil: i hear you on that. when you mentioned abraham lincoln, i was thinking of you, i know i'm wandering a little off message, all presidents you could talk about fake news or press or all presidents are obsessed how they're portrayed with the press. john kennedy had a wonderful relationship with the press, but always complaining about it, mostly privately. >> right. neil: i was intrigued to learn abraham lincoln in his day. he would try to court editors, reporters, promised them positions anything he could do to curry tear favor. but he easily annoyed and sometimes furious. not unique to donald trump. he makes it more vocal, i guess? >> that is key what you said. a lot of presidents privately complained about the press. they want to be portrayed the

way they want to be portrayed. that is the nature of politician. teddy roosevelt was criticized having written a memoir by a great journalist, that he put himself in the center of every battle and every action in the spanish-american war. he should have called the book alone in cuba. it w put-down with teddy. instead of getting mad, my wife and my children loved your review of my book. i rye get to tell you. i want to meet you. come see me next time in washington. that is the way you handle it. you realize they can be a pain in the neck. free society like ours absolutely depends on a free press. that is the way way. not take it personally. no they will be mad at you that you need a relationship. neil: i'm so thin-skinned i would never be able to do that. doris kerns goodwin. thank you very much. thanks for being here. >> you too, neil. >> we, it begins now, we think we will have tremendous success.

thank you very much. neil: we just broke to that that the president is meeting with republican leaders on the hill to get this agenda through, an agenda espoused by no less than his treasury secretary, convinced everything will go through, including tax cut, repealing replacing obamacare. everything. markets love it. the future of business in new york state is already in motion. companies across the state are growing the economy, with the help of the lowest taxes in decades, a talented workforce, and world-class innovations. like in plattsburgh, where the most advanced transportation is already en route. and in corning, where the future is materializing. let us help grow your company's tomorrow - today at esd.ny.gov

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. neil: all right. stocks still racing ahead on indications right now, a lot of this this very hour by these clips we've been showing you with the treasury secretary steve mnuchin how to go about getting everything the administration wants to get done, which could be up to a trillion-dollar of package, multi-trillion-dollar tax cut across the board that it's going to get done. the wall street buying and maybe asking questions or getting into the details later. but there's no doubt that at the very least this is going to calm down the near term deficit worries and. i brought up with the treasury

secretary who says he is not at all wary. take a look. >> let's switch gears a little bit and talk about how the president will address the bigger russia of our debt. he talked about essentially it doubled under barack obama, you've mentioned it yourself. but does there seem to be anything grand or sweeping that will at least get us on a path to getting under control? ronald reagan's former budget director was with me yesterday, and he was saying what worries me about the trump plan is that he doesn't have one for debt. that we're facing a debt crisis. he says it's going to blow up this summer. what do you think? >> well, i don't think that's at all reasonable. first of all, nothing's going to blow up this summer. okay? there are obviously longer term issues on the debt and the president has talked about this. he's talked about the size of

the debt and how it's doubled under the last administration, under obama. and this is something he's very concerned about. the number one thing that the president and i are focused on is economic growth. we need to create sustainable economic growth in this country, and that means we need to get back to 3% or higher gdp. we can only grow our way out of this situation. neil: can you grow your way out of $20 trillion of debt? >> well, you can't grow your way from 20 down to zero. but, again, if you look at the last time we paid down the debt under clinton, they were surprised when they were running the surpluses because, again, the compounding impact of growth leads to a lot of revenues. neil: we had an internet boom. you're right. growth was -- >> all i'm saying is the first issue we need to start with are economic policies that create growth. and the president is committed that regulatory relief, tax relief, getting rid of

obamacare. these are the types of things that are going to start us back on economic -- neil: but not entitlements. you wouldn't at this stage be looking at social security or medicare. >> as i said before, we are not looking at that now. that is not part of the agend a. neil: you said now. does that mean next year? >> and, again, i'm not going to comment on what happens in the future one way or another. we're focused on what we're doing now and that's not part of the plan. the plan is to create economic growth. that's the focus. and we're going to get this done. this is a president who has an agenda and knows how to get things done. neil: but how do you get it done, secretary, when 70% of this budget is sort of locked in to these programs? some don't even like calling entitlements because a lot of people pay in and say i don't look at this as a gift. having said that, if you don't touch it or it grows on its own, exponential it gets bigger and bigger and bigger

and the debt would get bigger and bigger, you would have to eventually address it; right? >> well, we need to deal with the things that we can control. and what we can control are the parts of the government that we can control spending. and that means we're going to increase military spending and if you understand it with areas of the government we can cut back. that's the number one thing. the number two theme is we are going to create economic growth. that's what creates revenues, that's what creates opportunities, that's what creates job. that's what creates american profits that can fund infrastructure and other programs. and that's what we're focused on. the agenda forhe next si months is -- change to obamacare that repeal and replace it, focus on tax reform, eliminate regulations. soprano signed an executive order, which i'm busy working on in the treasury. we've got a big team of people working on this. we're looking at regulation. we're going out to every single part.

all the regulators. we're go out to people externally. we're going out to banks. i think you've heard me talk about before we need to make sure that community banks can thrive, that we can have community banks and regional banks, and they're not struggled by regulation. that we have tons and tons of liquidity sitting on banks balance sheets that needs to be put to work to make loans to create opportunities and drive american business. so we've got a big agenda here. there's lots of work going on, and we're going to create growth. neil: you know, secretary, obviously the markets, i think you will achieve this. and they've had an anonymous run-up. almost $3 trillion since the president's election. many say the price for protection that they're factoring in everything goes exactly right. i know you don't look day by day or market movements but does the advance ever give you pause or make you think, you

know, wait a minute. this is still a big task here. >> well, you know, i've been involved in the financial markets for over 30 years and there's two things i'm 100% convinced of. markets are not efficient, and you can never predict these things day to day. what's important here is that the market is showing you that people believe nonprofit's agenda. and that's what's important. and whether the market goes up or down in any given day or in any given week has given up following that. neil: do you think of that run-up? 13% plus run-up just since november, nearly 4% run-up in the month of february. what do you think of that? >> i think it's a huge vote of confidence in this president. i think you couldn't see a stronger indicator of people liking the president's economic policies, the president's political policies, and a vote of

confidence nonprofit. neil: interest rates have been remarkably holding steady. surprised they haven't risen more. there's a split interpretation of that, secretary, that says, well, maybe the bond market isn't convinced that the stock market's right. that the growth might be there, but it might be tame, big interest rate increases might not pan out and that it won't change the kind of sluggish recovery we've been seeing. what do you make of that? >> well, as you know there's a tradition of said independence, and i'm going to respect that. i will tell you i had a terrific meeting with janet yellen yesterday. i look forward to working with her. there's a tradition that we get together every week. we spoke to over an hour yesterday. we covered a lot of topics. we got a lot of work to do together. i left the meeting being incredibly comfortable and how we can work together.

and what she is doing over at the fed. and i look forward to continuing those conversations with her. . neil: all right. she can control short-term interest rates and obviously markets take cues from her. but on interest rates in general and what they've been doing, does any of that surprise you that rates have been relatively stable? what do you make of that? >> well, again, you know, i look at markets longer term. i don't look at markets day to day and, again, out of respect to the fed, i'm not going to make any comments on short-term interest rates. neil: fair enough. when young people come up to you, sir, and look at these markets and get excited about what they're calling the trump rally, and they say, you know, secretary, i want to get into this market. i want to buy into this at these levels. what would you tell them? >> on this issue, i would agree with warren buffett and buffett says, look, you should

invest for the long-term. again, if you're investing for five, ten, 20 years, i think there's no better investment than the u.s. stock market. and, you know, what i think you've seen is people -- this is one of the things we need to make sure that in the treasury we can work with other areas. i'm making sure that people are educated about long-term investment opportunities. how to protect their savings. how to invest their savings comfortably. and this is a big issue. but i think you've seen over a long-term period of time, there's no better place for people to invest than the u.s. economy and in u.s. stocks. neil: finally, sir, there's been a great deal of attention paid to your wealth coming into this job. you're one of the richest treasury secretaries this country has ever had, and that's a pretty elite group. but it's also a group that includes a number of goldman sachs representatives, yourself included. i was notifying walking down

the hall there's a pink of hank and bob reuben who had your job. do you feel given that background and especially if you're the likes of elizabeth warren criticize the role of the bankers and goldman sachs types in this administration to be extra careful about that association? how do you feel about that? >> let me first say there's no greater honor for me than being in this job. being the 77 treasury secretary in my office, i have the picture of alexander hamilton. he looks down on me every day as he has on the other treasury secretaries. there's an incredible history in this building. and when you walk down the halls, and you see the portraits of all of these people, you realize the history of the united states, and you realize that the treasury has such an important function. many of which is nonpolitical.

many of which is operating the u.s. government and focusing on the economy and focusing on growth and opportunities. and i'm honored to follow a great tradition not only goldman sachs people. i worked very closely with secretary. it's an honor to follow him and bob reuben. but other incredible individuals who have conserved in this role. and i've been a regional banker for the last nine years, and i think that experience and being a regional banker in having met with hundreds and hundreds of businesses, small, medium-sized businesses and understanding what they need to drive their business in this economy. and having travel the last year with the president throughout this country, i've heard from the american public and that's what i'm committed to doing in this job and working with the president to grow this economy. .

neil: secretary steve mnuchin, thank you very, very much. >> thank you. neil: all right. steve mnuchin, the secretary treasury, they have little portraits of the treasury secretary. which begs the question down the road get a broadway show in his honor? you never know. you never ever know. i think when they first hung hamilton's portrait the odds of that seem very small indeed. politico senior washington correspondent and i were chatting briefly this notion that the markets are convinced now that all this will happen. and i'm not one to rain on a parade. but everything has to fall in place just exactly to make it happen. and there are a couple of big speed bumps along the way, not the least of which is everyone on the same page with repealing and replacing obamacare; right? >> yeah. i think i get it; right? everyone's been watching the last 40 days, trump's been veering left, a little right, no one kind of knows what he's doing.

made everybody feel a little bit better about things. but he didn't really put a lot of meat on the bones in terms of what does repealing obamacare mean? what does replacing it mean? . neil: would you do that in a joint session? or that it should be known by now? >> it should be known by now. we're 40 days into his administration, typically that roadmap has already been laid out, and i think part of the reason is -- and i saw speaker john boehner say last week that he doesn't think it's going to happen. there's never going to be an actual repeal of obamacare because -- and republicans have had -- neil: he's like the guy at the bar screaming. it's, like, no, it's not going to happen. was he just saying that that's the history, the frustration of, you know, big goals that are never met? because it seems to this president they're going to be met. >> i think it's much more complicated when you get under that dome particularly for speaker paul ryan in terms of his right flank, there's already been up in arms this past week over the plan to have him and senate majority

leader mitch mcconnell saying we're going to pass this on a party-line vote. you have the right and ted cruz and others say this is not the way it's going to be. neil: what is their beef here? they don't want this voice to come out of the house, dropped on their lap, this is the plan yes or no on it. so only a slightly less monstrous federal government debacle; right? and they don't like it. >> well, i think part of it is they have been, particularly ted cruz trying to shut down the government, this has been something they're fighting against for several years. they don't think it goes far enough, you know? and right now you're certainly not seeing democrats wanting to help out republicans on anything, particularly not on obamacare. neil: last night i noticed a lot of the democrats not applauding, not standing up. still a tense environment. >> yes. i think particle when you have donald trump, the president really going after calling nancy pelosi incompetent, going after chuck

schumer several times the last few weeks. neil: well, they've had nasty things about him. >> there wasn't a joe wilson moment, a you lie moment, which could have been very interesting change. i think everybody in the pres -- neil: i was reading that gave him high remarks for that in his decorum and how he handled that. do you think that's sustainabl >> knowing donald trump, it's hard to gauge that. anyone who looked at the crystal ball has been wrong. i think it's hard to see the next four years play out in a very stately manner reading off of the teleprompter. i think one of the things that will be very interesting to see is what does his base do after the speech? it plays very well in dc, new york, california, made a lot of people feel a lot better about things but what does that mean for the rough spell, you know, supporter who said i want a different kind of president? i don't want a pc president. neil: so there's a difference between acting presidential

and that jacksonian-type character that a lot of people want; right? i mean how does he meld that? >> i think that's a big question for his advisers, in particular. for his white house. do they use this as a reset moment? . neil: who was behind this speech? >> i would say there's a lot of people trying to figure that out exactly who was behind it. it sounded very different, as we were talking before. we got on camera than the steven miller, steven bannon speech at the inauguration. and so i think this is more of -- this was played for the audience, which is the establishment, you know, kind of the people that are going to try to do the business and for him to try to get things done. neil: so why is priebus saying he had a hand. >> i think it's people like him that have been old hands in washington for a long time. neil: all right. interesting. thank you. fun read. makes it interesting. this is still interesting. the dow is way, way up but it is off its highs after anna.

thank you, anna. we have a lot of people checking in and e-mailing wanting to know exactly what it was the secretary treasury had to say. especially a lot of these 1%ers saying did he say i'm not getting a tax cut? yeah, he did. he did. so i'll try to soothe sean hannity after this. just like the people

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. neil: even if you take away those deductions, it is still a big tax cut for the upper income. are there other things you would do or phase out to compensate for that? >> well, let me first clarify. we are not taking away the charitable deduction, and we are leaving the mortgage

interest deduction as it is. neil: for the upper income. >> absolutely. we think those are both very, very important. . neil: all right. that was a pivotapoinhere because what the treasury secretary is saying is that he is going to be bringing the top right down from roughly 40% now, a little more than that, and you include surcharges for obamacare down to 33% and yet the rich will still have a wash on this. will be getting no new net tax cut per se because some other deductions will be offset. but, again, the two most popular. the mortgage deduction, the charitable deduction, he won't be touching those for anybody. so then begs the question, well, where will that offset come from? the numbers don't seem to be there, but i could be missing something, and he could be holding back on something. that, i don't know. but welcome back, everybody. i'm neil cavuto joined by my friend, a bipartisan effort to try to solution our massive government problems, with just a little bit of common sense. dave, good to see you.

is it doable what he's saying on just, first of all, on the upper income? that it will be a wash for them, even with that big of drop. >> well, the question is are they going to limit how much deductions you can get? but you have to keep in mind if most of the upper income people are making their money through wages, et cetera, then there are a limit on their deductions. they're subject to the alternative tax and the only way to get for sure is interest on primary mortgage and charitable contribution. neil: neither which are touching. >> right. exactly right. so the fact of the matter is unless you do something with regard to investment income. all right? then it's hard to see how it's going to be neutral. neil: and all those taxes are supposed to be cut. >> well, i understand. although, he is talking about taxing carried interest at the same rate as ordinary income. all right? neil: closes that gap. and you're the one with the first -- and he was talking about getting growth going, to an average of 3% or higher.

but can you grow your way out of the 20-trillion-dollar debt? >> the answer is "no." the fact of the matter is what he focusing on last night, and i thought he had an excellent speech was pro growth policies. he talked about what do we need to get the economy going? we need an infrastructure plan. he talked about energy security, which is important. but he didn't talk about what are we going to do to make sure that debt as a percentage gdp starts going down, rather than going up. and what are we going to do to ensure the solvency sustainability of social security, medicare over time. neil: that's not even touched in this first go around. >> not even touched. and i'm hoping what's going to happen is the following. i'm hoping he's going to focus on the pro growth issues first and then pivot and recognize you can't allow 70% of the budget to be on autopilot. you must end up addressing some of these other issues and even in the pentagon. look, we need more money for the so-called readiness and things of that nature. there's huge waste in the defense department. we need a dramatic streamlining and restructuring

of the defense department way too much overhead. way too much tail. neil: touched on entitlements or whatever you want to call them. he can't put this off the next year; right? because that would be a midterm election year, and it would be almost an immediate downer for republicans. >> could be the year after that. neil: okay. >> i mean, i don't know for sure but it's clear to me that ends we've got to get the economy growing in order to generate jobs. that will end up generating more income. but there's a new four-letter word in politics. it's called math. all right? and the fact is will it help? yes. will we get more growth out of some of these things we're talking about? yes. but you can't grow yourself out of this problem. adequate is when are they going to be made? . neil: not immediately, apparently. david walker, thank you so much. keeping an eye on that. also keeping an eye on how the meeting is going how the president is doing with republican leaders to get this agenda through a fast so

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. neil: all right. closely to the white house connell mcshane update on that powwow that congress is having with republican leaders what the treasury secretary was telling us. how is that going? >> well, a number of republicans is interesting not democrats having lunch with the president today, neil and we didn't hear much from them after they came out. but many did travel from here in capitol hill to at least listen to the sale pitch from the president, the vice president, and what seems to be going well, you know, on wall street today and certainly into your with treasury secretary steve mnuchin coupled with the president last night seemed to be with the president's agenda. if you go through the items

one by one obamacare, for example, where the president talked last night about repealing and replacing the $1 trillion infrastructure spending, tax reform, which is very popular on wall street. secretary mnuchin talking about all those in your interview and talking about by august getting the interest bill through as a public private partnership. and there seems to be on capitol hill whether it's the border wall or broader immigration reform with the indication at least before the speech yesterday with the president that he might be open to some sort of compromise there. and the last item that i would point out is paid family leave. theoretically another area like infrastructure spending where the president might have some room to work with the democrats. now, so he moves from that lunch onto a plan later in the week to sell this -- these points he made in the speech last night to the public. but listen first to the vice president mike pence this morning on fox and friends telling us maybe how all of this gets through the congress.

here he is. >> we all now have our marching orders. members of congress know where the president wants to go with the principles of accomplishing that are the priorities of security, prosperity, repealing and replacing obamacare, and now congress is going to get to work. >> so there's plenty of time for negotiation up here and that obviously will begin and to some extent already has. but for the rest of the week, the president goes on the road to further make his case to the people. tomorrow when he's in virginia, newport beach, that's military spending. he will make the case there. and the day after orlando he'll be visiting a catholic school and, again, makes it there. so take it to the people, it rises in popularity as the theory goes, and makes the selling easier here on capitol hill. i think it's easier, though, neil, we spent so much of our time back in new york how well the sales pitch seems to be going there on wall street; right? neil: to put it mildly. i have no doubt that he will

succeed in getting all of this done. thank you very much, connell mcshane. still keeping a look on that charging dow. not only is it hitting record territory but more than a third of the stocks are including home depot, jp morgan, goldman sachs, 3m, that rarely happens. it's one thing for the average itself to be in a record territory and such a quick jump from 1,000 point level to the next one. about 24 days, tying a record that goes back to 1999. but to see so many dow stocks not only going along for the ride but going along for the records. that's like a weird kind of confluence of events. a good confluence of events but noteworthy. more after this.

. neil: all right. what we've got going on, i'm told everything else that's happening in record territory, my production team, which sometimes makes me wondering if they're on crack, but listen to this. the fact that a third of the dow stocks are in record territory themselves, that's unusual in the dow is a record of course and this jump from 1,000 point level we just did this 24 trading days ago. that ties a record that goes back to 1999. if it holds. but what were you telling me, ralph? this is the first 1% -- first 1% move since december 7th.

okay. thank you, ralph for that update. if we get any more, that's very important, ralph. thank you. i did not know that. so it's very good to have. they're very smart there. very good team. but most of them -- now he's added something that i find significant that my interview with the treasury secretary probably produced this. now, that's the kind of stuff that i like to hear, but he buried the lead there. but thank you, ralph. and let's look at this here. i want to go to kentucky blackwell, former trump transition team member and, you know, you almost tegraphed a loof this the last we spoke. don't lock into an impression of the president right away, good or bad. there's a whole way we carry ourselves in any job that we didn't do or didn't have before. so my question to you is is this the president trump we're going to see? >> oh, i think so. he is not only an entrepreneur, he is a smart

guy in terms of being politically savvy. i think he noticed not only the stock market's reaction to his performance and his leadership exhibited last night, but you could see it in members of congress who basically say he's got his footing. he's moving us in the right direction. so i don't think that's the last time you will see that sort of -- neil: that's interesting, though. you see the positive response, good media reviews it could explain is very simple this morning all caps thank you. >> absolutely. so i don't think it's the last time you'll see his john wayne swagger and his clint eastwood stair. neil: i kind of like it when he -- [laughter] but, in other words, do you think -- i'm kidding there. just relax. do you think that will be effective in getting legislation? he has an uphill enough climb with democrats, but he has a tough climb with republicans. i mean, did this move the needle on the things that

steve mnuchin spelled out with me? >> and i told you this before, neil. he doesn't see things through an ideological lens. in transaction -- neil: infrastructure spending and tax cuts. yeah. >> hhe is a negotiator. and i think what he's going to do is see there's building public support for us to be growing again, produce jobs again, having rational borders, having the immigration policy that's not only talking about, you know, being welcoming but also talking about an immigration policy that has american workers in mind. you know? and so how we do immigration is going to be smart because it's going to be in the interest of the nation. he knows that we have a birth rate problem, challenge to keep us on a growth spurt. but that doesn't mean that we

have to let anybody in, regardless of the harm that they would do, people who are already here. neil: what did you saying is they'll be j lined and nothing intimidates like success; right? >> absolutely. neil: if you've got some successes behind you, let's say you have a tax cut behind you, infrastructure behind you, how you pay for it, et cetera, i'm not minimizing that aspect. then that can strengthen not only his poll numbering but his persona, and he looks bigger than life; right? >> oh, absolutely. and he knows that nothing -- neil: ronald reagan. >> that's right. he knows that nothing breeds success like success. neil: right. >> so i think he'll take an increment early. we initially were going to come out with shock and awe. throw everybody off. but we wanted to make sure we weren't the ones shocked. he has a machine gun shock. neil: yeah, real quick.

anna palmer was here from politico. but she was saying there may be different forces behind the scenes. maybe it has gone from bannon to other less in your face figures in the administration. maybe reince priebus. >> i shoot this real quick. look, here is a guy who has led a family control llc. he hasn't even led a publicly traded company with all of its complexions. neil: right. >> now he's on a publicly traded company, the united statesovernment, which is publicly traded company on steroids. but what he goes back to are his strengths. he understands that he can negotiate. he listens. it's a very more personal situation. and i think what we see is him making those adjustments in the way he carries himself and the way he projects, and the tone. and i think when you see this, he hasn't lost anything in his

resolve. people saw a very resolved president, and he hasn't lost anything in his personal touch. i mean, the widow of the -- neil: oh, that was a -- >> toughening moment. but there are other things in donald trump's life that are a dimension to his character. neil: no, i agree with that. i covered it. ini seem younger than you, but i've been with it for 30 years. that was on display last night. >> oh, absolutely. and he's going to provide not only the leadership to his team but the leadership that this nation wants. neil: you have something to do with this too. >> well, let me just tell you i was glad to be in the room. and i'm glad to be at the table whenever i'm at the table because what i know is that he has a plan that will put us back on the track of greatness. . neil: all right. well, we shall see. the proof is in that pudding. which is a stupid expression. you're looking at the pudding.

>> but we like pudding. [laughter] . neil: i'm a prime rib guy myself. but former trump transition team member, an awfully nice guy. it does happen. more after this. the dow still in record territory. up 308 points and as ralph pointed out here, first 1% climb of the year. after this.

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lower than td ameritrade, schwab, and e-trade... you realize the smartest investing idea, isn't just what you invest in, but who you invest with. ♪ . neil: some expressed concern that there are very few, if any details, in terms of how he would pay for a lot of the things he wants to do, including a trillion-dollar infrastructure program. he obviously means that as of this year event; right? >> absolutely. neil: and where will this money come from. >> a trillion dollars, it will be a combination of public and private partnership. it doesn't necessarily mean it will be a trillion dollars off of the government's balance sheet. .

neil: all right. how often have you heard that expression? the devil in the details. well, there are a lot of devils and a lot of details. so a trillion dollars no break down. but it will be this year event, the tax cut would be a this year event how you pay for it? not very clear. but what is clear is that wall street's buying, maybe asking questions later, and the dow territory has never been in our first 1% game day for the dow. that's kind of free information that you can use on basic cable but that's the way we roll. all right. gary, you're watching all of this. obviously the markets are liking what they're seeing out of the president, liking what they're seeing out of the secretary of treasury. should they? >> i think so. the markets are a great forecast of the future, and i think the future's right. you have to remember something. we've had a long many years of, you know, higher taxes, much more regulations, these going the other route and getting the heck out of the way of the economy and of

business, things with flourish, and i think the market may be telling you something. . neil: so play this out for me. do you think this market, and i know you worry about panic run-ups i think for one of a better term. is this a panic run-up? is this a meltup? or is there sustainability to this? >> well, the thing i like about this rally is that we sat for about eight, nine weeks after the run-up. the amazing thing about the rally is we have not had a pull back of 2% since the election. that's not the normal part at this point in time and that gets you worried because when selling does get going, if it hasn't happened in many, many months, it can feed on itself. but i've got to tell you something, neil, i have not seen the market act this well in many moons. i would have to go back a couple of decades, and i don't think you find it. the financials have broke out again today. they've been leading. they broke out on

november 9th, the day after the election. they've been leading all the way up, as long as they continue to act well, i don't think there's any problems with the market. and now we're seeing health care, which has been dormant for a while, that's kicking into gear in a big way. so it's pretty much broad-based and the last part of it is it's a worldwide phenomenon that's worldwide markets going up nicely. and those are the best type of bullish phases. neil: all right. so the answer to that means there might be something here. but, again, it has got to be time precisely; right? they have got to be able to get the obamacare thing done. they've got to be able to get the tax cut thing launched by august as the treasury secretary says. what if they don't? what if one of those, you know, doesn't happen? or at least happens with the rollout that they envisioned? >> well, to me, it's simple. valuations are at the upper end of the historical range. if all these promises don't get done, or it takes a long time, i think the market's going to take a haircut at a given point in time.

i just don't know when. look, they are at -- they are promising a lot of stuff. i don't know how you do a trillion dollars of infrastructure in a year. to me, that's something that happens over a few years and to pay for it, the good news is the cost of capital is low, and you have snapchat tomorrow going public. they're able to raise 20 some odd billion and $5 million in losses. so the able to raise capital right now is pretty good. but a trillion dollars is a big ball. that's going to take a bit of time. but, to me, the tax cuts, getting out of the way of businesses and let them flourish. you get that done, i think we're going to be in pretty good shape, and then you're going to see earnings start to kick in gear and catch up the price. neil: gary, thank you very, very much, my friend. good seeing you. one more look at the dow. one of the few groups not going along with the ride and this is probably not too shocking for you. again, we have a border tax or import tax, whatever you want to call it. they would be the most affected by that. so they're one of the few

groups not going up with this. remember, they would be hit beuse the pricof goods you pay and a lot of them are cheaper imports that are shipped into the country and on their shelves, they would be adversely impacted by that. but say this by in large virtually every other key group is doing just fine, thank you. stick around. you are watching fox business

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means i take rolaids®. rolaids® goes to work instantly neutralizing 44% more acid than tums® for fast, powerful relief of your worst heartburn. i trust my rolaids®. r-o-l-a-i-d-s spells relief. . neil: is it your sense that the tax cuts hinge on getting, first of all, the obamacare affordable care act repeal reformed and replaced both done first? >> we do get it done. and the reason why we did obamacare first was at that is the priority right now, and we need more time -- i think

that obamacare will get done first, and i think tax will work very closely with the house and the senate on coming up with a combined plan. . neil: all right. treasury secretary steve mnuchin saying there is an order and a procedure to this and the way you get to those big ol' tax cuts that wall street is salivating for is repealing and replacing obamacare. and if you repeal and get rid of that, obviously, that's a lot of taxes that go along with that for the upper income, for example, that's another 3 or 4 percentage points on top of the federal income tax rate that they already pay. but of course it's a very aggressive timetable and gerri willis joins us out of new york, i mean, easier said than done; right? >> hey, no kidding. he's talking a big game here, mr. mnuchin, and you did a great job in your interview with him. but the reality is if the republicans can't come together over the replacement for obamacare, it's not going to happen. and let me tell you what's at the center of that

controversy. it is a refundable tax credit. last night the president just said tax credit. but the better way planned for house speaker paul ryan has always called for a refundable tax credit. what is that? well, it would make obamacare more affordable and how would it do it? it would dollar for dollar reduce taxes that people owe the federal government, take that one step further, if you owe no taxes, well, you would get that money back in terms of a refund. do we know how much money that is? no, it's not been said. but we do know that tom price's plan calls for 1,200 to $3,000 refundable tax credit to go to these families. now, the kick back on this what republicans don't like, they say this is an entirely new entitlement program that will amount to billions and billions of dollars over time to go out of the federal treasury, and they just don't want to be in the business of setting up yet one more tax credit, one more entitlement program, something they call obamacare. now, whether they can come to

terms over this, it's completely unclear, but i just want to say one more time congrats on that great interview. and golly, i certainly hope the treasury secretary speaks to you again. you were pretty tough. neil: well, you've been there; right? it's an impressive building, and they have portraits of all the prior treasury secretaries. i want to start that for financial anchors, you know? like, just have portraits. >> i think that's a great ide i. neil: and i would like it to begin with mine, you know? [laughter] i'm working on this. we're starting a cause. someone said they would not be able to fit my head on a frame. but anyway, thank you, gerri, continue feeling well, my friend. gerri willis in new york. all right. so how does this all fall out? we're getting some ideas. after this as a control enthusiast,

i'm all-business when i travel... even when i travel... for leisure. so i go national, where i can choose any available upgrade in the aisle - without starting any conversations- -or paying any upcharges. what can i say? control suits me. go national. go like a pro. >> we started the interview with the treasury secretary which he said they were

hell-bent on getting all this done. the tax cut would still go through. by august they will have it. there was no denying that as soon as investors heard that they pounce. you are welcome america. >> whatever i can do. it is a big record date right here on wall street. following present trumped final. take a look at that. up 311 points right now. we are looking at lots of upside pretty much everywhere. everything is higher. the intel is down just a touch. companies that depend on if a structure.