we appreciate you joining us. that's it for us tonight. thank you for joining us. congressman ron desantis and sebastian gorka are among our guests. please join melissa francis and me on "after the bell." >> announcer: from the fox studios in new york city this is "wall street week." maria: welcome to "wall street week." coming up, investing legend and chain of investment officer bob olstein. gerri: a major sell-off for stocks that was accelerated when

the congress intel committee released a memo. the dow and s & p 500 each having their worst week in two years. the month of january was a different story with all major indexes finishing well into the green. the federal reserve gave indications hikes will be coming soon. the december job report released friday showed the u.s. economy adding 200,000 jobs with unemployment at 4.1%. this adds to the pressure on equity. huge tech companies. facebook crushed expectations.

t the stock took a tumble when it was shown 5% of its traffic declined. apple stock last 10% in the last two weeks. amazon posted a record profit in the fourth square. amazon announcing a joint convenient tiewrm to create a new independent company that aims to lower healthcare costs for their u.s.-based employees. that's spooked investors. those stocks took a pounding this week. maria: for the first time in a long time the market showed vulnerability. investors sowing concern over higher interest rates and the feds concern over inflation. joining me to talk about what

this week saw, anthony chan. a couple things to talk about. 200,000 new jobs added to the economy in january. the wage number up 2.9%. the atlanta federal reserve saying they will see gdp of 5.4%. your thoughts? >> i think it's great. but you have to keep in mind a lot of that will be because of inventory accumulation. but it is very impressive. and it does suggest with that big jump that you will get much faster growth in 2018 than you got last year when the average was 2.3%. we are looking at a number that is close to 3%. maria: good growth numbers and earnings numbers. but that's why the market sold

off. we saw 2.8% on the 10-year and we saw worries about wairnlgs going up and inflation. >> for many years market has been really disappointed that workers are not getting their fair share. then you see one mopt whering earnings raised. and the reality is one month doesn't make a trend. janet yellen and jay powell won't that much different. they want to see wage growth between 3-4%. we have a lot of things in the economy that's suggest wage pressures should continue the remain muted. academic studies show because of the concentration of the labor market power. aver hourly earnings gains will be much more muted given

the fact that we have seen the degree of tuneonization come down. maria: there was pane argument that minimum wages are going up. it's not necessarily the result of companies raising wages that in a sustainable way. you had 18 states raise the minimum wage. >> unlike the worker bonuses everybody has been touting. you have gotten $300 billion in worker bonuses. and that's not in these numbers. those bonuses are not computed. maria: tell me about these markets. you saw a triple digit sell-off this fast week. how do you see valuation? >> when you look at the s & p

500 and the price earnings ratio, about 18.5 historically and average of 16. but unemployment and inflation is low. so-called misery index. if you look at where the index is today, it should be 20, not 18.5. the good news is if you look at european stocks and japanese stocks, those price earnings ratio are much, much lower than the u.s. maria: for the first time in across long time we are seeing global synchronized growth. we are seeing japan look at growth. europe with a 2% growth. that will raise oil prices.

>> i think that we are eventually going to see oil in the $70, probably not over $75. i expect it to get to $75 and plateau for some time. >> first all, you can get to those levels because you are seeing opec cutting their supply. but here's the exciting part. research we have done sat jp more dan finds when global economic demand goes up, the demand for oil goes up even more. 1.5%. and when the price of oil is rising that's not a negative. that's not something we should be worried about. economic growth is slowing and oil prices are rising, but given this scenario when the prices are rising forthright reasons, i'm not wored maria: what are you telling

clients now. whether it's the job growth or expectations for the first square other earnings season we have been seeing. you are expecting 18 to 20% earnings growth. that's a big number. >> partly because of the tax reform package. what we are telling clients, we see a small probability of a recession in 2018. some of that can spill over into 2019. with global equity prices being cheaper than the u.s., a great opportunity to diverse ififyify globally. >> we are suggesting you buy on the dip. economic fundamentals are getting better. if consumers get more, they are going to spend that money. if you look at since 2008 and you see the increase in

household net worth. historically consumers spend 3.5% of their increase in wealth. there is still a lot of pent-up consumer demand. >> it's all a circle. but you think the grob growth gains will -- that job growth gains will slow. >> we just got the benchmark revisions. they suggest that for 2017 we had 2.2 million jobs created. but that's not bad news. that's showing you this economic expansion will turn and you will see job creation getting more challenging. but we are still creating jobs so that's great news. maria: and i thony chan, chase

economist there. "wall street week" comes right back. >> announcer: where is the value in today's market? bob olstein will be with maria when "wall street week" returns. insurance doesn't have that. r what?! you can leave worry behind when liberty stands with you™. liberty mutual insurance. but when we brought our daughter home, that was it. now i have nicoderm cq. the nicoderm cq patch with unique extended release technology helps prevent your urge to smoke all day. it's the best thing that ever happened to me. every great why needs a great how.

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gdp5.4%. and it's fueling inflation fears, sending it rates higher. should you be concerned? who better to the ask, bob olstein. good to see you. what i love about your work is you look at specific companies. you are looking for value. you said it's never been a better time to be a value investor. bob olstein: al gore rhythms, electronic trading. -- algorithms and electronic trading. that's the kind of environment we love. it's 6% already. maria: first the broad ma -- the

broad macro environment. the jobs report friday. 200,000 jobs. higher rates and a market sell-off. bob olstein: the market sell-off is fine. the market got ahead of itself. some of those values we sold. when they how much and down from our value we sell them. then we are sitting there with our hand folded waiting for more value to show up. we are having a little trouble finding value at this point. though we are 87% invested. maria: when are you going to start putting that cash to work? bob olstein: right now we are probably finding some stocks. we'll talk about three or four of them later. we are always buying and selling every day. but if you are a value investor, how could you not turn over when

there is a deviation between the stock price. we spend a lot of time look at stock prices. how many people go in there and rip the statements apart. it's not a horse race. it's about accumulation of wealth. maria: i like the way you do it, you are an investor, not a gambler. bob olstein: that's a perfect statement. wiern vestors, not gamblers. maria: but having said that, when you look at the earnings backdrop. we just had anthony chan on and he's look as 20% earnings growth for the s & p 500. bob olstein: a lot of it has been count.

what's important to market in stocks is the problems we are going to develop is not yet recognized. that's what's going to drive the market in the future. the 20% increase in earning is probably 80% in the market. maria: we are going to get your top picks. the stocks you own that you think are under valued. stay with us. it's easy to think that all money managers are pretty much the same. but while some push high commission investment products, fisher investments avoids them. some advisers have hidden and layered fees. fisher investments never does. and while some advisers are happy to earn commissions from you whether you do well or not,

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you are a long-rm guy you don't lik knee-je reactions. you like value in the market and u try to take advantage of the swings that are based on short-term thinking. what are some of the most of undervalued names out there. bob olstein: these are undervalued companies in our portfolio. last year, a year and a half. everybody was worried about down car sales. when the stock head -- car sales headed down, gm jumped 30%. maria: and you were already holding it. >> it's lonely being a value investor sometimes. western digital. data is being produced at record amounts. it will go three times more.

here is a storage company where everybody is looking at the price. this company is going to earn $13 a share. it's not going to be cyclical because it's one of the biggest participants in the data industry. you have value you have a $130 free cash flow producing. maria: data is going to be the growth story. bob olstein: and this is not going to drop. they think it's the old storage company it's only a minor part of the business. maria: let me ask you about zimmer birk -- birks biomet.

bob olstein: when they bought it, problems presented. they had great returns on equity. just got a new ceo. they had manufacturing problems. when you look at that $9 a share. free cash flow that will be add in four or five years. we think it's worth $160. maria: where does the growth come from. >> in my body, hip and knee replacement. when the baby boomers come into their 70s, this is where the growth will be. maria: you are still a puby because. people are getting flue knees and hips.

you like o liking oracle. bob rrbob olstein: they are doi6 billion on the cloud on their way to $10 billion. here is a company on its way to $4 a share. great returns on equity. the cloud is a misused name anyway. there is still a lot of business that will stay in-house. this is a leader and they have great technology and everybody is dissing them. maria: is good year doing everything right? bob olstein: they had problems with manufacturing and their margins. now 70% of their tires are going to into the replacement market. prices on their new tires which

are 17-inch tires are up 6% this year. here is a company capable of producing $3.50 and $4 cash flow. it gets you $45 to $50. maria: does it make sense to you that the market -- i know you are a specific stock guy. however, does it make sense to you to see a market sell off on such good news? bob olstein: absolutely. some of the best markets were in a recession, and some of the best were in a recession. it's had a huge gain. it's basically tracing back. especially in the electronic trading market. people run and go back and

forth. they are like scarecrows. maria: bob, it's good to see you. more "wall street week" right after this.

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walt disney, viacom. that will do it for us on "wall street." i'll see you next time. >> i'm bob massi. for 35 years, i've been practicing law and living in las vegas, ground zero for the american real-estate crisis. but it wasn't just vegas that was hit hard. lives were destroyed from coast to coast as the economy tanked. now it's a different story. the american dream is back. and nowhere is that more clear than the grand canyon state of arizona. so we headed from the strip to the desert to show you how to explore the new landscape and live the american dream. i'm gonna help real people who are facing some major problems, explain the bold plans that are changing how americans live, and take you behind the gates of properties you have to see to believe.