stay in the family. i'm jamie colby for "strange inheritance." thanks so much for watching. and remember... >> it's just money. can't take it with you. melissan "after the bell." >> announcer: from the fox studios in new york city, this is maria bartiromo "wall street." maria: welcome to the program that looks at the week that was and position you folk the week ahead. coming up, the ceo of cantor fitzgerald howard lutnick. but first connell mcshane standing by with the headlines, breaking down the damage, just how bad it was for stocks.

>> there is no sugar coating it. this was a rough week for stocks. you can blame it on inflation, possible interest rate hikes. and maybe we went up too far too fast. but the correction is here and it came with a vengeance. the dow plunging almost 1,200 points monday. at one point we were down by nearly 1,600 points. thursday the carnage returned with the dow losing 1,000 points. that was the second biggest single day point droop. thursday saw the dow and s & p enter correction territory with both closing 10% after their record highs. friday was a volatile day. the dow off by nearly 500 points. but then things did turn around in the final hours of trading and we managed a triple digit

gain. he single trading day saw a point swing of 500 points on the dow. in the end the dow had its worst week in two years. investors will keep a close watch object things and we'll see how it goes. maria: bcg partners reporting revenue up 18% and given volatility has returned to wall street those numbers may go higher next summer. howard lutnick says volatility can be good. howard lutnick: we don't make money when the market goes up, and we don't lose when it goes down. the company loves volatility. the numbers for the company are

just beautiful. maria: there is just no volatility. first talk to us about the quarter and the year you just saw. you reported great earnings. i want to get your take on what you just saw and then talk about the volatility story. let report analysts were expecting 29 cents a share and we averaged 39 cents a share. the revenues 15%. profits up 22% per share. first class numbers across the board. what happens is spreading our markets and spreading our wings. the energy markets are great places to trade. commodity markets, interest rates are back. we are talking about the 10-year

note coming up. foreign exchange, things moving around. it's good for business. obviously the last week has been spectacular for business. we were expecting to continue that kind of growth. revenues would be 15%. starting the first quarter. earnings more than that. if were going to give us days like monday, tuesday, wednesday, they will just get better. maria: are you expecting this year will be full of wide swings and lots of volatility since we haven't seen any in a long time? does anything you saw this past week indicate that it's going to continue? >> you had two big things happen. you had the tax cut. you now have this quarter almost he company in america saying the tax cut cost me money and my gap earnings for the fourth quarter

will be down. but that means every single quarter forker money-making company in america will be up. it's hard to imagine. how can we talk about he company? maria: when you go from a tax rate of 40% to 20%, that's a lot of money for companies. >> the 10-year note is getting more expensive. all the companies have cheap money. but that's way offset by the tax cut. what we have is a nice balance. but people can't ingest that. what they have been waiting for, they had low cost of money and the market was melting upward. no one was deeply convicted in the economy or the stock market. but the stock market kept rising and rising. now you have got this adrenaline

puff of a tax cut and interest rates creeping higher and it's creating a dynamic of moving this market around. maria: should people be worried about this? what's your take? why are we so worried about 3% on the then year? >> in 1987 and 2007, if you looked outside it was briefly sunny. '07, it's all about the 7s, i guess. it was sunny but you could see huge black clouds with lightning bolts and you would say look, kid, we have to go inside, it's going to get nasty. right now on the more wry zon, blue skies. there is no fear. the concept the 10-year could be 3%. does it matter if the dow is

26,000 or 25,000? of course not. but is something bad happening? every country that matters in the world is growing. bar were synchronized global growth for the first time in a long time. you are talking about volatility and technical-type things. then you are talking about a fundamental backdrop thatters very strong. >> you have a very attractive fundamental under pinning. the whole world is growing and they will buy your stuff. the world is growing. but you have got interest rates rising which we haven't seen for a long time. we have unemployment at 4%. and it will start pulling people who haven't been look for jobs back into the workforce. you will get volatility for bgc business. they feel comfort abilityd saying revenue will grow in the

range of 15% profits. over 20% next year. this is nice for business. our yield, we have a big dividend. 5%. maria: how do you grow a large company. when you get larger doesn't the law much large numbers force you to slow down? bgc shareholders own 50% of new mark. >> 90%. maria: tell us about the impact of new mark on bgc. howard lutnick: bgc is a great brokerage company. i'm an expert at brokerage. selling buildings, financing buildings and leasing buildings. that's our business. and off we went to build a

spectacular business in newmark. so we'll grow between like 24%, 25% next year in revenue growth. fan profits per share will grow 30%. and the way you grow that kind of business is just take the squall street data, the things you are so used to, real estate brokers have never seen before. they have never seen a company analyze the demographics of the kind of people that walk by the store. how much money do the people make who walk by your store? the kind of things they like to buy if you are a he they come company. when you learn the average price point would be let's say $60.

they right and the sales went up 12%. that's how you got a 250-store client. you know where to put them. it's taking wall street analytics and data and you are going grow your business and you are going to win. the productivity our people, the same people, up 1% year on year. it's eating the data and making them partners with our clients. >> announcer: more from maria's interview with howard lutnick. was wall street volatility too much to

jackie: as an 18 year old, i let my mistakes kind of take over my life. i was point-five credits away from completing high school and i didn't do it. angela: i got pregnant and i was the main one working so, i did what i had to do to survive. jocelyn: sentía que la escuela no era para mí. karim: most of my family they never graduated high school or even let alone go to college so i'm trying to break that barrier. jackie: my family never stopped pushing for me to be better because they knew what i could become and who i could become as a person. karim: everyday after work i went straight to school, studied hard, and it paid off. jocelyn: sentía como que si quiero cambiar el mundo tengo que cambiara mi primero.

group: surprise! surprise! surprise! angela: i could not have gotten my diploma without my family. jocelyn: mi consejera, ella fue lo máximo para mí porque me ayudó mucho con todo. jackie: i've been given an opportunity and i'm just thankful for it. angela: yeah it's hard, but keep on going and keep on trying. karim: the high school diploma has just added to the confidence and now i feel unstoppable. narrator: find free adult education classes near you at finishyourdiploma.org maria: what does the data tell you about the environment right

now as it relates into the rates and inflation? wage growth up 2.9% year after year, unnerved markets. kno you wanted to see volatility. that's a great thingor your busine but what should we be thinking about inflation and wage pressure, the tight labor market and higher interest rates and their impact on the stock market? howard lutnick: we have to remember the headline unemployment rate is not a true full unemployment rate. it's people look. if someone was unemployed and chose not to look, they come off that list. but they say i'm hearing all this stuff on maria's show, maybe i should go back out there. and there is lots of employment still left in america to grow without having employment-related inflation. i don't buy that. i think you will get particulars

of it back and forth and you will see interest rates rise. this was a spring that was crushed too low. a 1% under rate gets the feds to first base. a half a%, what are they going to do, make it a quarter? nobody cares. maria: four rate hikes in 2018? howard lutnick: i think three. maria: you are coming from such low levels, why are people freaking about these numbers? howard lutnick: because they have nothing else to do. think about how much we grew in the month of january. you give a little back, so what? should there be more volume it in this market? i think there should be because there are lots of moving parts. right? who has ever not about an

adrenaline pop from a tax cut from he stormr corporation in america coupled with interest rates rising? i think what's going to happen is inflation will go up, but it will go to where the fed wanted it to go, 2%. the 10-year treasury, 3%. it will go over 3%. maria: is that what you think, 3.25, not 4%? >> no, no, no. it's just not happening. if the economy grows so beautifully these things are a possibility. you have to remember the first part of that sentence. the economy is growing so beautifully that interest rates need to rise. maria: if it's rising for good reason. howard lutnick: there are lots of things to worry about.

but what i'm suggesting is when you go outside and it's gorgeous and sunny, i didn't say there is nothing to worry about. there is just nothing to worry about today. maria: that sounds like a scary comment. people are afraid when they seat dow jones industrial average down 1,000 points. but you say volatility is your friend. howard lutnick: our company makes money when the markets go up or down. when you say chaos in the markets, we are like, this is wonderful. but it's been too quiet. you had volatility because of quantitative easing. it's a bomb blanket on moving stuff around, right? the government buys bonds. everyone else in the world would hedge it and say i'm worried about interest rates, i'll hedge

it. and that's all volatility. instead the government takes it all and eats it and doesn't care. >> announcer: president trump slashed thousands of regulations. but one big one still stands and howard lutnick says it so from the two trucks over here... i want you to pick a new truck for your mom or dad, knowing that they could possibly pass it down to you one day. oh. cool. but before you decide, you should know that chevy silverados are the most dependable, longest lasting full-size pickups on the road. which means that ford f-150s are not. (giggles) which truck would you pick? the chevy. there you go. boom. that was obvious.

plus it looks cooler. no doubt about it. now they know what to get me.

>> announcer: welcome back to "wall street." maria: fiscal policy tax reform, rollback regulations a good idea? howard lutnick: of course. the government saying to a bank, you shouldn't buy that because

it's wrong. wrong by who. i like that they say you shouldn't buy that if you don't have the capital to support it. that's practical. that's what you get from '08. you shouldn't be able to bite if you don't have the capital. but to say you can't bite because it's wrong, that's something that should go away. if it goes away the banks will be able to trade more and provide more client service and the banks will do very well. maria: and you get more volatility. howard lutnick: i get more business from the banks and the banks' finances numbers are going to do better. you give them interest rates and the ability to trade, you will see lovely results. maria: we are entering a period

of perfection, a roltback in regulations, economic growth, and higher interest rates. so it's pretty good. what did you make of the atlanta fed coming out with that stunning gdf prediction. first they were at 5.4%, then they said 4%. 4% is doable in the first quarter. howard lutnick: last year i didn't think it was possible. i think it reason it's possible is they just changed the rules of the world. they used to say if you keep your money overseas you are much better off. why that was our rule, i don't know. but now, you bring it back and you will be taxed whether you bring it back or not. so you bring it back it used to be our tax rate was 35, the u.k. was 38. ireland was 21.

you have apple bringing back $38 bill. it will be good more america. and that might be the adrenaline pump that gets us to 4% which would be amazing. people say the president was just overspeaking at 4%. it's pretty darn impressive. maria: i want your take on the growth at newmark and what it tells us about the future. exodus out of new york because you are losing the state deduction. even with an economy getting better, you have seen the high end in real estate come down a bit, no? >> the elimination of the state and local taxes was offset somewhat by the lower head rate. it went from 39%. the marginal cost of someone in new york it's 2 or 3 points.

bill clinton took the rate from 36 to 39.6. you live in america, people like us are going to pay a little bit more tax. i think new york is the heart beast commerce in the united states of america, and commerce is coming back a lower tax rate. i think you will see new york perform admirably. shockingly well. maria: it's great to see you. howard lutnick joining us this weekend.

maria: now a look at some of the big market events coming up this week that could impact your money. monday treasury release the latest on the federal budget. we are worried about inflation,

so the cpi becomes all that much more important wednesday morning. the producer price index, another gauge. all in the week ahead. another big week for earnings. you have lowe's, cbs, campbell soup, cok coca-cola, all coming. joining me, stephanie m -- p oorks mboy from macro mavens. sunday morning my special guest will be devin nunes and newt gingrich. be sure to follow wall street on facebook, twitter and instagram.

also let me know what you want to see on maria bartiromo's "wall street." i will 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.