ofse are functions in honor -- jonathan golub, you have these memorized. s is low yields forever. right? jonathan: those of the first time i have seen those in a while. here is the question for stocks, not whether they are earning more money, but in an environment with low inflation and low growth, are stocks worth more? i think the answer is, yes. tom: the idea of earnings divided by the yield flipped by we need to getdo used to a 50/50 environment? are you kidding me? do you -- do we need to get used to a nifty 50? jonathan: the fairmont on the market is probably in the low 20's given where interest rates are. tom: this is going to come back to haunt you. [laughter] from your perspective, if you add dividends and buybacks, which is what companies are paying out to shareholders, stocks are yielding 5%. that is an unbelievable number right now. tom: that is unreal. we are going to do these equations with peter tague, with citigroup, he took these in a agose on thursday 42 years in college. there it is. we are going to link stanley fischer into the world of

let's bring in jonathan golub. do you make of the earnings season so far? jonathan: it's a good, but kind of strange earnings season. we went in where the estimates were collapsing going into reporting season. you're having a beat of something less than 5%, but you had a couple of really big headline misses. microsoft, apple, and google missed. if you took those out, you are looking at misses that are well over 6% overall. good, but off of much lower numbers starting off. betty: does it make sense to you? jonathan: the markets are not stressed. if you look at where we are right now, if you invested $100 when the market was at its peak about a year ago, you are something like 2% off of that number now. for all practical purposes, we are at an all-time high for the market. the story in earnings, as you look forward to the rest of the year, is that the drive we had from energy -- the reason we had negative earnings is because energy has been such a drag. that goes away starting at the third and fourth quarter. the market is expecting -- wall street analysts hav

thank you so much, jonathan golub at rbc. >>> ahead on the program, donald trump taking aim at amazon bezos has some serious antitrust issues to answer to. and apple betting on an uber competitor investing in a billion-dollar chinese operator. what you need to know about its biggest investment this year. ♪ in new york state, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. and in syracuse, where imagination is in production. let us help grow your company's tomorrow - today - at business.ny.gov e.t. phone home. [ soft music ] when you find something you love, you can never get enough of it. change the way you experience tv with xfinity x1. >>> donald trump is going after jeff bezos yet again. this isn't the first time that he's taken aim. some harsh words coming from the gop's now presumptive nominee. john harwood is in d.c. with

jonathan: gold on pace to do something it has not done in a year. how high the price could climb, next. ♪ vonnie: -- matt: golubs , higher for six days in a row and topping more $1300. joni is scott bauer rate -- joining us is scott from chicago. goldman sachs says they think $1100 in thel to year. but it seems everyone is bullish from russia to the central bank of kazakhstan. >> that is probably the time when you need to exercise caution. when everyone jumps on board. the dollar falling against the yen is precipitating this. and what happens with gold in the near term is predicated on is the dollar stabilizing, what will we see? 125dollar has dropped from -- from 1.25. -- 125. 1325 is the next resistance level. if we break that, you will see it skyrocket. there is a lot of dead air between that and $1400. the likelihood of that is small at this point. matt: you mentioned the dollar. if we see another fed hike, if the dollar takes and we are the only place for yield, does that turned the gold rally around? think it turns it around real quickly. the fact that the fed has down to two rate hikes, that has also hel