 Just today they finish the day mixed but the bull market became the longest on record as our economy continues to soar and President Trump awards the military's highest honor to the family of a fallen hero We're gonna have much more on that in a bit But first want to get back to this record-setting day We are now officially in the longest-running bull market in US trading history today marks 3,454 days of uninterrupted gains without a 20% pullback in the S&P 500 But with the market in rally mode and consumers extraordinarily confident a lot of people are asking several questions Can the economy remain this hot? Maybe another question. Can it even get hotter? And finally, what will it take to get more Americans involved in the stock market here now to discuss Melissa R mode the stock swoosh Glenn Hall chief editor of Dow Jones Newswires David Nelson chief strategist for Bell Point as a manager and Paul Dietrich. He is the CEO of Fairfax Global Markets Melissa, let me start with the first and foremost This market rally. We know it's late summer and we know volumes are thin But the bias is obviously to the upside and it's reacting to good news How do you think it goes from here? You were talking about something happening in the summertime? Yeah, and I'm very excited because the S&P finally finally made a grand new all-time high I think it was yesterday so that's a good sign and even though we were down a little bit in the pre-market this morning We held we held up pretty good I see us going into a period where we possibly could break out whether it's the fall of 2018 or early 2019 The market is setting up because we rested for eight months But we want to want to be a sense of urgency for particularly money managers to get involved in this market Yeah, that's gonna push the market higher That's exactly the point because it is institutions that move the money move the market higher It's big money hedge funds banks institutions. They're in the market now I can see that they're in reading the price action again I look at the technicals and I'm telling you it's gonna come and it's gonna lift us all up Well, the fundamentals are phenomenal particularly for the US consumer and by the way folks after the bell William Sonoma posted their earnings remarkable numbers once again The same store sales are up 4.6% their e-commerce business up 54% Pottery Barn was up 2% West Elma up almost 10% William Sonoma the store itself up 2% and pottery barn kids also up Almost 6% Glen the American consumer is powering this. There's a new sense I think of confidence and the irony here is that those big wage gains haven't occurred yet That's right, but we're starting to see that come into the economy. We've got this unemployment rate That's historically low. I think the consumer has reason to feel confident. The Fed is feeling confident They think they can raise rates in this moment So all of that adds up to Fundamentals being strong and if you look at the corporate earnings as well Just the S&P alone almost all the companies have reported average is about 25% gained in earnings The earnings have been so remarkable David back to back quarters The the in the first quarter in fact the earnings we thought they peaked right the CFO of Caterpillar Talked about a high-water mark. I remember she sent the market reeling But we've had back to back quarters and now the guessing game on Wall Street is is this as good as it gets 25% year-in-year growth. That's obviously not sustainable, but so I know 10% We don't like that but look up We're coming on the heels of a tax cut and the news is pretty good and the data really supports a mark a market here Unfortunately too many retail investors are going to use today's you know event as a reason to sell and you know, unfortunately That that's the data doesn't support that I look around the world where the best came in town You know if somebody calls you up and says put money in emerging markets because they're a lot cheaper the United States Hang up the phone. All right, we have the rule of law in this country You're not gonna wake up in the morning and find you know your currency devalued or worse, you know an industry nationalized You know Paul I talked about the consumer and if you look at for instance these retail stocks and the ones that hit at 52 week highs today Best Buy American Eagle Costco Dollar General five below TJ max that covers every income bracket in America right there So it's not just one group of Americans and I reason I bring that up is you know Political debate on who benefits from lower regulations who benefits from lower taxes those names We just put up suggest that maybe we all do well I agree with you and you mentioned about wage gains, but the where this money is coming from from From the consumers is that since March 9th of 2009 the beginning of this bull market The stock market has created 18 trillion dollars in wealth for the 52% of Americans directly or indirectly who are in the stock market the S&P is up 323% you think about that on an annualized Basis for less than 10 years 9 years and something that's phenomenal That's where the wealth is coming from That's where the money is coming from and it's not just consumers Corporations are spending too. I mean we're at record capital Expenditures and I think it's because of the stock market and because of the tax cuts That's really been fueling right this this movement And I'm glad you brought up the business spending because I know ISM when they did their forecast in December And then they did it again in May Significant jump 250% jump from manufacturing knows a long-term investment. So it's not a fly-by-night thing, but Melissa Paul also brought up this move right the since the March 9th low 2009 S&P 500 up more than 300% Since that same period four-year college to issue in private schools up 20% public up 24% a new car Costing 20% more in the meeting the home price of 47% 325% covers all of that right what will it take to get the average investor to say this is my road to freedom? This is what's going to allow me to change you to the course of my life or perhaps the course of my children's life Right well people Don't invest money or spend money at these retail places like Pottery Barn and Williams Sonoma unless they are making more money or Feel better about their lives and they're why don't they walk out the store and say I should be part owner of that thing because they just had a $2,000 waffle iron and I bought it right because people are In general and I'm generalizing here people in general want to take the safe route So people are adverse to risk and because of what happened people are always late to the game people are late to the party So I think people are gonna get in this market, but it may not be right now. It may not be 2019 It may not be to 2020 and that's why I just listen here listen what I'm saying is very important I think the market continues because you're gonna have people get in late You're gonna have the institutions buying in they're gonna push it over the high They're gonna move it up the S&P is gonna go up over 30,000 and then you're gonna say 30,000 I'm not saying that I said the S&P 3000 or three three thousand. I'm sorry. Yeah, three thousand three hundred three hundred the spy through three thousand I got you. Yeah, well, let me bring let me bring in and David then and do you agree with that notion? That it will take like the I don't know the sort of tulip mania Scenario for the average for people who are not in this market I think the fact that a lot of retail investors aren't in the market. That's probably good for us You know, that's probably good for the mark market as a whole and I think it speaks to what's happening He's you brought up retail, you know, I wrote down something that the CEO of Target say he said this is the healthiest environment He's ever seen it in his career and and and he's this guy's been in By the way, I think the retail the retail shopper is even smarter because when you look at Target's numbers They're their debit card transactions grow at a faster rate than even credit cards, but Glenn So we got to consumer two-thirds of the economy Paul brought up corporations That sometime is the difference maker Do you think that they'll continue to to because after the closed Nordstrom said hey We're gonna buy back one and a half billion dollars worth of our stock We also want to see and build more stores to build more Warehouses and things like that. There's a lot going on that is inspiring that spending right and a part of it's the tax cuts And then that money that was generated But part of it is also they were holding back for so long that there's an investment that's needed in order to build and boom and Take advantage of what's happening. So some of this was pent up And there's also no incentive to hold the money overseas anymore now you bring it back here and invest in the economy here So the people that are going to target right now think who goes there. It's not George Clooney It's not Nancy Pelosi. Yeah, it's really the everyday American who's really benefiting from that's right cuz Tarjay You can't beat it Lowe's was up today too, and that's a store that regular people shop at I know I know my wife knows everyone here. All right Thank you all very much Well in spite of the economy going strong and more and more Americans are abandoning their belief in Capitalism in fact some are running to the arms of socialism. That's right Socialism still getting a whole lot of positive press We're gonna talk about a cautionary tell next