Home Prices Jump Back Up

Matt Nesto analyzes the morning business headlines.
6:57 | 07/30/13

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Transcript for Home Prices Jump Back Up
Futures in the -- today ahead of today's Federal Reserve meeting Wall Street expected. Take a wait and see approach may be no big -- expected but never now of course right now wondering and that -- -- finest break on the top business headlines this Tuesday morning Matt. Good morning -- Top of the one and so case -- -- with some new numbers for home prices any big surprises. Well there were up twelve point 2% some big number was pretty much expected it's a little bit less than some analysts and economists were looking for. There's two things that people need to -- minor these remain number so this is before the haywire that happened in the rate market in June the mortgage market in June and it also shows a slower growth rate on the month on month basis. Just 1% you have to keep that in into context would still it's a twenty city blended index and it came home with 12%. Increase from a year ago. Our -- also -- obviously we're in the middle of earnings seasons right now pharmaceuticals are coming out some of their numbers what are we expecting. Well two big numbers mean both Pfizer and -- did Pfizer and that Merck sees me both Dow members did the same thing they beat by a penny on the bottom line but they missed. On declining revenues -- revenues were a little bit worse than expected so. Both of those stocks are -- going to be -- stores in terms of what big drugs they have coming on you see a lot of drugs coming on some coming off so pharmaceutical earnings are always difficult but the big story there is that they were able to beat on the bottom line. Car and obviously a lot -- -- a lot of our focus in on. Article from Wall Street and Washington the presidents and making the rounds lately at promoting. -- new economic agenda really an economic -- that he's been pushing. As a way. And -- -- a preview of a new corporate tax policy what are the details of this. -- -- a grand bargain and whenever people hear that term grand bargain they should rot because it's not a lot of and and it is going to be grand we've we're getting used to these. Two and 3000 page legislative packages that are -- and boy are they this one is gonna focus on tax taxes. And job creation. By infrastructure spending so they're essentially. Going to lower the -- he's proposing the lower the statutory rate. That corporations pay from 35%. To 28%. And take those savings. And invest them into roads and bridges to create jobs so tighter loopholes. Taxes and -- -- considerable probably see corporations paying more are. In taxes but their statutory their -- number where they start their calculations will actually be lower. All right so I have to call I ought to see the air quotes on this enemy explain it to someone didn't look like me that essentially it sounds as -- is it just shifting for. How things are being filed or what exactly it had no different it's no different than what we pay whatever you're statutory bracket is. By the time -- get done villain in your your taxes your actual. Amount of money the percentage of your income do you send off to in Washington is going to be a good bit lower than that top line number -- you -- to calculations. NCR same for corporations apparent. Well the Fed -- meeting today we're gonna get the minutes until tomorrow so what does that do for investors they're gonna way to -- -- they still want and right now on exactly what that quantitative easing program will be looking like -- September. Absolutely absolutely any signs any clues ever one's geared for. Are excellent might start give us some clue in the September meeting but really the expectations are. A carbon copy at a guest tell me is what they expect to come out when we get the statement. 2 o'clock tomorrow. Basically the Fed reiterating that -- data dependent that they want to see. You know us moving in the right direction and that they don't want to see inflation. Getting too low and then if they can do that then there will start to ease back on that 85 billion dollar. Months spending that they've been doing on bonds and until that happens though we've seen the bond market -- take a giant move. In that direction sort of discounting that as we say in this business. Before they've actually even done anything but we're definitely on -- it all started really. In June with the with the Fed meetings and then two weeks later we relive that when they released their meetings of those minutes so definitely investors going to be an -- even though they have -- expect. Patients -- stain on the Fed then chair Ben Bernanke is expected have a successor announcement at some point and obviously not any short term. Two big names -- Janet Yellen and Larry Summers are being floated out there as top candidates. Who's got more support right now. -- I would definitely say Jenny out -- -- his. Far away that consensus expectation -- the station is working against -- is that never in a hundred years. As a vice chairman of the Fed the number two person risen to get the top job. Ben Bernanke was have been working in the White House and in Princeton when he got -- you know called in waved in from the bullpen to replace Alan Greenspan so transitions are tricky it's a president's call you heard the president and in Treasury Secretary Jack Lew. Making some very delicate. Comments towards their deliberations and when they expect to have an announcement in the summer. But it will be done in their -- hinges on what they think is in the best interest of the economy -- Wall Street. Expects Jimmy Allen. Larry Summers oh and I -- -- They also CBS went dark for a lot of Time Warner Cable subscribers last night and in the millions of facts or -- -- -- CBS and I'm more. -- they well CBS's the number one television network -- renegotiating their contents contract. With a Time Warner Cable. And they want more money imagine that and Time Warner is willing to pay them you know this amount CBS -- -- more content I can tell you is very expensive. And we've got good shows new number one you can exercise a premium Juliet to negotiate every so often and so you know when you get your -- bat as you know in this business my contract -- Fran. Take a big mighty swing and so. In the middle are all us little subscribers in your behavior -- a you know a it's Time Warner Cable customer. And you know they've they've they've -- back so Friday at 5 PM -- a new deadline when -- actually really go dark it was only a little brief. You know the blackout last night not on not all CBS subscribers but -- Friday at five as the big showdown at least as it stands right now. Sadly becomes a lesson for all of us consumers exactly how the cable companies and cable operators and -- cable system works. And the content produced yeah -- like -- us right that talent my man. Yeah. That I have hired for I'm hiring you to handle my contract this stuff and I appreciate that. Well let's look at the big book report -- ago the Dow is trading in positive territory almost -- fifty points at 151571. Matt messed -- from Yahoo! finance have a great day sir. -- not a robot.

This transcript has been automatically generated and may not be 100% accurate.

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