Markets Surge For 20th Straight Tuesday

Mike Santoli analyzes the morning business headlines.
7:08 | 05/28/13

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:



Skip to this video now

Now Playing:


Related Extras
Related Videos
Video Transcript
Transcript for Markets Surge For 20th Straight Tuesday
Stock futures up today because of strong numbers in overseas markets making investors very happy coming off their three day weekend. Right now that we're gonna bring in Mike cent toll from Yahoo! finance to break down the top business headlines of the day good morning Michael had a great weekend. Morning John -- -- -- now might be LA times this morning reporting airline taxes going up and of course the airlines are not happy. What's going on here. While the government obviously feels like this is a way to get more revenue for the government also I help fund things like airport improvements. I do think that this is part of something of a trend. Where it's much easier for governments to tax transactions. That people willingly. Engage in other words it's not an across the board rate increase and it's one of those hidden taxes that most people don't really focus on. So -- probably feels like there's some revenue there to be had obviously I airlines don't like it it's one of the reasons. Ticket prices are going -- certainly not the main reason and now I'm you know. Taxes already encompass a pretty large percentage. Of air air fares right now so it's not something that's kind of a new idea. So can we at the travelers expect even more those fares to keep creeping up -- -- there seems to be a new one every week. Probably so although again I think it's much more because of the supply and demand as opposed to taxes alone but yeah I do think that there's going to be upward pressure. On on airfares in part because the industry has consolidated into a very few -- huge carriers. Not right gets more expensive to travel there might not right so -- don't want attacks to another some companies. Are cutting down some of their health care benefits because of something called a Cadillac tax can you explain this to us. -- now this is part of the obamacare legislation and essentially it was intended to. Let the attacks on companies that have very generous health care -- very low deductibles lots of stuff covered and it's sort of counter intuitive obviously considering that they want to have more insurance coverage. Four. The population broadly the reason though is they want to make consumers more. -- -- To the actual cost of health care so those Cadillac plans have a tendency to give people incentives to get lots of unnecessary tests may be even consume. More health care so to speak. Then they necessarily need and this is meant to to essentially get around that and create more efficiency throughout the entire. Health care system now obviously for companies you know it's it's one way to sort of essentially cut down on your cost and also avert attacks down. So this is -- -- way for the government to. Try and cut down on the health care industry as a whole and that -- sounds like they're making an overarching reached at how to get those costs down in general. Well that's that's the whole theory behind having universal coverage and basically trying to have the incentives line up with what's best for the greatest number of people and really you know they're not really trying to shrink the health care industry but slow it's unnecessary growth in terms of unnecessary tests and procedures and things like sharks are of course this won't take -- -- right away her -- that's right. It won't take effect right away but companies obviously are maneuvering had a -- actual while law kicking it apps like let's -- on it to Wall Street Yahoo! your parent company and ABC news -- online partner. Is looking to buy -- is that right. Well -- the reports are anyway and I obviously have no nothing beyond those reports given it is my employer but. The reports are that Google Yahoo! is among the bidders for Hulu now who has been kind of on the block by its -- its owners News Corp. dizzy and others. That basically want to have get cash for this service that they've built. It seems like there's some investment -- private equity firms and things like that as well as potentially some strategic buyers out there and it seems interesting that obviously people are making a -- here. That this kind of subscription based service that combined subscription fees and advertising. Might be one way to kind of get around the erosion of direct television viewership that obviously the whole industries expect. Absolutely and I -- to -- you have some investors were perhaps a little confused by last week's. Purchase of Tumblr and this purchase however as you just explained seems a little -- with a little more sense to many people. Well obviously a business that's more developed -- people know exactly how it's going to be monetize -- you can argue over exactly where they're gonna have great access and long term to. Good content and whether those licensing arrangements are going to be attractive that you kind of know what you're getting here and what's interesting I think some of the reports mentioning Google and Amazon were not. It's at least to this point seeming to be among those bidders for Hulu perhaps because they feel like they have their own subscription based streaming services that they're pretty satisfied growing -- organically. Right heights -- let's talk about some earnings now Tiffany is that shared its numbers this morning what that we learn there. Better than expected earnings from Tiffany although they have lowered their forecast in March for this quarter -- -- kind of -- you know they lowered the bar and and they jumped right over it. It seems as if behind consumer has picked up. His -- her activity. Globally and not just in the US actually interestingly Europe was up 6% in terms of sales Japan's a very important market for Tiffany. Also -- showed increases there you're seeing a little there were a revival of consumer appetites in Japan so it was a good story for Tiffany although they did say that that there was some weakness in silver jewelry in particular which of course is a major piece of Tiffany's business that's -- the lower price point. Items so it sort of seems as if on the very high and it's us flying off the shelves as a sort of standard run of gifts maybe not so much. No way I want a little bit of some of our cultural customs. Our our half cups -- -- you do -- that we hear the diamond engagement rings are becoming more popular in China now. Absolutely it is very existing actually the diamond market and people don't really talk about it it is not really treated on an exchange for diamond prices have been relatively strong impart because of that demand. From China it is interesting how that tradition. Has sort of being exported. To China and probably not real big -- because precious metals and jewelry after a really have long been used as a store of wealth. -- I China so it seems that the engagement ring tradition was a small jump from. I hated talking and -- diamond -- and -- -- hit. All right Mike I don't want to jinx anything right they -- but today is that the twentieth straight Tuesday where the Dow has surged what is it about. Tuesday's. It's really hard to say whether it is. Random statistical noise or whether it's something about the strength of this bull market that seems to manifest most on Tuesdays. Now -- it straight now. There have been a hundred trading days through Friday this year the Dow was up 63 of them so basically every get any given day you have sort of more than 60% chance this year being up. Tuesday's had been unusually strong. I honestly don't know whether in fact it's sort of self fulfilling at this point for -- five -- there's an old saying on Wall Street that says as soon as you think you have to keep in the market. If somebody changes the locks -- so may -- as soon as we become utterly convinced. That Tuesday is is it. You know a lock on the upside may be -- I'll finally be surprised. But I can't afford it -- -- -- a really good start already and the -- already up about a 146 points at about. We haven't even stop talking -- like -- thank you so much for joining us this morning okay thanks to.

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

{"id":19271531,"title":"Markets Surge For 20th Straight Tuesday","duration":"7:08","description":"Mike Santoli analyzes the morning business headlines.","url":"/Business/video/markets-surge-20th-straight-tuesday-19271531","section":"Business","mediaType":"default"}