view transcript

Katherine Ross: It sounds like the December tariffs just may be taken off the table, which will give the markets a sigh of relief. Here to discuss how the tariffs will impact the holiday season is Martin Baccardax, London Bureau Chief for TheStreet and Art Hogan, Chief Market Strategist at National. Martin, I want to ask you first, the consumer is strong for now. If tariffs stay on the table, could that be the breaking point for our holiday shopper?

Martin Baccardax: I think tariffs are going to be a significant implication for holiday shopping, particularly because the U S consumer was strong, is also borrowing a lot to buy the consumer goods that have underpinned the economy for most of the year. The US took in $63 billion worth of tariffs for the first half of this year. A similar amount probably for the second. That's all being paid by US consumers, so ultimately that is going to have an implication for the strength of the consumer going into the final months of the year, particularly into the holiday season. But consumer sentiment is high. The markets are touching all time highs. Unemployment, very importantly is that the lowest since 1969. So I think the underpinning is solid enough that the tariffs won't necessarily derail the holiday season, but they will be something to pay attention to.

Katherine Ross: Art, obviously we're going to see a market rally if we do get a trade truce in writing. But if we don't have anything concrete, should investors bunker down and hibernate for this winter?

Art Hogan: I don't think so. I think that both sides of this conversation are desperate to get something accomplished and although we can easily do the math on what it is that we're not putting forward. We're removing some tariffs. We can calculate that. What we can't calculate and what's been the biggest headwind in the market has been that uncertainty. Are we going to escalate? Are we taking this through the entirety of everything that we import from China? And are those tariffs going from 20 to 30% and into infinity? I think deescalating and getting to a place where this becomes static, not dynamic, takes away a lot of uncertainty and that uncertainty might just relieve some economic energy. You might just have companies that say, I'm comfortable enough to start spending money. We haven't seen cap ex growth in 18 months.

Katherine Ross: Alright, Art, Martin, thank you so much for joining us and for more on the markets. Head on over to TheStreet.com.

The December tariffs are still on the table.

So, is that impacting the holiday shopper? How should investors react?

Martin Baccardax, London Bureau Chief with TheStreet, and Art Hogan, chief market strategist at National, sat down with TheStreet to discuss the tariffs and the holiday season.

"I think tariffs are going to be a significant implication for holiday shopping, particularly because the U.S. consumer was strong, is also borrowing a lot to buy the consumer goods that have underpinned the economy for most of the year. The US took in $63 billion worth of tariffs for the first half of this year. A similar amount probably for the second. That's all being paid by US consumers, so ultimately that is going to have an implication for the strength of the consumer going into the final months of the year, particularly into the holiday season. But consumer sentiment is high. The markets are touching all-time highs. Unemployment, very importantly is that the lowest since 1969. So I think the underpinning is solid enough that the tariffs won't necessarily derail the holiday season, but they will be something to pay attention to," said Baccardax.

Watch the full interview for Hogan's comments. 

Bull Market Fantasy: LIVE TUESDAY & THURSDAY @10:45AM

Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud

Catch Up: Today's Top News Videos Below