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tv   The Intelligence Report With Trish Regan  FOX Business  August 21, 2015 2:00pm-3:01pm EDT

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storm. it is picking up steam. it has been upgraded twice already today. very powerful storm the we will keep an eye on it for you. we'll leave you with dagen mcdowell. dagen: charles, keep talking about trump. the market coming back a little bit. hey, we'll talk what we can get. charles: got it, "the intelligence report". dagen: i'm dagen mcdowell in for tricker reagan. it is massive selloff on wall street. sell first and ask questions later. look at markets. dow off the lows of the day. down more than 300 points much of this afternoon. dow on track for back-to-back potentially, if we see this, back-to-back 300 plus point losses two days in a row. that is something that hasn't happened since november 2008, right? right in the depth of the financial crisis. fears of a globe slow down weighing on global oil prices.
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prices not seen in six 1/2 years. dropping below $40 a barrel for the first time since 2009. it is trying to hold above that mark. it closes about one-half however from now. here to make sense of it all, peter sure, head of macro strategy. fox business's adam shapiro and nicole petallides and mash second shun of options nicole to you first. look at internals of this market and really what is getting taken to the woodshed. >> tell you what the traders are saying, let's start with that two days in a row where you're seeing extreme selling. this is on the heels of selling across the board globally. down 270 points on the heels of 3960 point yesterday. traders will not what they're seeing. they're watching to see where lows will be. seeing oil below $40 a barrel. you mentioned oil, dagen, a couple things factor in, not
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only china and growth story but stockpiles. we had a build came in on wednesday. there is a rig count, tally, done by baker hughes, that tally increases again for the fifth straight week. all of that put together shows abundance of oil. coupled with the fact that all the money is flowing out of equities, right into the safe havens. the safe haven of gold, up $10. treasury is as 2.6%, when it was at 2.03%. they're looking for flight to quality and not ready to pick low-hanging fruit just yet. dagen: mark, to you in chicago, if oil closes below $40 a barrel, do you anticipate it heading up further? that is nice round number but a key technical mark as well? >> i don't think that is the end of the world. i do think oil is starting to slow down one thing i watch is the oil vix and that has not moved with the same kind of fear we saw with the oil selloff a
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few months ago. oil is having a kind of orderly selloff. it is equity markets that never figured out oil was selling off just now are really in kind of panic mode. oil definitely could head lower, somewhat. i don't think we're going to see $29 or $30 a barrel like some big institutions may have called for. we're within a couple of points of a low i think. dagen: you have western canadian crude that is in the 20s. that is particularly hurt by the slowdown in china. some people pointed to that as evidence that the west texas interimmediate could go even further? >> it is entirely possible but i do think we're getting to a point where it is not going to go a lot lower. you will see production come off-line. you will start seeing some companies go bust. oil, i would put a low somewhere around 35, 36 bucks a barrel for wti. dagen: adam, you talk about oil stocks, bear market in vast
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majority of oil stocks in the s&p 500 but see a ray of hope today. >> there is a some opportunity out there. diamond offshore was up, trading higher today, year-to-date that stock is down almost 40% but there is still demand for oil. demand has not really fallen quite as much as you would think by the drop of price in oil. one thing, when he says we could see a bottom of 36, $35, a year ago citi put out a note that oil could maybe touch $20 a barrel. clearly people see opportunity because they weren't openly buying diamond offshore but they were buying transocean. there is opportunity for exploration. even with china's economy slowing down there is still demand for oil and it is growing. dagen: peter, talk about china because this seems like a selloff that has to be more than just about china. is it our own valuations? still concerns despite lesser concerns that the federal reserve will tighten monetary policy?
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>> volatility started when china. other guest was saying oil reached it first. saw it in high-yield bond market and credit spreads. that turned us bearish. we were seeing credit spreads wide and high yield bonn market selloff. as you're looking to ad risk you're supposed to look at high yield are whether high yield etfs or leveraged loan etfs. that is a space i think is priced in. i think equity side has not come to term with low oil, particularly on the front end but the whole curve shifted lower. dagen: why is oil overall bad, lower oil overall bad for stocks? it is bad for energy companies. lower commodities bad for industrials. airlines were selling off today. it would seem like with oil falling your airlines might find a little bit of ball last here. great for consumers. >> i think a lot of this is very beta driven.
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people are selling indices as whole. indices wind up dragging everything down. there are some part of the market. there is retail investor, hedge fund and strategies that rely on momentum and trend following. once they see important trendlines broken. you see additional selling pressure on indices dragging everything down and that creates opportunities. >> i can answer the airline question simply. first six months they had had profits of $6.8 billion. they're adding capacity. bought a ticket for my mom to come here after labor day, round trip, 195 bucks. that is a competitive fare. dagen: that will be good news. give government off their backs, they were talking about antitrust, collusion on capacity. >> bad news they're shaming people who buy cheap tickets, can no longer pick your seat. get it when you check in if you take lowest fare. wind up in the back by the bathrooms probably middle role. dagen: excellent. nicole, get in here.
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john pointed out on "mornings with maria," look to last fall, 9.8% loss from peak to trough on s&p 500 during the ebola scare he. we have come close to correction before. >> i'm keeping a keen eye on that watching that number. for the dow that would be 16,481. so not write at correction mode that would be 10% off the highs. other thing worth noting is the transports overall. while lower oil does mean great news for truckers, shippers, the airlines, but the big picture here the transports are down 11, 12% this year and the big picture there is the weak global market. industrials, manufacturing everything. and truckers and shippers and airlines are supposed to get that stuff out. there is real disconnect. this brings us right back to the fed. the fed, if there were really a booming u.s. economy or at least
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very healthy u.s. economy, they would have been raising those rates. but they too sit there. officials in federal open market committee, sit there and wonder when is the right time to actually have liftoff and actually have our first rate hike. dagen: transports in correction territory. also russell 2000 which are your fast-growing companies. they're hard hit. will say watching nasdaq composite still in positive territory year-to-date. i want to move on to mark. talk about the federal reserve really quickly. is this evidence when the punch bowl gets pulled away and cheap and easy money starts to disappear, is this is what is going to happen to the markets? do we need to suck up and deal with it? >> i think on its own we might have had a day or two of sells. when you really have heavy pressure in the markets, it is when two or three events happen at the same time. we've got going on is china. wee federal reserve potentially raising rates in september. i think it will be happen or
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happen in 2015 to be honest. greek mess heated up more last night as well. those three things combined are really what is driving markets lower. when i look what i trade, every single indkay tore i'm looking at saying more red is coming. i think they will bang into the close. i think we may see ugliest day since august of 2011 today. this is lining up to be that type of day. with that we could see a 10-year note get back towards the 2% level. not a chance of a fed rate hike in the september. it is not in the cards. only way they do something like that if they're as stubborn as my five-year-old, do things despite what is best for themselves. it just isn't going to happen. dagen: i'm going to give peter final word here, but, peter, if the fed, because they have, they haven't promised but they have set the market up and market expectations have changed for interest rate hike. if they don't hike, does that then shock and scare investors even more? the u.s. economy is bad enough?
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would the fed react to just market movements and not underlying fundamentals of the economy? >> i think they have a real risk of losing credibility. i think they have should have hiked long time ago. now there is growing concern they missed their opportunity. we never entered into recession with rates at zero. if china is bad as it sound and oil is coming down and real risk of slowing economy and fed already at zero. that is a concern bubbling out there we'll start hearing more next week, where people say where is the economy going and what will the fed do? won't be about rate hikes. they messed up policy by not hiking sooner when they could have. dagen: article in the "wall street journal" what ammo down the road if there is a slowdown. thank you as well. mark, still ahead, can't be an hour of tv without talking about donald trump. he is expected to draw tens of thousands in a rally at mobile, alabama, today. we'll find out how the city is
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preparing for team donald and thousands expected to show up when we speak to that city's mayor. further west, the situation going from bad to worse. wildfires gripping nine states. 25 million firefighters have been deployed. thousands of people evacuated from their homes. we're live on the scene later this hour. ♪ [ male announcer ] whether it takes 200,000 parts,
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dagen: hurricane danny strengthening into a category 3 hurricane as it moves towards the caribbean. the hurricane winds have increased to 115 miles per hour. the national hurricane center saying that the storm is likely to weaken over the weekend and does not currently pose any threat to land. hillary clinton meantime may have to start coming up with a different answer when asked about her personal email server.
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according to reuters, at least 30 emails from as far back as 2009 contained, quote, foreign government information. why is that important? well, these emails have been retroactively deemed classified, allowing the clinton campaign to keep claiming that hillary clinton did not send or receive any emails classified at time but according to reuters analysis, regulations state, that conversations between u.s. officials and their foreign counterparts must be presumed classified. at that time whether marked that way or not. a lot to talk about today with our political panel. matt that lap, chairman of the american conservative union. leslie marshall, radio talk show host. she is a liberal. that's okay. start with peter barnes. tell us more about the reuters report. >> reporter: daigh begin says the state department's own regulations on this matter, issued in 1999 and updated in twine are clear. all department employees, quote,
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must safe guard foreign government and nato restricted information securely, marking it as confidential, secret or top secret to help prevent it from leaking out. state department staff including secretaries of state receive training how to classify and handle sensitive information. in march clinton said she was certainly well aware of classification requirements. at one former government records security official told reuters, quote, it is born classified if a foreign minister just told the secretary of state something in confidence by u.s. rules, that is classified at the moment it is in u.s. channels and u.s. possession. reuters reports that the unredacted portions of the emails appear to indicate information from a prime minister, a foreign minister, and several intelligence chiefs, at least here's one from tween sent through clip ton's personal email account from an aide, from, to her from a then british foreign secretary.
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the state department has retroactively labeled the email as classified and redacted five-pages of it. dagen? dagen: peter, thank you so much for that. let's move on to our panel. matt and leslie. leslie to you first. this is not going away for the clinton campaign. >> i always said it wouldn't go away. this is what republicans will be swift boating of hillary rodham clinton. reality, one, was there a crime committed? and two, are we seeing charges by intelligence committee or anyone in the federal government of hillary rodham clinton for espionage? what we're looking at with the emails is one retroactive marking, two, who is the sender, and three, what was knowledge of hillary clinton when she was secretary of state of that being sent to her and content of those materials. was national security breached? and was there any criminal action? we, very rare charges are brought against anyone historically for something like this. i don't think we'll see those charges and i don't think this
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is going to prevent her being on platform for democrats or even becoming president. dagen: leslie, let you to respond to this, toss it to matt first. does it teen take criminality or go a lot further more than in her campaign for, one, democratic nomination and two the presidency? people already don't trust her. will it take that much more for the voter to turn against her? >> that is the right question. let's face it this was irresponsible and reckless at very minimum. potentially criminal and potentially career-inding. we'll find out about those two pieces. the fact is polls and american people, by the way, folks that aren't republicans have already, are already rendering their conclusion on this whole messy affair. and independents now no longer think she is honest and trustworthy. that is killer blow for anybody who wants to be president. you can be strong within your own party you will have pull over some folks in the other party and pull over majority of the middle.
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she is losing middle because they don't think she is credible. not just that she might be lying about server and emails, the fact she was incompetent secretary of state, benghazi. finally clintons think there is second set of rules, alternative set of rules for them why she did something so extraordinary having a server in the bathroom. dagen: leslie, people come to the table with feelings about bill and hillary clinton before this even happened. can she help herself stopping making jokes? because the jokes are falling flat and they come at a time when you shouldn't be talking about this in jess? or no? >> i agree with you 100% on that. i always said, there are a couple things here. i met mrs. clinton couple times in person. if she could just be herself with the media, her poll ratings, her approval rating would go up. if you listen to way she responded when she met with the black lives matter group, she
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can't being political. wasn't looking for personal gain necessarily, being very transparent. what i think she should have done with ed to be honest. i don't think mrs. clinton erased that server. i don't think she would know how to. it would be honest to say absolutely not. what a ridiculous question. of course not. she doesn't do that. doesn't apologize for recklessness of it. address it, move forward. because she hasn't addressed it is hard for some in the middle and on the left to move forward. dagen: we're going to move on. i say she looks like kate mckinnon imitating her on "saturday night live," how awkward it is. matt, leslie, stay right there. we have to move on to donald trump. 42,000 number of people who rsvped to a donald trump rally tonight in mobile, alabama. originally the campaign book ad site that would hold to 500 people. it is moved to a local sports stadium used by the university y of south alabama. the crowd will be record
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breaking. i've done the math. 20% of the population of mobile, alabama. you can't make it up, blake burman. blake? >> reporter: something like that, i can tell you. i spoke with donald trump's campaign manager earlier today. he told me they received over 40,000 rsvps for tonight' vent in mobile, alabama. the event had to be moved there when they received 20,000 rsvps in matter of hours earlier this week. for context here, dagen, keep in mind, when donald trump announced his presidential run in mid-june, some question whether or not he paid people to attend that announcement. now all you have to do is fast forward couple months to now. he is republican frontrunner and is expected to have an audience of tens of thousands tonight. now if trump ends up approaching that number or exceeds the mark, it would make it the biggest political rally of the cycle so far. a look at top five shows
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ben bernanke drawn the biggest crowds. his highest total estimated at 28,000 people. top republican was ted cruz with 11,000. that was at liberty university, the graduation that had built-in audience. this by far would be the biggest. dagen. dagen: thank you so much, blake burman in washington. back to matt and leslie, matt, people hate politicians so they're flocking to donald trump period. can it last? >> yeah. a lot of folks didn't think it would get this far. there was a poll came out in a state recently showed between donald trump, dr. ben carson and carly fiorina, the three of them were top three vote-getters of all these 17 candidates. there is real affinity to the fact donald trump is outsider and these other candidates who have not spent one day in elected office. this is real dynamic here to stay. dagen: leslie, almost as if he can say anything he wants, he can do anything he wants and nothing sticks to him.
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>> it's funny, we use to call bill clinton the teflon guy but it's true. donald trump has contradicted himself. he has gone from pro-choice to life, pro-choice, to pro-life to pro-choice in three week period and nobody seems phased by it. what he does have in the name. i'm sitting here in california when i laughed that arnold schwarzenegger said he would run for governor. he became our governor. celebrity goes a long way and not just in hollywood. donald trump is a celebrity. and people gravitate towards that that is the reason it's the number one reason people vote for somebody is name recognition. a lot of people flock to him because of it. dagen: leslie, end on this with you, this is a question, he is running a campaign that nobody has seen before in terms of use of social media and television. far and above what president obama was able to do with social media and the young vote. will politicians, all of them, democrat and republican make a mistake thinking they can't, that they can actually take him
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on in traditional ways? >> well, donald trump's not traditional. so, i mean you can't take him on in traditional way. he has no problem insulting. he has his own rule book. there is really no rule in his book. they will have to be very creative. >> how about policy though? >> come a way from typical -- which a lot of people seem to love. >> that's where this is going to to. we're going to have a conversation with these 17 candidates on their policy positions. that will be fair game. that is where all these candidates will be judged what they say about where they want this country to go. i'm glad it is going there. dagen: we're talking to maria bartiromo. essentially called for a trade war with china. 42,000 people are going to see him tonight. they just don't care at this point. >> with made in china on their trump hats by the way, inside the label. dagen: he selling them. thank you, leslie.
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great to see you as well. matt that lap and leslie marshall. great celebration. we'll join the mayor of mobile, a alabama as the mayor prepares for that event. back-to-back days of plus 300 point losses. wee haven't seen that since the financial crisis. more on this selloff next. ♪
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and nicole is on the floor of the stock exchange and back again is peter of capital. nicole, to you first. what are you looking at? >> first of all, when we talked about the dow, we're watching that correction territory, traders not saying that this is the time to buy, on the contrary not ready to pick the low hanging fruit. that being said, dow component apple. there's today, look at apple 108.04 and the high of the year was 134 and change. so we've seen apple move into negative territory, and that really represents it's not only apple and some of the dow names that we've been watching but the tech sector overall as the nasdaq and the s&p, the information technology sector overall, seeing the worst week in four years. >> is this justified to kind of selling your thing, oil has just collapsed.
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but you're seeing -- it's almost indiscriminate selling. >> it really is and that's the point taken. look at this. you're selling anything that has risk attached to it, whether it's commodity sales or global markets, u.s. markets, so by means of everything sold off almost at the same pace. now, obviously some of the media names and some of the technology names are getting hit a little bit harder. but at the end of the day the 2% on the dow and the nasdaq, so we're selling everything hee. and typically that's what happens at the end of a selling cycle. this is the 12th correction that we've had in this run anywhere from 5 to 16%, we're in the middle of one of those right now and at the end it looks like they go after the leadership and sell everything. so this means we're getting close to the end not the beginning of it. trish: so you don't think this is anything more than a correction, it's the correction and not the beginning of a bear market? >> well, you know, i think everybody gets concerned
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during the middle of a correction whether the story is commodity prices or whether the story is china and slow down their economy because we're always afraid we're going to go back to that 2008 correction. this is the typical corrections that we have and longer terminable markets. now, remember we've had plenty of these, at least 12 of them since march of 2009. what's happening now is a regenerating of equities, while that's happening, we're trying to figure out while china's economy slows down, and at the end of the day we try to find the commodity prices at some level. when that stabilizes, we'll get back in the market and say, you know, we've really done some damage where it doesn't deserve to have been done. trish: just a few weeks ago people were worried about, the federal reserve to start raising interest rates next month. that the economy looked good enough that the wage gains were there, and the inflation and deflation was not the world, certainly not being used about the united states
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and then here we are. >> yeah. we've seen this over done. the cascading liquidity, the treasury market fall off, and then we're seeing a little bit in the liquidity market where everybody got comfortable where the fed had our back, so we're going to pull back. and if you sold at 2,100 on the s&p, great, if you haven't sold yet, i don't think you need to, i think we're closer to the bottom. i don't know if you want to exactly time this, but 1950 was our bottom floor, this was constructive here. i don't want to use the word healthy pull back, but this was good for the market, it needed to shake out, and like you say, a lot of the good stories that were there just a month ago are still there. so i think we have a chance of doing very well. >> you had names like home depot and tjx hitting all-time highs earlier in the week. >> right. so it's just -- again, a lot of this was really macro driven, very institutional selling and that's driving everything
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lower, which, again, i think is the opportunity we're looking for. it gives you that chance to buy, and right now we're focused on the high yield states and some of the energy, some of the really beaten down sectors because we think that's where there's value. we're still cautious in some of the names that haven't come up yet. >> hold your nose and drink bur ban. peter, thank you so much. always terrific to see you and nicole, we will see you later. after the break, the donald heads south, and he's expected to draw thousands of supporters at a rally tonight in alabama. we talked with the city's mayor next on how mobile is bracing for the madness at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason.
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at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping. >> republican front runner donald trump showing no signs of slowing down. we're less than five hours away from a rally tonight expected to draw more than 40,000 people in mowville, alabama. could that be a security nightmare? is the city ready? i'm joined by the mayor of mowville. tell us what you know in vance of this. are you prepared in terms of managing crowds and security? >> looking at this as a security nightmare, we used to handling crowds up to 250,000 people.
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so this is just an event. if you can handle mardi gras, you can handle mr. trump. >> but then had to change venues and now being held in the stadium where the university of south alabama play. but the numbers that we've heard from the trump campaign, it sounds like they're expecting even more people than the capacity of the stadium. >> well, that's correct. that's what the forecast is. but whether we have 30,000 or 40,000, we don't know. but 40 would obviously from the stadium from a visibility standpoint because we're blocking one end zone off. >> what has the campaign told you, any additional steps that you've had to take in the city to get ready for mr. trump. >> truly the campaign has handled all of the logistics, our part is only coordinating from a public safety standpoint that our law
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enforcement officials are in the right place at the right time. and really the campaign's paying for everything and doing all the logistics. >> mr. mayor, based on the numbers, it's about 20% of the population of mobile will attend this rally. can you explain the popularity? >> well, someone expressed it this way. they said they always regretted never seeing elvis presley, and they aren't going to miss seeing donald trump. >> someone is comparing donald trump to the king? >> this is just -- >> if you're next to the woods down south, that's -- >> anyway. that's one person's opinion. but, you know, just a lot of people that the campaign has created an excitement that you don't typically see in a political campaign. >> we -- mr. mayor, will you be there? >> i will meet him at the airplane, transport him to the event, and then i have to go to another -- a long-standing
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engagement that i've had, but i'll have the opportunity to visit with him. >> mr. mayor, thank you so much for joining us, and good luck tonight. >> thank you so much. >> if you aren't able to make it to mobile tonight, you can watch trump's rally on a special two-hour edition of lou dobbs tonight. and the other candidate that seems to be moving up in the polls, carly fiorina will be on the intelligence report on monday to talk about her recent success in everything and of course right now you can watch on the bottom of your screen we are watching these markets because the dow nearing its lows of the session. down about 350 points. we'll keep you up to speed on that. also we want to take you out west. officials in washington state have called for more immediate evacuations as 100 wildfires rage across that part of the country. nearly 25,000 firefighters are on the ground in washington, idaho, oregon, california, and montana. will, this situation has gone
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from bad to worse. >> absolutely. and on wednesday three firefighters were killed and we're learning a lot more about them. their crew members say that that day, that fire was the closest thing to hell on earth that they've ever seen. and that is a stark reminder for all the men and women, thousands that are still out there continuing to battle these blazes on the west coast. the three men, tom, 20 years old, andrew who is 26, and richard, who is 31, they were all part of an elite team trained to assess developing fires. they were working on a fire in north washington when their car crashed, why that happened, not sure, but the flames over took the car. emergency vehicles escorted all three boys away from the fire zone. firefighters who are currently battling the blaze took a moment, they paused, they held their moments across their chest. now the entire state of washington is in mourning. listen to tom's father.
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>> i just want people to know what a wonderful person he has. how bad we feel about it all. there's no way we can replace the son. with the loss of these three firefighters, we know the smoke is still there, and it's thick, but it's not going to be obscure their incredible act of encourage. >> the governor of washington calling all three of those firefighters heroes. four others were injured nearby. the man you see in the picture there, he suffered third degree burns over most of his body. as he continues to recover, crews are spread all across the west coast, continuing to battle 80 wildfires, day and night, very long days fighting the fires, 50-mile per hour winds going on, and they're putting their lives on the line to protect the people in the communities and their property. >> thank you so much for that report. >> you bet. >> and after the break, netflix receiving some backlash after the baby
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>> i'm nicole with your fox business brief. we are not too far off session lows. the dow jones industrial down 366 points. at our lowest point, 379 points, so we are down almost at the bottom of the day and that comes on the heels of yesterday. 360-point loss.
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the dow down 2% as the s&p 500 and the nasdaq as well. and surging once again two days in the nah row, up 26% on the heels of a 24% game yesterday. highest of the year. and oil right now 40.44. however, drop a low $40. the dow lags. negatives of the year, nike, microsoft, transports, airlines down 13% this year and here are some of the losers in that including avis, jetblue, much more intelligence report coming back after the break
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>> netflix facing backlash today. the company which recently introduced benefits to give new parents up to one year of paid legally is excluding its employees who work in the mail service. only those who work in the online streaming division qualify for this perk. netflix currently employs 450 people yet its shrinking but still profitable dvd department. and this major selloff on wall street, run for the exit, that's what's happening. look at the dow right now, as mark predicted at the beginning of this show, you were seeing the selling activity pick up. you're seeing pressure to the
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downside, the dow down about 380 points just a short while ago. what to make of this, i'm joined now by liz macdonald and angie, fix income director. liz, i want to start with you first. >> sure. >> this seems that it came out of nowhere. >> that's right. >> i know you've been working the phones because that's who you are. what are people telling you? >> what they're telling me you're exactly right. there's nothing changed. what what i understand all of a sudden over the last week or so? nothing we have the same story line in the market raising rates. now this. there's raising rates and the fed if you understand future only 32% of the hike in september, so now they're talking about january for a fed rate hike. what changed all of a sudden? it was the same narrative. barkly just put out a note, not fun in summertime. here's what we're hearing from our sources down on wall street. these are major traders. here's what they're saying.
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they're saying a strengthening dollar did ignite a emerging market selloff. so remember a few years ago goldman sachs, oh, emerging markets is the place to be. >> yeah. >> pile into emerging markets. now they're saying basically stronger dollar is under cutting taiwan, russia, we know china, that's the same story for china, china is an emerging market,al jee, so if you don't have that demand and the global stage from the emerging markets, that under cuts growth. >> and i'll point this out. we already have a 13% move to the downside in europe. that's the stock 600 that i'm talking about. in germany down four today, started at 16% for the april high. and the fixed income market is usually a great beacon of what to come. was it telling us we were going to see this in stocks weeks, if not months ago. >> they were giving some warning signs and you're right.
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no one sees this coming and everyone has a reason for it happening after it does. but really what you saw a little bit in the fixed income markets were stressed, specifically energy, saw spreads widen there, and even on the investment side, the spreads to treasuries as well. so there were some red flags but i don't think they were nearly as the president as a red flag as what happened in the market. >> he makes a great point here because we've seen the spreads in the junk market. versus the ten-year treasury. more than double. i think they're up 517 basis points just since june. so we're getting emotionally wide trading range right now. the irony is that that strength recently raising rates strengthens the dollar, rest the emerging markets, so that's the story line we're watching right now. >> stay with me. we'll be right back, everybody. 403 point loss on the dow. watch it tumble. we'll be right back
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i have a lifetime of experience. so i know how important that is. >> just moments ago the dow was down more than 400 points. if you look at the dow, there is one stock that is in the green. 3m managing to hang onto gains here. but you've got 29 stocks deep in the red. lori is with us, she's hosting count down of the bell, and andy is with us, can you be constructed being an fixed income guy, can you tell us that the road is looking better ahead? >> well, i think you're going to see more volatility, and there's always corrections, we still think this is a correction in a bear market. so eventually the road ahead is better. if you look at domestic growth, we still look pretty solid here in the u.s. nothing to write home about, but better than the rest of the economy. and if the fed does delay, and maybe they will, maybe they
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won't, that's not a bad scenario either. so there are some reasons to look positive here. i think you're going to see some capitulation, but, again, longer term, we think there is a reason to look optimistic. >> at what point would you sell treasuries here? do you wait until -- where does the yield have to go for it to be time to get out of the treasuries? because you see that's one of the few places that money is going in this environment. >> sure. treasuries have had a pretty good rally here. and, you know, that's update to be diversified. and for all of our clients, you know, we try not to tie moves, you never when an a correction is going to happen. but treasuries on the whole, don't look particularly cheap right now, so i wouldn't say it's a buying opportunity. but i would say you stick to your plan policy. hopefully you've got a plan that's going to last for years not just a month or week here. and we're sticking with core bonds, treasuries, we think investment grade credited looks good here and agency mortgage back securities. along with equities and a balance portfolio.
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so we wouldn't say anything right now and not time to go to cash either. >> but the vol tilted you've seen in this market this week is pretty astonishing, the vicks right now is on its track for its second biggest weekly gain ever. so gauge volatility fear index. but liz macdonald and i were talking about it. didn't it come out of nowhere? >> it seems indeed. there's a huge message there. in fact, last friday we saw this huge move of money and that's such a sign; right? that people, investors around the globe are concerned about this macro picture of selling, and it probably began in china; right? the flags raised; right? with the devaluation and how that's upsetting all the emerging market currencies, and we're seeing this ripple effect. and it's day after day and the total off risk scenario and that's the environment right now, especially this late in the summer where you have a
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low vo volatility environment, and it could continue. >> nicole, talk about your sectors and which ones are getting hit the hardest at this point. >> well, we've certainly seen tech stocks getting hit hard. the nasdaq, for example, which feathery week had been -- we were up year to date 6% in the upside and now barrel holding onto gains in the year. the tech sector overall, worst week in four years. we've seen oil getting crushed under that $40 a barrel mark. that's another sector we've watched. but on the other hand we've seen the one area of strength and that has been gold. >> and this is a fed reserve and easy monetary policy that we've seen around the globe. i'll to say this to lori, lossy, the federal reserve is going to have to raise interest rates and essentially other banks around the world will have to do that. in this or not the kind of
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pain that we will eventually have to experience? >> well, you know, because it -- sorry. i mean the big picture is we're talking about 25 basis points. one quarter of 1% hike for the first time in seven years. it's not a big deal. it's mind-blowing to me that folks are so focused on it and so nervous and jittery about what the fed is going to do and when they're going to do it. so today you've got a big move over to december. so 60% of those traders now expect to bump up list off if you will happen in september and not december. but i mean it's getting a little bit, in my opinion, crazy. >> i love it when you get animated talking about monetary policy, that's one of my favorite things. lori, we'll be with you in a minute or so because you have the countdown of the closing bell. nicole, i'm going to go back to you. i think if the federal reserve had to kick this down the road and delay raising interest rates where they're so focused and telegraphing to the markets that it was probably
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going to raise in september if not later in the year. that that would send the signal that the economy here is in horrible shape, and it could even mean more downside pressure on stocks. >> right. and that couple not only our u.s. can economy but the global story and when we see china devalue last week, that was problematic, that was something that the fed was watching as well. and we're seeing commodities under pressure and you're seeing the markets under pressure and trust me, the fed is watching. so that september date that everybody has been waiting and expecting, i even heard another person say forget 2015. they'll just do it next year now. we'll see. >> and one last thing, jackson hold, the big conference is next week and janet is not going to be there. >> this is some time ago. >> andy, go ahead. >> yeah. i think, again, they're going to really be more transparent after their meetings with their statements and minutes.
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so you think you're going to hear some comments about currency. it's really a global disinflation outlook, people are thinking we're heading to deflationary environment and that's why you're seeing the sell all risk assets. and that's what's happening. >> thank you very much. and nicole, and lori take it away. >> thank you sop purchase, well, panic on wall street. we are near the lows of the session. have a look if you're brave enough. the dow off 394, that's not even the worst wees, it was down 400 points think moments ago. solidly below the 17,000 level. we've got one hour before the closing day that most traders and investors would be happy to say goodbye to. now the nasdaq down over 120 today on track for its worst week in four years and the s&p selling below its average dipping below 2,000 for the first time s f


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