tv Mornings With Maria Bartiromo FOX Business August 27, 2015 6:00am-9:01am EDT
up 21. nasdaq futures up 60. market mover later this hour, the latest reading on economic growth. the report at 8:30 a.m. eastern expecting a growth of 3.2% for the second quarter. china leading the way overnight. shanghai composite rallied 5% or close of 3083. the nikkei in japan with a strong close. the market over 1%. the gain of 197-point. europe followed a minor triple digit gains. you see the ftse cac and dax all hosting solid gains. the dax of 3%. first of the futures at home where we see triple digit gains on the dow and green across the board. the game 193. before you get too excited about possibly a second day of rally,
joining us now is the man who believes the bubble is about to burst in the market. by selling off or an economist terry dead. pour cold water on us this morning. >> grande is bullish for the 80s and 90s because we saw the baby boom spending more money. since 2008 in a downward spending declined just like we saw from 1969 to make 1982. when generations are not spending money, we get extended downturn for the market and we have had kiwi until late last year to offset this. now it is wearing off. i think this is the beginning of a broader crash. sandra: what does it crash look like? how long will last? >> when they give you the simplest pattern. every bubble we've seen peak 2000, 2007 and has taken us to
new highs. every crash is taken us to new lows. so as to the dow having peaked at 18,300 the next stop down would be about 5,806,000 about a year and a half or so from now. i know it sounds dire, but only a little lower. sandra: i've got to get tony in here because you are going to get challenged. >> i challenge the sustainable significant market to decline absent the economic data so that there is a huge difference between 2,002,007 and the fed is raising rates. the yield is not averted and you have to take into context spending of the windows coming up. i remember working in the early 1990s and that dave was baby boomers are coming into the huge spending demographic. millennial's are the same size as the baby boomer demographic
and they will be increasing spending significantly over the course of the next 10 years. >> tony, half of them are not in the work for us yet. i think anybody on the earth. the new generation is coming up, but not enough to offset the baby boomers. the largest generation in history here and around the world in people of japan -- japan's market collapsed in the 1990s, which only i predicted back then. they are still in a difficult time in real estate is still down 60% 25 years later. there is more old people dying in young people coming along buying homes. >> you are predicting a crash now. you read a book the great depression had published in january 2009. people who fall you missed a 150% move in the dow. they missed a 270% live in the nasdaq has he been negative
since nine. >> are you on our newsletter? obviously not. dagen: do i have to pay for it? then i'm not. >> was that the mark of a turnaround. dagen: when did you say that? >> we've been saying that since early 2009. dagen: now, the book's title was the great depression ahead, so you basically -- >> we did have a depression starting to have bid and we've had $4.5 trillion. dagen: we came out of a recession shortly after your book was published. out, not in. >> exactly. that's why we have the newsletter. sandra: bottom line, what are you seeing today? you are using history as a reason for the market to crash. anything different about today about the millennial generation might throw off your analysis,
that might make history predictor of what will happen with the stock market. >> again, we look at the things you can predict. the short-term trends are hard to predict. long-term generations spend money. if the work for poor $.5 trillion of quantitative easing and 12 trillion around the world -- sandra: looking at the s&p 500 for example, most used this as a benchmark. where does the s&p 500 finished percentagewise on the year? >> you know, could be down 20% to 30%. the reason we are in the crash season between mid-august and mid-october where you can see where radical crashes like we see here. then we will keep stepping down. sandra: you are making a call ahead of the month of september, which seasonally is one of the weakest month for the stock market. i am looking at the timing of
your call. it might look good because we do tend to self in september but that is where the caused most important. harry dent, thanks for joining us. dagen: individual investors make the worst decisions in terms of signing on tread signing. sandra: grey. she never has an opinion on anything. hillary clinton changing your stance on the enough scandal haunted her campaign thus far. the front runner admitted yesterday her use of personal e-mail as secretary of state was a mistake. take a listen. >> i know people have raised questions about my e-mail used as secretary of state and i understand why. i get it. so here is what i want the american people to know. by use of personal e-mail was allowed by the state department. it clearly wasn't the best choice. i should've used to e-mails.
one personal, one for work and i take responsibility for that decision. sandra: no longer a joking matter it appears. join a ms. fox news julie brezinski. direct drive help policy. julie, wasn'julie brezinski. direct drive help policy. julie, wasn't it just last week she joked about wiping with a cloth for server cleaned and everybody said really? this is not a laughing matter. she's changing her toned? >> absolutely. it's taking longer than a gestation period. the fact that people who are clearly not in the bunker with her kept saying here and elsewhere, get out front on this issue. concede you made a mistake so you could move on. sandra: what he think about the tactics he was in the best choice? >> of us hoping an advocate of weeks ago that she do this.
start talking about other issues. the more you joke about it and say it isn't a big deal, it's a big deal. it was a huge mistake politically. sandra: i wonder how much of this is about joe biden entering the race. issue feeling pressure from plan b by the democrats? >> sure. she's looking at polling numbers from july to august. senator bernie sanders was gaining on her. she is responding to the need to focus on the serious issue is a laughing matter. a smart move. sandra: stand by what we look at this. univision jorge ramos was ejected from a conference call at a fire exchange with donald trump with his use on u.s. immigration. ramos appeared on the kelley fire last night to share his side of the story. take a listen. >> clearly donald trump didn't like my questioning. he tried to silence me.
and this country you cannot do that. i miss the descendent and the greg, reporter and i have the right in this country to ask any question i want to whoever i want. sandra: there is a lot of conflicting opinions on who was in the wrong here. trump, ran most. they had alberto gonzales on the show yesterday. he suggested both are in the wrong, that the journalist has held himself in higher regard in his lon career and he maybe had a misstep. donald trump went to extremes as well. >> let's take emotion out of this and who was right, who's wrong. 27% of hispanic voters is exactly what may run again in 2012. if the gop doesn't do better than that, they will never win. they are not going to get 100% of the way food to where they
loosen the nonwhite voters. whether donald trump was in the right, this is the face of the republican party right now. he is toxic. >> i were to greet those people are in the wrong. look at video footage from the press conference and that has to be some degree of order. it is your job to ask questions and i respect jorge ramos for doing that. he was out of order and directed another reporter. trump didn't handle this well. this is. this is in his diet to be polite. it is his style to be inflammatory. julius wright he's got a negative 51% rating right now with hispanics. fellow mob as well if the gop nominates trump. he's got to pay attention to the unfortunate part of life in d.c. that perception can become reality. >> even that is not the republican nominee, the factory
of audience is applauding the , the factory of audience is applauding the behavior of reach out on who the nominee will be. he is distracted for the republican party. sandra: hold on. i have to get tony in here because he looked mildly entertained by the conversation. >> how can you not be entertained? the whole thing is a relative. on the public can i my book. you can kick people out of the roots of dallas, hispanics or anybody that disagrees to him the spot. >> this is not my argument. this is what i've heard people saying. why couldn't donald trump has said it's not your turn. i will address that question. >> because his donald trump and he likes to insult people. >> is a public speaker i do a lot of public talks. >> he doesn't have a long history of being rude and interrupting people at press
conferences. dagen: this is a personal issue for jorge ramos. very personal. that exchange their is about to donald trump is. he says and does things, very incendiary, but a few faith-based a supporter and it does add care about anything else. >> because polite they are not treating them that way. the bigger thing is also a war on the media. the american people hate the media. they hate the opinion then he is feeding that. sandra: five seconds left. to you. >> not all republicans are applauding and are in favor of the way he's treating hispanics or women. when you look at the ratings of republicans there's a handful of polling favorably. the next closest is maybe a negative seven rating for the next closest republican.
trump is outside of the pack and outside of the data. sandra: thank you for joining us this morning. a big rebound in china stocks overnight. the search led asian markets higher with the rally. we will go to beijing with the latest on the market and what it means for markets here at home next. ♪ can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?
beijing. reporter: good morning. and monstrous rally in asia and the china nikkei composite cranks )-right-paren 3%, mostly bargain-hunting after pumping more money into the system to the financial sector was the biggest winner and the games were much tamer. the hang seng at 3.6%. rankings stacks over there. japanese stocks trailed wall street higher. the nikkei up 1.8%. the demand was lifted by a weaker yen price to 120 level against the u.s. dollar. in south korea getting about seven tenths of 1% at the index heavyweight claiming more than 3%. back to you. sandra: tracey chang from a thank you. another top stories looking at oil prices moving back above the $40 a barrel mark for the first time since friday. but in a $40.22 a barrel coming
in but would then expect it. that is a gain of more than 4% this morning. a lot of action there. or to rally enough to 6.5 year lows earlier this week. what do you think is the general price direction out of oil? >> it is still down although commodities is an amazing thing. three years ago saudi arabia was going to dry up. the more oil and they would go to $300 a barrel. that is infinite supply of oil for the rest of time in oil output at $20 a barrel. it's a commodity. price movement makes you increase or decrease supply and demand. ultimately, we do think it will bottom out oil-producing here. sandra: are you talking $30 a barrel? >> at most. and my friend mark, looking at
the stock market and asset class, just not be as negative as you've been. sandra: you think the catalyst will be a pickup in demand. >> it's a combination and you will shrink supplies. but saudi arabia didn't understand if saudi arabia started this by saying they want to take market share by driving prices lower which was shut down production. they didn't count on the amount of debt used by companies in the u.s. to produce the oil. if you are a company with a ton of debt, drilling for oil, you'd better find a lot of that if the prices cap more than half has got to have revenues to justify the debt payment. they increase supply by increasing their own supply and that is why you see the collapse. >> i will reference by the indicator light prices fall in demand increases.
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we will continue to follow the market action acc down features built in an earlier gains that 200 points. first let's bring you one of the morning's other top stories starting with the latest developments the terrible shooting in virginia that cost to journalist their lives. cheryl casone is here this morning. >> good morning, sandra. allison park or an atom board were killed live on the air yesterday morning. they were remembered by colleagues. the shooter died of self-inflicted gunshot wounds yesterday afternoon. the lone survivor, vicki gardner recovering from surgery in stable condition. we will have a live report in the next hour on "mornings with maria." the univision anchor who was talked out of a news conference by donald trump is speaking now. jorge ramos appeared on the kelley filed last may. here is what he told me again. >> through a donald trump didn't like my question. he tried to silence me and in
this country you cannot do that. i'm a u.s. citizen, in the grand, reporter and at the right to ask any question i want. sandra: finally, mainstream speaking on wall street. what average people tell fox business about the wild swings in the market. >> the matter of tickets high or low, i am not nervous because that is resilient and we will bounce back. >> much alumni should make any changes to my investment. and i hope in the market will go back out. >> i'm nervous. who knows what will happen tomorrow. i don't know if it's going to be good, going to be bad. i worry about the 401(k). >> just come i'm the spirit of the child in college. i'm nervous about her college fund. >> do not take against fire since a columnist to go through
this week of austria. right now the dow futures point to another update. hopefully nobody sold last night. sandra: cheryl, thank you very much. that time of year again for the getaway to jackson hole. janet yellen is a no-show. what is on the table for central bankers? we'll had to wyoming where peter burns is standing by with the latest. ♪ ♪ ♪ if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer.
economic growth at 8:30 a.m.. a big market mover, look at the dow climbing this morning. and china leading the way in gains, shanghai composite rallying 5% 33. the gain 197, triple digit gains in the major markets, you can see the ftse, the cac and the dax led by gains in france. breaking news, federal reserve annual or street in jackson hole, wyoming kicks off tonight, peter barnes is there. this is gearing up to be an important weekend for the fed and the markets even though janet yellen isn't there.
>> that is right. this our first interview with actor george, president of the kansas city federal reserve bank and host of this annual conference. she is a long time hawk on fed policy, she called for starting to raise interest rates to make the first hike since the financial crisis back at the fed meeting in july but when we talked to her yesterday she said with problems in china and volatility in the financial markets she wants to wait and see comments by bill dudley yesterday. >> it can complicate decision make and the volatility in the market, volatility in china.
>> what does it mean for your view to left off. you are in favor of acting sooner rather than later. the data was moving in the right direction, the economy is to take the process of normalizing. it is noise, or to overactive short-term data that may not turn out to be, the committee has been clear and intentional. >> would you think the economy stands right now. >> after a disappointing first quarter looks like we're back on
track, another 2%, the labor markets continue to show great health i think. we had over 200,000 jobs among for 15 of the last 17 months. that is a great time. as consumers spend, gain more confidence, oil prices, my outlook is for continued growth. in that context it is time to talk about normalization. >> the other component is inflation. you and your colleagues would like reasonable assurance that inflation is headed back to the 2% arget. right now inflation, headline inflation is very weak. what about that? >> when you look at why, when you look at the disinflationary pressures, an oil price shock reflected in that data, lower import prices because of the
strong dollar, should be temporary effect, a longer-term forecasts. as long as expectations look like they are saying stable and not feeding through to the broader economy i think we can have, i have three simple processes that will get back to that target. >> you would want to see that and the jobs picture looks solid enough for you and if you were voting this september and not a voting member of a policy this year but you will be next year, what would it take to get you to raise rates in september? >> as i said i was there several months ago in terms of thinking it is time. the committee wants to be able to once it lifts off:a gradual
path and that is why i was in favor of doing that sooner so that it would give the economy time to react to the rate increase the we could see the effect of that and proceed on of gradual normalization half. >> when you talked about this in oklahoma you did talk about the risks of waiting too were long to start to raise rates. this volatility, the stock market getting ahead of itself? >> when rates start this low for a long period of time you create certain incentives and there can be miss pricing of risk, there is a desire to reach for yield and if you think of the accommodation, quantitative easing focus on asset values at the time. we have seen housing values recover and stock markets that
have grown, once you begin to talk about raising rates in my expect volatility at some time. i think about long run sustainability of this growth. >> and you are on board with a dependency. and waiting until meetings this year. wait for the data. my own view is we have seen data that suggests the economy is strong enough to act. we will tell you what happened at by the september meeting. it is clear at all for the broader economy, by next week. >> what is significant here is you have one of the fed's
toughest talks now sounding a little bit like one of the moderates of the. bill dudley of the new york fed. if we have seen more of the that officials doing interviews with us tomorrow and with other places starting to call less around this new analysis of the impact of china and all the markets on the u.s. economy you could see them talking about delaying the first rate hike until later in the year. >> interesting to hear her take on a lower oil prices, peter barnes, thank you for joining us bright and early. not exactly bright where you are. coming up after years of legal wrangling it took a collection of boeing employees less than one day to settle on major class-action lawsuit. the details on that next.
let's bring more morning headlines starting with the latest on wildfires out west. cheryl casone has that. cheryl: there are still going up clinton choppers being used to battle these intense fires are being grounded because of thick smoke which causes serious breathing problems like spokane, washington, the largest fire in the state covering 438 square miles. boeing has a preliminary settlement, the way the aerospace giant manages his 401(k) program. excessive fees and higher cost retail mutual funds. they will be filed later on this month. north dakota might become the first state to legalize drones eat cooked with taser guns. the bill allows police to use
less than lethal weapons, rubber bullets, pepper spray, a tear gas and sound can and. the law was meant to halt all potential for police to at weapons to drones but it was transformed to a huge lobbying effort. sandra: billionaire investor jeff green on fox business last week on a latest market moves. >> when there's a sale, a pair of jeans, you go and when you see data >> that made so much sense. billionaire investor real estate entrepreneur jeff green saying the market sell-off is a good excuse to buy and bargain shot. the jihad economist ward mccarthy, what did you think of those comments.
that makes sense to me. >> if there are stocks you like you get back in the market, much better prices. >> also told fox business in the middle of the market on monday it that he was buying a one hundred thousand shares of face book, one of the most beaten down stocks that a. >> a lot of times market stress creates opportunity. if >> stock juggling to go higher today and the stock market had a bumpy ride recently, will continue to do better over time. when you look globally the u.s. economy is in better shape than anywhere else and i think that is most important. sandra: you spend your day digging through these numbers, gdp coming out at 8:30. >> 3.3. sandra: will be 4% higher, will that rally markets higher? >> it will support the market more than we are seeing now.
sandra: i was asking, what is the conversation missing from financial television, what are people not getting, not talking about everyday with gyrations in the market? >> gyrations in the stock market globally are china's centric and some people out there are trying to relate to what the fed is thinking of doing which is raising rates. sandra: the wild swings this week are primarily china and driven? >> it goes back to the devaluation a couple weeks ago. >> it is the fear of what is happening in china. 3% upward revision on the back of higher consumption in service based economy. a good house in a bad neighborhood is great about three years ago but this is a good house that continues with
what is going on. china is not new news that it is slowing down. they had a hard landing in real-estate in 2011 going forward. collapse of economic activity. you have to be. and comment on every data points. and market correlation, driven by economic activity. the yield curve in lending driven by fed policy. sandra: clients are making it tough on you. covering yourself. >> i sit in a trading room so traders make it. sandra: what are they saying or
feeling, what is this environment like when you're sitting in a roomful of traders? >> very difficult. temporarily market shifts from focusing on economic fundamentalss and overwhelmed with demotion. sandra: the number one mistake, who are you guys -- not trying to -- get the emotion out. >> the point clients know as well. anytime you have a correction by definition has to come with perception of fundamental change otherwise nobody would sell it so the only thing that ever time changes the fundamental direction in a leveraged economy is use of credit. you need to shutdown credit broadly so talk to many people if they can get credit. i can still get credit. there is a guy from chicago. sandra: willingness to take that on. >> debt service ratio is at the lowest level, delinquency rates
are at a record low. how to make it. sandra: stock market, ahead of the open, big rally after multiple days of heavy selling. how should someone prepare for the day today? >> the china stock market, that was up, and a pretty good day. the expectation is that will also swing to the u.s. today so we will have another day in the stock market. maria: will we closed higher? >> yes. sandra: the guy willing to take a stand. thanks for joining us. hollywood gets its peak in the black box. media leverage, more on that next. keep it here on fox business. hee at 6:30 a.m. - on the nose. but for me, it starts with the opening bell.
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sandra: big changes coming to netflix and it could affect your decision to cut the cord. nicole petallides has more. nicole: nielsen ratings might be coming to be a screening services like netflix and hulu, wall street journal reporting nielsen is working on a program that will measure the viewership of your favorite online shows, netflix notoriously secretive about its fuhrer data arguing ratings are irrelevant because it has no advertisers it has to please but new data reveals some shows are not as popular as we were led to believe it could pose a major problem on wall street and potentially your living room. wouldn't you like to know if you are cool watching the show you want to know if your favorite
show is that hot, how shows were doing. tina fay is co creator of the unbreakable kinney shoe that, people watching the show, vague response people are watching so they don't really calculate those numbers. sandra: you are a big netflix watcher. dagen: hi lost interest. i love their documentary's. and on and downward spiral. netflix already knows who is watching. that is the most important indicator. i don't know, wall street has always been the subscribers, if it is like espn they only care how many people are paying for
espn. executive decide whether to renew this and they know who is watching. >> not worried about advertisers, why would they be concerned with ratings? >> netflix is an early leader, and on cable, nontraditional way to watch tv. personally i don't use it. my kids do. >> to syndicate these shows, they really want to know the success of these shows that is another big thing that will count in those ratings but what ratings -- they are not compiled from cellphones and tablets, international so even if the ratings come in they may be skewed because they won't have the data from those smart phones. >> don't even watch the show is it is happening. they will watch two seasons of it in 14 hours and that is
folding. sandra: netflix was upgraded by rbc capital markets, price target raised to 140 a share from 125, stock is up 3% in pre-market at $110 a share, up 125% this year alone. the note that counts binge watching. that is the other hot trend, watch 40 showeds in a row. let's look at futures markets, on nearly 7:00 a.m. on the east coast, we are looking at another rally shaping up on wall street, dow futures 189 points, as an be up 20 , nasdaq up 57, big gains across the board looking at another update. another busy day on the floor. thanks for joining us, great to have you. >> favorite sector is financials. >> you like financials today if they are looking to buy something i you recommending financial sector? any specific names? >> that is not in my purview.
dagen: that is one way. >> one of those areas i wish the public and institutional investors would not go by the week by week stocks and go by the direction. >> next hour we are joined by keith mccullough. rbc chief u.s. equity strategist, former bloomberg adviser hank shinecough. stay with us. here is a simple math problem. two trains leave st. louis for albuquerque at the same time. same cargo, same size, same power. which one arrives first?
hint: it's not the one on the left. the speedy guy on the right is part of an intelligent system that creates the optimal trip profile for all trains on the line. and the one on the left? uh, looks like it'll be counting cows for awhile. so maybe the same things aren't quite the same. ge software. get connected. get insights. get optimized.
sandra: another wild ride on wall street, the dow has its biggest one dade point gain in eight years. i am sandra smith, maria bartiroma has the morning off. it is thursday august 27th and with me is dagen mcdowell and keith mccullough, very sweet in a way over there, did outcomes of record-breaking day, blue chips jumping 619 points. we have to put that in context.
we have also seen several very tough days over the past week. check this out. for those listening on radio we are showing the damage done to wall street and your 401(k). over the source of the last six trading sessions the dow is down more than 1,000 points. we are talking to tony, talking to our guest keith mccullough for about the show, what you should do in these uncertain times. look how we are shaping up, looking at dow futures at triple digits although off their highs of the session up 173 right now and joy market mover could possibly be at gdp report, any signs of economic growth or lack thereof to move this market we will be watching for you, a leading the way overnight. 5% closing at 3,083 anthony kim with a strong close in japan, the market up 1%, the gain new
the 200 points. we are watching europe in midday trading and triple digit gains across the board, up 122, gains in germany 3%. looking at the euro, commodities, before we get to that we have a new addition to the show every time you say, ready for it? central planners. you will get a bell rings. i will punch you in the arm. >> editorially that sounded like a success. i like that. sandra: say it at your own risk. you are watching these major components of the markets this morning. >> before the institutional claims, my top three things, when you look at global macro the way i do, embrace uncertainty, looking for the big three things that are moving
right there and now and they are the dollar versus the euro number one, also looking at commodities off of the lows and looking at bonds yield markets so if you step back to yesterday, talk about whispers and rumors of mario draghi ringing the cal bowl. from that 116 level you break to 113 and have a lot of impact and have a followup on the dollar moved with deadly coming and saying we could be more dovish than move to the upside and this morning the follow-through is on the commodity market so the commodity market is important textual eyes, so if you look at tweets, you see the index which takes the mall, 19 commodities. the point -- >> with that gain of 5%. >> one problem with a lot of macro people is they change price or what is happening now. contextualize it.
it crashed to 185 yesterday, it is down 20% for mayor, a big bounce particularly if it is predicated on cowbell. jackson hole is today. sandra: are you calling for a bottom? >> no, just a bounce. into the cowbell, jackson hole starts today where you have janet yellen sending her troops, fisher will speak, mario draghi not going, from the ecb speaking. will they bring the cow bell or not. that is the third point which is bond yield, bond yield if your buying bonds, and i expect fisher to fade, bond yields fall, on the long side of bond yields, different ways to express that. sandra: yields coming down. >> bond yields fall. one spot, 98% and a good way to express that would be buying zero. there's an edf for everything which we can talk about.
dagen: on monday, your individual investor you got totally totally shafted by the market. i did a lot of reporting yesterday with elizabeth macdonald and the message is set it up, caveat, shouldn't have headquarters in the open, shouldn't have -- you should have known better. that is the message with the atf and if that is the message if you are an individual and you buy another edf and try to start trading in you are a full. usually on mutual funds. >> the bond etss didn't blow up. might have been the place to be the last three months. maybe i am using my canadian accent but if you are betting on zero% policy, and the 0-coupon
bonds, i think most people who follow me know what i am like. >> asian markets have been a big part of this sell-off, asian markets rallying in the overnight session, nikkei up 197 gains across the board, the hang seng up 3.6% following encouraging signs from china, china's shanghai composite snapped a five session losing streak, a 5.3% to the upside after late afternoon surge, china's central bank injected more funds in the financial system adding $23 billion in liquidity doing whatever it takes. as for the other asian markets hong kong adding 3.5%, japan's began adding 1%. with the global rally, rbc capital market chief u.s. equity strategist jonathan -- >> the sound you make before my name? >> they ring a bell for me. >> that was me at 7:00 in the
morning. we have to keep rain on him. something you said recently, you said what is shocking about moves in the market in recent days is no specific catalyst for the sell-off. do you truly believe that? wasn't china with that raising rates. >> what you have is recognition the greater global weakness but here's what a catalyst is, company does bay corrupt, sending sales, storm of the white south city, something where you can say that thing causes capital markets to shrink by 10% and wipe out hundreds of billions. and the way it continues to bounce. a couple weeks, and the -- very
uncomfortable and once we get our hands around affect the u.s. economy is not going over a cliff. >> you think the u.s. economy is not that bad? >> it is week but week as gdp, 2-1/4 as opposed -- sandra: what do you expect this morning? >> between march and june, the market will look at that. >> won't be the market mover? >> when the first one came out. >> whatever it is not revised as high as expectations? >> what will it mean going forward? i s m will come out at the beginning of september which is a read on what business managers think they're going to be doing that is what the market keyed up. what have we learned? joy is weaker than many people thought. that when you should have known ensigns were very clear. sandra: how are you advising clients in this very uncertain
environment? >> first of all in the near-term you will see a bounce but if i look beyond that we are in the slower growing world and we have been for -- sandra: what are you telling them to do? >> in that slower growing world you want to invest in companies that can continue to grow their businesses in the slow-growth world's, new attack, not old tech. sandra: talking social networking? >> apple or google but those people don't need a good economy in order -- apple doesn't need a good economy to sell more iphones, just need a new model of iphones. the vast majority of health care is not susceptible to the women's of the global economy. if you look at where those innovative brands are and have come in a lot of consumer brands as well if you look where they are concentrated they are almost all in the united states. outside the u.s. they really
look like an old economy. >> the point he is making worked until three weeks ago. when you have a slow-growth environment which is an important premise, a lot of people don't accept that and a lot of people realize when there is no growth you buy organic growth. that is in health care and has been in technology. what i don't agree with his it magically happened. we have late cycle slowdown in the u.s. deflation, profit and credit cycles going wrong way for the first time. i could keep going. >> late cycle means tinkering on a cycle of seven years, we're coming to the end and if you are right you want to be running away from this market. here is what i think happened. >> that is what i thing. >> the way the cycle is playing out. >> he is advising clients 75% cash, 25%. >> i think it will be a huge mistake. when you have an economy growing on at 3.5 the way it has the
last 40 or 50 years but 2-2-1/2 the cycle gets extended. this is not a six or seven years cycle but six of 10, 12, 15 years cycle. >> it is different this time. we will have a different cycle. >> i don't think it is different. is different for the rest of our lives, we are in a slow-growing -- demographics are a big issue, and bill too much capacity that has to be shed and we are talking low inflation, low interest rates for a long time but the question is not is it good or bad but what it means for stocks? rescissions' get further out in the future, the economy is disappointing, two ways of playing it, companies grow their revenue or squeeze markets. >> immediately when you are bearish people see or calling for recession. 1.4% to 1.6% gdp, half of what wall street has been for.
1.5%. this is what position is working, stocks are down, bonds are not. that is why we had a correction, late cycle slowdown is priced into the market. >> i think we are more agree on that economic backdrop but go ahead. >> you like technology names, some of them. you like health care. >> i like health care and the consumer. sandra: thanks for joining us. we showed you oil, here it is again moving back above the $40 a barrel march. and huge move in oil prices, we have more on this coming up, 4.5% move to the upside the we are watching, we have oil inventory report out yesterday lower-than-expected. at adding to the bullish sentiment in the market at this moment but good news for some drivers, the price at the pump is still falling $0.02 overnight, 2534 gallon of
regular. the refinery in the midwest comes back on line. the lower-priced of oil. we go to the scene of the tragic shooting and details of a deal arranged gunman's there to become clear and a look at lines popping this morning's wall street journal. new orleans economy ten years after katrina, growth this skewed toward low-wage jobs. the drones for adults and islamic state hacker, one of vices's top online terror recruiters. many state regulators approved the meaning kriss under the affordable care act. we will be right back. technology empowers us to achieve more.
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in roanoke, va. good morning. >> good morning. wdbj went on air for the first time this morning without their promising young journalist opening with the words in memory with alison parker and adam ward's pictures there. at 6:45 a moment of silence. that is when the horror unfolded yesterday. adam ward and alison parker worked every single day, yesterday was no different, they were wrapping up a live shot and shot rang out and viewers watched the entire thing. it was an awful thing for everybody to see and the victim's families are remembering them this morning. both victims were in relationships as well with co-workers, engage to a producer and allison was seriously dating one of the anchors. her father remembers her like this. >> been alternating between the shock and grief. i am holding up okay but i have
been crying my eyes out all day long and it is gone from -- gone back and forth, and the anchor is starting to creep in. this should not happen. it should not have happened to someone like alison parker. >> after a police chase officer said shooter, vester lee flanagan shot himself and died, 23 page manifesto, he was a human powder keg waiting to go boom and his tipping point was the charleston church shooting back in june. e bought his gun, his weapon of choice two days after those innocent lives were lost. sandra: social media playing a huge part in a devastating event. there are reports this morning that facebook and twitter users were enraged over the auto play feature that displayed the
actual shooting video. there are a lot of conversations happening today after is this happened about whether or not the social network companies were too slow taking these videos down. as a journalist we went on to go, it was everywhere fast. doesn't give you a choice whether you want to watch it or not. once you get to it. dagen: that is an option for many people. if it is on that does happen. in hindsight is easy to judge but i felt this is my hometown news station. i grew up like a matter of minutes from where the shooting occurred. i think it is easy to judge but they took, i felt like they took the video down as swiftly as possible but as people pass things around the internet that is what happened and i can personally say other than the
clips we have shown on the air i have not watched one second of these videos. i refuse to look at some. i didn't look at them yesterday and i refuse to utter this man's name. you remember the victims but he does not deserve to be discussed. >> i agree. is the ugly side of technology, things happening faster like this doesn't always end well. dagen: the way the shooter use it is -- just adds to the atrocity. sandra: there was a third victim being interviewed at the time. by the television station. she was talking about tourism. he is in the hospital, reported in stable condition, she too was shot. it took nine years to make it into a courtroom and less than the day to reach a settlement. why boeing employees are celebrating today next.
sandra: stock futures shaping up for a rally on the open, looking at dow futures up 144. in the past hour we have seen dow futures 200 points off of those highs, we will follow market action, but first , jorge ramos as a few words for donald trump. cheryl casone has morning headlines. cheryl: the univision anchor who was tossed out, appeared on fox news's the kelley filed last night and here's what he told megyn kelly. >> donald trump didn't like my question and that is what happened. he tried to silence me.
in this country cannot do it that. i am a u.s. citizen, immigrant, reporter and i have the right in this country to ask any question i want to whoever i want. >> he was asking about immigration. cleans and choppers being used to battle the intense fires in washington state are being grounded because of thick smoke and smoke causing serious breathing problems for communities like spokane, washington. this is the largest wildfire in the state covering 438 square miles. after years of legal wrangling boeing has a preliminary settlement with workers who filed a class-action lawsuits over the way the aerospace giant managed its 401(k) program. the su representing 190,000 employees accused boeing of allowing excessive fees and choosing higher cost retail mutual funds. retail settlements will be filed next month but this is a decade
long lawsuit. the lawyer representing employees, plaintiffs against boeing, the biggest corporate case, several of these, goes after retirement plans, files it, he goes. sandra: representing 190,000 existing and retired employees, the retirement plan offered excessive fees. >> isn't that wonderful? >> it is not. >> when you look deeper than people think it is it is not what they thought it was. you just keep getting more annoyed with this. dagen: lawyers made nice money. >> thanks. coming up, but is a angry, hillary is i, joe biden is waffling and donald trump is called out by the men ejected from a news conference. there's a lot going on. all of this coming. can a business have a mind?
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. sandra: breaking news futures are higher again. the dow has its biggest one day-point gain in 8 years, and we are up again this morning, welcome back i am sandra smith maria bartiromo has the morning off, it is thursday, august 27, and still with me this hour fox business dagen mcdowell and keith mccullough, hedgeye risk. >> you say ith said it once, now avoiding it got the bell, futures up as dow comes off a record-breaking day yesterday look at that, green area roz across the board dow up 165, the blue chips, yesterday, up 619 points, following through this morning, we are expecting latest reading on economic growth, u.s. economic growth gdp number out at 8:30 a.m. eastern, economists there are looking for growth up 3.2%, in the second quarter, china leading the way overnight in gains shanghai composite up
more than 5% a huge gain for close of 3083, nikkei japan also with a strong close, that market up more than 1%, for a gain of 197 points, green arrows across the board in asia, and in europe, a similar story playing out there, triple digit gains in three major markets, the ftse the cac and dax, all posting solid gains in midday trading -- what is a day without talking donald trump he he rejected that univision anchor jorge ramos from a press conference this week, following a fiery exchange between the two over immigration ramos joined the kelly file last night to share his side of the story. >> he tried to silence me, and -- and north side country you cannot do that he hated when he being confronted we have to ask those take a stand when it comes to racism discrimination corruption public life,
dictatorships human rights. sandra: all right. let's bring in shane mccoy, and hank, ceo, former bloomberg advisories did donald trump take it too far in that press conference? >> no, i don't think so. ramos was out of line, and he didn't do much to help his cause. you yellow it is important o when news media goes overcast donald trump only fires up supporters ramos was there to give a speech not ask a question. and -- sorry go ahead. >> i got to bring in you here, because obviously criticism of the journalist is that he went tenure far he asked one question donald trump said, you know i am moving on he didn't he didn't abide by that he has historical as a journalist been good in those situations, this was different. some saying maybe he was look to go grab a headlined because it was donald trump after all. true or not true, donald trump. >> always look to go grab a
headlined he wasn't going to grab one unless he kicked the guy out of the news conference was the kwie. >> the real answer is who cares what really is positive are for campaigns, the candidate comes across not what -- >> how did donald come across. >> exactly the way he wanted to as consistent with style, everybody can get lost he is trying to tell people -- nothing is going to dissuade him don't you matter what reporters or anybody else says he is running this. >> this is donald trump style, and you see it over and over and over again. >> sure. >> i think it is further into the race if he gets republican nomination wouldn't you need that style to change in order to win voters and will that not work for him, because, again, it turns off his most loyal supporters like he has to be in the -- >> i'm not sure that it does turn off most loyal supporters although you may be right what are is, however correct in a moment of politics populists have taken over right and left conn don represents a strain of politics knows no bounds
you can grab the pattern, by the way, whatever he says works people are sfloorld angry if twhernt he couldn't get away. >> national poll i think up 8 points to 28%, and then we can talk about -- how about that coincide the poll donald trump gainings in the polls despite controversies at news conference abiden better than hillary clinton in head-to-head against trump rubio and bush, so now you've got this republican field and then you look at democratic side joe biden making big strides. >> look. people want new they don't want old joe biden is new even though old they haven't seen him in a while, he is out there. >> shane, bill clinton reportedly agitated by biden rumors tampering down expectations of a possible run
your thoughts on that? >> yeah, i mean this is a difficult situation for biden and the biden family. obviously they are mourning, and there is a lot of important strategic considerations, too he needs fire in belly in order to get through a very grueling campaign. you know, but looking at polling, he is doing better than hillary clinton and head-to-head matches up, and, you know, there is a potential challenge for the democratic party in that if biden jumps in he opens the door for a lot of other candidates who appreciatively had feared retribution of the clinton family to also consider getting in the race liz warren, mix bloomberg korey booker. >> sounds like respectfully disagree. >> if we could capture the face you just made. >> it was a nice face great, but i wouldn't use it very of an, it is a reasonable argument to say everybody is getting in, but no one getting in unless enough support behind scenes from white house because they've got to raise
money put organization together quickly biden has got that possibility, obama's candidate is biden today it was martin o'malley going no place, because -- >> hoi could you should we ask is this really is donald trump potentially going to win primarily. >> donald trump is not real what is real people tired of the usual -- usual way potsr politics are done saying state capitols washington drop dead. >> and media. >> donald trump is part of that. >> it is easy criticize the government mainstream media you are probably in good place maybe ramos had this point right i think tapped into something maybe which is what about donald trump being criticized is he inobscure has he been talked up to as opposed talking down to people
this is what i want -- >> good news if donald trump great news you attack him all the supporters say drop dead. >> really. >> he has got -- >> a real fight. >> he has this real thing he has something going on he is the vessel for set of emotions establishment is not used to seeing bernie sanders same kind of person. >> you don't think insecure. >> donald trump. >> no. >> that is not issue. >> not the issue one big issue confronted dead on whether or not ruling out a third party run if to run as independently could he potentially do as much damage to the democratic party as people predict he could do to republican party. >> too early to determine whether that whether in fact he would have that impact one thing is sure, conservative republicans in iowa who will see him if he were even threatened to run as third party candidate as means would
see him as blocking the ability to kill hillary clinton in that dleks would be very upset might not stand by him. >> is anything surprising you about this, that the presidential race right now. >> putting on the other side of the having been through this a long time this may be a critical election, in historical terms populous is responding the way we have not seen sometime they are tired. >> john last word to you. >> yeah, i think, that -- donald trump actually has a legitimate chance of winning both iowa and new hampshire on the republican side, but that said, he is going to struggle once this gets down to two to three way race you have a lot of candidacy dropping out republican donors may force a lot of those candidacy out trump's negatives so high he is going to struggle to compete in the primary so would i look for that to happen. >> all right, all right, he continues at least in this latest quinnipiac poll to gain in the polls, shane and hank
. sandra: business earth amazon dem reversing course over failed fire smartphone more. cheryl: talk about a mistake amazon continues to cut costs, and now according to the "the wall street journal," the company is laying off dozens of engineers that worked on its failed fire smartphone, at lab 126 that was hardware development center in silicon valley if you are to take toastbimbo bake reese recalling 48,000 packages of bread in 11 u.s. states mostly in south says glass fragments from a broken lightbulb may have wade it into white bread sara lee nature harvest, great value, wild weather outside phoenix arizona a massive zust cloud called haboob through through the area coupled with
65 mile-per-hour woindz damaging power lines left people trapped in cars no injuries reported. back to you. >> pictures there. >> thank you. >> i am naming my next dog haboob, there you have it. haboob, there. >> fourth child is due in a couple weeks, i am not submitting that one. >> moving upon record breaks volatility in the stock market this week most pointing fingers at china for the wild swings in the market my next guest says etf shares some of that blame joining us dan, by the way, all credit to dagen mcdowell sitting on set when happy brought to attention, of our viewers, it became "the wall street journal" the next morning was on the story, but a lot of people talking about this can you simply set up, what happened here and why this has become such you know enraged conversation. >> first of all, etf on a
dollar traded basis annually, gdp of the united states think about that for a second. >> so, there the mopopular a market opinion clear up in nine yin my opinion you get what you pay for they dominate it is easy all to make an enormous change in -- in the stock market, either a sector call, or what have you. >> market plunges 1,000 points monday morning on we hope happens in the etf market. >> they get enormous sell orders from etf, has to go in and unload at any price, the shares to rebalance, their portfolio to reflect the the amount of orders getting on individual etf's themselves, you are going to have correlation breakdowns why halted trades a lot of etf's they can't rebalance portfolios fast enough. >> dagen is going to jump in is there like lawsuits did
something happen illegally did something not happen owners of the etf promise didn't happen. >> i read complicated but what happened there was a there -- when the dow fell 1,000 points some etfs biggest in the country multibillion-dollar funds were down the equivalent of a 7,000-point drop in the dow, there was this vast mispricing the market makers in etf's couldn't price underlying the basket of stocks etfe reflects stepped away and they said, we are going to offer -- what we are willing to pay for a share going to make it high, and the sell offer is going to be superlow you have etf shares down i am talking about one out of four. >> the stocks like everyone. >> johnson & johnson dow component -- >> supposed to be low volatility.
>> low volatility dividend funds sold to many individuals for their -- easy of trading mutual funds bases contents of stocks down 30, 35, 40, 50% can you imagine having an -- and -- i we can get into it later but i talked to this fund company, it looks like, based on my reporting these trades are not getting -- >> today. >> here is the other problem, excellent point lack of course transparency now that specialist system no longer exists if i am in jaim dimon's shoes i watch j.p. morgan close at 61, open at 50. >> viewers keep up you are saying there is problems because specialists the guy i who sits stands on the floor of the new york stock exchange, who is responsible for opening these stocks. >> that is correct. >> you are saying because he has gone away this is causing a problem -- >> -- dagen, i can guarantee under special system no specialist would have allowed
the stock to open at 50 dollars a share, who would have made a more -- a more realistic market for where the shares should have been if he did jaime dimon picking up phone calling new york stock exchange, and saying i want to speak to specialist i want to understand what justification was i want to see the order book, what are you -- >> you can't do it. >> that is right. >> used to do that of an that was a few years ago on trade desk you would pick up phone call the specialist. >> what is going on in that name, now who you going to call? >> isn't that most baifbl accountability wall street created bid issue ask spread a person on desk has to answer. >> sec believes high frequency trading high frequency lobby immediately came out said we did a greet job injecting liquidity into the system. >> it did, do you argue that point, liquidity helped retail investor. >> i completely disagree as a buyer and a seller of billions
of dollars of sfoks annually at my firm, you know, it is -- functionally legalized front-running we go in we see an offer at certain price, we think we can buy shares there that offer disappears right away you have to walk your stock up higher because they see orders coming in, microseconds, can adjust the prices very, very quickly. >> message from etf business and atf industry based on everybody i talked to yesterday, is essentially, don't trade etfs at the open don't put in -- anything stock orders. that you will get killed. that know when the market is in place limit orders, i mean reading -- >> dagen. >> clitliquidity you can't do that. >> people told me don't trade etf at open or close don't put in stock orders that turn into market orders because you are going to get filled at being horrific price that is what happened are trades reversesed
every indication is absolutely not. >> no way. >> one of the etf's talking about here -- >> that was one of the hardest hit a multibillion, we should not show -- don't show -- >> yeah. >> that is what happened -- >> that is next. >> yeah. >> multibillion-dollar etf was one of many, many, many funds where you had these pricing aberrations. >> stocks you may not like the price but you get price discover at a price -- liquidity at a price, okay? think of all etf's that having into esoteric as iset least less liquid bonds those things not tl.t. treasurys anything like that what happens now, there is going to be changes made thought way etfrankly speaking,' are set up is there a lawsuit where is it going now? >> will change. >> market will rule change,
buy the regulators how they are traded. >> i think we're seeing beginning of the correlation breakdown of etf's they've gotten too big this has been a problem for firms like ours for fundamental bottom up research people we've had headwind of updates all stocks are good on down days all stocks bad stock picking didn't really matter as much it has been -- >> there would be a lot of people, that -- i don't have time to do it that would challenge a lot of of what you said right here, as factually incorrect about what high frequency trading has done for the market i just want to be clear on that. >> i can tell you who was on other side of trades why retail investors got -- heart-breaking. >> ask one question who are you going to call when the event of a dispute who do you call. >> a lawyer. >> that is what is going to happen i am not saying do that but that is what is going to happen. >> i think so many different directions i don't have time.
. . sandra: welcome back u.s. futures are up pointing to another up day on wall street, potentially, dow futures up 144 points, we've got eye on markets, for you, we will have a lot more, in the next hour but first, north dakota may become first state to legalize drones equipped with taser guns, like the one that you are seeing on your screen. in fact the new proposal allows police to use all quote less than lethal weapons to be
used on drones. like rubber bullets pepper spray tear gas sound canons, ironically the law was meant to out allow potential for police to add weapons to drones, but was transformed by a huge lobbying efforts, dagen i am sure you have on this one. >> drones, in terms of their use noncommercial use, scare me this scares me even more what do you need a drone for? with tear gas on it, or tasers, that you can't do, as an officer of the law? and you are going to train your entire police force, to operate these things, we have remember on "fox & friends" flew one into one of the people who worked there, i mean they are not they see are not -- >> we knew when we first saw drones this was going to be an issue. >> some dude flew one into my backyard what is that is sound like huge bird like. >> looking for keith mccullough.
>> and they started resting people who attacked drones with bats, things of that nature. >> all right. >> next hour we are joined ask exclusively by the man who inspired iconic film jerry mcgwire agent lee steinberg joins us with unique take on "deflategate" and tom brady, the wars between him and roger goodall we will be back in a minute. wild ride on wall street
futures sharply higher after dow biggest one day-point gain 8 years compared to yesterday's tough to kwaul that sharply higher but 142 points on dow i am sandra smith maria bartiromo has the morning off, it is thursday, august 27th with me this hour fox news ooh business dagen mcdowell joins me got it out this among -- keith mccullough is here as well, and we are looking at futures higher as the dow comes off that record-setting day, yesterday.
the blue chips ended up finishing the day, 619 points upside we have to put that in context for you we have also seen several tough days over the past week. check this out. for all you listening on the radio glad you are, by the way, we are showing you the damage, done to this market, and likely your 401(k). over the course of just the last six trading sessions dow is still up, more than 1,000 points, we will we talking to keith and experts throughout this about an hour what should you do in these uncertain times how shaping up stock index futures green across the board, following through on yesterday's big rally dow futures up 133. potentially a market mover a little bit later on 1/2 an hour from now we are getting the latest reading on economic growth, that report coming out at 8:30 a.m., eastern. we are likely to see growth number of 3.2%, revision in the second quarter that is
what economists are looking for china leading the way overnight shanghai composite, rallying 5%, for a close of 3083. nikkei in japan also strong finish there that market up over 1%, for a gain of 197 points, europe, falling in line, triple digit gains in the three major markets there, ftse, and london up 2% cent gains more than 2% in france and germany this morning, more from keith mccullough here keith, you are looking at the euro commodities the ten year yield this morning but if you missed last hour we have a new edition every time you say -- >> central planning [bell rings] you are getting a bell resigning, do you know why that is he tends to mention it every now and again -- on the program. >> nothing to do with what's going on in markets does it unless china up last night they don't ieds they flat out buy stocks on own state buying of stocks maybe what is what u.s. should do next recession.
>> back to euro commodities what a are you watching. >> commentary out of jackson hole europeans funny to watch so eurocratic i am not going to use words eurocrat sounds bike bureaucrat what they are fun in jackson fellow the french guy, this is -- >>ening to it down if you bring cowbell thunder brotherening to it do un? this guy basically says i will read it said in english monetary policy can only support growth, it cannot create it now imagine that. printing doesn't create growth you can't create growth. >> what are they doing over last six years. >> creating growth, didn't exactly work. >> main point like this morning look at eurodollar looking at obviously futures and commodities, spiking on this expectation of more cowbell if that is your cowbell that is nothing could we've cow bells instead of
ding-ding ding that is better. >> we will work on it. >> draghi last jackson hole brought big thunder your from 140 to 105 if you are a big time central plaern, you basically have to devalue as fast as you can it is not happening. >> what are you looking for this morning as u.s. futures shaping up to follow through on yesterday big rally, as far as the broader market is concerned what are your expectations. >> i am looking for levels s&p 500 washington stock market 1957 wall of resistance would not be surprised if not enough cowbell this market could go back down to 1834, 1850 in s&p 500, failure after that block of as you notice that bloc of days we have seen only one upday, one up day does not a trend make what would be frightedful if on a friday if they take the wood back to this market that is what i am watching how market reacts. >> jackson hole saturday? >> i don't have his time we should maybe that either that
central planning event. >> there week michael thompson chairman s&p advisory services look who is here, intelligence report michael we have got you on set as well, break down the nuns because this what geeks do i am kidding you are not a geek i think you like to be label yours geeks you like numbers what are you attributeing this sofa to confluence of factors probably went to the down market that we had you know last couple days, until yesterday. and i think you know the sensational story to link to china, china is part of a confluence of factors we have been cautionary particularly to our clients that you know, there has been a disconnect for many, many many quarters, between valuation and earnings growth. >> you are saying this -- red flag -- >> i tweeted earnings are 4 4
companies reported out of s&p 500, 500, we have revenues down 3 earnings down 3, if all you do is sold market when s&p area, rvbz went negative you would have nailed it would you not. >> it is a funny thing hard, because what happened iss valuations delink from earnings. >> i want to get trish in here talking to brilliant people on your show fabulous, by the way, you had so many strong people on your show this week talking about this selloff what are people doing right now how are they acting, what are they buying, what are you hearing. >> i think it started to change kwn last 48 hours that is because people are not thinking to themselves, this is going to continue through september 17, because they don't think they are going to get squat out of these can i say it, central planners. >> the deal i wrote apiece usa day about this, i've been pounding the table about this quite sometime. because i agree with both of you, we have a market, right now, that is valued not for
what things are really worth, but rather for what things are worth with the backing of the federal reserve, money is cheap, normally you would anticipate the people would go out and boro companies ceos borrow, and invest in infrastructure, hire new people that is not what has happened there at all. >> usa today, called markets wild ride to get even bumpier we're not seeing the end why either. >> definitely not, i mean i think between now, and probably december, people are going to be trying to anticipate what happens next with the fed. >> first do you think, that you know there is an endemic mistrust politicians why trump is doing so well stock market dagen talked about issues with etf do you sense that people as we call country people my people, people that are not running big hedge funds trust this whole thing. >> no, not at all in fact the average investor they haven't
gotten back in since 2008, right they got so scared in 2000, 2008 by crush, uh-oh, i don't want to -- >> some people who owned safe low volatility dividends in keith -- faces ripped off. >> a great question a great setup for you, what does it do to psychological of a market that has already -- so many, many retail investors that arguably missed this big run off in stock prices. >> i tell you there is smog hard to quantitate it is intangible the timing of this epic period of massive monetary intervention, he couldn't come at worse time we actually have in united states, perhaps the greatest wealthiest generation demographic in the history of mankind all trying to get invested, within this period of time. and this is -- crazy because what happened with the -- you know monetary policy, you the thrown off risk curve,
basically, you are so baiflt there is no return in credit instruments when people like boomers trying to get fixed income instruments trying to buy that. >> puerto rico. >> right? >> limited partnerships you want to talk about -- >> they are chasing yields, trying to get the return they want as opposed to one they are going to get. >> in fact what happens when they look at stocks as an asset class versus fixed in being almost have to be there think about this 10 year yield over 2% i can buy a high quality basket s&p 500 stocks get about 2% if you are an investor, you actually probably on risk adjusted basis would be encouraged to go into stocks what we have why duress particularly to u.s. investors is that basically those investors are the wealthy ones but in fact overallocated to risk because there is no -- >> everything -- mark said
housing stocks and bonds are all overvalued unprecedented situation, that you didn't even see in 19 -- >> this is easy one why question is simple, because we've had this really -- the front end is completely you know don't fight the tape, you know the fed has completely taken over, not just the front end, but in fact it cascades throughout the curve in fact, if you take a look and actually think about where we should be relative to market and economy probable as many have front end yield 3, 3 1/2% where are we now? in fact what we talk about at s&p you probably he theoretical would look at inverse -- >> a level of yield chasing in the journal you can see leon even the most sophisticated guy 12% in a month prolong most left-hander -- 40 to 2, this is not just -- >> individuals -- feel better.
>> so trish enter usa today piece quoting a conversation you had with alan greenspan saying history proves rates mug up when they do not good. >> ominous the way he said what it does that mean for stocks he said not good. >> all right, that was you know days before we saw this massive sell-off. >> national housing bubble couldn't develop. >> true he also mentioned very worried about a bond a bond bubble basically, and what we are talking about. >> entirely, makes sense growth also said he was concerned about a bubble, and carl icahn has been pounding the table billionaire investor carl icahn saying this is not right you can't have a situation, for six plus years zero percent interest rate not have consequences. >> very hard to be on with
sandra you at the same time this is what i feel like -- [snoring]. >> come objen. >> thank you so much, everybody including dagen. for joining us this morning dagen staying with us mike insight to table thanks to trish great to sie catch the intelligence report today at it can pm eastern, with trish, one retailer gets aggressive with early start to the season, christmas push in august, are we -- two months of summer the rest of the time christmas time more next other headlines topping the "the wall street journal" this morning, new orleans economy 10 years after katrina the growth remains skewed towards low-wage jobs u.s. drone strike kills islamic state hacker one of isis top only terror recruiters. >> insurers win big health
rate increases many regulators introov big premiapprove increa under affordable care act. behold, these are two wind turbines. can you spot the difference? the wind farm on the right was created using digital models and real world location-based specs that taught it how to follow the wind. so while the ones on the left are waiting, the ones on the right are pulling power out of thin air. pretty impressive, huh? now, two things that are exactly the same have have never been more different. ge software. get connected. get insights. get optimized.
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...and help save energy with thermostat and lighting controls. with digital life, you're in control. so call now to get started with at&t digital life smart security for as low as $39.99 a month. don't wait. call a digital life specialist to learn more. ♪ . sandra: welcome back u.s. stocks futures shaping up to see a higher open following through on yesterday's big gains looking at dow futures up 151 points, although off session highs, but first let's bring you he some of the mornings other top stories starting with latest in that terrible shooting in virginia, that cost two journalists theirlize. cheryl: good morning sandra wbd.j. journalist parker, ward killed live on air yesterday morning remembered by colleagues on last night's newscast this morning as well. the shooter died of
expected. >> somebody made 50,000 or less has no money layaway when i was growing up on 1975 if you didn't grow up dad a firefighter didn't have a lot of money we had to use layaway as they used layaway for biggest event for you know, us i guess call folks thoez days christmastime i think it is getting ahead of something people need. >> i hope it works, because -- >> critical for walmart business. >> layaway. >> it has been really important particularly since economic down turn. >> sometimes i worry about retailers burning people out on christmas when they start this early, right? >> it started in july, let's not forget the amazon one day sale, all one day sales that is early christmas trying to make christmas in july. >> i don't know last year rough for guys this year rough for walmart. >> must have this year. >> -- yes "star wars."
>> getting -- lego. >> have dagen was -- you want to see her just completely -- i am going to stump you i have never seen "star wars". >> oh, my gosh who are you? >> all right, i i confess this is why she doesn't understand central planning return of the jedi. >> dagen -- >> -- just thinking of like where -- thought where should sandra watch it. >> watch it -- >> coming up, gasoline prices dropping around the nation you might not believe just how cheap it is still up in one new jersey town, we will take you there live.
that money, well according to cowan and company consumers can expect 06 to 80 billion dollars savings fourth quarter expect target walmart beneficiaries of all this back to you. >> good point good way to think about it, all right, thank you. joining us now is raymond james oil energy analyst where do you see oil heading in the short term need is asking have we reached the bottom. >> by the end of the year, you know, wti could get into if mid 40s so 10, 15% from current levels. >> in the mid40s, 40 dollars
you are calling for it to go back to -- 45 bucks a barrel. >> by the end of the year we are talking up 10, to 15%. >>. a rally in crude i mean as volatile as it is 45 bucks by the end of the year not big move night is not look we expect much bigger move over 12 to 18-month period, taking oil into the 60's, but you said you said in -- over next 3 to 4 months, modest gains we have seen a lot of damage to sentiment not just on oil but frankly, every commodity market because of headlines from china and europe to some extent. >> what is the driver of multi-year lows in oil what is major driver to the downside. >> well in the last 30 days, it has been china china china.
now oil, of course, if we look at supply and demand that took oil over the past 12 malpractices, from 100 down to 60, maybe 50 the last 10 to 15 dollars downside you know literally in the last 30 days. was overwhelmingly nonfundamental sentiment. >> china -- >> you know, i -- having worked on buy side most of my career fundamental what market price told you when you say supply and demand i heard a lot of people talk about that you didn't mention dollar dollar had most epic move on six month basis the least during the epic decline did you see anything from that from that perspective? >> well, the dollar today, is roughly where it was in february and march, so but oil, over the last 60 days is down 30%, the dollar has absolutely not moved. much in the last 60 days, so that is, you know maybe that is a small part of it but i
think much bigger headlined risk is china. >> long term, you said going higher thank you for joining us giving your insights futures on the rise could the rally be in for another dose of positive news on the u.s. economy? are we going to open higher looks like it at least for now. stay tuned. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?
>> breaking news, futures are higher again after the dow had its biggest one day point gain in eight years. some follow through this morning. welcome back, i'm sandra smith. maria bartiromo as the morning off. and with us is fox business's dagen mcdowell and talking to sources. dagen: i'm fighting with somebody on twitter. sandra: and keith mccullough
we're waiting, and fups are setting for -- futures are setting up for a gain. and happy to see follow through in the action and seeing the latest reading on economic growth in the u.s., out just any moment from now. economists are looking for a reading of 3.2% for the second quarter. 3.7% is the number there. just came in. that's the high-- that's higher than the highest estimate coming from any economist on that number. 271 is the number for jobless claims. that did miss estimates just a little bit. so, some mixed reads on the economy. gdp better than expected, better than expected 3.7% for the second quarter. remember, this is the revised number, the estimate was 3.2%. keith, i want to get you in here as we watch the futures market and watching for reaction here. somewhat muted reaction right
now with futures up about a percent. the previous gdp 2.3%. is this number today? >> that's a good number in context. the context also matters in the moment. so don't forget that there's a big question whether or not the federal reserve should move in september or not. 3-7, a lot of people that watch mainstream media and finance don't understand how that's calculated. the second quarter is sequential to the first quarter. it's up because the first quarter is down and you have to take them and average them. end of the year, a year over year average. this is the most important point from 3.7. it all, but ensures that the third quarter gdp number is going to be an absolute bomb. again, it's going to be an absolute bomb because it has to compare against the good number. so, again, this is why the modeling actually matters. this raises the risk. if the fed is navel gazing at
q-2 and raising interest rates and is a bomb and early november that's the problem. sandra: jobless claims, 271,000, the first drop since last week, 277. the number coming down there. are they both reasons, and the dow futures are building on gains that they saw before the numbers came out. >> the spf futures are up two handles on this. i think, again, if you go back, jobless claims drop 300,000 at the top of an economic segment. and we put it up so people know what we mean by that. jobless claims, pull back a 40 year data series. and sub300,000. it troughs at the end of a cycle. when i see good jobless claims as a cyclical investor. that's about to get bad. i would expect that in the next three to six months. the headline gdp, every democrat and their brother and obama is going to run on this thing, versus the risk of the
fed acting on that politically to what would be a q3 gdp bomb. sandra: we're looking at levels before the number two numbers on the economy. gdp coming out and the revised number 3.7%. not only did that beat the 3.2% average expectation of economists, that was above any range. that was above anybody's estimate. much better than expected there. dagen: good news isn't bad, but good news isn't great. it's like, thank. sandra: goldilocks. dagen: thank goodness it wasn't horrible, but is it going to give a lift to the market that much? no. what's happened in the last three weeks is more, and-- >> the most contrarian thing i can say is it's august and not q-2. and-- >> you mention it as being august. we're getting a couple of reads in the economy, watching dow futures shaping up for another big open this morning.
the fact that it's august means often times a lot of people are away from their offices and away from their trading desk. you've got the junior trader. is that the situation or i know i've been talking to people and the big guys called in from wherever. people are coming back in because these are unprecedented times in the market. >> they got called in, whether they got tapped in, drawdown rule, whatever it may be. and i was in new york overseeing the institutional investors. they're coming in on the shorts and don't put the junior trader at the handle when you have the volatility running at 30. that's not joey junior's job. they're down on the gdp number. people are looking at this at how much could this possibly-- they're not down, they're off the highs. >> it actually was like some of my favorite journals, places not to be named, boom, gdp number is back, fed's got to raise rates.
if they raise into this slowdown, they will blow up the stock market. this had as been my contention and not a lot of people agree with me and-- >> i don't agree with you. >> let's go on the wild side. i'm looking forward to people disagreeing. sandra: the other reaction, the dollar up against some global currencies on these numbers. the euro has gone down, 112 is the number there. cold prices higher before gdp prices came out, dipped negative, not much, but into the red. >> people are reading hawkish. gold i've been tweeting about, i don't like it for four years. i'm waiting for the fed to ease, the dollar goes up, gold goes down. peter schiff what say you about that? and here we are. at the end of the day, that's what we're trading on. >> second quarter gdp 3.7% above expectations and jobless claims falling 6,000 to 271,000
>> breaking news. u.s. futures are up triple digits, but off the highs of the morning-- we're working our way back up there. did you notice this, the dow futures now up 200 and s&p up 22. and we got the read on gdp and jobless claims pretty much better than expected and the markets sort of taking a delayed reaction i guess to the numbers. we're building on the earlier gains and we'll keep watching for you. meanwhile, agitated. that's how bill clinton feels about the possibility of a vice-president-- vice-president joe biden throwing his hat in the ring and running for president and the idea of a presidential run for biden has picked up steam. with the start of a group called the draft biden, a man who is part of that group joins us now. steve shale and also senior rick perry policy advisor.
i want to start with you, the latest quinnipiac poll shows that joe biden is running better than clinton, and that trump lead in the g.o.p. field is growing, as clinton's democratic lead is shrinking. knowing shocks you there, i think you told me at the break, but you said, still interesting. why? donald trump continues to gain and add to his winning margin. >> yeah, there's clearly a group of people on the republican electorate and general election, because there are a lot of nonrepublicans showing up in the polls that support trump and find his message compelling, the fact that he's a nonpolitician is interesting to a lot of people. i think the fact that biden is performing better than hillary isn't surprising either. for all the republicans want biden in the race. biden would be a tougher opponent than hillary fob. sandra: can you explain to us draft biden, a group that you're a part of? >> yeah, sure, i mean, at this point clearly the vice-president is working through his own process and
running for president is a hugely consequential decision anybody will make in their life. while the vice-president is working for his process, our job is to go out there and raise money and talk to donors and begin to build grass roots infrastructure in those states. sandra: what are you seeing as far as his fund raising abilities are concerned? >> i've been astonished. the phone calls i've gotten from some who are for clinton and some are on the sidelines. sandra: surprises you the amount you're seeing or in line with what you've seen for biden? >> anybody who has dealt with joe biden in their life, knows he's one of the nicest guys and genuine people, and i don't know anybody that doesn't decide they don't like the guy. and i'm not surprised people want to help somebody they like. sandra: the rick perry campaign, we recently had him on the program, the campaign taking a hit. you've seen it in the news and recently lost iowa campaign
director to the donald trump campaign and now politico is reporting the campaign is quote, on death watch. does it signal the beginning of the end for the perry campaign? he said otherwise when he was on this program, but what do you think? >> yeah, no, we're continuing to execute just like we were before. yeah, would i rather get paid than not get paid? absolutely. i didn't move to new york city to austin for the money. i did it because i believed in rick perry, the guy with the best economic record thus far in running the race and compelling agenda. he's given a compelling speech on black poverty, economic minorities. sandra: as far as money is concerned, can he stay in this? >> yes, he can stay this, he has a super pac that raised i believe 17 million the current figure and the core campaign-- >> what does it say about trump taking one of his people? >> well, i mean, sam clovis has to do what he has to do, that's his choice, but i'd say for myself, you know, i'm in for
perry and going to continue to work for rick perry. sandra: some say that represents the state of the campaign. >> what would you say to a cyclical analyst that says that recognizance rick probably got lucky with his his record with the oil in the state? >> that's compelling about the texas economic record. we've continued to add jobs in texas despite oil going from 100 to $39. >> that's a recent move, but his record is oil the bubble periodments i wouldn't say that at all. it's a diversified economy. if you look at percentage of energy jobs in 1980 versus today. it's about half. even though oil prices have come down, there continues to be job growth. texas 1.5 million jobs from 2007 to 2014. sandra: how many of those were tech jobs imported from other states? >> some of it was tech jobs and others health care and education. >> energy. >> it's diversified and robust, all the people said if you look at this, the dallas fed does done a lot of great research on
it. >> the metaphors if you've been to austin, texas. >> the real estate market is nuts. and my sister has a home there and realtors are calling, will you sell your home? and steve, you reportedly told vice-president biden that he may not have the emotional fuel as he put it for a presidential run. your thoughts on that? >> this is intensely personal for him. he's suffered a major tragedy in his family and running for president at any points in your life is difficult and a tough call. our job is to give him the space to make his own decision and while he's making his decision making sure there is some campaign infrastructure for him. sandra: thank you for both joining us this morning. >> thank you. sandra: be sure to tune in to cavuto coast to coast noon even. sam clovis will be on the show, explaining his decision to jump
>> welcome back. we're about 40 minutes away from the opening bell and let's get to nicole petallides from the floor of the new york stock exchange. i feel like she was just here a second ago. now she's there on the floor, and getting ready for the open. >> what we're doing, we've got you covered and i'm talking to
some traders. they're looking at the 10-year bond. 2.0% we haven't seen this since this whole thing began and we saw everybody running to treasuries and now moving out of treasuries and taking the risk and you can see now the futures, which were at the 200 level were down and now back at this level after the good gdp report better than expected. jobless claims better than expected. we've seen earning, dollar general and tiffany's under pressure and there are comments here on the floor of the exchange. we'll see if we can hold the gains. that's what everybody would like if you're a bull. sandra: thank you very much. don't forget to start your day with nicole, me, lauren simonetti, and 5 a.m. and we wake up-- i don't want to tell you when they wake up. >> are you going to take the compliment. how good you look in that picture. sandra: keith, i'll take that compliment. thank you, sir.
super bowl mvp tom brady and nfl commissioner roger goodell on a collision course at that will likely come to a head in a federal courtroom. the duo are scheduled to head to court on monday to determine whether brady will serve a full fur four-game suspension. and a judge in minnesota is openly questioning roger goodell's knowledge about collective bargaining in the adrian peterson case. and leigh steinberg, the author of the book "the agent", i'm reading it onset. if you were brady's agent how would you have handled this situation differently. that's a tough question because there's so much going on here, but should it have been handled differently? >> i think if i was tom brady's agency would have had him make a statement way back prior to the super bowl that would have been something like this, you know i'm competitive and like to throw a deflated ball. if i pushed too hard and went
over the line somehow i'm sorry it wasn't my intention. sandra: it would have been over, and that's done? >> and instead, the timing has been the gift that just keeps on destroying here because they first announced this the friday prior to the super bowl and instead of talking about the super bowl they're talking about tom brady. now they dump the decision the week that training camp is open and this is like a rubik's cube. you've got the republican reaction-- >> let me set this up. you're renowned as one of the greatest sports agents in history representing all pro clients, troy aikman, smith, ben roethlisberger. you're a huge figure in the world of sports. do you think that tom brady knowingly cheated? >> we'll never know that. sandra: you can give me your best thought or guess.
>> i don't think he viewed it as cheating. i think that he just had the balls deflated the way he wanted it and other quarterbacks like aaron rogers like to throw a ball that's overinflated. i think in his mind, he didn't think he did anything. he's looking for exoneration. there will never be exoneration because of the report. so now you have a judge excoriating the nfl for the way they handled the case. you have another judge criticizing them in minnesota. they've had a deaf ear to public reaction almost as if the league's been insular, now, tucked up here in new york, and not in touch. sandra: what's happening with the nfl? people are saying that, you know, the nfl is making some bad decisions. >> they may be, but on the other hand, they have record television revenue, 45 million people playing fantasy football, they have the seven top rated shows one month of the last season on nielsen for the nighttime nfl football. dagen: and a compelling product.
>> here is the irony, at the same time that they're dominating american culture, they've got this series of ray rice, adrian peterson, tom brady, cases that they have not handled in the smooth way. >> that's a goodell thing. on that news day, i remember we were sitting here debating it and my conclusion the biggest loser today is goodell. it's his leadership role here, the nfl for all parts and services is a cartel. they're paid the same and-- if he creates a negative value in that whole enterprise? >> i will tell you he's bullet-proof because he's enriched the franchises so dallas bought their team for $140 million, it's now worth $3.2 billion. record tv contracts of 10 year-- >> like a cartel. dagen: quickly, you have come back from a lot of, you know, personal aurns. how do you count, what do you
tell the guys going through similar things in the nfl, different issues, but going through struggles? how do you counsel them right now? >> to, first of all, make sure as a human being they're very clear on how to appropriately behave and they play a game that's public entertainment and you need fans to react to it. so you don't force feed fans an unremitting diet of athletic misbehavior or contract hassles or you push the game away. we're not bringing bread and butter on the table. we're not providing transportation. dagen: i can't sit here and talk to you. sandra: you are the sports agent behind the movie jerry mcguire. it's unbelievable for people to hear your purpose on this. >> cameron crowe, the director followed me, and he came to the draft-- . dagen: if i could ask you one more question, could you show
me the money? >> well, my client refused to work on any day that ends in the letter y. sandra: are you going to do it for us. >> sure. sandra: we are going to go to break on a little show me the money. >> show me the money! . sandra: we'll be right back. you are looking at two airplane fuel gauges. can you spot the difference? no? you can't see that? alright, let's take a look. the one on the right just used 1% less fuel than the one on the left. now, to an airline, a 1% difference could save enough fuel to power hundreds of flights around the world. hey, look at that. pyramids. so you see, two things that are exactly the same have never been more different. ge software. get connected. get insights. get optimized.
protect and manage your home.o at&t digital life home security and automation. digital life gives you round-the-clock monitored home security for your family's peace of mind... plus with the easy-to-use app, you can access your system remotely from your smartphone, tablet or pc... ...and it's easy to set up text or email alerts so you'll know right away if something happens at home. call now to get started with at&t digital life smart security for as low as $39.99 a month. but digital life isn't just about security. it's about control too. with home automation options... ...you can keep an eye on your home while you're away... ...lock and unlock doors remotely or even control your garage door...
>> did he say lennox lewis was the first person that he represented? >> boxing. sandra: and now over 200 ahead of the open. >> it's a selling opportunity. maybe not called that on mainstream media. 1967 is interesting for me to go back to the wood. sandra: i got called the grinch earlier this hour. dagen: i have two words to
drive your day and everyone's day, sandra, "star wars." sandra: i confess, i haven't seen it. she's setting up my viewing party. "star wars" it is. another morning for the dow, looks like triple digit gains, better than expected gdp number and jobless claims. "varney & company" is next. stuart varney, it's all yours, sir. stuart: yes, it is. thanks, sandra. now what? in a half hour, your 401(k) might look better tan it did last night. it's like a horse race, you don't know the winner until the finish line. today looks good if the market opened now, we would be up 200 points. watch the race live here, it's an exciting gallop to the close. politics, this is entertainment. hillary changes her tone and offers a semi apology, why?