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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  October 16, 2017 3:00pm-4:00pm EDT

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2:00 p.m. eastern so i hope you will join me then. liz claman is taking you through the close. it is in your hands. at foxbusiness anything can happen. the markets started to clawback. close to session highs just over 60 points away from the 23,000 mark as markets stay on track to zoom to new record highs. what happens while this happened. president trump and mitch mcconnell holding spontaneous
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much of what they said has everything to do with your portfolio of the economy and the price you pay for your prescription drugs. the firefighters are only starting to make some headway in this hour. it's too little too late. the restaurant to her who is fighting to rise from the ashes. you get to decide as a u.s. military begins practicing drills of a very specific kind in the region. the former asia-pacific deputy. what does it drills really are and what they need.
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let's start the count on. breaking news. we are keeping an eye on the white house in about 45 minutes president trump will hop onto marine one. he is now heading when he gets to marine 12 joint base interest. a campaign event. no doubt he will be keeping at least one eye on wall street. as he mentioned 63 points away from dow 23,000. it was less than 55 points away. with a game of 67 points higher. we head about 58 minutes until the closing bell rings. when we look at these levels
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it happens in a blink of an eye. on november 22 less than a year ago we crossed that doubt 19,000. and of course now just 52 trading days later we can see the 202000 peak. -- 23,000 peak. if we manage somehow to get there today it would be the fourth shortest stan everett between 1,000-point milestones in history. as we look ahead. which stocks. we do want to tell you that they drive a very much a big part of this. watching for a big chunk of
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numbers and names. starting with netflix after the bell. there hitting an all-time high earlier in today's session. i'll call on wednesday. and then ge and pmg. all big names that many of you head in your portfolios. could they be the ones to get us to new high or will it be something else entirely unexpected. also joining us is chief investment officer john buckingham who calls down 40,000 within 13 years. it was compounding. it only takes about a 5%
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return to get to that level. it's somewhat of a bearish call. it is a relatively conservative number. what's gonna get us there. things like earnings growth. when you think about where you are in the interest rate. think about a dividend yield. contrast that to what you're getting on the money market fund these days. 2.3 percent. the interest rates are a big part of the equation but over time the u.s. economy grows. stock prices do follow earnings. we are looking at a ten year chart here. it's only 30 stocks. it gives us a better sense of how people feel about the market. is john wright. the markets still have a mutt a lot of momentum left.
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right now we have below low expectations. if you look at it historically it's not that high. it is still significantly up where we were in 2000. i must say alan when you look at what's going on here with the treasury world treasury yield a spanking. spiking. fear is coming out of the markets let me just let you and scott battle out the message of that. people have been looking at this. to not be involved in. it was built to go to zero. and then an inverse split do it again. dow 40,010 years because
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nobody talks about the long-term anymore. it doesn't matter if we get some kind of threat there. as far as this week and what were looking at. i think netflix after the close is very important. as also in this market. we might get a clue on how amazon google, facebook and some of the other big heavy stocks might be positioned. i am just looking at netflix at the moment. the height of the session is 202 and two pennies. let me just say that globally i noticed we have south korea and then australia and they're all ordinary index. this is not just the u.s. that looks good. it feels like the globe is coming back.
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if you look at economic growth growth overseas has certainly improved. they both raised their outlook for global growth going forward. absolutely this has been a global rally. keep in mind the interest rate component is very important. stocks look very attractive music about yield any think about where we are in the interest rate spectrum. if you think about a money market. yielding 1%. you could get 5% on a risk free asset. in 2000 you get over 6%. that has to enter into the equation when you think about valuations on stock and if i am getting next to nothing on my cash. it's pretty much the case all around the world.
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that is just the case. great to see all of you. we appreciate it. so, back to washington with a spur of the moment press conference with president trump and senator mitch mcconnell concluded and that rose garden is about a half an hour ago. the two tackled all sort of political and economic issues. the president also blasted drug makers and the high cost of drug prices. he said this before but it seems like it's not rattling the big pharma stocks. they are down but just very slightly here. pfizer is the only one town about a full percent. the president did say when the big-money drug companies, screaming to influence the conversation he will be ready for them. you have the insurance companies under one place. they can tribute massive
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amounts of money to political people but i have to tell you they contribute massive amounts of money. i don't need their money. notice how he does kind of didn't say anything there because many of these people do get money from big pharma on both sides of the aisle. they will come screaming and try to grab whatever the president tries to do to save people money what caught your interest about that and everything else. it's sort of got thrown on the radar. seemingly out of nowhere today. when the president was here at the white house. he kind of went after the drug companies. before the cameras they laid out a bunch of priorities in said hey look. we have to get prescription
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drug prices down. the president said when i'm done speaking here. we will talk to you outside on the steps. that through the white house into a little bit of a scramble here. then they said get out to the rose garden. as the president and mitch cap mcconnell were got mcconnell were talking to each other. you know the back story. the president made it very clear. it is closer than it has been ever before. a lot of news made on the tax front as well. it was on the timing. whether or not it would get done in 2017 and he --dash i can hear it was response. if we get it done that is a great achievement. it took years for the regular
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reagan administration to get taxes done. the top priority his tax reduction. when you split the hairs there between tax reduction and tax reform it's actually a wider gap. what are you exactly want to see happening in 2017. here is his response. it's about both reduction in reform. it's about both. as we have seen. this has been pushed and pushed there. over the last few months. i ask the president asked the president what is up for negotiations and there are
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minor adjustments being made but the bottom-line is that they want major simplification. that's actually a normal process. although the market wants to see it now. the market is like a toddler. i want it now. they're getting this now with the closing bell. the closing bell is 47 minutes away. ret 20200938 right now. smaller gains up about three points. forty-one dead and hundreds still missing. california firefighters say they are making some progress. we are going to have out to see that rosa live in just a few minutes for a compelling story about one business owner who has lost at least part of her small business empire. the story foxbusiness broke on
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friday. multimillionaire first a bounty on a billion-dollar businessman. the reaction to our exclusive story was outrageous. when you come down on free speech. grandstanding and business efforts. it's all coming up next on content.
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an update for you on the story that grabbed the national and global press and social media this morning. we brought it to you first hear on countdown on friday the controversial story of larry flynt taking out the full page ad full-page ad in yesterday's washington post promising $10 million two anyone who could provide credible information that leads to the impeachment of president trump. patriotic duty is behind the latest move. nbc news.
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even our competitors across the river. cnbc. they all played second fiddle on the news. it involves a lot of money and businessmen. the bounty in coverage unleashing action and strong reaction on social media the twitter fear divided on the latest foray. my head is going to blow up. i can't wrap my brain around the fact that a porn king is trying to save america. it's larry flynt i'm not worried people should not throw rocks in glass houses. if the larry flynt is against that. on the other side of the coin support for mister flint has been just as passionate. as an donald trump.
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the success waiting for the third time. this is the greatest thing. they've had other roms. go ahead and underestimate him. straight into the point i am larry flynt. they had reached out. they ask for an update what has the ad yielded. they are not ready to reveal any of it just yet. the closing bell is a 40 minutes away.
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after announcing a new payment processing network that uses block chain technology which can be traced. there also among the leaders. one thing more frightening than hollowing for small businesses is how to get just a few employees headed down the right road to retirement. the 4o1k disruptor to tell us why it's not as hard as pulling teeth. countdown is coming right back. think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives,
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and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. while maintaining a level of protection in down markets. so you can head into retirement with confidence. talk with your advisor about shield annuities from brighthouse financial established by metlife. president trump plans to meet on thursday with fed chief janet yellen. to discuss the possibility of
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nominating her for a second term this according to people familiar with the matter so yellen joined others in the running. a national economic council director. keep in mind janet yellen has said i plan to fulfill my own term which ended in february but who knows if she wants to keep it or whether president trump wants to keep her. they are set up by small business owners. but listen to this. many small businesses overall cannot even afford to set up retirement plans for their communities they charge small businesses more than they charge the big guys. why is that. it is national retirement savings week. the company is called america's best for -- 4o1k. small business people
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sometimes more concerned about canals and how their hygienists are planning for retirement. let's bring them in. the foxbusiness exclusive. why over all do plans charge small businesses more than they charge big businesses. it's really a matter of compensation. business owners had been told that they don't qualify for a low-cost investment. or to have and if it's like that. it's really completely manufactured. the fact of the matter is any business no matter how small they could the great one to one advice participants. you can have this as a small company. but it's really the service industry that they don't want to offer those. they cannot make a buck on it.
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you don't have big scale but to me these are the businesses that provide the life but blood and the spine of the economy here. you said i'm jumping in here. i'm going to find plants that can work for these companies. how did you do that and what did you offer. there is a couple of different aspects. we were the first company to set up a site called show me the any participant can start the conversation to see what is really going on in their 4o1k. they're busy running their own business. often choose the provider based on a matter of convenience or personal relationship but there's not much digging going on. so what we see are these companies that had one and half to 3% in investment related fees. last friday i spoke to a group
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of endodontist. they are brilliant people. they are experts in their lane. one of the dentist over the weekend sent me his fee disclosure. he said he told me i think it looks like i'm invested in low card vent funds. expense ratios of funds just drill it. on those funds his providers they don't get paid on those funds. there is no commissions embedded inside of them. and then i showed him on page four and there was another 1.25% advisory fee. it went to 2.25 that's 11%
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markup of the original cost. a juicy care for them to attract. do they match does that allow a matching or does it get lost in the shuffle. in fact we are adding on benefits that small companies did not believe that they could have so matching is very important. we ought to be putting away ten or 12 or 15% of our pay. we only had to do 9% out of our pocket. you are all in investment related fees and just 0.56 percent. giving access to participants.
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don't say you can't have it because you sure can. show me the the grass roots we are doing for folks. they have the largest balance in the plan. the amount of employees you see look what i found. for you and for everybody we do 2 millimeters of change. thank you for speaking with us about it. thank you so much. america's best. the closing bell. twenty-nine minutes away. we almost got there a few minutes ago.
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right now we are at 146. there is a lot of belief behind that. the brexit brokerage expects better response. today it is up 3% right now. award-winning restaurant owner loses her crown jewel. her harrowing adept is straight attempt along with the life pictures right now of firefighters who had gotten one skin. you see the hero firefighters and by the way we are headed out to sonoma life.
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they ran through the flames and survived. hey, how's it going? um... who are you? i'm val. the orange money retirement squirrel from voya. i represent the money you save for the future. see? we're putting away acorns to show the importance of being organized. that's smart. who's he? he's the green money you can spend now. what's up? oh you know, gonna pay some bills, maybe buy a new tennis racket. tennis racket for a squirrel? he's got a killer backhand. when it's time to get organized for retirement, it's time to get voya.
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let's go back. you are looking at life pictures right now of the aerial firefighting. helicopters racing to drop water. and clearly this fire in napa county is not under control. you can see the smoke coming over the hills. they have told you that as soon as they start seeing smoke over these mounds here and depending on where they are within seconds when the
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wind is very hot. you start to get amber's plane flying into people's backyards and before you know they have to rush and run for their lives. at least some of the 14 blazes they are starting to get a better hold on the firefighters it's now a week old killing at least 41 people. however amid the devastation we need to show you this. the story about a brave pop the family pet a bernese mountain dog is coming to life that dog right there had been lost and ran away as its owner began to try to escape izzy the bernice mountain dog ran up to the family which really feared the worst. she was unharmed with a little bit of heavy breathing. but she is a survivor. to how the fires are going.
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a terrible story for businesses. award-winning did not survive the catastrophe. i must first ask you tell us how your employee and families are doing. everyone is safe. in accounted for. we head over 400 employees and a few of them could lose their homes. we are doing okay. first, what was your gut reaction. what date did you find out that it was gone. we found out in the middle of the night. that it was gone.
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it was on the local news. very quickly. i think it was like 3:00 a.m. let's talk about the losses. will you, can you and do you expect to be reimbursed by the insurance company. our insurance committee has been wonderful and we have a very good policy and it will help us with lost income so that we can pay and keep people employed for quite a while. what's give them props. what insurance committee. the best company george peterson is our insurance broker hanover is the insurance company they called me on monday. they had been wonderful.
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i can tell you how many complaints we get. not specifically from the fire but they are trying to dodge it. so congratulations. i think that is great. let's talk about the future. are you planning to rebuild on the same site. or are you down for the count at the moment. were not really sure what were going to do. we are still trying to figure out with our landlord what the next move will be. if it is not on the same site we will build it somewhere else or take over another space. aside from that you have the bird and the bottle. if a couple other restaurants. what was the most valuable thing t realistically was a certain expensive wine that you lost. i would say it's more sentimental things.
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we did get into the site and we were going to do the wreckage and we found the horse shoe that horseshoe that was with the building. and it was over the back door. what are they saying right now. everyone now is just trained to be grateful that everyone is safe. some people have lost so much. which of focus on taking it one day at a time. the thing too. what i think is very important as i know that the coverage on the news has been very good in
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showing everything. the biggest thing is that it's not all gone. appear that's open and we need it. you are invited to come back when you rebuild. reality, the stark reality. thank you so much. they came to the all-time session high. the gain of 79 points. we are watching this one closely.
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it is putting decide diplomacy with the u.s. peter brook. north korea attempts to spread terror around the world. they are pitching in for the gubernatorial race. stay with us we are coming right back. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor.
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we are just getting this in. cnn has just reported that north korea is not interested in diplomatic discussion until the country develops a missile
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that can reach the eastern seaboard of the united states. the u.s. meanwhile is currently at this moment performing rescue drills to south korea on the korean peninsula. it comes one day after secretary of state tillerson declared that it will be a diplomacy with north korea until the first bomb was dropped. how close are we to that first bomb. are we already preparing for a catastrophic event that requires the evacuation and the rescue of u.s. citizens. we bring in the former deputy assistant. the senior fellow peter brooks. we make of the new news that has just come out from cnn. i believe that north korea is committed to the nuclear and ballistic missile program so that doesn't surprise me.
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if you're going to come to a table if you're gonna come to the table i'm not sure north korea well ever do that especially over its nuclear program they would certainly had more leverage if they have a ballistic missile that could reach in its entirety of the united states. i think this is part rhetoric and its part truth and the fact that they are committed to that. i'm not surprised by it at all. to the rescue plans that they have. with the u.s. of citizens. they are doing drills right now in the region give us a sense. i always think of wargames. how close are we where armed forces are ready to deploy in less than six hours. we are always practicing we have more plans for a wide range of contingencies and north korea as one of them. we've been at war since 1950. there is no permanent peace treaty between north and south korea. we are always ready. one of the mottos of the units
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over there is ready to fight tonight because they have to be. as you know it's only 25 miles from the militarized zone and we also practiced moving people out of south korea case hostility starts. this is normal. this is not something that we have to do. we have to be ready if something happens right now. it is the most militarized region on the planet i think. again, give us a sense are we keeping missile crisis close. it seems likely use that word a lot. there are significant tensions between the united states and north korea. there has been a lot of rhetoric that goes back and forth. when the military tells me that north korean troops are moving.
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there is words and there is actions and our intelligence community and our military are watching very closely what happens on the korean peninsula and they are ready to respond. this is significant challenge in of the work were to break out it would be horrific. the united states versus in the region. it's over hundred thousand americans in seoul right now. there is a huge number of issues here. i don't think we are on a war footing right now. thank you very much. good to see you. closing belt is now eight minutes away 52 points is all that separates' but how about this it's been three decades since black monday gave
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investors a black eye. the lessons we've learned and the ones we had forgotten from the catastrophic day. it's all coming up next. ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent
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liz: session highs. second ago. up 80 points for the dow. wall street binging on netflix after quarterly results coming up after the bell. shares hitting all-time high right now, $202.70. what is going to happen? price hikes, nicole, that is what they instituted. >> that's right. they put that into effect for two of three plans, liz. this goes into effect in november. we'll see if they say anything about that. over the last eight quarters they beat on earnings per share side six times. always is volatility after the earnings report. it used to be on average about 9%. options traders are weighing in
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about five or 6%. but that will be interesting to hear about pricing. subscriber growth is front and center. 4.4 million streaming subscribers. most of those coming obviously right near in the united states. and anything about disney. obviously that deal has been falling apart. so we'll watch for that. but this has been a winner, up 60%. "house of cards," narc co, 13 reasons why. i don't get to watch any of them liz: i wish i could watch scripted television. just too busy. we're watching it right now. they say those who forget history are condemned to repeat it so let's remind everyone, this weeks mark the 30th anniversary of black monday, the most disasterous day in market history. the dow tanked 23%, or 5200 points in today's terms in a
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single day. as we approach a milestone of blue chip index of 23,000, which lessons have we learned and which ones have we forgotten from that catastrophic day? we bring in carson group founder, ron carson. you have 4.6 billion assets unmanagement so i'm listening to you. >> you know, liz, i was reminisce about the day. i can tell you where i was in rural town in nebraska. i remember coming out listening to the radio. and they said we're going up to date wall street every hour. they don't say that unless something is going on. we had no electronic devices. really, if you're out of your office, you had no way of knowing that was happening. but there are some parallels, actually to today, to then. we just came through the '70s. we had high inflation. we had the energy shock. people became really complacent with the idea that you know, things were a new normal. things really continue to go up
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and as soon as everybody believes that, like i think today, you know, people are pretty complacent today. we've had, we've had eight times where the s&p has changed by more than one percent. the average is 70. the s&p has been up every single month. that has never happened. liz: right. >> i continue to hear. we're not trying to time the it. we have 30 seconds before the closing bell rings. would you buy after we see a big drop? there are people saying i wish i had bought the day after black monday? >> for sure, i think the argument long term always bails you out, can be a false sense of security. japan at 20,000, 1989, they were
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at 40. think if you waited 28 years to get half your money back. having time, sensible behavior will always be the biggest risk to down-sized underperformance. having a plan is more important. [closing bell rings] liz: ron carson, good to see you. all-time record. up 83 points. that is it for the claman countdown. david: we're only 30, 40 points away from 23,000. we told you election night. take it out of gold and put it into the stock market can. good way to start the week. i'm david asman. melissa: i'm melissa francis. this is "after the bell." we have more on the new market records. first here is what else we're covering in the very busy hour ahead. despite what you heard we have never been closer. president trump setting record straight on his relationship with senate majority leader mitch mcconnell. details of the president's impromptu media


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