tv Countdown to the Closing Bell With Liz Claman FOX Business February 2, 2018 3:00pm-4:00pm EST
the market could still go 20% higher. check out his website, he'll tell you exactly why. liz claman is going to take you into the final hour of trading. if you're ready to do buying or selling. get ready, everyone. liz? liz: you got to believe that some smart money participants are buying right now, but look at this, investors turning tail in this final hour of trade. the dow down 585 point, took five different storms to create the tornado on wall street. a super strong january jobs report. why is that bad? has investors worried the fed will be way more aggressive in hiking interest rates. another piece of good news, wages jumped but that may mean inflation is more than around the corner. and jitters over the republican fisa memo and hearing from president trump with his first official comments since the public release of the gop memo on the fbi's investigation into
the president's campaign, and any russia relations to it. the commander in chief holding a customs and border protection roundtable in this hour, set to begin in just a few minutes. immigration reform agenda will take center stage at this hour, but you can bet if there is any opportunity for reporters to ask questions, they will ask about that fisa memo, and the concerns that it brings about the fbi and quite frankly about security in this nation. we'll bring you the president's comments from the event as soon as we have them. i promise you that. but in the meantime, fear, yeah, you could say it's crippling wall street at this now hour. not entirely. the vix is surging, this is the so-called fear index. that level of 17.14 is the highest level since august. the higher it goes, the more fears in the markets. spiking 26%. the dow meanwhile sitting near session lows, shedding 500 points, call it 563.95 right now and, of course we've got 59
more minutes to turn this around, keep it static or get worse. can't you leave me this n this hour. we have a whole host of experts and names to run you through it. we had 11:40 a.m. eastern, the dow plummeted after president trump declassified that memo with losses accelerating in the afternoon. treasury yields, a problem all week long no matter how you look at it, relentlessly climbing all week. started earlier in the week at 2.6%. look at it now, 2.856%, up 5.9 basis points, that's a four-year high. concerns on the strengthening economy. that will boost inflation, that number means, and let me put this in basic english for you. it will cost a lot more to buy money, borrow money and grow businesses. not the worst thing in the world but does get people worried about the domino effect. look at individual stock names piling on in the market. apple, in correction territory right now, falling about 10%
from record high back on january 18th, 20 or $30 more than what we see. bernstein's analysts cut rating on the stock saying total iphones sold, that number likely to be flat for the third straight year, and i think this is also extremely important with apple. you got to say that the operating expenses seem to be growing faster than the revenue coming in. so apple is down about 4%. to google, the google parent alphabet, stock is officially in a pullback, down 5% from recent highs. company missed quarterly profit forecasts, as a strong topline was offset by increasing spending to promote gadgets and youtube app. and to amazon, totally bucking the trend today. loving amazon and loving, if you listen to kevin kelly on the show yesterday between the three of these names, he said buy amazon, it's up 3.5%. tracking to gain more than $35 billion in market cap after
posting largest profit ever during the quarter. stifel upping target to $18. following the earnings report. the firm is calling the company the tom brady of the internet! citing growth in the cloud business. chevron and exxonmobil, the two biggest drags on the dow today. this is one of the storms bringing in the tornado overall, folks. exxon down 6.5%. chevron lower by 5.33%. both energy companies reported rare quarterly earnings misses but citing international refining operations, when you have two dow names down this much, that is a problem. dow down nearly 600 points, six point away from a 600-point loss. looking at the dow right now, i need you to keep your eye on the lower ticker here. we're going to be cycling through everything as we wait to hear from president trump. we've got attorney general jeff sessions has responded to the
controversial fisa memo that was released to the public today. sessions saying he has, quote, great confidence in the department of justice, which of course means the fbi as well. but also said that no department is perfect, he will forward, quote, all relevant information he receives from congress regarding this. now in a statement, sessions also said, quote, i am determined that we will fully and fairly ascertain the truth. the truth about what? adam shapiro on capitol hill. adam, the atmosphere is swirling around this. what are you hearing regarding the memo release which indicates there were real political reasons and anti-trump bias at the fbi forcing an investigation into one of the campaign members. reporter: yes, that's what the memo case. remember, when you hear from matt goetz on television on fox talking about the political -- i can't say the word, the politicalization of the fbi and this investigation.
remember that the democrats point out this is a one sided memo that does not take into account a lot of evidence which is classified and left out of the memo. so let's get into what's happening because things are swirling here on capitol hill, liz. i want to give you the reaction from some of the key players in all of this. for instance, james comey from the fbi. he tweeted soon after the memo was released, quote, that's it? dishonest and misleading memo, wrecked the house intel committee, destroyed trust within the intelligence committee. damaged relationship with the fisa court and inexcusably exposed classified investigation of an american citizen. for what? d.o.j. and fbi must keep doing their jobs. the american citizen we're talking about, carter page. a lot of this is circled around carter page in the memo, and he is the former trump campaign associate who is at the center of this. then you get devin nunes's statement when the memo is released, he said --
well, when you talk about oversight, remember, the democrats are now mounting their efforts and you get senator mark warner from virginia, the ranking member on the senate intelligence committee, he's the first to point out to you, the house republicans wouldn't even let senator burr, the ranking member, the senate chair of the intelligence committee, a republican, wouldn't let them read their memo. almost every house member who voted in favor of the memo's release, i've read the underlying documents which the memo was based. they simply do not support conclusions, finally, liz, a threat from democrats, in a letter to president trump. we write to inform you that we would consider such an unwarranted action, if he were to fire rod rosenstein or mr. muller. unwarranted action as attempt to obstruct justice in the
investigation could result in a constitutional crisis of the kind not seen since the saturday night massacre. liz, my ifb hung up, i'll throw it back to you. liz: i'll take it, thank you very much. we need to get to blake burman but looking at the markets. can we put up the main indices here, we hit all-time session low, down about 600 -- what was it, jackie? okay, right now down 636 points. we have the s&p down 59. the nasdaq, that's a triple-digit loss of 139 points. down nearly 2%. we are looking right now at session lows. biggest drop since brexit for the dow, and that was of course june of 2016. we've added the russ nell here, this is crucial, down 2% for the small and mid caps. this is a chop for the transports, down 241 points. many of the names in the
transports include airlines, of course things like fedex and ups. but remember, all of the stocks that you see in any of these indexes are now cheaper. unless it's amazon which is higher. they become cheaper where you maybe have had envy want inning to buy them. there are two sides to this market right now. should we take it to the floor show or want to get to blake? we got a lot of plates spinning in the air. blake burman. blake burman, can you hear me from the white house? reporter: gotcha, what's going on. liz: we are waiting on the president. do you expect reporters to shout out questions, we were told it would be on tape. sometimes they do a switchous. it could go live possibly. what are you hearing? reporter: never know at the white house, he is in virginia at customs and border protection facility there, expected to do a roundtable and meet with folks at that targeting center there, not sure, liz, if we will hear from
the president, if obviously he'll respond, shout out questions, if we get that close to him. i presume you were going to ask about the market potentially. the market is something the white house clearly keeps an eye on and touting for many months now. on a day like today, i believe it's down 650 or so, it is something that we'll have to see if the president comments or not. the big story here at the white house, no doubt about it, is the decision from this president on this day to declassify the memo that adam was talking about up on capitol hill there. has been an effort from this white house in the form of a statement from the press secretary sarah sanders to say a couple things. first off, this decision was not made in haste, and secondly, that the president respects the overwhelming majority of the fbi and the justice department. here's the quote --
the president made brief remarks about this memo a couple hours ago. here was president trump on the issue. >> i think it's a disgrace what's happening in our country. when you look at that, and you see that, and so many other things, what's going on, lot of people should be ashamed of themselves. reporter: you heard adam there mention, liz, the questions that democrats have around the status of rod rosenstein, the number two at the d.o.j. the president was asked after he made those comments by reporters at the white house, one specific reporter, do you have confidence in rosenstein? and the president said you figure that one out. liz? liz: blake, we have the dow down 610 points now. losses are accelerating, as you see right now, we have all red on the screen. let me get you up to speed here. the sell-off adding to what's already been a crazy week for
stocks. the dow is on track to shed more than 940 points as we look at the biggest setback in two years. keep this up if you could. look at monday, lost 177 points after gaining 223 on friday. to the right, we show that incline, throughout the week of that ten-year treasury yield. have you inverse relationship here as stocks are falling, you have the ten year moving higher on that yield and money is becoming more expensive. stock market doesn't like that. tuesday, we lost 362 points, few gains wednesday and thursday, combined, we're looking at a little bit of a concern and major jitters at the moment. let me get to traders on the floor of the new york stock exchange and joining us at the moment, we have first trust economist chief economist brian westbury. i would like to go to the new york stock exchange, give us a sense of why and what is at the heart of this beyond what we articulated. it's a friday. who wants to go in long for the
weekend like this? >> liz, right now the s&p 500 is almost exactly at a 50% retracement from where it closed 2017 to the all-time highs a little more than a week ago. so this will be a critical level to see if we can hold this 2765ish level on the s&p. that being said, the big rally really started in mid-november, and a 50% retracement to that level would put the s&p right at about 2700. those are two critical levels to watch the remainder of the day and maybe on monday morning. liz: okay, you know, i'm going to ask if we can get two-days up so we can see the change. we were up slightly yesterday. now we start to see this movement to the downside. brian, give us a sense right now what people in your world are doing? off of the trading floor, are they licking chops and saying there are good bargains now to be had? >> i love days like this. you know, if you think about
it, corrections are designed to scare the weak hand out. and the people with weak hands are the ones that didn't know why they got in, and they got in because it was going up. but the reason to invest in stocks today is because the economy is getting stronger. earnings are accelerating. they're going up about 15% this quarter over a year ago, and next year or this year, they're going to go up 15% from 2017. yes, the federal reserve is raising interest rates, but those rates were too low to begin with. so don't worry about that. stay an investor, and let everybody else scream and yell about days like this. this is a day where you need to be buying, if it goes down monday, buy some more. because the market is cheaper than it should be right now. this is pure fear at this moment and not justified by the
fundamentals. liz: yeah, fear, or razor sharp turn in sentiment. it's interesting, before i ran down here, i checked the "wall street journal"'s headline online, dow set for worst week in two years, then went down more than 600 points, down 603 and looking at a headline that says -- can we check this? dow falls more than 600 points, this is set for the worst week in years. they took out the two years. tim, how much worse does it get? >> you know, i -- i really think that we're probably at a level, even if we were to approach 25,000 on the dow, that was a major breakout level, and you got a lot of levels here that should hold on the intermediate term. i agree with a lot of what brian said. that's not to say we can't go a little lower. we can't test other levels. we can't have a little more shakeout of some fast money next week, but certainly from a fundamental perspective,
everything that brian said is spot-on. liz: well, we're just off lows of the session, i would like to point out i believe the dow is up about 38% since election day. so again, perspective is super important here, gentlemen, thank you, brian great to see you. tim, we appreciate it. we may put tim or another trader back to work. we're hauling people in from all over. the dow down about 572 point, yes, as i said, there is a pretty significant shift in sentiment at the moment, but remember some of this could be attributed to apple dragging down many of the major indices because people didn't like the fact operating expenses are growing faster than revenue. a single stock story combine that with nervousness inside the beltway and much more. don't go away. we've got gasparino. we've got all of our traders moving. nicole on the floor. we're bringing it all together for you. you've got to stay tuned. building a website in under an hour is easy with gocentral...
up. i can pull it up on my computer as well, as we look right here. i'm looking at a 10-year yield. you don't often see this kind of jump for treasuries, right? so when we see it, it's at 2.856, up nearly, what, six basis points, that's a significant jump, and it just means that perhaps credit card rates start to go up. mortgage rate, 30-year fixed above 4%, pretty interwoven, that means there may be a rush and everything is interwoven in this market as we know, we're just keeping an eye here as stocks move down and the treasury yield moves higher. the markets did hit session lose as republicans sunk their teeth into the controversial memo on how the department of justice managed to receive approval for this fisa warrant, the foreign intelligence -- this warrant that allows people to then start taping american citizens, possibly, and then of course you've got apple trading
close to correction territory. charlie gasparino, you've been working the phones. a, who are you talking to in the market that matter, and what do they know? >> no one could predict the future, and the last couple of guests, they were hedging a lot for obvious reasons. i'll give you a bull scenario and a bear scenario. the bear scenario is this, and kind of what alan greenspan said, there is the other day on bloomberg where you outed bloomberg, you weren't supposed to do that, liz, but anyway -- [laughter] >> gave it to bloomberg, said he this, we have a stock market bubble and a bond market bubble. the bond market bubble will lead to a correction in the stock market. what's going to happen, prices are too high, rates are too low. people are going to sell bonds in anticipation of inflation or there's just the way overbought, and as that happens, you have a rise in interest rates. as you have a rise in interest rates, people when they see they can make 3.5% on a 10-year
if that's what's going to happen, they may buy the 10 year instead of a stock because it's a risk-free investment, and both bubbles correct. stocks go down, bonds go down as yields go up. that's the bear scenario which is very possible, and, that you know, the atlanta fed, forget about 5.4% economic growth, we're going to get 3 or 2.5%. metrics aren't there for the stock market to be at 26,000, the dow. that's the bear. the bull market is simply this, what brian wes brook and the other gentleman mentioned. things are starting to normalize here, we're trying to figure out where we're going, a lot of profit taking. there's individual names leading the indices down, but fundamentally, what we have now is a fiscal policy coming out of the white house which pumped trillions of dollars into corporate balance sheets. when you take the corporate tax rate down from 35 to 21 with
the deductions, it's 19 or whatever, have you just done an obama-sized fiscal stimulus on steroids. and that at some point, that even after all this kicks in and we get a little correction here and market may go down another thousand points, that will show up in corporate earnings and you will make and stocks will go up. companies will buy back stocks, company will expand, companies will be more profitable and corporate profits are the mother's milk of the stock market. so those are the two scenarios. if you ask me which do i believe? i don't give investment advice, but i tend to believe that tax cuts should win the day at some point and that we don't live in a massively inflated environment. we don't have massive inflation out there. so if you're telling me that bond prices should sell off dramatically in a low inflationary environment. liz: right, but charlie? >> the bond yield. liz: when you talk about inflation as part of the january jobs report, the
average hourly wages saw the largest move to the upside since january of 2009. >> liz, that's a good thing, and here's why, and not just because it's stimulative to the economy, those wages were so depressed for so long -- liz: i have no problem with it, i'm just saying -- >> does that translate into you can't -- meat prices going up? does that translate into goods and services going up in a dramatic way, i don't think so, because these are jobs that were getting crushed for years, you know? so i'm just telling you those are the two scenarios, i don't tell you what to do, but i like the tax cut scenario. liz: well, i can say this, i can say this, they would bet charlie's ego that warren buffett is buying right now. he's buying stocks. we're right back. you named it b. you loved brad. and then you totaled him. you two had been through everything together. two boyfriends, three jobs...
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your attention to the nasdaq, it has a pretty big percentage drop of 1.5%, but the s&p is worse and then the dow is pretty much at the bottom of the dregs here. our low of the session was down 642. right now down 568. a little bit of retracement here. need to get back to the floor of the new york stock exchange. nicole, you're there for the business brief, give us a sense of the feel on the floor, if they're concerned if it's orderly, the other day when we had 200-point drop, traders were telling us it's orderly. is it today? reporter: without a doubt, it's orderly. the run-up since the election, when we talk about the run-up, it's okay to take a little off the table here. we have treasury yields running higher. the dow jones industrial average down 582 points right now, that's a loss of 603 points, 2.2% at the moment with the s&p and the nasdaq also selling off. all seeing the worst week since 2016. also with the dow losses accelerating, gopro turning
things around in the final hour. take a look at that. they had disappointing earnings, gopro up almost 1%. and the camera company's shares are on the move. and so such luck for bitcoin, everybody watched bitcoin on track for the worst week in almost five years in cryptocurrency, lost $100 billion in value. looking at blue apron, after analysts said it would be a good option for walmart to buy? a little jump there, up 2.8% at the moment. but the big picture here below the 26,000 mark, traders taking this one in stride, apple with correction and the pullback for the big names, obviously, google and netflix, back to you. liz: nicole, we've gotten this breaking news, and i'm going to read it i don't want to get it wrong. extraordinarily important. the president is speaking at the white house, we're waiting for the tape turnaround.
he's at the customs and border roundtable at the moment and there's a flash on the wires, here it is. president trump says an immigration deal, this would involve the dacas, the so-called dreamers, by march 5th, could very well not happen. let's bring in former ambassador to belgium, former special assistant to the fbi director bill webster, howard gutman and jamil jaffer. this thrown into what we've already seen as a very tough group of cross currents on the markets right now, and we're watching the dow go back down to session lows, we're down 611 right now. howard, i'll turn to you, first. you got the fisa memo. you've got this now. where president trump is saying forget the march 5th deadline, we know there's a budget, we know there's a debt ceiling we're about to hit. we know the country runs out of money. which one needs to get dealt with first? >> i think they work together
to create this hysteria that is day to day, and probably well overblown, i read the nunes memo. what that's about is about people on capitol hill not understanding fisa applications. you know it's much ado about nothing, the nunes memo. it came out and said you know, no one told any good news in the application about carter page, all his good things, and you know, in that application, they didn't tell all the negative credibility issues about the dossier. well in the hundreds of fisa memos i reviewed, you never told credibility issues. this wasn't a final argument at trial. it reads like a pretty straightforward fisa application. the president blows it up. the press blows it up. liz: wait a minute, you were at the fbi, you were special assistant to the fbi director. it can't look good if the fbi is using information from somebody who is clearly biased against one candidate for the presidency versus another, and
that's pretty much proven. what does the fbi have to do get some trust and credibility back? >> liz, in every fisa application, the fbi is using information from informants who have axes to grind, from unreliable sources, if you had priests and nuns coming forward to testify for a fisa application, you would grant none. can you imagine today if we are -- and we are -- watching american citizens who are viewed to be iranian agents and we're saying those applications didn't say the good parts of them or didn't disclose the biases of the witnesses? that fisa application was approved by five senior fbi people, including one who's one of the president's favorites? and so that's business as usual. liz: let me jump to jamil. you were at the senate foreign relations committee and the chief counsel there. i'm guessing you know pretty much how these things are supposed to work, but look at
the market,a as a business network we're watching a corner of this downdraft attributed to the concern inside the beltway about this? >> liz, it's a real problem. here's the issue. when it comes to intelligence, you want bipartisanship, you want the majority and minority to figure this thing out and give the american people an assessment what happened. that didn't happen here. fine. you may have dueling memos, the republicans and democrats saying their point of view. that didn't happen here, have you just a republican memo that's clearly got one point of view. whether you agree with the point of view or not? and concerned about malfeasance or d.o.j. malfeasance you want it done in a fair way where the issues are presented evenly and that's got people freaked out and got the markets down and that is catastrophic for the country. liz: i think freakout is a good word, when you look at a 10-year chart, looks like a complete opposite of what we're seeing here. this does add nervousness no
doubt what's going on with the markets. howard gutman, jamil jaffer, thank you, we're on an abbreviated schedule to talk about anything except the markets. tearing up the rundown, our schedule of the show and blowing out the commercial breaks because the losses are accelerating at this hour. down 406 points for the dow industrials, the transports getting crushed. back to traders at the new york stock exchange and getting joined by traders at the cme and charlie gasparino back in action. i want to go to the me is first. chris, give us a sense of the flows. what's happening? do you see the buyers stepping in? or see triggers stepping in to sell trade programs? >> only 4% off the high. monday's high was a record high. so in four days we droppid and think that i would see short covering here into the weekend. sunday night when they turn the machines back on again, you could see acceleration, but
we've come 9,000 points since the election night lows, we're overdue for the correction, and most people think that anything less than 5% is noise, and i would imagine to see people step in and buy the dip. liz: tim, the volume is average, what does that tell you? tells you that the sell-off may not be over and yet since the election, what did i say? i called this, we're up 39% for the dow since the election. still with this loss of 605 points, for the s&p up 29% and losing 53 points today. give us a sense, tim, of the addressing the concerns here? >> i think a combination of a market that was very, very extended. a tremendous amount of stocks. well above 50 or 200-day moving averages, and a lot right in the middle of earnings season so if earnings are absolutely perfect, investors are going to take profits. you're seeing that in the big tech names, seeing that in
exxon and chevron today, and the way the markets work in today's world is once you get strong momentum one way or another toward the end of the day, the opposite side of that trade might -- you know, is going to walk away. we don't necessarily have to be the first one to buy the dip. see where things stabilize a bit. liz: goldman sachs down 4.33. charlie, you said in previous hit, earnings are the mother's milk of this market. tim said it, chevron and exxon, exxon is getting crushed and chevron not doing much better. that has to trigger into the psychology and the fear factor of the market. >> by the way, they weren't horrible earnings. >> just worse than expected. >> and it's a headline to trade off them. and people have to realize, i don't want to be pollyannish about this. go back in time a little when we were talking about what would happen when the fed starts to unwind balance sheet? jamie dimon, the ceo of
jpmorgan chase and smart market guy was saying you think the markets are rough? what happens since then? i believe that was june of 2015. you had the election, you had trump becoming president, you have a republican in congress, and you just had a massive infusion of corporate -- of wealth being -- into balance sheets of major companies. jamie dimon has since changed his tune. talking about 4% growth. you don't hear him talking about markets imploding as they unwind. i'm trying to use common sense here. we just had a big stimulus package, okay? it should, it should, i'm not saying will, should show up in corporate earnings at some point. liz: this is the tax cut. >> the corporate tax cut. when that does in a major way, it should, should lead to higher stock prices. you might get somewhat higher interest rates on the prospect of inflation, but then you have to have inflation, and i still don't see it. anybody see inflation out
there. liz: john williams of the san francisco fed just weighed in. he's making some comments here that are hitting the wires and saying inflation, and wage growth, "slowly ratcheting up." when they see the market is spooked with the dow down 577 points right now. he comes in and says strong financial conditions, global growth are above trend growth. >> ask your guests, are we having slow wage growth? i think we are. liz: it did just jump. hourly wages jumped 2.9%. >> that's not huge. liz: it's the best since january of 2009. charles payne is standing by. one of the things people may or may not know about you, you know when and how many stocks are trading right now. is the smart money buying that the very moment? >> making a list of stocks that are up, very, very few. they're licking their chops and
a whole list because we're halfway through earnings season of names you want to buy. you know if the dow went to broad market it makes it easier to buy. what i would like to say is when this is over with, we probably close near at the low of the day. the dow off 2.3%. that's going to put us in maybe the top five losing sessions of all-time, but keep in mind, folks at home should pay attention to the percentage losses, right? 634% in august of 2011 was almost a 6% loss, not a 2% loss. liz: right. >> so that we kind of calm the atmosphere a little bit. >> i think that's extraordinarily important. alan knuckman on the floor of the cme, are you seeing interesting trading flows? >> eerily quiet day, it's an orderly decline, and looks like a healthy unwind. let's remember we closed at all-time forever highs last friday, in the mdx, the dow and
the s&p. down a couple percent for the week. just as mr. payne was saying, look at percent not points. the numbers are so much bigger because we're at lofty levels, it's not just us. liz: exactly. the volatility index climbed another 2 percentage points. started the show it was up 26%. now up 28%. what do you glean from that? >> i need to see the vix on a weekly basis. every explosion over the last eight years beaten back down a couple weeks afterwards. let's see where we are. what's not happening in volatility? not seeing gold rally. gold down $25. not seeing bonds bounce at all. strange that bonds go straight down and not seeing safety in buying bonds. liz: who sees margin calls? tim, are you seeing any areas, sectors where people who borrowed money to buy a bunch of stocks and then whoever they borrowed it from pay up? >> whoever said bitcoin in the
background, that would be the one example. [laughter] >> definitely! >> yeah, well bitcoin for its part is moving down. we can see it down about -- now it's at 8,666, where my son would look at me and say is he the devil? bitcoin is not a he. but the 666 gets people spooked. charles, what do you think? >> so interesting, because that's the only area that i do see, you know, you would see margin calls, two banks today said they would no longer let people buy bitcoins using credit cards. having said, that i think we look at different indicators whether it's vix and things like that, i don't think people should be lost on the economic data that we've seen this week. from manufacturing to construction to the jobs number this week, all amazing things heading in the right direction, i think it would be a major mistake on the part of the federal reserve to have a sense of urgency to snuff this out. you know, listen, i understand
they never want to be behind the curve, the average american is starting to feel or be in a place, liz, they haven't been in a long time. this is not even a political statement. this is a statement about how the average american has gone on for two decades with respect to real wages and real opportunities. the fed has to tread lightly here. liz: charlie gasparino, december construction spending hit a record. that's certainly a good sign, and one horrific day for the bulls does not a trend make, correct? >> one horrific week. kind of a bad week. i would just say this, though, the fed doesn't have to really do anything to this. this is the bond market doing it. and it's the bond market is saying something, it's not a perfect measure, it's hard to tell exactly what it's saying, but it's saying something right now, that's why you have the sell-off. the bond market is saying bonds
for a bubble a little bit. they need to sell off. there's a reason for that, whether it's looming inflation or something else. that doesn't mean it's right, right now. it's just reacting to whatever news is out there, and the one -- couple of things scare me in this market, number one if somehow we don't produce the corporate earnings that we should produce with a massive tax cut. that would be a problem for the markets. other thing is if the bond market vigilantes are out there selling bonds and interest rates spike a lot higher, that would be a problem for stocks. you know, other than that, those are doomsdayish scenarios. liz: chris? >> let me answer that. >> go ahead, quickly. >> i was going to say bonds have gone up. the yield go up on the 10-year note, .1% this week. not a big, big bounce, and earnings did not miss. apple made $20 billion profit this quarter. the largest corporate profit in
history. and exxon made $20 billion in profit for the year! so there's not a miss there, it's profit taking after a big, big run, so far. liz: look at the lower right part of the screen, atted session lows for the dow right now. you've got to figure president trump said about six minutes ago we may not have a daca deal by march 5th, which was supposed to be the day they were hoping to get one done that. was part of this continuing resolution deal on the budget. i need to get to chris at the cme. am i crazy? does it play in at all or well in the d.c. world? >> i think the people were looking at it. sometimes it takes nothing to spook a market, and i'm really interested how we trade sunday night, when the machines turn back on sunday night, see what happens with the s&p and watch the 10-year yield, if we get the 3% is that a magical tipping point, tonight go to bonds and get out of stocks?
right now, we're at just about a 5% pullback from the record high monday. 5% is generally considered noise, and i think charles is right. it's the percentages, and i don't want to get too upset about that. sunday night is interesting. i can't wait for sunday night. liz: i'm hearing everybody say don't go into the weekend long. >> isn't the super bowl sunday night? [laughter] >> we've got a team of people standing by with possibly differing opinions here. assembled a bunch of people. 13 minutes before the closing bell rings and not a single stock is in the green on the dow 30 heat map right now, but it is a different story on the s&p, mattel is in the green, and leading but here's the dow 30, you can see everybody is down, the loss leader here looks to be exxonmobil and chevron. we talked about them. goldman, i mentioned them. apple, amazing stock. so what a bad day? when you get all the banks,
jpmorgan as i said, goldman sachs, see where bank of america is. this is a very, very tough session, we're not understating it, but we do have, looking at mattel, shares of the toy maker surging nearly 9% right now. despite plummetingly more than 7% after-hours yesterday. a complete switcharoo here on disappointing results in the holiday quarter. demand for brands, from fisher-price was slipping but barbie is making a comeback. sales of the iconic dolls jumping 9% after four straight quarters of declines. so there's green sort of tiny chutes that may get stampeded by bulls that are running away and scratched around by the bears. jack macintyre is here along with dan and charles payne is still with us. jack, you've got 74 billion in assets under management, are you putting that to work right now? did you jump in like classic
buffett on that kind of day? he's all excited, elbows in deep? >> we haven't done anything yet. we're long-term investors, and you know, clearly it's a challenging week, and today is more than challenging, but we don't view this as trend changing. we've got a more constructive view of the global economy, just don't focus on the u.s. global economy is firing on all cylinders, inflation well contained, volatility low. i think the markets are going through the angst, the underlying economy is still rock solid. liz: dan, do you see it like that? and now it's 11 minutes left before the closing bell things, and are you going to guess we are heading as we look to be near the lows of the session, we may continue that trajectory and go further down? >> yeah, i think, you know, the decline could see lower levels into next week, but i would agree with a lot of your other guests. i think underlying this whole
tape is a very solid economy. we have a solid demographic picture here. credit markets are functioning properly and quite frankly a lot of money on the sidelines looking to be fout work. you got to remember we came into this year very, very overheated with these u.s. markets. actually came in very overheated in the global equity market picture. when we pepper in rising interest rates at a time when this generation of investors really hasn't experienced a bull market against rising interest rates. it's new to everyone, there's a lot of uncertainty around it so as the 10 year pushes towards 3%, you could continue to see elevated volatility in the s&p or the dow. so i don't necessarily think it's the end of the selling here, but again, i don't think it's the end of the secular bull market either. we're still very much bullish longer term. liz: charles, are you in agreement with that? people might be attempted. look at the dollar. the dollar is stronger against
every major currency. why? we've had two fed heads in the last hour and a half, one 13, 14 minutes ago, we're on track for three rate hikes this year. nothing has changed. now the euro is much lower against the u.s. dollar along with the pound, the cam dollar, et cetera. do you get the same flow of opinion, charles, this has legs to run for the rally? >> absolutely. i agree, listen, we haven't lived with a lot of volatility. you can argue 2017 was the best year ever for the market, with respect to a huge move to the upside and virtually zero volatility. the whole thing is wall street always talks sort of this chorus and everyone runs with the idea. the idea that the 3% on the 10-year yield is a magical tipping tonight. in 1980 yields were at 12%, they were moving higher. in 1987, yields were 8.7%, moving higher.
the last two times we peaked, yields were coming down, march of 2,000, 6.2%, and october 7.4%. i'm not sure why 3% is a magical point where the stock market should crash as the economy is just coming out of the doldrums. rapid pace of the move is alarming, give it a yellow flag, not a red flag, for long-term investors, this is the wrong time to play the wall street game. liz: charles is the only guy who takes his glasses off to read. [laughter] we hit session lose again. i need to get to nicole. what's going on? reporter: watching energy, a big story. crude, west tech is at 65. exxon and chevron missing on profit numbers in the latest better and two of the big losers on the dow jones industrial average. exxon down 6.6%, and can also see chevron down almost 6% now at this time. so oil itself is down, energy is the number one sector that
is to the downside. though it has come up off the lose. i will also tell you while the vix is moving higher here, highest level since november of 2016, the traders are feeling okay, they know we've had such a run-up. they're okay with this kind of day. down 2.5%. they think it will even out next week, but as i said an hour ago, they were saying there was no reason to buy in this last hour of trading going into the weekend. you have the memos floating around, anything that could develop, they're going to wait until monday. we knew ultimately that was going to be a big part of it. the dow is down 650 points right now. right at session lows. having worst week since 2016. it's really overshadowing what a great jobs report we had. we added 200,000 jobs on nonfarm payrolls. 1.4% unemployment. that's the best in 17 years, things are getting better. with yields rising, you can see
the sell-off happening here, liz? liz: i know, important to keep perspective here. charlie, brady, goldman sachs is really the biggest drag on the dow, i pointed that out to you. how many points? 84? 84 points you can attribute to the 664-point loss to goldman sachs at the moment. and so it's the biggest drag. these might be the biggest laggards but goldman has the biggest chunk of points that is pulling down this market where we are continuing moment by moment to go lower and lower. charlie, you have a favorite word for this kind of day, don't you? mr. gasparino? >> it's called a puke. you can talk to the traders what that means, the market cleaning out its system, getting all the impurities out, and it's a trader word. let me play a little devil's advocate. i'm going quote people we generally don't quote on fox business.
austan goolsbee. liz: he's a friend of the channel. >> a liberal economist. larry summers, not a guy i'm friendly with but i know his work. they would say two things, it's not my view, but just to throw it out there. the level of corporate tax cuts may not lead to the massive increase in gdp and possibly earnings that we're going to get from it. we may blow out the deficit on this in a major way if we don't get economic growth up to 3%. if you have those two things together, you could have -- you know, massively higher interest rates on the long bond, and that could really be a problem for the markets. i'm throwing it out there for viewers to keep in mind. there is a theory out, there more than a theory that the republican budget could -- may not be as stimulative as they say it is for the overall economy, and it just might lead to higher interest rates to compete with stocks in a bad
way. liz: one thing we haven't addressed snrnl this hour, the atlanta fed came out with a new first quarter forecast for growth. i don't know if they change it monday. they said we would see a massive 5.4% growth number. jack macintyre, we are lower, down 680 points. would you say we go down 700? four minutes left, feels like people are getting out. in essence, saying keep the cheese, just let me out of the trap. >> i agree, no reason why we're going to have a very ugly close monday probably early is going to be a pretty ugly day, but i think this is -- it's tough to do, check your emotions. look at the underlying economy. so charlie's point, if the economy slows or doesn't get the bang from the tax reform, isn't that going to put downward pressure inflation? that's spooking the bond market. maybe that means the fed doesn't have to tighten as aggressively and the bond market should see a little stability on that type of
outlook. liz: dan, i just want to keep people up to date. down 679. low of the session is a loss of 689, i believe. yes. that is correct. we're at 25,509. so the rearview mirror, that's 26,000 or maybe it's way down the road, i would say. why not pick up some stocks in this last three minutes of trade on your td ameritrade account or wherever you trade that look cheaper right now? >> i don't think anybody would want to step into this, you know, right now. i think from multiple standpoint i don't think the markets are extremely expensive. they're certainly not cheap. what you're dealing with here, sentiment was extremely high. public looks at the numbers on a nominal basis seeing the s&p 500 trading close to 3,000, the dow pushing 26,000, 27,000. you step in at a time when most
people are moving to the side lines, i don't think you have to do that at this point. liz: let me interrupt, i'm so sorry. the vix just rose again, another percentage point, up now 29%. we started up 26%. now up 29% in this final couple of seconds here. now we stand at 17.48. sorry, >> we'll close very much at the lows here. you will see volatility into monday. don't think there is any reason to rush in here to try to be a hero. a bunch of speakers pointed out corrections we had in the past. last real correction in the market was 2015, from 2015 into the january 2016, the markets lost 15%. oaf the course after few months, so, you know, relative to something like that, we haven't seen that type of volatility in two or three years. this is natural shakeout, but i
don't think it disrupts longer term cycle. >> liz, we have convoluted fiscal policy agenda. there are stuff in there the markets need to address. i think that is what is going on. i think it will be good, that is my personal opinion, i won't tell people to buy stocks. i think it will be good. i pave you countervailing arguments. liz: we came in four points dropping 700 points. it is a rare day. we still want to let people know, still a point to be made, a loss of 2.6% off the dow. doesn't feel good on the headline picture. we're up 38, 37% since election day. great advice from all of you nice. jack, dan, charlie, charles payne, all of our traders, we sew appreciate it. brian wesbury. stocks look to close at session lows or just slightly off them right now. it has been a rock 'n' roll day. and a little bit more roll than
rock, i have to tell you. [closing bell rings] 14 seconds left until the end of the session. that will do it for the ""claman countdown"." after the bell is stand standing by. guys? melissa: release of fisa memo. shocks getting slammed in final moments of trading. the dow tumbling 700 points. 2 1/2%, biggest drop since "brexit" of june of 2016. nasdaq tumbling under 2%. all three major averages also logging their worst week in two years. i'm melissa francis. >> the best we can say it doesn't positive pop 700. looks like it is settling 677 points to the downside on the dow. i'm david asman. very important friday on after the bell. we have you covered on everything. go straight to nicole petallides on f