tv Countdown to the Closing Bell With Liz Claman FOX Business November 13, 2018 3:00pm-4:00pm EST
that are global, companies like procter & gamble that everybody owns in their portfolio. so today, actually in the morning, you saw the dollar weakening, you saw china up overnight so that was a little bit of a catalyst. that's something long term we need to rectify. charles: fantastic. thank you very much. appreciate it. the dow down 109 points as i hand it to liz claman. liz: earlier you guys had the bug on oil. we should do that again. oil is crashing and burning right now. it is moving markedly lower in the after market. we are all watching that and also breaking news. get out the whipsaw. wall street sawing back and forth, the dow down as many as 193 points, jumping up as much as 123 points. guess what? we crossed the unchanged line 90 times as the markets digest a flurry of headlines in this final hour ranging from a possible brexit deal, yes, to an oil blood bath and new trade talks with china. president trump not only
celebrating hindu holiday today but maybe a cease-fire in the trade war with china. larry kudlow has now confirmed that the two nations are talking again. he says this is a good development. just as team trump huddles for hours at the white house to hammer out trade strategy, not just with the chinese but with the europeans as well. we are going to take you live to the white house and work our way through the doors and find out -- we're not going to get inside but we will find out from blake burman. he's standing by. congress is back in session. you are looking at a live picture of the senate floor where, at any moment, senators will gavel in fresh off a bruising midterm election season. the most pressing issue at this hour, passing a budget to keep the government open for business. our panel of d.c. budget gurus on what it will take for this lame duck congress to stop swimming in circles and get it done. plus, a suspect has emerged in the deadliest fire in the california state history, but
it's not a person. it may just be a business that soon finds itself at the center of a criminal investigation. we are live in malibu. and we have the new york stock exchange president live from the "wall street journal" tech-d live conference, stocks that will help you weather any storm and charlie breaks it on an hedge funder making the move to retail investing. less than an hour to the closing bell. let's start the "countdown." liz: breaking news, i hate to bring this to you. just when firefighters thought they had a better handle on the woolsey fire in southern california, it has flared up again. take a look. these are live pictures from the kttv helicopter near lake sherwood. this is sort of the thousand oaks area. it flared up a few hours ago. you can see the angry flames are still going. this scorched 50 acres in just 30 minutes. there is now an evacuation order
for the area surrounding it. authorities had to reissue evacuation orders in some areas where they had just been lifted. right now, that fire is about 35% contained, but the estimated date for full containment of the woolsey fire has been pushed back from this thursday to next sunday. as you see the camera pull out, you can see the ridge on the mountains. this is obviously a very tinder-dry area. not a lot of buildup. as these fires tend to do, they can move almost an acre a minute. we are watching this very closely. lots of smoke, lots of air drops of the chemicals, water as you can see right here. we will keep an eye on this. cal fire is reporting the so-called camp fire in northern california has now torched 125,000 acres. it is 30% contained at this time. the death toll is just horrific. it has now hit 42, making it the deadliest in history. that number is expected to rise as teams continue to search for those still missing.
as you see, you've got live air drops in southern california. much of the fire in northern california has been contained but we are watching a very, very tentative situation that is touch-and-go at the moment throughout california. we'll keep checking on that in just a minute. but look at those flames. all right. oil is collapsing. there's actually no other way to put it. black gold down 7.75% right now. it was already in a bear market but after falling 7% to settle at $55.69 per barrel, its steepest selloff since september 2015, it's now at $55.29. three things are choking oil right now. opec revised its 2019 demand outlook, saying the world will use 70,000 barrels less per day than originally projected for next year. slowing demand paired with record u.s. output and president trump urging opec nations not to cut their oil production even if the market is oversupplied
because he says oil prices should be quote, much lower. for consumers, he's absolutely right. we love low oil, but of course, for oil companies, even american ones, you're going to start to see seem real breakdowns and problems here. crude suffering its twelfth session in a row of losses. what is that doing to the markets? take a look. that price chop is dragging down the overall energy sector. some of these names on the screen, halliburton down, conaco-phillips down. what we did is took a cross-section. exxonmobil, chevron, all down. trust us, it's looking really, really bad. at the moment in the after market, we are down $4.63. i do just want to say i checked, earlier in the day oil was at $59.35. to see a $4 slash off the price of a single barrel, you don't often see that. let's get to dow component boeing. it is in the crosshairs. just two weeks after lion air
flight 610 crashed 13 minutes after takeoff, boeing is accused of withholding information about hazards associated with its new flight control features which may have played a role in the fatal crash. boeing issued a warning regarding the system a week after the crash. taking a lot of pilots by surprise, including those who fly the latest models for u.s. carriers. 189 people died in that crash and as the investigation into the flight continues, boeing stock, we are seeing a bit of a flee away from it. down 2% to $349.42. it is the biggest laggard on the dow jones industrials at this moment. all right. to major developments in the trade tiffs and talks. we need to look at how german luxury auto makers are doing, specifically bmw. it certainly is feeling the heat after reporting lower than expected earnings, citing ongoing trade tensions as one of the reasons. foreign auto stocks overall at the moment are getting hit and this leads to a question.
will you or won't you be paying more for your next luxury car. that question is lingering with american taxpayers at this hour, as the white house circulates a draft report by the u.s. commerce department over whether to impose tariffs on automobile imports to protect national security. remember, president trump threatened to hit cars with the tariff of up to 25%, citing the national security issue which many people said wait, wait, what? how is a mercedes convertible a national security issue. we have eu trade commissioner cecelia malstrom who prepares to meet with robert lighthizer supposedly tomorrow. fox business's blake burman is live at the white house where there was a flurry of trade activity today. what's going on? reporter: lot of moving parts, especially over at the white house, considering that the president and his senior advisers as it was described to me earlier today, meeting here at the white house today as it relates to trade. senior advisers of trade. and that one of the topics they would be talking about would be the potential of auto tariffs.
as you outlined, the president has made this threat, especially dating back to the summer of earlier this year, of possible 20%, 25% auto tariffs on the european union if there is not a trade deal, fair trade deal, as he sees it, that could be struck between the two. so that is one topic that the president and his trade advisers are discussing today at the white house as cecelia malstrom will be meeting in washington tomorrow with her counterpart, robert lighthizer. you have that trade activity going on, then of course keep in mind there is this major trade meeting set to take place or major meeting and one of the components will be trade, with president trump and president xi jinping of china later this month in buenos aries, argentina at the g-20. wouldn't surprise me at all, considering you've got the major trade players in one room with the president today, that that topic would be brought up as well. larry kudlow, the president's top economic adviser, suggesting
today that as it relates to the chinese at least, that things could be moving in the right direction when you talk about communication. here was larry kudlow earlier today. >> we are now communicating at all levels. we are working as i say on background material and preparation, we are waiting for china to come back with some thoughts and the process is ongoing. reporter: remember, just a few weeks ago there was barely any chatter at all between both of those sides. by the way, steve mnuchin, treasury secretary's chinese counterpart will be visiting the u.s., we are told, in the near future. so add that on to the plate as we barrel toward the g-20 here in a little more than two weeks. liz: you just said something really crucial. you said things are starting to perhaps look better between the u.s. and the eu. blake, take a look at the foreign car makers. this is bmw. it's moving higher by 2%. i just looked at ferrari, ticker symbol race, jumping about 2.5%, 3%.
we see a very strong move in the foreign auto makers. here's daimler up 3.5%. i think that articulates specifically what you just talked about. surprising considering bmw just cited trade problems as part of the reason they had bad numbers. reporter: there's a difference between a threat, which the president has made, then obviously the next step would be making that jump to go to the 20% or 25%. this summer, they kind of rolled out this framework. that seemed to dial things back and now the president's trade team is talking about whether or not there needs to be a next step or not. liz: your bmw suv is in the mail. reporter: can i get two, then? liz: yeah, really. his and hers. thank you very much. so as we look at oil, and it is a very ugly picture right now, the oil names are on sale and quite frankly, a lot of stocks went on sale yesterday and if you didn't get your stocks on sale when the market fell 600
points yesterday, don't worry. bank of america, merrill lynch chief investment strategist is saying the big low in the markets hasn't even happened yet. so yesterday wasn't the low is what he's saying. take a look at the banks bull and bear indicator, hovering around 3.1 on a 0 to 10 scale, with 10 representing extreme bullishness. so is it time to buy on the flash dip or wait until the next flash dip? it's getting painful. let's go to the new york stock exchange and cme group. first, to phil flynn on oil. you talk about a flash dip or crash. that's kind of happening in the after market right now. what is going on? >> this is one of the most epic selloffs in crude oil history. we have never seen anything like this since they started trading the futures and it's more about perception than reality right now. this isn't about supply and demand anymore. this is about money. it's become a money game right now. you know, we got numbers from
opec, for example, today that seemed to suggest demand wasn't going to be as strong as they said it was going to be a month ago. they showed that the increased production, you know, but the numbers we are seeing out of opec really don't justify the kind of crash that we have seen in the price. you know, i think what we're seeing in the oil market is either signaling that the global economy is in big trouble right now, that this is the canary in the coal mine and bad things are going to happen, you know, or the market is really misreading the fundamentals of what we're seeing right now. liz: let me just talk about the fundamentals, phil. the u.s., this is great if we are going to be energy-independent, the u.s. just pumped a record, i even wrote down the number, 11.6 million barrels per day about a week or two ago. that's an all-time record. so i don't know if they are misreading the fundamentals of massive supply and maybe slightly dwindling demand. broaden that for the greater market here and what we're
seeing with the dow jones industrials down about 100 points or so. 111. >> let me talk about that a little bit. the u.s. producers have done great. they are producing a record amount of oil. but where are the barrels? if i look at u.s. inventory, even with six million barrels of oil released from the strategic petroleum reserve, normally 2% above average. i look around the globe and at oil inventory, in china, they are below average. in europe, they are below average. everywhere, we are below average. so we need those extra barrels of oil right now. liz: you can't fight the tape and the tape says oil is crashing. i didn't want to be overdramatic, ira. yes, i did. because my mom's a shakespearean trained theater actress. i'm glad phil told me i wasn't totally wrong. i don't recall seeing this kind of $4 price drop on any given month or year. let's talk about the bank of america issue that said we still haven't reached extreme bearishness yet, then there's more perhaps to go to the down
side. >> well, they might be right if crude oil gets under $50 a barrel wti but if it doesn't, and we get past november 15th, when investors that want to take money out of funds, that's the last day they can do it in this calendar year without a penalty. so i think there's been a certain rotation in money coming out of the market saying you know, i've had enough, it's a nine-year run and i don't see all the bad yet in our economy that's happened. all you need before g-20 happens is to hear that the u.s. and china are making good progress and you watch what happens to the market. it will turn on a dime. as phil said, crude oil, this is money. this has nothing to do in my opinion with fundamentals. yes, there's world slowdown and yes, the president sort of pulled a quickie by giving, if you will, the waivers to eight countries that i don't think the market was expecting. it's done. everybody can cut back, you look at this as a low point. liz: let me just say, the nasdaq
at least isn't at the worst point, it's up three points. it's the only one in the green although transports are moving higher, too. john, buying on the flash dip, yesterday was definitely one of those. but tell me what you think. is it better just to dollar cost average, meaning take a fixed amount every month so you're catching both the lows and the highs, and you end up coming out pretty well positioned overall in a portfolio. >> right. you're not going to be able to time this perfectly. even the traders who are good traders don't really know when to get in or out. i think what we have seen across the board, whether it's main street or large investors, is that there is definitely money on the sidelines, trying to time it, trying to pick the right opportunity to come in. when you look at all these global headlines that we have gotten, that we have seen over the last few weeks, last few months, they really can move the market at any given point, a tariff headline can move our market 2% either way. i think what investors should do is feel comfortable what they're investing in, feel comfortable with companies.
when you get a pullback, put a little money back into the market. don't put all your chips in. get back in very slowly because if you see one pullback it's probably not going to be the last one. liz: thaain't that the truth. thank you so much. i do need to tell you that we use the term whipsaw. that is what's happening. we have crossed the unchanged line 90 times for the dow jones industrials. we are down 122 and we have been down for the past at least since the top of the hour. we are watching this very closely. meantime, keep an eye on that right-hand side of the bug. we are keeping oil there because it's epic. kevin, meet your father. kevin kevin kevin kevin kevin kevin kevin
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at the tech conference on a day where markets are just moving up and down. i think we're down a few hundred points coming off the 600 point loss yesterday. talking to investors, yes, we are at a technology conference but they say tech is the reason why we are seeing such big volatility. it's the algorithms at play. >> i think it's less about that, more just market reaction to news and uncertainty out there. we have been in uncharacteris c uncharacteristic uncharacteristically long period of low volatility, now we are just seeing the markets behaving more normally compared to the way they used to. the markets react to news and that's what's happening right now. reporter: so for folks here at the event, when they come up and say what's going on with the markets, what do you say? >> i think they are acting the way they typically would act. when you look at 2017, there was a really quiet, understated reaction from the market on any time there was news out, whether it was global news or any kind of market conditions that typically would lead to a market reaction, we weren't seeing
that. now we are actually seeing investors absorb news and the markets react much more quickly because they are using technology to react. so you see reactions happen and you see them go up and down and i think it's really important just to make sure they are operating smoothly because preserving investor confidence through that is so critical. reporter: i thought liz was going to ask a question but i will sneak another one in there. liz, are you there? you want me to fire another one? liz: i am right here. i think investors are very thirsty for one thing, more new listings, more ipos. how do you get the edge, especially when i know that some of the biggest startups are right there at that conference including the ceo of uber, dara khosrowshahi. there's always a steel cage match going on between you and the nasdaq to nab these listings. will you be hitting up some of these startups there?
>> i think the most important thing is making sure companies out there realize and see the benefits of the public markets because it's not just between the new york stock exchange and nasdaq. there is also a lot of private capital that's available in the world. that's why you are seeing many of these unicorns wait to come to the public markets until much later in their public -- the company life cycle. it's important they see that the benefits of public markets deliver that unparalleled liquidity that's out there, the visibility and brand they can leverage to attract customers and investors is so critical. one, we want to make sure they see that and keep that in balance, then they will get down to the market differentiators between the public exchanges. liz: one of the things they shy away from is quarterly guidance because sometimes it's very hard to have that kind of visibility. where do you stand on that? you have warren buffett and jamie dimon saying get rid of the quarterly guidance that's required of so many companies. >> i think there are two different contributing factors to the talk about quarterly earnings reporting.
one of them is just the work that goes into producing those documents and is there a way we can streamline some of that down so that companies can have a more efficient way to communicate with their investors and still carry the same amount of investor protection but just limit some of the work that goes with that. the second part is adjusting the investor view of a short-term outlook for a company versus a long-term outlook. we want to make sure investor protections are coupled appropriately with giving companies the flexibility to lead their companies for the long term, not just the quarterly results. that's something we engage very frequently with our issuers on as well as with the regulators and see if there's a way to strike that right balance. reporter: thank you. it's great to see you here at the "wall street journal" live event. i know you are heading to san francisco for more tech talk, i'm sure. it's great to see you. liz, wish you were here. back to you. liz: my home state. you guys have the best of it now. tough time for california. thank you very much. by the way, susan is live from
the conference all day today but lay later on "bulls & bears" i will be part of the panel. check it out. our money in the ? what am i really being charged? and is it eating into my returns? is my advisor a fiduciary? is he always a fiduciary? a good place to start is with an independent registered investment advisor. as fiduciaries, they live by a simple rule: always act in the best interests of their clients. that's why charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com
liz: we need to take you back to southern california. this is a live picture once again of that area that i started the show with. this is lake sherwood, near that woolsey fire, southern california sort of thousand oaks, malibu, you can see that it has flared up once again. it is rampaging through california, leaving a trail of devastation. up north we have 44 people dead, 200 people unaccounted for, but now we have a possible cause for the north camp fire. state investigators are saying pg & e power lines were sparking last week on a property in paradise, northern california. pg & e, not commenting.
in the meantime, this southern california fire that's on your screen, you can see helicopters doing chemical drops to try and stem the fire, stop the flames, it has destroyed hundreds upon hundreds of structures. we are going to leave this shot up. joining us via phone is the malibu chamber of commerce chairwoman. tell us what the teams on the ground with whom you're working are telling you about what has happened in malibu. >> thank you, liz. first and foremost, i have to thank the first responders that have been ready and helping and this is devastation for all of california. malibu is part of that devastation. we have people on the ground that have stayed. i will stress that we are in a mandatory evacuation, that no one should be going into malibu. i know people want to check on their homes and they're frustrated. i understand that, but what's most important right now is people to have patience and let the people who are there doing
their job for safety of malibu and all of california. liz: i know it very well. i am a patron of many of the businesses, everything from, you know, oliver peoples, i'm wearing the eyeglasses i got from the store in malibu. cross creek, where they have all the stores. sun life, the yogurt. have you heard anything about these businesses? >> liz, i own serenity rock malibu, a crystal wellness gallery in malibu lumberyard. those stores are my neighbors. the businesses in malibu, from what i have been told, the people on the ground who are driving around, are safe. there has been no reports yet of any businesses being destroyed. there's some damage but very little. unincorporated malibu is where the devastation has been. i'm in constant contact with
mike pearson that has just been elected as a councilman and he's in malibu west holding down that side of the fort. we thank his crew for all the support and saving of homes there. liz: i hate to interrupt you. we have heard of many very different homes that have been burned to the ground, even some celebrities, robin thicke, who cares that they are celebrities, but it doesn't discriminate. it is torching so many areas. i did hear that malibu high school has so far survived this. the one issue we are hearing also about is there are many horses and animals in the area that were simply let loose. there was even a llama ranch where they let them go down to the beach and tied them up to anything on the beach. but the lifeguard stand, dogs, tiny ponies. >> i will give you my feedback.
the animal owners, many farm and ranches there, they are extremely responsible people. they were moving their animals to the water which is for them to be safe. they are doing the best they can. there's a ton of rescue operations in place for saving the animals and if they had to let them free, that was because that was the best choice that they could make in that moment. this is a severe disaster zone. i'm not sure people are getting that message clearly, because there's very little reception up there so there's very little information coming through but now, that is speeding up, but it is sda disaster zone. liz: thank you very much for taking some time out to speak with our viewers. we do want to let our viewers know, if you go to our facebook page, facebook.com/lizclaman, we posted links to places where you can lend a hand fighting the
that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. liz: we have this breaking news just in. deputy national security adviser mira ricardell has been fired and escorted from the white house. she had been hand-picked by john bolton and was fired after an apparent dust-up with first lady melanie trump, according to white house officials. the firing comes after the first lady's office said ricardell no
longer deserves to work in the white house. melanie reportedly had been unhappy with how she had been treated by her and apparently felt she had been short-changed over her africa trip. felt that ricardel tried to short-change the first lady in terms of government resources allocated to support her africa tour that she has just recently taken. we're watching the dow right now. it is down just 95 points, had been down certainly earlier about 193. we have lopped 100 points off the losses. the sand is officially trickling down inside the hourglass as we speak, as congress punches the clock and gets back to work, a government shutdown is looming on the horizon. yes, that again. if republicans and democrats don't reach a budget deal by 12:01 a.m. december 8th. we have seen this scenario play out dozens of times before. could president trump's insistence on funding the border wall implode any chance of
compromise on a budget across party lines, or is the president ready to play ball? joining us from both sides of the aisle, senior vice president for the committee for responsible federal budget, mark goldwine who served on the national commission of fiscal responsibility under president obama, and we are also joined by the heritage foundation's ramina bacha, who often advises members of congress on fiscal policy issues. i'm going to start with you. how iron-clad, you are familiar with the president's thinking, is the president's promise that he won't accept a budget that doesn't have border wall funding? >> i think arguably the president's hand was strongest to use this as a leverage point before the election, and before about 80% of the budget was enacted into law. labor, defense, hhs, those bills have already been taken care of. any government shutdown now would be at best partial and very likely people wouldn't even notice it. i don't think we will see a
partial government shutdown but i could imagine potentially punting until next year to give the next congress an ability to shape those spending bills. that could look like another continuing resolution, getting us to maybe january or february. liz: mark, right after the house flipped to democrat control last week, after the midterms, the president actually opened the door a crack when asked whether he would insist on wall funding in exchange for signing legislation to finance several key government agencies. he said not necessarily. the president has been known to surprise. where is the wiggle room on the democrats' side? what would they be willing to give? >> well, in exchange for the wall, democrats might ask for some relief of daca, the immigration program, but for the most part, these appropriation bills are a done deal. they already decided on a top line number. they already have options in the senate and in the house. they just need to work out these few little issues, for example, the wall, and move on to deal
with the bigger issues. liz: some of the bigger issues, one might argue, rowina, are things like entitlements. we now see what the proposed 2019 budget has in it and it is a lot more spending. we are talking about a bigger deficit, because we are looking after a tax cut, the fewest in revenues from corporate america in tax revenues that we have seen in 75 years. they are paying less because they got a big tax cut. okay, fine, but how are we then going to pay for more? listen to what the president said. he said in the past he will not touch social security. listen. >> we will protect medicare and social security and you remember on the debate stage i would always defend social security, when other guys wanted to tear it apart. well, guess what? we haven't touched social security. liz: okay. that was a week and a half ago at indianapolis. then where are we going to get the money from to fill this?
>> well, the president has put some reforms in his budget to address the social security disability insurance program, and i think the white house would also be open to reform that would make medicare more efficient, more effective, without reducing benefits available to seniors, but still making the program run more cheaply. i think medicaid is very much still on the table. reforms to health care more broadly, to obamacare subsidies and some of the regulations that are driving up health care costs are on the table, all of which could help save significant amounts of money in the next budget. the president has also asked his agencies to find at least a nickel from every department to allow for a lower budget next year. i'm optimistic that the president will continue to push for the spending cuts because it's the only way to make the tax cuts last and have them be sustainable. otherwise, rising deficit pressures will likely lead to higher taxes in the near future. liz: well, it's spending pressures, too. mark, we have got to see
spending cut back. republicans didn't do it in the first two years. will democrats and by the way, when you talk about compromise, remember the gang of eight? the gang of eight was four democratic senators, four republicans, i mean, when lindsey graham and bob menendez are working together and dick durbin and marco rubio, they came together and said we can increase security on the border wall but also find a path to immigration. it passed in the senate. it would not even be taken up by the gop house back then. you tell me. can we come to a point where we can maybe put that back out there, have some compromise and pass a budget? >> well, my concerns are the type of compromise that might happen might be the bad kind. for example, we had a great bipartisan budget deal last year. all it did was increase spending by $150 billion a year for two years. that's the wrong kind of compromise. democrats get all the non-defense they want, republicans get all defense they
want and our kids pay the price. liz: boy, isn't that the truth. let's hope we might have a budget. mark, great to have you. rowina, thank you for joining us. >> thank you. >> thank you. liz: december 8th, mark the calendar. we have 15 minutes before the closing bell rings. dow down 102. oil is still falling in the after markets. don't go away. we are coming right back. i am a family man.
money. he's got a new fund and charlie gasparino has the exclusive details. this isn't like mom and pop, right? >> i don't think your dad or aunt rose, aunt millie in your case, right? liz: kayla. >> kayla, will put $20,000 into this fund. from what i understand, the minimum investment was $500,000. but it is interesting that for the first time -- liz: you don't think my auntie kayla has 500 grand? >> minimum? maybe she does. liz: i don't know anybody who does. >> have you 500 grand, you were a brokerage client of ubs, that's what's interesting here, you can get -- you could have gotten the steve cohen hedge fund. couple caveats here. apparently the portfolio that you can buy .72, that's his new iteration, has been filled so you can't buy it just now. but it just shows that steve cohen, who has eschewed this sort of retail investor, and it's retail in the broadest sense. this is not little, little,
little guy. he's now going after that, that client base. he has the deal with ubs. i hear he may look at other deals. for ubs it's very fascinating. it's also risky. steve cohen, let's be clear here, i like steve a lot, you like him, i'm glad to see him back, but he's back after essentially a regulatory suspension. his old hedge fund was shut down over insider trading, criminal insider trading charges. steve was never criminally charged, but he was forced, he was suspended for a couple years. his new iteration of the fund, what i understand, ubs did a virtual proctology exam on him in terms of his ability to meet compliance standards on insider trading. so this is very controversial on both ends. him seeking the retail money, them actually agreeing to something like this, because the compliance hoops are huge on a retail brokerage platform. i would say what this shows for steve cohen is that he's having problems raising money.
he was looking for $10 billion on the money raise early in the year when he got back into business, got just three. his performance has been flat. he's looking for customers. for ubs, it's almost a flipside of that. they are the smallest brokerage firm, right, so they have, what, 65,000 -- 6,500 brokers. morgan stanley has roughly 15,500. so they are the smallest firm. they are going out on a limb a bit to go after the hedge fund stuff. i will say they're not the only ones. steve is not the only one that's out on their platform. apparently something called millenium is on the fund. i will write the whole thing up but this gives you a couple interesting insights into what's going on in investing right now. hedge funds can't be passive investors. liz: that's a bet warren buffett took. >> you can't -- right now they are having a hard time, for almost zero fees you buy the markets. hedge funds are having a problem with that. the other end is people are
fleeing hedge funds because of that so they are going out, looking for different clients. i would just say if you are the retail investor out there, nice etfs sometimes. liz: s&p index fund. >> isn't that what he said? liz: that's what he said. he won the bet. charlie gasparino, thank you. we'll be right back. the dow down only 58 points. so, let's talk about conference calls. there's always a certain amount of fumbling.
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kristina at new york stock exchange on this developing story which should not get lost in the shuffle. >> definitely should not get lofted in the shuffle. will point out two major reasons why the stock is down. delivers for month of october down lower than expected. they only delivered a 43, 737 jets. that is major portion of their profit. executives did not share details about the flight control feature. that could have potentially stop ad major deadly crash on october 30th where 189 people died. earlier on fox business network we had the ceo of boeing who spoke about safety. listen in. >> bottom line here is the 737 max is safe and the safety is a core value for us at boeing. it always has been and we ensure that our airplanes are safe. in fact this airplane went through thousands of hours of tests, evaluation, certification, working with the pilots. we've been very transparent providing information and being
fully cooperative on the investigative activity. >> so the flight control feature could have been an issue. investigators are looking into the crash. liz? liz: kristina, thank you very much. dow jones industrials are down 83 points. markets go down, they go up. so says today's countdown closer eric stein, jensen growth funds. 6 billion in assets. eric, start first off, what kind of companies do you consider all weather stocks? >> that is really companies that have competitive advantages. they have a lot of free cash flow that they produce. essentially they have characteristics that allow them to create value as a business. sort of regardless of what is going on economically. and it is that characteristic of constant value creation, consistent value creation allows them to be, as we call it an all-weather kind of company. melissa: becton dickinson is
fascinating because they are a big syringe company. microsoft many people know the biggest software genius, giant. tj maxx, ecolab, when you look at the stocks, what kind of elements can they be exposed to and still hold up i guess? >> they get exposed to the very same elements every company gets exposed to. with the rising interest rate environment, currency headwinds. commodity cost increases. because of competitive advantages, things like strong pricing power, good management teams that understand how to utilize free cash flow they produce, they can move through those sorts of economic dynamics without it harming their business in the way that maybe it might do with a lower quality kind of business that may not have those came strong characteristics. liz: we'll put all of eric's picks up on facebook dot-com/list claim. eric -- facebook.com/lizclaman.
eric lowenstein. jenson quality growth fund. he is the portfolio manager. we can't seem to get above the glad line even with 10 seconds left. [closing bell rings] there is the closing bell. nasdaq is just slightly positive. i think it will just go negative. that will do it for the claman countdown. i better get out of here. connell: roller coaster of a day on wall street. if nothing else we're very, very brave. three-day losing streak for the dow is all over the place today. really oil is the story if you think about it. that is some decline today alone. look at that, down 8%. the s&p 500 and the nasdaq also fighting, kind of for gains as liz was talking about towards the end. s&p basically is flat. we'll cover oil, we'll cover it oil, we'll cover it