Transcripts For FBC Varney Company 20180206

Heading south. Look at this. Interest rates, well, they have come down, way down from where they were this time yesterday, it was high Interest Rates that in part spark the selloff, now they are way down. Lets be clear on this tuesday february 6th, you will see nerve ramming ups and down. Maybe some perspective is required. Number one, nobody is forecast ing a recession. Number two, a pullback is in evitable after such a powerful and unbroken runup. Three, all of the gains from 2017 are intact, its just the gains of 2018 that weve lost at this point. Number four, as of now, stocks are cheaper than they were 24 hours ago but profits are still going up. Now you are going to be hearing a lot of noise from the left, they are eager to Society President trump with anything thats negative. Ignore it. They are grinding an ideological to beat up a president they cant stand, we will tell you exactly whats going on and theyll be some advice too, Varney Company is about to begin. Stuart well, talk about volatility, look whats going on on that lefthand side of your screen. We are pointing to a sharp loss on the dow of 117 points. In reality, itll probably be much greater than that. I would like to point out that a couple of minutes ago the board was showing a minus 250, this is volatility. We could be down a lot more than what you are seeing on the screen when the market opens what in 28 minutes time. What about tenyear treasury, 2. 76 , down from yesterday. All right, the the big tech names, theyve all been beaten down, this is what they are doing right now. These are premarket quotes, facebook, amazon, microsoft, alphabet, apple, all of them opening lower that morning. How about the banks . Now they are supposed to benefit from higher Interest Rates, look at them now with Interest Rates going down, still more losses among the banks. These were the biggest drags on the dow yesterday, look at them now, boeing, exxon, 3m, home home depot, united technologies, all of them down again at the opening bell today. These were the biggest drags on the s p 500, look at them now, these are premarket quotes, wells fargo, thats a special case, crackdown from the case. Iconic and video energy devices, all of them going down again at opening bell. Jeff sica is with us, hes a market watcher, i want you to give advice. All viewers are out there, what on earth am i going to do, address the group of viewers who are say within five years of retirement . First of all, i have been warning about levels, one thing the market should do to invest ors is come pla sanky has no place in investment strategy, those people who are retiring within five years, those people who are starved out of the bond market, allocations and stock are too high and they are among the selling, they have to eval uate allocations and adjust accordingly. Stuart are you telling someone within five years of retirement , sell, sell half of what youve got, lock in your sleep is that what youre telling them . Yes. Stuart half of what youve got . Keep in mind, stuart, theres been a lot of investors that have not even acknowledged the fact that markets do decline. Those investors, 80, 90 stock, im not saying we are going into a bear market, 80 or 90 stock, they are to look at their invest ment goals to realize that this is a part of the game. Stuart expand this to lizzie. Lets take a deep breath, historic market, we have seen a 5 , its gone with 5 drop, long est stretch since 1945, the markets are concerned about inflation. Tenyear yield kept going up even when there was a selloff, there wasnt a flight to safety. Now you see the tenyear going down. That indicates the market is worried. They dont have a handle on where inflation is heading, here is the long view, every year since 1950 on average in the middle of the year sometime on average the market goes down about 14, 15 . Longterm, it goes up 11. 5 . Stuart so youre saying stay in if you can take the long view. Ashley so much of this jeff can speak to this is algorithms and computer and the market trading thats done by computers because one you breakthrough a certain level that the market dictates as significant, those computer from 3 00 oclock to 3 15 we went from town 700 to down 600, coming from computers. Keep in mind, keep in mind when you have artificially low Interest Rates, what ive been saying all along is that this market is going to have a very hard time sustaining its advance s with Interest Rates moving up. Ashley just mentioned the professional traders, ive talk ed to a bunch of them, they are at the edge of seat trying to trade the volatility and i think investors have to realize that in a lot of cases these professional traders have a very strong advantage and they have to be careful. Ashley people were trying to buy the dip yesterday and got blown away, they got washed out. Stuart dow closed 24,345 yesterday, where is the bottom in this goround . I think we have another 1500 points down, 2,000 points down before i would think about buy ing this. People have to stand back. Remember, cash is an asset, stand back for the opportunity. Again, that would wipe out to your number 5 to six months worth of dow gains, to we wiped about two months, two or three months. Stuart let me summarize this, youre saying if you have a longterm perspective, stay in there because there will be a bounceback. Go with the cash flow. Stuart youre saying within five years of retirement sell half of what youve got and if you have cash on is sidelines you dont touch market until we hit 22,000 . [laughter] ashley people were trying to get bargains yesterday but they got blown out. The machines dont care about bargains, the machine care about being a mili subpoena cekd mi li second ahead. Stuart come on in congressman jim, republican from ohio, the left and the media tried to tie the market selloff to the president even though we didnt mention it yesterday, do you think thats a fair tie . Well, thank you, stuart, for having me, its not a fair tie. At the event yesterday we heard about people and getting money back, we heard about them having opportunity to buy homes and use those tax refunds or savings they are getting in paychecks to do things they have never been able to do before. Thats going to change perspective in the market. Stuart okay, jim, should the president be addressing the stock market and sharp decline . No, i dont think so. The market, if you had a 401 k when the president was elected, youre still a happy person. I think the market goes up and downs for reasons. Sometimes its computers as you said earlier in the program but in the end, i think the long haul, this market will continue to grow, we have a tax cut thats going to continue to feel the economy, we have an opportunity for companies to grow here. Its going to be a good year and i think in the end, the market is going to follow that as well. Stuart are you making a pre diction that we will bounce back and go even further ahead beyond 26,000 and up from there . Well, im always a believer that the market will continue to go up in the longterm. Ive been involved in the market , and i saw the market tumble 6 or 7,000 points, i know its thousands of points when president barack obama was elect ed. I saw that occur too. In the end markets go up and markets go down. The fundamentals of this economy and the ability for companies to grow and prosper and for the ability for people to are more paycheck will fuel things and the market will continue to go up. Stuart i have to ask you about the president s speech yesterday , it was in ohio, he referred to the democrats who did not applaud during the state of the Union Message. I want your comment on the way he phrased his commentary about the democrats, roll tape, please they were like deaf and unamerican, unamerican, somebody said treasonous, yeah, i guess, why not, can we call that treason, why not . Stuart thats pretty strong words, would you prefer the president not say that or are you with him . Well, first off, someone in the audience said treason, the president used the word because somebody else mentioned it. I was at the state of the union and as i traveled ohio, since the state of the union, thats the first thing people say, the dem democrats wouldnt even stand when talking about the flag, they werent standing when we were talking about america, thats something americans are saying back home, they are concerned, so i think the president was relaying what a lot of people back home have been say to go me and their concerns. Stuart congressman, thank you very much for being with us. Thank you very much, sir. We are going to open the market in 20 minutes time and it is going to be sharply lower. The futures board as we call it does not tell the full story, its extremely difficult to get a handle on where we are going to open in an exceptionally volatile environment. Im pretty sure we are going to be down 3 or 400 points as of right now. Of course, that could change as we head towards 9 30, thats where we are. So far today advice from jeff sica, if youre close to retirement, sell half of what you want and dont get back until we have gone down 2,000 points. Lizzie says if you can take the longterm view, 5, 6, 7, 9, 10 years, stay in because we always bounce back. Ashley are they any worse today than weeks ago . Ashley fundamentals are are still there. Five major stocks have driven the economy, five tech stocks very good but liquid stocks. Thats where we have to be concerned when you have five stocks heavily liquid, lot of volatility, that could bring the entire stuart there they are on the screens right now. Thats thats not premarket. Lets get rid of that one. Im going to stay on this subject and bring the author of the four, thats the name of the book, the four, the hidden dna of amazon, apple, facebook and google. Scott gallloway is with us. What do you think is behind the stock market selloff . I think it would be unusual if it didnt go through selloff. We are overdo. The better question is why will it keep going up . Stuart if profits are just exceptional, would you agree with that . Or multiple expansion. We are at alltime high today. Look, you know, cry me a river. This has become a nonstop party. Stuart come on, professor. You have to have sympathy for viewers. Stuart some are sitting on Retirement Savings and are worried. Only one word diversification stuart have you socialists with no heart whatsoever . We are the ones with the big heart. Stuart amazon is below 1,400 a share. Only doubled in the last 15 months . This company, by the way amazon will be first trillion dollar cap company. I thought it was big tech earningsings last week, i thought it was a seminole moment , stuart, we saw official passing of the baton, valued generating device, iphone 10 to new profitable generating device the next ten years, weve passed the baton from iphone to amazon s echo. The oak se the new most important device in consumer economy. You look at the earnings, amazon has so much momentum right now and looks like we might be hitting peak apple. There was a passing of the baton last week. Stuart you say amazon will be trillion Dollar Company, well over 2,000 a share to get to that level. I think thats accurate. Absolutely, nothing in in the way by brussels, red state attorney. This company has so much momentum. Apple literally owns voice which will probably be the most Important Technology in next ten years. Amazon has 70 share of voice in the home. Amazon puts out press release, they put a name s svp and health care sheds, 31 billion in first two hours in the market. You and i could have put out press release on health care and said the word single payer had had more detail than the memo had in it but because amazons name is in it the markets react. Berk Berkshire Hathoway and stuart hold on a second. You are saying that amazon will bounce right back fairly soon and become a trillion Dollar Company better than 2,000 a share, thats what youre saying youre a shareholder . Amazon 2,000 a share. Im not a shareholder of amazon. I agree with that. They will be the first trillion Dollar Company. I believe that alexa echo is the next Search Engine for amazon tieing in commerce with the search i think component. I think amazon is firing on all cylinders. Apple only has 40 to go to be the first trillion dollar. Youre talking amazon has way more to go, longer to go to be the first trillion. Stuart i want to move on, youre a business professor at n yu . Yeah. Stuart any economic dark cloud on the horizon which would justify the sell ah selloff, recession . What reason do you want on multiple earnings, we are at the highest levels since the last crash as the economy heeds up and the makes sense which would put downward pressure on e question equities, stagnant wage growth, could take corporate profits down. Multiple contraction and earnings decline. You could see it return to normalcy or something thats the most powerful force in the universe and you could see a 5,000 point selloff here. Stuart let me do this without getting the buzzard. Dont buzz me. Im about to refer to price earnings ratio. Wait for it. Stuart i didnt get it. The s p 500 as of the close yesterday and future pe of 17. 2. Thats high but that is not 17. 2pe, thats not crazy. Youre saying that the rational is the multiples cant crazy . Thats the best we can do to justify the market is not correcting . Stuart maybe the market came down sufficiently yesterday 4 or 5 and some individual stocks more than that. Youre speaking as if the markets are rational. The markets tend to never be at the bottom of the middle. They tend to trade on momentum and right now the momentum is pretty ugly. Stuart i think theres going to be bargain. Ashley when is the big question you have massive amounts, we had comlacency for so long. I would not be trying to i thought mother jones said dont scare everybody. Sorry mom. [laughter] stuart panic this morning. Youre taking the shortterm view not the longterm. Stuart the pros are waiting with algorithms and buttons. You mean the hedge funds manager that is have under performed define pros . Stuart people who have tens of billions of dollars, the Goldman Sachs of the world. The rest of them, do you dis count them completely . The professionals, if you say the professionals are the alternative investment managers, they have underperformed the s p dramatically in the last five years, the word professional is a loaded term in this market. Stuart youre still a socialist . Big heart. Hes a capitalist. [laughter] stuart get out of here. How much money have i made for you on your book . Ive made you a fortune and you know it. Im thrilled to be here. Stuart are you thrilled to be paying 50 tax reat on earnings from the book . Lowest taxes we have. Im a florida resident. Its a different tax system, but as part of the upper 10 , yeah, my taxes have probably never been lower. Stuart okay. You know, my beauser dont be nasty to him because we want him back. By the way the thing that hurt it is economy is the middle class, they are the ones who drive the economy and spend money. Stuart they are going to get it they are getting 20 stuart here we go. 1. 1 trillion in debt so we can get 80 of the debt. Ashley it was going to sell. [laughter] look, we are going to open the market in ten minutes time and we are going to be down. That futures board is not entirely accurate in a very volatile market where prices are moving by the second up and down significantly, hard to get a handle. I will tell you this, we are going to open up probably 3, 400 points on the downside in ten minutes time, stay there, please , watch this market with us. Hi, im the internet you know whats difficult . Armless bowling. You got this, jimmy you know whats easy . Building your website with godaddy. Pick a domain name. Choose a design. You can build a website in under an hour. Now thats a strike get your domain today and get a free trial of gocentral. Build a better website in under an hour. I love you. We use so why do we pay touters thave a phone connected. When were already paying for internet . Shouldnt it all just be one thing . Thats why Xfinity Mobile comes with your internet. You can get 5 lines of talk and text included at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And now, get a 200 prepaid card when you buy an iphone. Its a new kind of network designed to save you money. Call, visit, or go to xfnitymobile. Com. Stuart all right, six and a half minutes to go before we open this market and we will head south in 6 and a half minutes time, mike murphy is with us, so too jeff sica, we go towards the open of the market. Mike murphy, first of all, address some of our viewers who may be within five years of retirement and they have a lot of money in stocks, what should they do today . They should take a deep breath, the market has retrace to levels that it was 30 days ago. Not a time to sell stock hold ings because we had 2 or 3 or prolonged selloffs. Selloffs are opportunity to own more. Over time markets tend to move higher, especially in an economy thats improving. Dont get caught up in headlines , stay to course, stick to your plan. Stuart whats wrong with sell ing half of what youve got . Lets suppose you made serious money with amazon. Whats wrong with selling Amazon Holdings and lock in profit and let the rest of it ride, something wrong with that . Well, two things if youre an texasable account, you are guarantied you will have to pay tax on the gains that you have. Number two, now you have to find the place for that cash. So i believe your hard pressed to find another Company Trading in the United States that has as good or better growth than amazon. Ashley a lot of people are putting in bonds because they are getting much better rate. Ashley if you put money into bonds, ash, i want to get 2. 75 ashley right, im retiring in five years, thats kind of at tractive. Is it, though in if the bond selloff 3 , youve lost money for the year. Stuart you dont own the bonds, you get the Interest Rate without the capital loss. The Net Asset Value of the bonds would depreciate. Liz whats the yield after inflation . That is the problem right now because retirees, preretirees dont know the bond market, they dont know what a balanced portfolio is. They have been starved out of bond market. A lot of people with allocations and mike, you have probably seen it all of the time, allocations that are too high and chasing momentum as if theyre elite professional traders, thats where it gets dangerous. Thats why im say to go liquid ate, come out of some stock if allocations are too high and i consider the cash market to be asset class. Cash is king. To rebalance. Stuart three and a half minutes to go before we open the market and we will be heading south in three and a half minutes time. By my calculation we are going to be down 500 down, that would take us around 23,000 and small change. Would that be the bottom . We dont know obviously but have a go at it. Ashley yesterday we added hold ings, we added to apple, qqq , top 100 tech stocks, we add ed to s p 500. I dont know where the exact bottom is, i do know that im comfortable every time we have a 2,000 pullback in the market, im comfortable allocating money if the underlying fundamentals havent changed. Stuart okay, in my opinion the panic was on the part of a lot of small investors who saw the thing going down, they panicked and they are out. At this point, literally in a few minutes time i think the pros come in looking for the bargains. We will be back up again a bit. I agree, when we moved yesterday afternoon, stuart, from down 750 to down over 1500 in a matter of 60 minutes that wasnt individual investors that was programming selling hilt hitting the bids dumping portfolios, we could see more of that. If you still believe use amazon as an example. If you believed amazon a week ago at 1400 arent you thrilled to be buying tomorrow or today at 1200, that would be a bargain if you get a selloff in the company, you buy. Stuart can we put on the screen names big tech names because thats where the action has been , can we put them on the screen, big tech names, this is premarket, this is how they are trading now in the premarket sphere, facebook 178, amazon 1368, microsoft 86 bucks a thousand and apple at 155. I see apple as a bargain, i shouldnt use that word, cheaper , enormously cheaper than it was two weeks ago, three weeks ago when it was at 176 and change. Liz cash on the Balance Sheet is book value, trading versus book value, historic value. Stuart what else did you buy . Facebook. Stuart 177, 178. Under 180. Stuart no problems with that whatsoever . Can i address this affair, they can support stock can 280 billion that could come on shore but here is the problem, look at the sales of the apple 10, they had to cut production by about 50 because demand was so low. Apple is rolling out new version s of old products, they are not innovating like amazon is, amazon is an entirely better company, i dont think anybody for myself i would not touch apple. If i could add to that, the average iphone of iphone has increase bid almost 100, i think thats a positive. Stuart gear up because we have 30 seconds to go and we will open trading, remember, please, we are opening this morning following 1,175 point drop for the dow yesterday, all of the gains of 20 18 are gone but we still have the gains of 2017. You heard the bell ringing, they are about to start trading and we are looking at a significant loss right from the getgo. Here we go. Bang, 9 30 eastern time. Lets see how we are going in the very, very early going. Here we go. Stuart yes, we. Do as we said, down 400 points, 438, we are at 23,800. Thats the broad level we are at the dow is up nearly now down 2 . 525 points, 527, 2. 1 on the downside. We are at 23,808. We have opened very, very sharp ly lower. This is you want to be technical about this, we are in correction territory. Ashley we are. Stuart when the dow drops 10 , when you drop 10 you can officially call a correction, we now have a correction on our hands. Lets go to s p 500. Where is that . Dow is down 2 , s p is down nearly 50 points, thats 1. 8, 1. 9 and falling. How about the nasdaq composite, exactly the same story, we are down 2 on the nasdaq, 6,800. Thats a drop of 138 points. When the nasdaq goes down like that, thats a composite of 100 biggest tech companies, indication that technology is down again this morning. Ive got to bring in Interest Rates real fast, where are we, 2. 75 . By the way, thats significantly lower than it was this time yesterday. Irony is Interest Rates going up is spoking the markets, bring Interest Rates down. Stuart there you go. Liz s p is 9 points away from correction territory. The s p. Stuart big tech names, now they are trading, i want to see how they have opened up. They are opened down, facebook 178, amazon 1370, microsoft 86, alphabet at 1,048, significant drop, apple 156. Now, here we go, we have ashley, liz, mike murphy, jeff sica, all the conspirators are all here. Lets get back to some advice. At what point, jeff sica, if ever would the dow down 386, at what point would you dip your toe and buy something . Investors should not touch this unless it declines another 2,000 points, this is their sell ing that needs to be done. Stuart okay. You would disagree with that . I would, so many people for the last several months said, stuart, im waiting, we need a correction then im buying, now we have a 10 correction, for me any sort of selloff, again, this is the fundamentals as far as i know havent changed in the last three or four days, so for that i see prices lower just on sell ing im going to buy those dips and i did yesterday. Stuart okay, we said watch out for volatility and thats exact ly what weve got. We opened down over 500 points, 3 minutes later we are down 260. Thats volatility, thats straight down. Ashley until 10 00 oclock. Stuart amateurs are selling. This is where we are at, dow was at in early december, just perspective. Thats how many months of gains we lost. This is the super bowl to you , you are now salivating at the volatility and they are going to play volatility. Yeah. Still around. They are all trading bitcoin now [laughter] stuart by the way, im not going to spend much time on this but bitcoin is way down in parallel with stocks bitcoin dropped below 6,000 early today. Okay, now down its 6,892. Loss of 300 per coin. Ashley thats volatility index, shut up about 40. Not getting technical but reflected the volatility of the market, down just a hair but thats still pretty high. Good point. Was the market in over its skis, it already priced in too quickly the tax cuts and Earnings Growth was it in bubble territory, you can argue the former, maybe. Were one thing that i would say, we talk advice, fear gauge, its been trading right around 10, historic lows for over a year now and it spiked over 50. I think the worst thing an in vestors at home can do today is run out and said vices have gone to 10 to 50, im going to buy that now. Thats the absolutely last thing you should do. Stuart volatile in the extreme. We are now 5 minutes into the trading session and down 228 points. We have come back from minus 500 and change to minus 200 and change. Ashley 100day average moving on the dow. A lot of the programs kick in once they breakthrough the level s, it has come about what is causing win whip saw action in the market . Where is inflation headed . Wage gains we havent seen in nine years. Thats the activity, thats what the debate now is in the trading pits, where is inflation heading with wages going up . Stuart bargain hunting. Looking at these prices and they are looking that caused a downdraft. Stuart apple is up 157. Opened lower and now its up a buck, 157. 57. The dow has come all the way. Look at it now. Now, thats bargain hunting whether you like apple or not. Thats bargain hunting. Theres something happening here with all of a sudden good news is being looked at as bad news and exactly what liz said is correct, when you have this much good news it doesnt it doesnt enhance the story of artificially suppressing Interest Rates, what a lot of traders and investors are worried are Interest Rates start ing to move up, can the markets sustain that . Stuart apple is up, thats bargain hunting, the dow is now down, this is for the benefit of radio listeners, you cant see this but i will tell you, we opened down 530 was the low, now we are down 130. That is volatility. There is bargain hunting out there. Thats lets what else weve got show me the big techs. I hate to spend so much time on Big Technology companies but they are relevant. They are coming back. Ashley some of the banks have turned around too. Stuart amazon is up, 1394. Facebook back to 181. Apple is 1. 2 , nearly 2 higher. Google is still down but not much 52 cents, thats all it is. Microsoft, i regret to say is still on the downside. Mike, what do you have . Im not leaving until we turn green. [laughter] like microsoft, stuart, you are Holding Microsoft a week ago , you have been holding it for a long time, as far as i can see, theres absolutely no reason this morning to wake up and say, im going to sell microsoft. Theres nothing out there that has changed as far as microsoft goes. Stuart except i could lock in a very nice profit, sleep well at night and at my age you dont want to take much risk. Is microsoft is keeping you up at night, you should sell the whole thing. Stuart on that, we will move on here are the banks. We call them financials, these are the banks. Morgan is now up. Morgan stanley is now up. Goldman sachs up, citigroup up, wells fargo, thats a special case wells fargo. The Federal Reserve d they are down, the rest of the banks are up. We are down 76 points on the Dow Jones Industrial average. We flipped into correction territory and quickly rebounded. Stuart yeah, now where we go from here i havent a clue. I suspect we will be in for a day of way up, way down, volatility in the extreme, its not going to change. Now we are down 80. Okay. We did now we are down 90 points. This is how the market when Federal Reserve stepped in to rescue. Stuart do you think with the Federal Reserve, brand new chair fresh on the job, are they going to see as responsibility to protect the market . No, they will not. I think they will look at the economy, not the stock market. They dont want to spook the stock market. They will give us clues as to what they want to do and that wont spook the market. I think what this fed has done will have longterm un intended consequences, the fact that the fed intervened as much as they did is going to be something we are going to have to contend with in the future if this fed is smart, theyll keep hands off the market and and not talk up the market and not artificially suppress Interest Rates, the real enemy of an economy in this particular economy is not necessarily recession, its inflation and they have to be vigilant to keep from going into inflation. Stuart okay, they are going to hands off, they are not going to make any comment about the market. We will see we see Asset Classes when it come to suppressing Interest Rates. Stuart now we are down 82 points on the dow, 24,270 is where we are. Longterm Interest Rates Holding Around 2. 75 . Thats the yield on the tenyear treasury. Again u im not going to say we are settling down because no settle down in this market, we are down 68, 70. But thats a big change from 9 and a half minutes ago when we were town 500 points. There you have it. You still are not going the buy anything . No. And people investors are now act ing like dogs chasing parked cars, if anybody that we had a real correction that they can buy into, i think they are wrong i could be wrong but i think they are wrong. I think if youre looking to do bargain do bargaining hunting yo have you to let this really selloff not have this volatility , this is a traders paradise. Stuart we are not there yet. Absolutely not. Stuart mike, do you agree with that . I disagree wholeheartedly. By classic definition and fear in the market, this is a correction. Doesnt mean its a bottom but a correction. Ashley we are trading in the correction. Stuart all right. Ashley who knows where its going to go. Stuart am i right historically speaking that since world war ii every time theres been a significantly selloff the market has recovered in full within a couple of years, i know thats a long time but i think im right in saying that . Youre 100 right. Going back even a hundred years stuart, the market on average goes up. The volatility that we have seen is scary and can cause people to make some bad decisions, i think thats what being on television we want to help people avoid making panic decisions. In 1997 we didnt have a recession and the market started to go up. Whats panicking people out we hit record high and dramatically corrected down and went into correction territory moments ago i think thats the panincky action. Not the fact that buying whole doesnt make sense for certain people, its the fact that a balanced portfolio, i believe, for a lot of retirees, preretirees doesnt exist today. If you are up at 80, 90 in stock youre in a vulnerable position. Stuart okay, volatility in the extreme. I want to go to nicole in the floor of the new york Stock Exchange. Is there any element of panic there, whats the mood . The only moment of a tinny bit of panic was when we crossed over the 1,000 point drop yesterday just after 3 00 p. M. When we were dropping 50point increments down to about 1600 negative. This morning everybody was say ing, buy on the open because thats going to be your big opportunity, you know what, they did it, they did it smoothly, they did it very calculating and the calculating manner and we are positive. Stuart we are up. The Dow Jones Industrial average turns positive. Stuart yes. We turned positive. Ashley amazing. Stuart first minute or so of trading this Tuesday Morning we dropped over 500 points, the low about 550 down. Now we turned it around. In other words, in 12, 13 minutes minus 550 to plus 150. Ashley thats dropping. Amazing. Stuart a lot of bargain hunting i see apple at whatever it is, i like that thing. I will buy that thing. Whether they hold it for a long time or not, i dont know. Mike shortterm movement is by traders. We were down 1600. We opened up this morning, test ed the low from yesterday when the market held it, buyers came in. Stuart look at this, now we are up 54 points on the upside and im not going to suggest that this is a full bounceback but certainly a rebound from where we were 13 and a half minutes ago. Now we are up 53, radio listen ers, we are up 53 points, 49 points, 24,382. I think ge is even up. Stuart let me check. Ge is up. Ashley gone through four day of trading in 17 minutes. Stuart im intrigued at british petroleum, bp at 40 a share, 40 a share, yields 4. 8 . Whats wrong with microsoft, take your profit, walk away with it and invest in bp and yield 5. 8 for my retirement . Is there something wrong with that . Nothing if it makes you sleep well at night. Stuart 56, 49 points all over the place today. How about that . What an open, what an open to the market. [laughter] stuart we are barely higher. Ashley stop talking about it. Stuart all over the place. Be quiet, stuart. The market is at alltime high and we went to correction territory. Whats going on, right . Stuart do we have sean duffy with us because treasury secretary mnuchin will testify today, how convenient, the treasury secretary on a day like this, sean duffy is with us, republican from wisconsin, hes on the committee, sean duffy will be asking questions, are you going to ask him questions about the stock market, sean . Stuart, this is based on financial oversight council. We will ask him questions about that and risky Financial Institutions and whether it should be based on size versus activity, those are the ground level conversations, i think a lot of interest in the stock market and whats happening with the correction over the last several days. Stuart ask him about algorithms to what degree was yesterdays panic where the dow dropped close to a thousand points in an hour, you have to ask him was has anything to do with program like it used to be called . You and maria pointed out that the market has come down because of great fundamentals in the economy, things are going so well, theres concern about inflation, higher Interest Rates and what has that done to stock market . Those are interesting points to debate but democrats will try to hit him on the fact that the market has declined because donald trump has tied a lot of the politics to great stock market. Stuart i think thats bogu us, bogus, i dont think he should say anything about whats happened over the last few days, i dont think a president should stick stick his own opinions or own views into a sharply fall ing stock market, what say you . I agree with you. To to tie ourselves to a market which we cant control is always dangerous but from a political standpoint, i think that let this market cool down a little bit because the greater the greater the fall will be when it corrects, we want to make sure we have slow and steady consist ent growth in the market as oppose to large runups, if it crashes right before an election its not bad republican policy on taxes or regulation, its a look to the markets, thats never a good place for us to be. Listen, i think youre right, democrats as they come into the hearing with mnuchin are going to try to make this point thats political on President Trump but again, we are up what still 35 since Donald Trumps election in that is correct, yes, we are, we lost the gains of 2018. We are holding the gains from post election all the way through the end of 2017. Holding onto those gains, last one, what do you want to hear from secretary mnuchin today . Listen, i think, you know, the bedrock of Free Enterprises are Capital Market and making sure that we have sound regulation and not over regulation, we have a new regime in place, mr. Much mra year, i want to hear thoughts on oversight council, has huge im pacts on designating big Financial Institutions as risky, getting his views out i think would be important which is the trajectory that would be at in the next three years and hope fully next seven years in the trump administration. Stuart we do appreciate it, sir let me bring you up to speed with whats happening here. Now we are up 96, 97 points. We opened down 550, i think, it was, now we are up 100. Look at that. Stuart up 100. 24,451. Ashley 18 minutes. In 18 minutes 600point swing we dipped temporarily into correction territory. Stuart we did. We talk about growth in the u. S. But Global Growth, boeing saw severe action yesterday, 25 in the downside, boeing Just Announced a billion, nearly a billion dollars worth of work and services orders in asia from airlines in asia, so you look at the price action on boeing yesterday and where its at, where its trading now, it is carrying the dow higher. Boeing is now down 4 bucks. It was down four bucks but stuart boeing is up 250, 281. [laughter] stuart let me sum this up, you say dont buy anything yet, its got a couple of thousand points to go south. Correct. Stuart mike murphy says get in there and buy. You sticking with facebook. [laughter] i will call you. Stuart all right. Let me see, again, the action for a couple of years has been in the Big Technology stocks so i have to go back to them. They took a big hit yesterday and some of them are bouncing back today except microsoft, its still down 25 cents, 87. 75. Remember, microsoft was at 95. I think it hit that level. Now at 87. Im not crying about this, im still way up, im seeing whop ping great big gain. It would create a bubble and that would burst, normal pull backs need to happen in the market. The big losers on the dow, we just had on the screen, can we go back to that for a second. The losers yesterday, those were the travelers, two of them will bounce back a little bit, home depot and 3m, they bounced, merck, disney traveler still down, show me some winners. I love to see the winners on a day like this. We are up 13 points, ladies and gentlemen. Theres the winner johnson and john. John boeing was down 25 points. Stuart okay. Now up completely. Stuart we have a couple of ex perts and we have not said goodbye to them, sica forecast the next hours, another six and a half hours. Six hours of trading to go. I told ashley im breaking the sweat from the volatile my [laughter] what im looking for is if a rally could stabilize and Carry Forward and level off this volatility in the end is not going to be good. All momentumdriven. Stuart what do we see . Sit back and watch it and youll see volatility. Youll see shifts 2300 points in the course of the day all day today. Stuart is your mother watching . Shes watching. Stuart do you think shell ap prove . [laughter] stuart forecast the next six hours in. Take a deep breathe and look for opportunity. Markets go up, markets go down, trying to trade into a market thats selling off is often a very great way to lose money. Look for companies that you miss ed. If you said when microsoft was at 95, i wish i had, now its at 87. Much better entry point. Buy some. Let the market work its way out of this. Stuart look what happened in the last minute, last 60 seconds , we were up almost 200 points. Now we are just 140. Now we are up 160. Thats volatility. Thats the way this market is going to be. Now we are up 177. 180. We are up. You can see whats happening. Yeah. Stuart you are coming to the market, people look for bargains , they buy, the market goes up and then people say, well, i just bought x, y, z, i am selling. Ashley tug of war going down between equities and the bond market. Stuart so in the space of of 2 minutes we have gone from minus 550 to plus 220. We are a session highs. Ashley 800 point swing. Stuart 800 point swing. Thats not. Thats a normal movement on volatile market. Theres a disproportionate advantage to five tech stocks which are liquid and very easy to trade, thats why you will see extreme volatility. People want to come in those and come out of them. Everybody stock everybody is dating stocks and not marrying them. Stuart marrying stocks. [laughter] we havent had a correction in this long. Weve had our 5, we had our ten, we dont need to talk about it any longer. Stuart show me the tenyear yield. 2. 75 . Now we are 2point 2. 78 . Thats not impact on stock market. Because normally when you have a stock selloff people go to the tenyear as safe haven and the yield should have been going down and it was going up. There was a fear that there was inflation coming upon us and rates will go up. Stuart now we are up 346 points on the Dow Jones Industrial average. Go figure. That is a 900point swing. Ashley 900. Stuart doing the math. 9 oh 900 point swipg swing there you have it. We are up 353. I dont know what to expect but i figured we might get some sell ing at this point. Ashley maybe. You bought at 930, it ran up, sell it. Comes down, you go have coffee and comes down. Thats what youre dealing with today. Its nailbiting anxiety time for those at home. But stig right here, folks, moment to moment basis exactly whats happening with the extraordinary market. You dont see this stuff very often. No. Not like this. Stuart youre younger than me but have you ever seen anything like this before . No, when you look at [laughter] especially the complacency, wait a minute, markets could actually go down. You are going to have volatility i have never seen anything like it. Main maybe back in 2000 and then crashed but i had never seen the volatile. The price of gold, still doing nothing. What does that tell you, when you get a big selloff you often fly to gold for safety. I dont put too much credibility in gold or the price of gold. Right now the market has been driven by people who want to be on the market and we talked about a lot on the show, so the market doesnt move much money, stays in the market but moves around. Last few days we have seen money come out of the market, thats why you had big selloff. T not going into gold but going back to the stock market. Stuart not going into bitcoin. Last time we chick checked, in december it was it was 20,000 per coin. Now just above 6,000. Did that have any impact, now now 7 bitcoin was in a bubble, whats going on with the bond market, thats always the debate i came on your show when bitcoin was at the peak and i said, if you want to invest in it, be prepared to lose it despite the fact that crypto currency and block chain has a future. Here is the thing, what people are afraid is regulation, thats what is driving it down. Once its regulated it doesnt have the appeal. Stuart look closely on your screen. We lost 100 points. We were up 330, now we are ashley sneeze, 100 points up or down. Stuart people selling stuff at 9 30, went up so you sell it, now we are up 167. Im trying to do the math constantly here. Thats a swing in the last three minutes of 150 points. Roughly speaking. [laughter] stuart youre a juvenile. Ive been investing for 22 years, this is nothing compared to what went on in 2000, what went on in 2008, back then you had no idea what was actually happening in the market, in 2008 you didnt know if Companies Amazon were going out of business. In 2008 you didnt know if banks were going out of business. This is profittaking in a bull market. Ashley black monday, i was a reporter back in the day, in todays numbers that drop was 5,600 that is a drop. A 23 drop. The crash, october 19, 1987, would recover all of it within a year and a half. Moving higher quickly. Stay the course. Stay the course. Stuart now were up 134 points. 130. 123. So this is whats happening. Straight down on the opening bell, then a pause, then up 330, now were come down, pad the gain, were up just 97 points. Youre going to see this all day long, very probably. Up, down, up, down, its called volatility. Choking on whats going on. I want to give last word to jeff before we close out this hour. Last word . Again, im saying for investors to be very careful to try to call bottom here. I think its better to look at allocations, reduce heavy stock exposure and wait this out. Stuart okay, last word, mike . Unless youre a professional day trader, day trading stock, you dont need to watch the volatility and pick when a top or bottom comes in. Stick with a plan, invest in pullbacks. Coming up on 10 00 eastern time. That means weve been open for one half hour, what a half hour it has been. If youre just joining us, i tell you this, opened down 550, were now up 150. So thats 700point range in exactly 30 minutes. A little perspective here, weve gone up so far, so fast for so long, that a pullback was inevitable in my opinion, and most peoples opinions, inevitable. And after such an extraordinary, explosive rally, youd pause at some point. We have certainly paused in the last five or six trading sessions and certainly yesterday. This downside move that we saw until this movement does not imply weve got an economic catastrophe that were facing, were not looking at a recession, depression, looking at the successful economy with Interest Rates rising. And that was within of the reasons why the dow sold off so badly over the past five or six trading sessions. Look closely whats happening now. Were up 228 points. So we were down i keep repeating this. Down 550, up 350. Thats 800 points. Now up 250. And exactly 30 minutes worth of business. 800point swing. How about that . Open with high anxiety, now its like a poof i think you jumped the gun. I am, an optimist, sorry. Stuart theres a lot to come. Youre saying its not over. Definitely get a raise for volatility like this. Stuart who . You. [ laughter ] standard 25 now down from a high as mike murphy of 50 yesterday. The fear index cut in half. Youre saying its not over, right, stu . Stuart i dont know, i dont know. Id be very loathe to say this is it. I know. Right, im not saying that. Stuart i cant say that. You never relax. Stuart sterling work by jeff seeker and mike murphy. Historic day, you did great, thank you very much indeed. Were down sorry, up 245 points. Show me the s p, please, up 1 on the dow, up. 7 on the s p. Show me the nasdaq, the technology stocks, how are they doing . Up. 8 on the nasdaq. Again, let me show you the Interest Rate structure. Were at 2. 78 . Started at 2. 75. Now were at 2. 78. The markets gone up regardless of the higher Interest Rates. The price of gold doing nothing, some may be surprised at that. Looking at inflation and stock market volatility, were down 250. The big tech names up, amazon up 24, 1414. Microsoft up 64 cents, 88. 64. Google up 19 a share and apple up three bucks at 159. With me Todd Horowitz, bubba trading. Com and shah gilani capital strategy. Todd, you are a bear, you think that a nasty, nasty correction, crash, call it what you like, you think its coming. Is this it . I think this is the start, stuart. By the way, good morning. I think what youre going to see here is what youre seeing now, very wild action, overnight the futures were down limited one time and now up by 500. Well have the churning volatility. Well have vicious rallies, but i think at the end of the day, because of whats going on with Interest Rates, because of whats going to happen with the dollar when the dollar starts to rally, the fed lost all control of Interest Rates, the depressed dollar kept rates artificially so lower, when the dollar starts to rise Interest Rates will creep up faster, it will create the much bigger correction going into the future. I am a longterm investor. Stuart i understand, in the fairly near future, youre look for a very serious downside move. Shah gilani, i think you go the other way, for the last couple of years, youve been cheerleading as on the upside. I take it, you do mot think this is the start of a big downside move . I dont think so at all, stuart. Nothing fundamentally has changed. The global economies are doing well and growth is really fabulous across the countries. Earnings in the United States, s p companies, earnings are record territory again. This quarter is going to be better. The tax cuts, all of the fallout from that is positive. A lot of positive things to look forward to, nothing fundamentally has changed. This is Program Trading, based on volatility, start off with a selloff in the bond market based on fridays numbers, nervous that the fed was going to raise three times in 2018. Bonds sold off. That triggered volatility. Stocks have been selling off. Thats the bottom line, nothing fundamentally wrong with the economy. This is a program, Algorithmic Trading selloff. Stuart we have two experts with us today. I want advice for our viewers, Todd Horowitz, what should a person do within five years of retirement. Theres a large body people in that demographic. Five years to retirement. What should they do . Whats your advice as stock Market Investors . As a pure investor, as long as you are investing money that you have that youre not borrowing on the mortgage, leveraging up through margin. Regular money, continue to invest as always. The market does go up 8 annually year over year, not every year but average over time an 8 gain. There is no better return to compound your money than the stock market. Turn off the volatility meter, quit watching the wild swings and continue to invest and not worry about it. The only thing you worry about is one of your stocks has a fundamental change, ge had a fundamental change, might want to sell that and buy another. Continue to invest each and every month. Stuart shah gilani, have we reached a bottom . Whats your advice with people within five years of retirement. I stay calm and carry on. The markets have a lot, lot higher to go over five years. To sell now would be a huge mistake, if youre a trader or worried about shortterm trading, take 6 off as the market is down 3, 4 , and if it falls 5 , take another 20 off. Barring Something Like that, if you dont need the money, dont take anything off. Im looking for further, we have a lot of volatility ahead of us, going to be opportunities little lower here and looking to buy stuff lower. Not that i missed on the way up. I want to get back into a bunch of stuff ive gotten out of on stops recently. The market is going to go higher. This is programmed trading and it will pass. Stuart were at 24,600. Up 254 points, a swing of 700, 800 points in the past hour. 934 points from the very low to the very top. Thanks to sir charlie brady. Stuart 934point swing in the first 30 minutes. Tom folly with us, the president of the new york Stock Exchange, joins us live from the floor. Tom, is the market functioning well . No problems with the functioning of the buying and the selling . Everything is working well today. The markets are up as your viewers know, stuart. Even yesterday, extraordinary day with the price swings, but actually quite an orderly day. When stocks move in an abrent fashion, we have limped up and down mechanism. For the Stock Exchange we didnt trigger any one of those, it was very orderly. Stuart what about the huge drop in the middle of yesterday afternoon about, a thousandpoint drop in the space over about an hour. Was that, as we used to say Program Trading driven, algorithm driven, was it . You know, stuart, yesterday there was considerable volatility. The last day i recall with volatility that looked like that was the Election Night. If you go back to the Election Night and you look at where we are now. The dow is up 40 . Unemployment is down by 1 , gdp is up by 1 , markets dont go up forever, markets go up, markets go down. The pullback yesterday quite frankly we expected that there would be a day like yesterday, wed have retrenchment. Stuart would you like to see more human beings in control of the market as opposed to algorithm on a computer . Yeah, i think look, the thing that looks most different this morning is the amount of media here on the Stock Exchange floor. And the reason why the media comes here and the eyes of the world look here are because we have humans. Its a blend of humans and technology that help find the right opening price, and quite frankly, thats why we have the calm opening this morning. We dont have a dystopian world view that we rely on computer to run the Global Financial market. Stuart it was calm that the market functioned in orderly fashion, it was anything bibut calm in terms of prices, we had a 900 point swing. Any comment on that . Im glad you brought up that. Yesterdays move wasnt a top 20 move in the history of the markets. I dont think it was a top 30 move. Im empathetic with people on the wrong side of that move, but thats what markets do. We cant expect markets to continue to creep up consistently for ever and ever, thats not how they work. Stuart tom farley, i know youre busy and appreciate you being with us. My pleasure, thanks for covering us closely, stuart. Stuart sure thing. Now lets get back to what weve seen in the last 39, 40 minutes. Again, open down 550, then 330, now up just 98 points, its volatility, you can expect these wild swings as the market tries to establish whats the right price for a stock in the minds of a couple of million investors . Todd horowitz with us and shah gilani still with us. What about a bargain hunting session. Shah gilani, do you see bargains right now at the prices that are current . There are a lot of stocks that i like down here, i think we have lower to go, stuart, im not anxious to jump in and start buying now. This volatility in the morning is a perfect example, when you see the market down 550 and up 300 and swings down and up 250. Its not a time to take risks, see where it false out. If the market ends higher and continues to go higher and i have to buy higher prices than yesterday or this morning, thats fine with me, fundamentally i want to buy stocks going higher. I like the market here. This volatility is indicative of further action to go on the downside. Markets are just that scared. These arent individuals buying and selling stocks, these are program trades, algorithmic trades, institutional traders moving markets. These are not individual investors buying and selling 500point swings. They have to wait until this subsides, the volatility subsides, its already coming down and the time for bargain hunting will be then, a lot of good bargain. Stuart Todd Horowitz, tell me if you see any bargain on the stock market right now . I think there are bargains, apache and the oil space some, have been beaten down against schlumberger, procter gamble, safe play stock. One of the riskoff type of trades. This is a good spot, if youre looking for something to buy, thats a nice place to step in. Good dividendpaying stocks that can you hold through and have come down to levels that i think are very buyable here. I think this is one of the things we forget about is chase the momentum. Now that you have values in the oil services, Johnson Johnson stocks, they are now at a value level where you can step in and not have a heck of a lot of risk. Stuart todd, shah, stay there. Wrap whats going on in the market. We are up 132 point. Its a volatile session, that is for sure. Couple of individual stocks making news and they are moving, start with yum china. Not sure what the news is on that, its down just 51 cents. Poor earning im told. Better profits, the parent of Dunkin Donuts and basquin robins ice cream is down 1 . Profits at General Motors, theres a stock that used to be in the mid 40s, now 41. Its up 4. 8 . Thats a very big gain for a company the size and the history of General Motors. 4 up, not bad. Higher sales at the parent of coach, which is now known as tapestry, and it is up 5. 6 . Bps profits, very interested in this stocks i dont own it but interested. Bps much better profits, in fact more than doubled profits compared to last year. Higher oil prices and a better output of their own oil and gas fields. That helped. The stock is up 1 , as i said earlier, at that price, 40 a share, bp yields 5. 8 dividend. I find that attractive. Spirit airlines is down, no particular reason there, but it is down this morning, we thought wed quote it for you. Well care health, the number people subscribing is down, theyre off 2 . Thats well care 2. Politics, its a factor in this. The gop running on the strength of the economy, the president touting the stock market. Congressman andy biggs joins us, the market is in selloff mode, do you think that poses a problem for republicans going into novembers elections. I dont think so, if you look back at black friday, you talked about black monday before. When you drop 22 Percentage Points in that particular day, the economy still grew at about 4. 7 overall that year. And i think what youre seeing now is the markets trying to even out and find out where it is necessarily. The underlying fundamentals are still really solid. Were seeing more people employed. Growth in the economy, were seeing businesses hire people because theyre optimistic. I think thats reflective of a Strong Economy and i think were going to continue to grow. Stuart would you like to see President Trump make some comment or statement about the stock market . Well, i think he is. Im not sure that hes making the statement they would like. I would like for him to talk about ultimately the stock market reflects the economy but has to find its way and our economy has been growing at a faster rate than people expected and its going to continue to grow faster, so the stock market is going to have to adjust to that. Stuart can you tell us about your constituents in arizona, youre a republican from arizona. Seems to me they would be happy about the growth and the economy, but a little nervous about the stock market. Is that where theyre coming from . People that shortterm concern, ive got a lot of retirees, and i think that they look at it as a long haul thing, when they see it drop as much as it did the last few days, they do get nervous, but see the underlying strength in the economy and feel that as well. I think by and large, theyre willing to keep riding it out, and theyll be happy that way. Stuart last one, congressman. President in his speech yesterday referred to democrats who did not stand up for the state of the Union Message as treasonous and later he called adam schiff and the Intelligence Committee a liar. Would you have any comment on the president s use of language . Might have been a little hyperbolic there. Im not sure its treasonous to sit during the state of the Union Address, though its certainly disrespectful. I couldnt understand why they wouldnt stand fair nation under god but would stand for other things. They might have to explain when they meet god. Its disrespectful. Stuart explaining to do at the pearly gates. Thank you for joining us, andy, good to see you. Good to see you. Stuart back to resident stock market and financial experts, Todd Horowitz and shah gilani. Shah, to you first, the market is coming back down again, in the space of literally a few minutes weve gone from up 200 to up 14 points, thats it. And youve said previously on the program that you see were not at the bottom yet. All right, tell me where is the bottom for the dow . I dont know that anybody knows where the bottom is, stuart. Were in uncharted territory in terms of market movement. They should be looking at stocks based on earnings, the propensity for stocks to go higher because of positive earnings. Shouldnt be playing the market hot in here, playing the swings, up and down and try and capture the movements here. Thats for the professionals to do. Waiting for a calm market, to find quality stocks to buy. Where is the bottom . I have no idea to be honest with you. We could bottom out today and continue to go higher the rest of the week, we could drop another thousand points by the time you are off the air. Thats anybodys guess, thats the condition the markets are in right now. Stuart to summarize, you are waiting for further downside move before you buy anything, is that you . I wouldnt surprised to see it move 5 lower, it wouldnt surprise me. Actively looking to buy stocks down there for sure. I dont know that were going to get there. The way the market is moving, entirely possible. Stuart todd, tell me where you think the bottom of the dow is in this goaround . In this goaround, the dows bottom is around 22,000, 22,000 and change, that would be a level ive looked at. Youve got reason to believe we could go there, the volatility has been unbelievable. Ive never seen the vix go up 100 in one day in 38 years. There is a lot going on, we could see a pullback. Stuart right now down 130 points, a turnaround of about 300 points in less than 15 minutes. Thats what weve got. Extraordinary market right now. Coming up next, the white house responds to the selloff. Did they . Yesterday. Stuart in the next hour, theyre going to respond and well be there for it. Weve got to take a commercial break. We have to make some money. Well be back, though. Stuart bottom line here, this is the most volatile market that ive seen in a long, long time. Weve already were into 52 minutes worth of business so far this Tuesday Morning and seen better than a 900point swing. Right now, were down 56 points. 24,285. The media doing its best to associate President Trump with the market selloff. Brent bozell, Media Research center guy joins us now. What have you seen, brent . Tell us about it . Well, theres a selloff. It is news and, of course, the media are going to blame donald trump. Now, if youre going to say that donald trump is responsible for the selloff, its only fair to say that donald trump is also responsible for where the market is today. If you look at where the market was when he came to office and where it is today, it even after the selloff, it is still doing extraordinarily well. How about this number, we looked at how many, from the start of his presidency, how many record highs the dow has hit. We counted 81. How many of those 81 hits were covered by the news media. 13. That means 75 of the record highs of the dow in the past year were ignored by the National News media. Now that its down, lets talk about donald trump. Stuart yeah, im look at a headline in the Washington Post today, its an article, an oped written by catherine rampel. The headline is this, is trump to blame for the market dive . She doesnt make him out hes to blame. She has lots of other reasons. The headline says it all, theyve linked the president with the stock market dive as if its his fault. Just the headline alone did it. Im sorry, brent, but i find that kind of typical. It is. You can name can you name me anybody whos an economist who said the market isnt going to correct itself . You name anybody . Everybody is saying this because the market always does. When it goes to this kind a high, it always corrects. Everybodys been waiting. Im not trying to say this is all rosy and wonderful it is weve lost 4 trillion on the market. No. But everybody was expecting this to happen, and i think it will go right back. But the bottom line, again, if you look at the start of his presidency to now, its been a meteoric rise, and its just slightly less than meteoric at this point. Stuart is it legitfor President Trump to own the runup and yet not own the rundown . Well, if you look at what economists are going to argue, which is to say that the fed has very, very capriciously kept Interest Rates low and they had to go up and this is the anticipation, yes, yes, yes, im willing to say, im willing to say go ahead pin this on donald trump, but youve got to pin Everything Else on him, which is a mammoth success. And they wont do this. This is such dishonesty, theres just nothing this man can do that he gets credit for, nothing. Stuart you are right about that. Brent bozell, thank you for joining us on a very busy day. Appreciate it. Thank you, stuart. Stuart back to todd and shah with the market now down 130 points. Shah gilani, have you ever seen anything quite like this before . Ive never seen such rapidity of up and down movements. 55 minutes into the trading session . Not in a bull market, no, i havent seen this. Reminiscent of the action we saw in 2008, that volatility and those swings, but in a bull market, no, this is unprecedented in terms of this volatility. Not surprising because mechanically, i completely understand, and i dont know that viewers understand or individual investors understand this. This is all mechanical, this is a function of the types of funds that trade these days, trade volatility, as volatility spiked based on bond prices spiking, volatility in bonds spikes, that sent triggers selloffs in stock, caused volatility in stocks, more selling. And you had all of the volatility sellers, stuart, people selling volatility and correcting premiums from selling futures on volatility, thinking volatility is going to remain at 10 in terms of the vix, in that spike, all the people have to cover it. Theres a lot of losses out there. A lot of things im worried about. A lot of the traders betting against volatility rising are sitting on whopping losses, and i think there may be more selling because of that. Stuart okay he just froze right there. Did you see that . Mid sentence. Look at that. Ive only got 30 seconds left. Forecast the next 5 1 2 hours, how do we close . Stuart, i think we close lower on the day, but i think youll have a thousand points up from here and a thousand points down from here. I say they close lower, the markets are telling you theres a lot of issues going on and you can see by the volatility, we can have massive swings and it will take nothing than a mere matter of minutes, lower on the day. Stuart what a day, todd, shah, great stuff, appreciate you being here onna day like today. More varney after this. No matter how the markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. Stuart all right, the state of play, at this moment in time we are down 60 points, 24,287. Thats where we are. The Big Technology companies are moving, most of them moving, ill change. That facebook is now down a fraction, amazon is up a fraction, microsoft down a fraction, alphabet down a fraction, apple solid gain just 1 higher. We saw a lot more movement earlier in the big techs. Thats calmed down a bit. Still on the markets, come on in, andy puzder, andy, we need your advice, suppose you are one of our viewers, within five years of retirement. What advice would you give them if theyve got investments in the stock market right now . Id tell them to calm down. Everything is going to look like a buy soon with stocks going down. Take it calm. The fundamentals are good, the tax cuts, regulatory relief, were going to see businessess profits go up. Consumers have more money, thats going to drive profits up. Volatility is normal. Think back to 1987, within five years of retirement. You can remember 1987. Stock market dropped 22 in october. Then a big panic, you look back tat now, the biggest buying opportunity in history. Could this be a big buying opportunity but for the moment, hang in there and wait and see what happens. The fundamentals are solid. Stuart whats wrong with the following idea you sell half of any stock where you got a big gain . Suppose you have stock in amazon, sell half of it, lock in the gain, sleep well at night because you are no longer risking a lot of your money, whats wrong with that . One you have to pay tax on the capital gains. You end up paying tax that you dont have to pay number one. Number two, you have to find someplace else that you want to put the money. If there is someplace that you think is going to give you as big a return as investment is currently, you should sell and you should put it where you get the bigger return as long as the tax impact isnt too significant. If you want the stock, you think its going to do well in the future, hang onto it. I think were going to see a recovery out of. This i dont think i dont know how far down its going to go but i dont think its going to go down so much that its crippling to people. Well see a recovery and look, im going to buy this afternoon, ive already talked to my investment advisers, look for stocks that we can buy, theres going to be good pricing. Stuart Scott Shellady is joining us now, executive Vice President with tjm investments. Scott, you got your glasses on, you cant stand the glare of the market. I want advice from you. Look, some of our viewers within five years of retirement. Done well in the stock market. What should they do right now . I like the idea he said earlier, when you go into market timing, you start to fight the algorithms, to be smarter than the algorithms is a losing game. You have to wait until the market calms down and if you dont need the money tomorrow, you could have bought the high in the stock market every year since 1929 and done very well for yourself, right . Generally speaking, as long as the economy is doing what its doing and the numbers are okay and the population is growing, growth will grow and thats going to drive the stock market higher over time. If you are somebody about to retire, you dont really you shouldnt be that heavily weighted in stocks at the age of 75, right . These types of things can be crippling because you dont have the time horizon to make the money back up. As you get older, risk averse and move out of stocks and other things, thats the problem what other things are there. You have to look at the bond market and the like. If you cant stand the fire, sell half and see if you can get back in at another level. It has problem, if we turn around stuart i got to break in for a second, scott. Treasury secretary mnuchin is testifying before congress. Who do we have there . Adam shapiro there for us. Lets listen to what secretary mnuchin had to say. Roll tape. First, i would say, we are very focused on the longterm Economic Growth and we believe that the policies weve enacted including tax reform are very positive for longterm Economic Growth. Were already beginning to see that in terms of corporate investments back into the United States and the impact on corporate earnings. I think as you said, the stock market is up significantly over 30 since President Trump was elected. Were monitoring the stock markets, theyre functioning very well, and we continue to believe in the longterm impact of the stock market. Stuart adam shapiro following this for us. What is Maxine Waters asking about earlier . Reporter well, in opening statement, she said she was going to ask the secretary about the trump administrations dealings with russia because at the last appearance by the secretary before the committee, she asked a series of questions about trump Family Investments in russia and he apparently has not responded to the questions as of yet. Back to you. Very fast and fine wrapup young man. Well done, son. Joining us live on the radio, Brian Kilmeade, host of the Brian Kilmeade show. Its a radio show you that run, and you must have had listeners calling and you making comments about the market and what theyre going to do. What are they saying . I have the best listeners period, not only talking about dossier one, dossier two as well as memo one and memo two, squeezing in about the market, and not on anybodys mind. People said no panic, it goes up, goes down, whats the big deal . One thing i did promise is ask you and your panel to tell my listeners, on 100 stations around the country as well as streaming live and sirius, what should be thinking . Every time i move the market is up 100, down 200, what do you make of this . Stuart heres what im going to say youre going to see an extraordinary up and down day, up and down and down and up, all over the place. Thats what weve seen so far. Ignore that and look at the actual price of the companies you like. If you think that youve got, say, you think apple is at the right level or facebook or any other stock, you think its beaten down so far, you think its a bargain, i think you should buy that thing. Otherwise, sit tight because the market thats going up and down like this is no place for the amateur. How did you like that . I love it, too. The other thing brought up too is a president brought in here on in should not be talking so much about the market, for political purposes, right . He has so little control over it. Talk about the tax cut, talk about spending, talk about a twoyear budget, but talking about the market seems to be inviting too much volatility into the political future, i think thats pretty clear. Stuart i dont think a president should be interjecting comments into when the stock market is in such a volatile and selloff mode. You could make things worse, you dont want to do that. I think the president should concentrate instead on the economy, which is largely the result of his policies, the economy is growing, profits are growing, wages are growing, it looks like the return of prosperity. I think thats what the president should concentrate on. How am i doing . Real good. Think about this for a second and tell me if it resonates with you. We were talking again with a couple of my experts. They said this might be a brushback pitch on the president and trade deals. A lot of his advisers say easy with the tariffs, mr. President , dont tear up the trade deals, mr. President , could result in market volatility that we dont want, and for the most part the president has not seen any dip. I think this might back the president upa i little on slowing him down on the tariffs and the tearups, dont you believe there is something to that . Stuart maybe, brian, maybe. So far, ive not heard trade mentioned as a reason for this volatility and for this selloff. Now, going forward, sometime in the future, if we really do walk away from nafta, or we really get into a trade fight with china, i could see how that would be a negative for the economy and for the stock market, but at the moment, that is not a factor. In fact, one of the many reasons for this selloff is, a we were due for a selloff, and b, the economy is doing extremely well. Wages are going up and interests are going up and thats a problem for stockholders, when Interest Rates go up, bonds are more attractive, they might sell out of stocks and get into bonds. But the reason for this market going down is a Strong Economy, and we were due for a selloff. Thats it. And my last point is dont you believe that theres too much concentration on amazon and apple. Stuart no. And google. Stuart no, no, i dont. They have too much power. Stuart okay, theyve got a lot of power, they created that pow are for themselves and the concentration, we do concentrate on the five bigname Technology Companies because they are taking over so many areas of the economy. The car market is dominated by the apples of this world. Who ever thought of that . Thats what you get when American Technology really takes over. The money flows in, the stocks go straight up, and yes, we do concentrate on them, because thats where so many people put their money. Okay, you all right with that, brian . Stuart, i think this is the give and take that america wants. We have a Radio Network helping out a tv network, why cant we get republicans and democrats together . Men and women together . Stuart you got it wrong, this is a tv network helping out a radio show. Excuse me, how dare you put down my medium [laughter]. Stuart thank you very much, brian, youre a good man. You seem nice too, stuart. [ laughter ] you can fool a lot of people all the time. Now bitcoin is actually up, but it had been sharply look at the level, 7,000 bucks. The head of the sec is testifying before the Senate Banking. Hes saying there is a dark underworld of cryptocurrencies that go unregulated. Theres been sharp reaction in the cryptocurrency market to the pushback from regulators, talking, china, korea, india and now the eu going after bitcoin and cryptocurrencies. The g20 going to come after it. The coin market cap. Com, watch this, has said since january, cryptocurrencies, to their estimates have lost a half a trillion, 500 billion in market value. Thats equivalent to exxonmobil plus a honeywell. Its down about two thirds since december, bitcoin itself. Stuart 20,000 in december, 7,000 and change. Check the market, were off 187 points as we speak. Dennis goffman, everyone reads his note, the past couple of days are only the start of what could be a substantive bear market. Well be back. For all the eyes that get itchy and watery near pollen. Theres flonase sensimist. It relieves all your worst symptoms including nasal congestion, which most pills dont. And all from a gentle mist you can barely feel. Flonase sensimist. Stuart in the last hour, ohio congressman told us the market selloff is not a cause for panic because he says a healthy and growing economy will ultimately create prosperity. Roll tape. Im always a believer that the market will continue to go up in the long term. Ive been involved in the market for a long time. I saw the market tumble almost 6,000 or 7,000 points. I know its thousands of points when barack obama was elected. So i saw that occur, too. And i think in the end, markets go up, markets go down, but the fundamentals of this economy and the ability for companies to grow and prosper and for the ability for people to have more in the paycheck, its going to fuel things and in the end in the long term. Market will continue to go up. Liberty mutual stood with me when this guy got a flat tire in the middle of the night. Hold on dad. Liberty did what . Yeah, Liberty Mutual 24hour roadside assistance helped him to fix his flat so he could get home safely. My dad says our insurance doesnt have that. Dont worry i know what a lug wrench is, dad. Is this a lug wrench . Maybe . You can leave worry behind when liberty stands with you™. Liberty stands with you™. Liberty mutual insurance. Thats it. Im calling kohler about their walkin bath. Nah. Not gonna happen. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Call and ask about saving 1000 on your walkin bath, or visit kohlerwalkinbath. Com for more info. Stuart you really got to follow this thing moment to moment. Now were down 21. I just took a short break during the commercial. When i left we were up 80. Now down 46 and falling. Thats what weve seen all day long. Up, down, down, up, down, up, up, down, i mean and then up. Stuart now down 55. Down 46. 24, 300 is the level as we speak. Scott shellady, andy puzder, still with us. Andy, to you first, if i may. Do you see any kind of dark cloud on the economic horizon which would in any way justify a big selloff on the stock market . No, i dont see a dark cloud. I think Interest Rates, if Interest Rates went up substantially, that could have an impact just because people would take money out of the stock market and invest it in interest bearing instruments, i think inflation would have an impact. But, look, the economy is strong, hasnt been this strong in years, so i dont see any huge dark clouds out there that would cause a selloff like this. Stuart okay, Scott Shellady, youre the Interest Rate guy here. Thats what you do, i think, you trade treasury futures, if im not mistaken. Yep. Stuart how high absolutely. Stuart is the yield on the 10year treasury going to go in this current goaround as i call it . Well, thats why we wobbled in the stock market, stuart. I think that 3 could be is absolutely on the cards. And i think we could actually go higher than that. And thats obviously because of the good news that we keep talking about. We can have a stock market go down on good news because lets remind ourselves, we had a stock market rally over the last four, five years on bad news, right . Equities were the only place to go with money. Just because the news is good doesnt automatically portend to the markets and the rally. So we have to wait and see these folks that were betting on no volatility, unleverage themselves, delever themselves from the market and thats going to take a while. Were like a punchdrunk fighter. Were in the middle of concussion protocol, stewart, and need a few days i can remember, many, many, many times over the last decades when the yield on the 10year treasury was way above 3 and didnt get a whopping great big selloff. Why should we get a selloff because were going to 3 . Its just were talking in percentage terms now, not talking as far as a low number of interest. But the percentage move, the velocity is big, the percentage move is different. The dividend players have got competition around, right . They didnt have that before. 3, 3. 25 is a problem if you are a dividend stock. Thats an issue and you dont have to worry about days like today, right . Thats the problem, thats going to cause folks, hey, give them a choice of a different product, thats why we have the wobbles. Remember, just because the news is all good doesnt mean the stock market is going to go up. Weve had five years and the stock market has gone straight up. They can sometimes go in opposite directions of each other. Stuart andy puzder, you told us you were thinking of buying some stuff, some shares today, without giving too much away, would you care to tell us what youre thinking of buying . Broadly industrials would be a good investment. I think the prices have gone down significantly. Theyre reactive to the economy, theyre cyclical stocks. We may have infrastructure coming in, and Infrastructure Spending coming in. It looks like defense spending may go up, boeing, raytheon could do well. Steel could do real well. I still like tech, i like the fact that the profits are strong, as liz mentioned earlier, i like the fact they have a lot of cash on the Balance Sheet, those two are stocks id look at. Plus you have to look at financials, if Interest Rates are going up, you would think that helps the financial stocks. Not as bullish on them but i feel good about industrials and tech. Stuart all right, you are watching an extraordinary show, actually an extraordinary market, up down, down up, extraordinary volatility, andy and scott, thanks for being with us today. Were much obliged to you. Pleasure to be here, thanks, stuart. Stuart hard to keep track of it. Now were up 8. Believe it or not. Almost back to where we started. [laughter] what a ride [laughter]. Stuart a 900point swing just in the first hour and 20 minutes. Extraordinary. In our next hour which is coming up, the white house responds to the selloff. Yes, they will. More varney after this. Stuart i dont know about you, but i want to know more look at that. Thats what happened yesterday afternoon. Thats the whole day. I mean thats not realtime. Stuart no, no, thats yesterday. And thats called volatility. In a moment, youre going to reach midafternoon where it really went crazy. I believe it was all about Program Trading and algorithms. I really dont have hanl on that. But Deirdre Bolton does. Because i have fast fingers, i understand the whole system. Stuart first of all, the panic yesterday afternoon, dropped a thousand points in an hour. It did. 15 minute stomach lurch. Stuart is that Program Trading . Yes, it is. A mix of man and machine, but led by Program Trading. I think that nothing breeding could have been responsible for that 900point drop in ten minutes. That was but i want to highlight that all of these programs are built by people, humans, like us. So essentially the machines just do what we think, the machines just do them faster. Thats is why the programs have been created. Speed. Stuart what the computer does is built into the computer with an algorithm. Its a formula. Stuart once the algorithm is in the computer, you cant change it. And it has a mind of its own and it moves like so. Because have you programmed it for a certain level of specific certain level that says i want to sell here and when that number comes, if its in ten minute, it automatically kicks in and no way to stop it. Most people i speak with say another two days of volatility, a wave to ride out in the next 48 hours as people create new formulas to put in. Stuart that is fascinating. I also think this is Jerome Powells hazing moment. Its your first day on the job yesterday . Here you go. Welcome. Welcome to the world. Stuart deirdre, thank you very much indeed. Good stuff indeed. Its a volatile day, watch out for the program trades. Third hour of varney coming up for you. Anymore, Td Ameritrade lets you trade select securities 24 hours a day, five days a week. Thats amazing. Its a pretty big deal. So i can trade all night long . All night long. Is that Lionel Richie . Lets reopen the market. Mr. Richie, would you ring the 24 5 bell . Sure can, jim. Trade 24 5, only with Td Ameritrade. When it comes to travel, i sweat the details. Late checkout. Downalternative pillows. And of course, price. Tripadvisor helps you book a. Hotel without breaking a sweat. Because we now instantly. Search over 200 booking sites. To find you the lowest price. On the hotel you want. Dont sweat your booking. Tripadvisor. The latest reviews. The lowest prices. Stuart we expected this today and got it. Extreme ups and downs, heavy dose of anxiety and a lot of people looking for bargains. A little perspective, we lost all of the gains of 2018. We still have the gains from 2017. How about the economy, nobody forecasting a recession. Market selloff not pointing toward economic catastrophe. The market is due for a downturn. After all after 15 months of straight up, a pullback was inevitable. It has been a sharp selloff and people are understandably worried. If there is any consolation modern financial history shows big selloffs are reversed eventually. Down 25, 900 point swing in the first hour and a half, the third hour of varney and company about to begin. 11 00 eastern time, where are we now. We are down 63 points, not going to stay long. Blink and it is down another point. Volatility today after yesterdays 1100 point selloff. Come in, the gartman letter which a significant influence on wall street and Charles Payne host of the fabulous show making money with Charles Payne. You say this is just the start of, quote, a substantial bear market. Where is the bottom. The bottom is quite some distance to the downside and we have to Pay Attention to the fact that we are down 1700, 1800, 1900 dow points from the highs. This is more than every hundred point correction and it is the order of the day, and those dips are 300 dow points. And the psychology of the market is changing. Stuart give some advice to our viewers. You are watching this program and you are within five years of retirement and you have a nice sizable stock portfolio. What would your advice be to the average investor . No question i would cut my position by half at this point. It has been a wonderful nine years, lets not doubt that. A wonderful year and a half, i suspect after a wild bear markets begin, bear markets an end and bear markets begin when the news is its best when the environs, in the strongest economic terms, this is happening that way in 73, and in 1980, 81, 2005, 6, and 7. The news is good economically and yet stocks start to move lower as monetary authorities begin their long and involved profit process of removing reserves in the system they had forced into the system previously. We shouldnt be surprised by this was how far down can prices go . 15, 16, 17, 18 would be normal. Stuart that is from the high. Before you leave us we had a couple people on the show who say they agree with you, there is more selling to come, two people in particular said 22,000 would be the bottom for the dow in this go around as i keep calling it. What do you say to that . 22,000 . Probably a stretch on the downside. I learned long ago not to put a number on anything. Where the stocks are going . In the Previous Year i said they keep going hire until a stop. I they keep going lower until they stop. Putting time on it only makes you look foolish in the end. We started something serious, you need to Pay Attention, if you are facing requirement and had a nice several years, going to the sidelines with what you earned is the proper thing to do, no question. Stuart thank you for straightforward advice, we like on this program, no wonder you are so influential, no wonder you are on this program. You are all on it. Tell that to my wife and daughter. Good man, thank you very much. Charles payne is with us. You just heard the argument that we are about to enter a bear market. What they you . Charles i dont see it. I understand what dennis is saying with respect to good news being at a pinnacle or a peek but i we are just now starting to get out of an economic period, in survival mode. It could be very sustainable and build on itself. Employment can get better, wages can get better, corporate earnings could get better. It is folly to guess the top because a lot of people have been watching this rally because they get to the top and assume they pick the bottom when that occurred and never do. Stuart this to you is a nasty downside move wont last, we will bounce back. And an alltime high stuart we will go back to alltime high. Im very confident about that. This a confluence of things going on, get spooked out but yesterday the machines were in control. Lets not forget when we talk machines and computers there is a program by human beings, what they essentially have been able to do is act faster than the people who programs. The dog is 800 to 1600 in the blink of an eye. That has nothing to do with fundamentals or anything and people cant call the broker that fast so i think a lot of that is someone stuart stay there, good stuff. Look who is here, these days, the cohost of outnumbered on the fox news channel, she used to know us back in the day. Just ran down there for you. You for having me. Stuart you used to be a traitor. When you invited me on, sending out my feelers in chicago to minneapolis to denver to figure this out, charles is in line with the selloff. And when you talk about share price discovery, the beauty of the markets. Unprecedented times, runup in prices, since this president took over, the economic power behind it, the price of everything from commodities to us stocks, bonds market, they have fair prices, not easy job but the beauty of how our markets function and you are seeing that at work. Stuart do you see a dark cloud on the horizon, Interest Rates are up, and inflation begin to see a little of it. You are just starting to hear the word inflation . I can tell you what i am hearing, just the words starting to come up whether it is fids b, trade deficit or whatever. You get that shaking out, a lot of latecomers to this rally. You have been reporting on this, a lot of people missed that rally in january but is it a big surprise to see a market that saw such a dramatic runup to have a correction if necessary or even a healthy stock market rise. Is it shocking to see such a sharp correction . Stuart a hard time getting the word in edge wise. I will stop. Stuart you see this as a controlled selloff. But you dont think it is going to go that far. Not seeing any indications or hearing any talk of that. Is that in line . Stuart i will ask the questions. I do miss you today. I am excited. Just came off of two hours. Stuart dont you see a dark cloud on the horizon from inflation and Interest Rates . The fed funds rate were 0 so we had to come up from 0 at some point. Wages are up 2. 9 . We celebrate mediocrity so long in this country that the slightest blip of real growth is scaring the hell out of us in this a sad place to be because to be quite frank with you, wages are going to go higher and people will be happy wages are going higher in price of homes are going up. It is too early. Liz we have to revisit what causes inflation to go up and it is not wage increases, it is Global Demand that sets prices so that was the market story, wages are going up 2. 9 since the recession. When you saw the tenure handle go higher people had to freak out, i dont think it is at 1. 8 stuck for the last eight months. We get a new report for the fed in inflation. Stuart we are down 75, 68 points, up, down, down, all over the place. I am not teasing about that but this is stuart it is exciting even though it is a nasty downside move and a lot of viewers are losing money, nonetheless this is financial history. Theres a reason there are Circuit Breakers and the stock market at 7 , 15 , 20 , because that would be a disorderly selloff or a chaotic selloff. We havent reached that. The market has come so far that 7 look so crazy like one points. That is not what it was a year ago or two years ago but sounds meaningful. It is not the same. People have to put it in perspective. Stuart we have to enter of the 6 ordinary exchange because sandra has to leave us. Thank you for having me. Stuart for coming. Take a microphone off and come back soon. You are so pleasant to me. Stuart you very much. Lets check the market, the price of gold, strangely down 6 at a time of financial turmoil, you might think gold would go up, rising inflation, might think it would go up, 1330 down six month, how about oil, stock market paying attention to the price of oil, 63 and a barrel, as we speak. Next up, we go to the white house. I want to know why the president has not commented on the markets as far. We will be back. Stuart a classic example of volatility. Just before we went to that commercial break market was dead flat. Now after we come back from a two minute break we are down 123 points, that is volatility. Look at this luzader day chart, the movement of the dow us far today. As you can see, we have been all over the place, we open down 500, and volatility. This is not a market for amateurs. I dont think it is. What do you say . Stuart not a market for amateurs to play the trading game. Stuart a lot of people who bought apple as an is the market opened, 163, they will sell it and it will go back down again. That is what is going on. Charles a lot of that trading and a lot of these programs moving the market without any rhyme or reason, i will also say, i saw for the weekend to have going into that, a deliberate attempt to spook investors, to shake out of the market. We had a lot of sessions before last friday where we were down, up, down, up, volatility started picking up in a way that was pretty intriguing. Stuart what does the white house think of the selloff . Come on in, press secretary Rosh Hashanah. What is the official white house response to the selloff . Thanks a lot for having me on. This president and this white house are focused on longterm economic fundamentalists which are very strong. We have a strong labor market, and unemployment remains low, 1. 4 , wages are rising for the first time in nearly a decade at a serious level, corporate earnings are strong and the president s taxcut plan provides fuel for the economy incentivizing Business Investment in the United States, and middleclass tax relief. We are focused on the longterm economic fundamentals. Stuart yesterday as the president was speaking in ohio, as he was speaking the dow tumbled 1000 points an hour. The president did not refer directly to the stock market. Do you think he will refer at some point in the near future to the Market Action . He may. The market has been fluctuating for several days, markets have been opened. Our focus is on the longterm fundamentals, a strong labor market, corporate earnings, tax cuts and jobs act the president signed into law which has led to hundreds of Companies Making investments in the United States, giving worker bonuses, raising wages etc. We are happy with where the economy is, we understand there is market volatility but the longterm economic fundamentals are very strong and continue to be strong. Stuart your political opponents are trying to paint donald trump with excel off brush, trying to link him, almost blame him for the selloff. What say you . The market as a whole is up 25 since the president took office, north of 6000 points. We are happy to talk about the president s economic record including the stock market and also talk about healthy longterm fundamentals i just pointed to. The labor market is very strong, corporate earnings are very strong and the taxcut bill will continue to incentivize growth and investment in the United States. We are very happy with the economic record and happy to have a debate with political opponents. Stuart as the market was selling off big time yesterday the president used in Strong Language talking about treasonous behavior of democrats that did not stand for the state of the Union Message and i believe later on he called adam schiff, the Intelligence Committee, a liar. Do you think it is appropriate for the president of the United States to be using that kind of language at a moment like this . Of this president is unvarnished, speaking in just in that moment, he called it like he sees it and with respect to congressman schiff, congressman schiff has been part of the house Intelligence Committee investigation in which he and other members of House Minority have been leaking confidential information that they received voluntarily from the white house in a way to politically embarrass us, the president calling him out is entirely appropriate. Stuart i have to bring this to your attention. There is a report in new York Magazine that says during the campaign you referred to donald trump as a deplorable and refer to the release of the access hollywood tapes as some justice. I dont believe you were part of the Trump Campaign at that time but did you say those things . I was not part of the campaign. Thank you for bringing that up. This president ran in a crowded field with 17 opponents in the republican primary, strong field, and he won because he had the strongest message and show the country why he deserve to be president of the United States, won the American People over, won be over in the process, im proud to come to this building everything on day and fight tirelessly for this president ed, doing so many things to keep this country safe, keep this economy going and make life easier for every american. Im proud of everything i can do to help this agenda. Stuart thank you very much, we appreciate it, very important day. Now we are down 52 points, hard to track of this. Im looking at a chart of dow losers, the biggest losers of the dow 30, walt disney, walmart down 29, at 108 a week ago and 3m, the big losers on the dow. Lets regroup, charles is with me, so ill is. Any comment on what Rosh Hashanah just had to say . Ashley he told the company line which we expect and is right about the record of the market, up significantly since donald trump became president. I dont think the president should be weighing in on the market on a daily basis during a selloff, leave it alone. Charles because he talked about it a lot he should weigh in on it now but he should not abandon, the chief excitement officer. The elites havent talked about the market rally because they didnt want trump to get credit and not for the average american empowering themselves, does when the average person to own caterpillar or find a way to send the kids to college. I really believe donald trump by talking about owning Great American companies, Lockheed Martin is letting the American Public know that this is not the elites. And the strong policies, he will be fine. A year from now, two years from now, when he is running for reelection, he will dow the stock market is one of the reasons we were elected. Charles who is cracking down now . The rhetoric around the world has gotten much sharper, Senate Banking committee saying there is lack of regulation, worldwide regulators stepping in about crypto currency. Stuart lets go to the floor of the Stock Exchange, Teddy Weisberg joining us. I have not seen you in a long long time. You are the president and founder of seaport securities. You are almost as old as i am. I get older, you get younger. Stuart you have obviously seen days like this before, they have occurred before. I put it to you that in all previous sharp downturn the market has come back relatively quickly to where it was before the downturn. The won the same thing now . I if you look at the market from a technical point of view, when you get corrections from a major trend, it could be down or up. In this case up. We have been in a very strong market since the election, if not going back before the election. The corrections are sharp, steep him a quick and very painful and this has all the earmarks of a technical correction and nothing else. Unfortunately they rang the bell so a lot of people trapped, a lot of people got complacent, we looked at the order blowups and i would say 3 to 1 on the buy side today, had very few panic phone calls. On balance i think it creates an interesting opportunity but we dont know where the bottom of our but i think we are close to a turn, positive turn. Stuart we keep hearing criticism that algorithm, program, the computers took over yesterday afternoon when we dropped one points in an hour. What do you say . I would agree with that. It is eight we 10 years since the markets really changed and we have seen more algorithmic and Computer Trading but yesterday we look at maybe two or 300 stocks on our screens, everyone with one exception was red and every stock was down from 3 to 5 . That is not normal trading. That is computerdriven trading and basically, it tends to exaggerate the volatility. And the volatility quite frankly does create opportunity. Stuart Teddy Weisberg the voice of reason. Where are we now. Minute to minute, we are down 125 points. Now we are down 114. News from the white house, infrastructure plan is about to be announced, coming up next, bigtime bear. Harry dent is with us. Big stuff coming. Think your Large Cap Equity Fund has exposure to Energy Infrastructure mlps . Think again. Its 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 Funds Investment objectives, risks, charges, and expenses. Read the prospectus carefully at alpsfunds. Com amlp its technology was engineered beeping . While its design was meant to be seen. Experience the new 2018 lexus nx, and the nx hybrid. Experience amazing, at your lexus dealer. Stuart got to watch this every second. Now we are down 120 points. If youre just joining us this is a day of extraordinary market volatility. It continues. Joining us for the half hour, Charles Payne staying with me, moodys managing director staying with for the next half hour and on the phone, harry dent, executive editor for the economy and markets newsletter. Is this the start of the big selloff you have been predicting . I do think so. This is not a normal correction or normal rally. We have been telling our subscribers for good while now we are going up very strongly, more parabolic we in what is called the rising wedge. You can draw a trend line through the top and bottom and in the late stage what makes it even more likely to be a significant top is you break through the top. Stocks like to say im not in a wedge or going down, that is when an aggressive investor would sell and we told people that, that is the first cell signal but the real sell signal says this trend is over when you break through the bottom trendline. Nasdaq is down, s p 500 this morning, we told our subscribers we should get a bounce here. Now we got to watch the bounce. The ideal scenario would go about halfway back in this rally and get back to the top trendline blues not the parabolic top and then we go back down. Here is the problem. Stuart i dont want to confuse anybody. You are saying this current selloff, the market we are now in will retrace half of the game we have seen since the election. The gain was 40 , you are saying we are going to go down 20 . That is not what im saying. We are going to retrace half of the recent crash which was 10 on average so it would be up 5 . What i have also been saying, if we do break this important trend which again we held this morning and i expected that. If we break this, the crash should become 40 , i have done Extensive Research on every major stock bubble, when they burst, the first crash is 40 and 21 2 to 3 months. If we break this point and cannot hold it any time in the next days or weeks, we could be down to 14,000 on the dow by late april. This is not something down. Sandra thank you very much. Charles payne, comment . Charles next time we bounce through the rally or short into the rally, trend lines to the downside. It is all technical analysis. Technicals help you understand the emotions of investors but again longterm investors, folks watching the shows 401 k s, it would be a major mistake to bail on this market considering the economic winds we have at our back. Stuart the man says if we break through a certain trend line, baseline, we will go down. Charles cell into that, he thinks the next leg down charles teen 14,000 by the end of april. That is harry dent, Charles Payne, thanks for the comment. And economist you tell me, what dark cloud is on the economic horizon that could in any way account for what we are seeing now . Two risk factors, Interest Rates rise too i and think interested in spending on housing, the other problem is companies overestimate their pricing power. They increase product prices and low and behold consumers cant afford i prices, otherwise the outlook is pretty good. Charles inflation is rising and Interest Rates are rising and that is the threat to the stock market. That would be the threat but we may be overestimating the extent to which inflation rises. Liz brought up something very important earlier and that is there is really no strong hard correlation between wage growth and inflation growth. Let me go to the 1990s, 19921997 average hourly Earnings Growth went from 2 to 4 but at the same time, core inflation taken out food and energy, that fell roughly 3 to 1. 5 . The correlation between wages and core inflation is week, 0. 2. I wouldnt bet on their relationship at all. Stuart thank you very much indeed. Gerri willis is out and about in new york city talking to people about the market selloff. What do you have for us, gerri . Gerri we are out he with a tech investor who got out a couple years ago but way back in 2008 after the crash, picked up lots of bargains and now he is licking his chops. What do you make of the selloff and what do you expect . Yesterdays a lot is driven on the fact that the consumer feel scared. The best news for the consumer is no news. Anytime you have a state of the Union Address people always sell like crazy because they are going to change, devaluing Companies Whose Business Models have not changed at all since the prior day, a great time to buy and find new companies and make sure prices are heading lower and by up, no reason to sell anything right now if you didnt have a reason a few days ago, nothing has changed whatsoever. Gerri lets look at where you are looking for value. Are you scouring the market, the last move in the market, how does that feel . I feel okay with. I took a good reward when things heated up from the crash in 2008, getting an applet 117. And to lose. And go back to my advice, the market taking a beating on Good Companies and turn off the tv and go invest. And get back in. Stuart tell amanda go away, he said turn off your tv. He is a good man. He doesnt want to hear any negativity. He is upbeat and positive. Stuart give him my card. Stuart okay. And lets check in now. On the righthand corner of the screen, what the dow is doing, from radio listers heres what is doing, down 148 points and this moves around rapidly. In the state of two minutes you can have 100 point move for the Dow Jones Industrial average. Larry elder is with us, nationally syndicated talkshow host. You were on the radio yesterday afternoon right as that plunge was taking place. What were your listeners saying . We were talking more or less about the memo, not the stock market plunge. I brought it up, do not take a lot of phone calls on it but i agree with a gentleman except for the part about turning off your television. Bet on america longterm. These ups and downs are going to happen. I dont know i dont know the longterm trend of america is up, why people around the country want to come here and a stable country. Orderly transition of power, rule of law, relatively uninterested compared to other companies and a place to be for young people, dont get scared because of one or two day dip. Longterm america is up. If you believe in yourself believe in america and invest in yourself and invest in america and be just fine. Stuart what is wrong with this . Supposing you are older within five years of retirement, what is wrong with selling half of the stock on which you made a nice gain. Walking away with your money intact and sleep well at night because you dont want risk when you are close to retirement, what is wrong with doing that . Nothing depending on your age. Young people in the 20s and 30s, almost 40 years. There is 0 reason for you not to be in the stock market. I would argue that you are hurting yourself, committing almost financial suicide by not investing in the stock market. You have to alter your investment portfolio, you are not living as long, not working or earning money, have to just sit down. In your 20s and 30s people live below your means, 10 of your income, pay yourself first, and go to sleep. And dont panic over these 1day dips up and down. Stuart a clock in a thunderstorm, never heard that before, must be southern california. When you go on the air with your radio show today will you take calls on the market . If so, what are you going to say . I will say what i told young marines. My dad is a marine, a congressional gold medal, and dana rohrbach arranged for a ceremony, one of the bases in california. I talked to a lot of young marines, how many have an investment portfolio . Many of them didnt know what i was talking about and i advised them to live below their means, take 10 of their money and put in diversified portfolio, you invest in. 30 years from now you call me up and say thank you so much and i will still be around so that is my advice for younger people, what i tell people on the air. A foreign buffet said in the short run the market is a voting machine and in the long run the market is a weighing machine, longterm. Stuart in the long run we all die. You very much, i will be listening this afternoon. The right price of oil down 63 a barrel. The price of gold is down despite the turmoil, at 1333. No telling where this market goes today or where it will close. We are dealing with someone who watches the last hour of the market for us, real expert back in a second. They really appreciate the military family, and it really shows. Weve got auto insurance, homeowners insurance. Had an accident with a vehicle, i actually called usaa before we called the police. Usaa was there handson very quick very prompt. I feel like were being handled as people that actually have a genuine need. Were the webber family and we are usaa members for life. Usaa, get your insurance quote today. Nicole i am nicole pedallides with your foxbusiness brief, check on the wild market we have been seeing on a roller coaster ride on wall street. Out of the opening bell we were down 567 points, moved higher by more than 360, we had a huge swing, we are down 108 points on the Dow Jones Industrial average, some of the winners on the dow include home depot, caterpillar and general electric. On the downside, the layers, we are seeing names under pressure and commodities under pressure. You can see your letters including exxon mobil and cocacola on the downside. Big picture, the vicks at 4020, just made a move back higher after gaining 160 points yesterday. Can do more to lower. 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Taking trulicity with a sulfonylurea or insulin increases your risk for low blood sugar. Common side effects include nausea, diarrhea, vomiting, decreased appetite, and indigestion. Some side effects can lead to dehydration, which may worsen kidney problems. To help lower my a1c i choose trulicity to activate my within. Ask your doctor if onceweekly trulicity is right for you. Stuart yesterday mid afternoon the dow industrial dropped one points in an hour. Liz claman was covering the market at the time. I think it was machine driven. What say you . Liz i think it is a Retail Investor panicking, now i agree with you, it was machine driven. Who knows affected rear its ugly head again. At 3 00 pm eastern we were down 600 points. We literally blinked at 311. 575 points, and we were up almost as if we touched a very hot stove. Today it is not as dramatic, almost as if that spark plug is blown but who knows if it could happen again in the final hour. You can see with the dow intraday, two day charts, that it appears, stretching it out, what do you see . A trend downward right now. The s p 500, lower by 15 points, russell is down 10, i got onto the floor of the Stock Exchange, taxi drivers on the street corner, Retail Investor is concerned, the bank of America Merrill lynch warned they had never seen a dynamic inflow with stock funds. Us equity funds and there was a signal that mend everyone who had been waiting and biting their nails said let me get in. That is the little investor showing they were too scared in the beginning, the socalled smart money may have been leaving, those algorithmic trades next ordinarily important to note, they dont have a heart, they dont have a soul, they just have a button and when they see levels that they have been preprogram to sell at an trigger that that is your trigger. Stuart you very much on the floor, appreciate that. Where are we now . Dont blink, and now we are up 90 points. 91, 95, etc. That is the modus operandi of this day although dare i say things are beginning to call a little. Am i going overboard . The swings are not as great as they were in the first hour, 567 points. Ashley that is where we first opened. Stuart as i come back on the air, up and down all over the place, we are pretty stable at this moment in time. Liz it has been a 900 point swing. Stuart we settled a little since then. Charles. Charles a coiled spring, anxiety is there. The last hour of trading is absolutely mindboggling. We will retest one of these numbers, today slow or todays i. Stuart the last hour of business is very important, that is when the big guys square their books and trades kick in. Charles that is where you get decisive action. Stuart can we right now right down the bull market obituary, is the bull market over, we were 6 or 7 months away from the most historic number one running bull market of all time. Absolutely not. Corporate credit market, jump on prices, relatively steady. Corporate credit market isnt showing the same panic, sense of fear we see in the equity market. And the us corporations, and 90 of the time, yeartoyear decline by the bankruptcy rate or default rate, equity prices were higher on a yeartoyear basis. I dont the rally is over. Stuart you dont the rally is over, we will make it come back and end the year higher than we are now. I we have already seen the high for this we 10 year treasury in 2018. This will eventually go lower, 2. 6 , that is going to help steady the equity market. If i am right on that one, forget about it. Stuart i do believe looking at the big s p losers at the moment, not the bigname companies but they are big losers, i got to tell you that things may be calming but current environment calming a little. 5 minutes ago we were down 70, now we are down 43, that is not a huge move given the state of the market, we are coming back. Charles earnings, General Motors reported earnings, phenomenal numbers, record margin. Whenever we get a chance to glimpse what was really happening, forget about the machines, forget the hysteria, forget the finger pointing. When we look at hardcore evidence about what is happening in this economy the news is fantastic. Liz gm has restricted the inventory taking a hit, but this is a Global Growth story. We saw the same story with boeing. Stuart a Global Growth story. Ashley the story the economy is doing so well the fed continues with rate hikes. That is where the psychology goes with this market. The odds are changing, they are seeing two rate hikes, if any Interest Rates rose too quickly too high so they have to come down a little bit. You have to make allowances for the fact the tax cuts wont make America Great overnight. Is going to take time. A lot of work needs to be done. Stuart you get it all including a dow down 20 points as we speak but we will be back, yes we will. Whoooo. 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Stuart we took a commercial break, the dow went up 50 points and now it is up 9. Jason rockman is on the phone with us. Have you been doing some bargainhunting specifically in the facebook . Last time you were on the show you like that. My liking of facebook a little clicking the like button. People are going to continue to spend millions and millions of dollars on the facebook platform to advertise, the best advertising platform in the world. You can dollar cost average facebook safely, you may not see immediate returns over the next 14 days but still longerterm investor. Stuart on the big picture, how far down do we go . How far down do we go . Honestly i have a hard time seeing it going that much lower. My understanding of how i look at the market, we may still see some fallout from volatility funds that still have to balance their portfolio. I wouldnt be shocked if we go down another couple , but another 6 , 7 , 8 . Stuart bit coin is down well below seventh dollars a coin now and that selloff had any impact on the stock market . Absolutely. In the market, when it is a risk off type of environment, that tends to have a contagious effect and bit coin obviously went down before the stock market, but there were so many things aligning, the stock market, price is not too high but pretty high. Bit coin is actually a goodbye right now. Stuart thanks for being on the show, we appreciate that. We are up 24 points, 28, 27 points on his our and there will be more varney after this. Stuart the dow is now at 24,300. Round the block, where do we close, liz . If i knew i would be on a beach in bermuda. Stuart i repeat where does the dow close,. Liz 6 here. Ashley down slightly. Here is tomorrows winning lottery numbers. Liz thank you, ashley. Stuart down slightly where it is right now . Ashley yes. Stuart that is ashley. Charles payne the expert . I think 24,800. Stuart you think go up 500 points into the close . Whoa, brave man. 24,375. A little bit higher. Stuart lets see who is right tomorrow. Neil, it is yours now. Neil do you think, stuart we have too many crazy Financial Products today . If the jury is not concluded on this, besides all the mutual fund and stocks and etfs, al these volatility measures, cbo fear index. Think about the gobbledygook from velocity shares, then the proshares, short vix, shortterm futures etf, these are vehicles to trade on other vehicles, i sometimes wonder if this idea, sort of secure people from losing money in the markets