Terrorist. They also say one persons been arrested, and police are, quote, treating him as a terrorist. And now the search is on for anyone else who may have helped carry out the terror attack. We need to tell you that theres still a very heavy Police Presence on the street where tourists often visit in the summer months, and as you look at the markets, you can see the news flow pushing stocks down. The horror, horrific terror attack in barcelona immediately sent stocks into a freefall. The dow begun selling off at 11 15 a. M. Ian time when the news first hit the wire. All dow 30 names are in the red. 1 30 p. M. , the dow dropped 180 points after the Barcelona Police confirmed it was potentially a terrorist attack. And right now while stocks are off session lows, the market is still digesting the breaking headlines that are coming in almost second by second. The dow is on track for its largest decline in a week, and all of the s p 500 sectors are on pace to close lower. The dow heading back down to session lows, it is now down 192 points. S p down 27, the nasdaq getting hammeredded, down 1. 5 , down 95 points. Investors are immediately rushing to the safety of government bonds. Lets look at the yield on the tenyear treasury right now. It is at 2. 2 . That yield moves in the opposite direction of the price of the treasury, so as it falls a second day on track for its lowest close this week, the price of treasuries is going up. U. S. Dollar, actually, it is part of this flight to quality. Oddly, it is hitting a session low against the japanese yen. Folks, lock at the fear look at the fear just torching through this market. The volatility index jumping 25. 75 . By the way, it continues to go higher and higher. I want to say around noon it was up 13 , then it was up 17, now up 25 as geopolitical fears just dive right back into this market. We do have this, Spanish Police releasing the photo of the first suspect named in the barcelona attack. Ashley webster has been looking at that photo, finding out who he was, what motivated him. Ashley, there is word that he had posted antisemitic videos on the web in the past. Reporter that is what we are just getting now from spanish media who are doing, obviously, background checks on in this individual, a man in his 20s of moroccan origin. Police say he is the man that they believe rented the van that was used in the attack. However, they have not taken that one step further and said he was the actual driver, only that he was the man who rented the van. As you say, there is belief that he may originally have come from march say in marseilles in france, now living in spain but of moroccan descent. They show on facebook pictures of this individual showing him posing in front of a mirror, that profile has since been taken down. But there are, certainly, questions being asked about this individual. The other, bigger question, liz, is how many other attackers are out there . One media report in spain, in barcelona saying another suspect has been killed in a shootout with police. No confirmation of that at all from Spanish Police. We do know that the center of barcelona is in shutdown. In fact, police were evacuating people as they continue what they call a manhunt going door to door to see if any more suspects may be in the area. As you mentioned, this particular stretch of pedestrian mall here is a key tourist destination. Barcelona itself is immensely popular with europeans as a place to go, have fun and hang out on beach. And in this month of august, it is especially busy because many europeans like to the take their vacation in august and barcelona, that gets 11 million visitors a year, is very much a popular destination. If a terrorist wanted to cause as much carnage as possible, this is certainly one of those what they call soft targets. Again, the latest we know is 13 dead, at least 50 injured. Of those injured, at least ten are very seriously injured. We have one person as we know in custody, the question is are there others out there, and that is a what the Spanish Police are trying to find out now. Liz okay. Ashley, i want to give you this, were about to have a Police Press Conference on in this situation. The catalon president is going to be speaking. Keep up these pictures. I do want to let people know that a man named avi meyer, the israeli spokesperson for the idf which, of course, is the military in israel, he is now reporting that facebook has taken down the barcelona attackers site on facebook. And he had been posting a bunch of youtube videos, hate on about jewish people, antisemitic videos. It appears his site is now down. Were going to try and confirm that, but i can tell you that avi is also reporting from israel that the van crashed right in front of a kosher restaurant in barcelona, in that area. So as we watch that, let us know, ashley, if you get anything more. We appreciate it. And we do have the dow now down 190 points, a second ago it was down 200. The nasdaq down 97, thats a 15 cut there. And you can see a 1. 5 cut. This is a broad based selloff at the moment where its hard to find any green on the screen except for the fear index, as we said, the volatility index. I want to bring in fox news strategic analyst Lieutenant Colonel ralph peters. Sir, i know youve been talking to sources. What are they telling us . Well, the best source right now is actually the spanish media, liz, the intelligence agencies. Youve got the report that theyve identified, arrested a suspect, 27 or 28 years old, born in morocco. The key thing about him in addition to his antisemitic postings, etc. , is he was not a my grant he didnt my grant. He didnt sneak into spain. He was a legal resident according to the main madrid paper [inaudible] excuse me, liz . Liz we see a News Conference going on right now. Brad, can you tell me if its in english so we can pop this up . Okay, we do not have the audio yet, i just wanted, ralph, to confirm that so we dont step on some Important Information that may be going out. Yeah, absolutely. Liz it appears the new way of islamic terrorists and sympathizers is to weaponize vehicles. We saw this in london, in nice, and theres huge fear is this the new weapon of choice, and does it mean these terrorists are being squeezed because the securitys gotten good enough that they keep bombmakeing materials away from these guys . Well, yes. The good news is its harder to develop a complex plot because our intelligence and police work is pretty good. But theyve mastered the art of using our Everyday Tools of life, automobiles, trucks, butcher, kitchen knives against us. And it is virtually impossible to stop all attacks. Good police work, good intelligence can stop some, but some will get through. And there are interesting patterns here, liz. Obviously, weve seen these attacks on tourist sites over and over again in nice and the promenade, paris, the champselysees, Westminster Bridge in london, now in barcelona which is really the equivalent of, for tourists, of broadway or liz times square. Right. Its crowded. And obviously, theyre trying to hurt the tourist industries. And because its a place where people congregate. But i think a lot of people miss the fact these are also be perfect targets if you want to kill a lot of people from Different Countries liz ralph, hold on. The catalan head is now saying 80, 80 people, have been hospitalized and there are 12 dead. This is what they have up until this point. Go on, im sorry, i didnt mean to interrupt you. No, no, its very important to catch what the catalonian governments saying. Its going to be interesting to see what the government there and in madrid has to say about this, because the spanish, many of these spaniards have been deluding themselves. They believe they have what they call [speaking in native tongue] , an idea that in spain its a special case because of their special history, and muslims and jews and christian, spaniards, moroccan can all get along. It goes back to an inaccurate interpretation of the middle ageses of the idea that under moorish rule, the left has pushed this agenda that christians and jews were treated well, etc. In fact, it was horrible liz yeah. The spanish [laughter] the point is, though, that this is what people convince themselves of, that they have this special relationship with the islamic world. And this attack really blows that up. Liz yeah. Who forgets the diaspora of the spanish inquisition . The spanish left. Liz i guess reversion to the mean in the most cases is lets hate the jews. Who even knows why that is anymore. We do have to look at that and see be like facebook, for example. Its zuckerberg, it is twitter, its google that have finally been pushed to get rid of or shut down some of these hate sites. In fact, one of the Top Companies just last night said, were done. This is a company, i dont know if you know, ralph, theyre pretty much the iron dome over any domain sites yeah. Liz so that it protects them from hackers. They take a sort of switzerland approach here, you pay us, well protect you. They are no longer protecting daily stormer. That ceo, matthew prince, is going to be joining us first on fox business in just a moment. Please tell me now what we do here. You mentioned times square. Theres nobody better than special ops nypd when it comes to cities. They have been so wonderful in protecting us, but there are barriers everywhere. Is this what weve come to . Yes, it is what weve come to. And there is no easy solution. And, you know, the solutions not to ban all immigration, obviously, not a police state. This is, i hate to say this, liz, but it is something we now in this day and age have to learn to live with. And fortunately in the United States, we dont face nearly the threat they do in europe because, by and large, you know, immigrants here whether theyre muslim or anybody else, theres still an american dream. You can become an american through hard work and diligence. But theres no, theres no spanish dream or german dream or french dream for immigrants. Liz right. So they wind up attracting those to who just want welfare or economic benefits, and theyre living in these ghettos. The locals dont want them, they dont want to integrate. And so thank god we hiv in this country, because we live in this country, because were way ahead of everybody else. Liz god bless america, and its just disgusting what these people have been doing to good, honest citizens. Ralph, they now say two people are in custody, this from the catalonian government. Two people in custody. With the closing bell ringing in 48 minute, i wanted to let you know that Vice President pence is going to be speaking at the bottom of the hour, in about 17 or 18 minutes. Of we are going to bring we are going to bring you that. No doubt, he will be addressing the horrific news in the barcelona terror attack. And we will also head to the floor of the New York Stock Exchange. When all 30 dow stocks are in the red for, clearly, one certain reason, were going to talk to our cm etraders for reaction along with the nys etraders about the markets dramatic drop and how its still vulnerable to attacks like this. Countdown is coming right back, please stay with us. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Antrack your pack. 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We have just had spanish authorities from catalan near barcelona con to firm that two, two suspects confirm that two suspects are now in custody for having driven a van right into the most crowded area of barcelona. And we now have confirmed report that is 12 are dead, 80 have been hospitalized. 80 have been hospitalized. You can see the markets reacting. We are now hitting brand new session lows right now. Dow is now down 207 points. Its still under a percent being cut, but when you look at the nasdaq down 105 points, s p down 1. 25 , russell down 1. 25 , these are significants losses that we are watching as this terror attack in barcelona began to unfold right around 11 30 a. M. Eastern time. The dow, by the way, were hearing is on pace for the biggest drop since may, and we can take a look at some of the other movers on wall street with, cisco, walmart the biggest drag, collectively shaving 22 points from the blue chip index. Cisco, by the way, falling a after the Worlds Largest network and gear maker missed estimates. Sis owe down about 4. 5 cisco down 4. 5 right now. Lets move on from walmart. I want to go to the floor of the New York Stock Exchange and the floor of the cme. Teddy, were now seeing something called the hindenburg to omen. This is a term used about the markets that indicates, foreshadows a technical position where it sometimes foreshadows a coming crash, is that correct . Where there are more 52week lows than highs right now, and this not just over the past couple of days, but more so today. Well, liz, actually this has been going on for weeks. The market internals have been deteriorating for weeks, and for whatever reasons, nobody really wanted to focus on it. And it was preceded by a major down move in the dow transports. And that goes back three or four weeks, you know . It doesnt turn much to turn theres only two emotions here, fear and greed, and it doesnt fake much for the greed to turn to take too much for the greed to turn to fear. You have a market that is basically up almost 4,000 points from the election. Clearly, theres reasons out there whether its geopolitical or internal, you know, politics here in the country. I dont think thats really the issue. Theres been a lot of deterioration behind the scenes, and in the past these selloffs have been buying opportunities. So one negative today in terms of that is that the selloff is rather quite orderly which means its across the board. And clearly, there are people taking assets off the table. Liz okay. Right now the i dow has gone down 220 points. That is pretty much a full percent to the downside. When we had started earlier, ira, we hadnt been as low as we are right now. So in this final 41 minutes of trade, what do you expect to see . And, you know, would you advise investors to sit tight or start to get out of this difficult maelstrom that weve seen over the past 48 hours for several reasons, not just in barcelona, but Political Drama here . Yeah. That is the issue. Do you lighten up and get your cash ready for a buying opportunity down the road . And i think that would have been the wise thing partially. You certainly dont bail on everything. The economics havent turned that bad, but as teddy said and i agree, we have not had a big correction in, it seems, forever. And the market has proven itself. Each time that it drops, its a buying opportunity. And i have to stay on record with that. Each drop is still a buying opportunity. Yes, the terrorism, yes, the white house has created a situation where investors threw their hands up and said, okay, maybe it is time i take money off the table. But were also at august 17th, the end of the summer. A lot of traders dont have their mind on the market. Its the final days. Liz i understand. Okay. Finally, phil, i dont think maybe its appropriate to talk about oil right now. It is up slightly, but i need your perspective on how the markets feel to you, a longtime trader. And if they do feel very, very insecure at the moment beyond whats happened today and, of course, we do understand everybody i want all our viewers to hear this, we do understand that at the end of all of this, human lives have been lost. We do not forget that. As a business network, we do reflect what that kind of story does to peoples investments and money and protection. Go ahead. Yeah. And i think that is the story more than anything. And even the Market Reaction and i will say one thing. You know, weve been through a lot of terrorist incidents in the last few months, the last few years. In this market today, i think it felt it more than it has in a long time. And i dont know what the reason is, you know . It seems like before we had these terror attacks, nobody seemed to care anymore. You know, the market would have a little hiccup. This time does feel different. Maybe its a combination of the terror attack, the uncertainty in washington, maybe its the light volume as the other traders said. But obviously, i think its cause for pause and concern. Liz okay. And i wouldnt be surprised if it pulls back more. Liz good to see all of you, sorry its under these circumstances. Right now all indexes lower, all dow 30 stocks lower. Dow is down 218. Were coming right back with the ceo known of known as the fort knox of infrastructure shutting down the daily stormer nazi web site. Today, were out here with some big news about type 2 diabetes. You have type 2 diabetes, right . Yes. So let me ask you this. How does diabetes affect your heart . It doesnt, does it . Actually, it does. Type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. 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Other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Tell your doctor about all the medicines you take and if you have any medical conditions. So now that you know all that, what do you think . That its time to think about jardiance. Ask your doctor about jardiance. And get to the heart of what matters. The u. S. Needs to develop more renewable and Clean Energy Resources because there are limits to the amount of fossil fuels that we can burn. Since 1925, we have depended on diesel generators, burning approximately a million gallons of diesel fuel a year. Were going through an energy revolution. Our mission is to make offshore wind one of the principle new sources of energy. Not every bank is willing to get involved in a first of its kind project. Citi really stepped up when we needed them. Citi saw the promise of clean energy and they worked really closely with us, financing the first offshore wind farm in the United States. The wind farm will lower power prices. Were polluting the air less. Businesses and homes can rely on a steady source of power. Block island wind farm is a catalyst this will be the first of many offshore wind farms in the u. S. Liz as ive told you at the top of the show, things are moving fast and furiously. This man on your screen, dress oak beer, is the top suspect, and the numbers have just changed. According to spanish authorities 90 people wounded, 90 just a couple of minutes ago it was 80, now its 90 15 severely, 12 have been killed after that man allegedly drove his van into one of the most crowded streets in barcelona. He apparently had posted antisemitic rants and videos on the internet and on his facebook page. We understand facebook has now taken down his page. This comes following just a week after of the violent neonazi White Supremacists protesting in charlottesville ignited a firestorm of debate over free speech, privacy and hate groups and what internet and Security Companies to about that. The pressure piled so high that Silicon Valley tech giant accepted up to the plate taking a proactive stance in the raging battle against this. The guy who perhaps has the most power whose company is known as the fort knox of internet Infrastructure Companies that renders web sites impenetrable to hackers, well, lets just say if his company is considered the internet iron dome, he just yanked that dome off the neonazi top web site, daily stormer. He pulled the plug on the daily stormer. He kicked them off the internet. Not directly, but indirectly. But we have the man behind that decision joining us now in a fox business exclusive. Cloud flair cofounder and ceo matthew prince. Matthew, you have never in the history of your Company Terminated any company or any sites account, but you did with the daily stormer. What happened here . Well, thats not exactly accurate. We have terminated customers when theres been legal process, Law Enforcement, regulators that have made that call. But cloud flairs a network, and one of the core questions we have is whether we should be the one exercising what is effectively editorial judgment on what content and cannot be on the internet. In the case of the daily stormer, id say these guys had been on probation with us for several months. Ill really started when it really started when they were actively harassing people that were filing abuse complaints against them. And then, you know, yesterday i just had had enough when they were out on forums talking about how the people at cloudflare actually supported what they believed in. The reality is what they believe in, i think and the entire team thinks, is repugnant. And so that was the point at which we said enough was enough. But i think the important question is, is that a call that someone like me or a Mark Zuckerberg or a jeff bezos should be able to make as really not politically sanctioned individuals, but ceos of Tech Companies who just happen to find themselves at the top of the organizations that make the internet work. Liz okay. Again, you reserve the right under any circumstance to accept or reject any customer. But when you drop them, it doesnt go away necessarily. But the fact that it is they are now nakedded to hackers naked to hackers, that immediately affected daily stormer. What do you know about that site now . Has it been does it have denial of service, has it been hacked . You know, i think the reality of the internet is such that if youre going to try to put content online and that content is controversial in any way whether thats the daily stormer which is, you know, extremely controversial, but even Small Businesses that are in a dispute with other Small Businesses we see, it is very difficult to survive online unless you have a network that is at the scale of Something Like a cloudflare or a google or a facebook. And so, you know, shortly after we dropped service, the daily stormer, they came under a fairly significant attack, and i dont believe theyre currently reachable. Liz well, it was pretty obvious though, and if im hearing you correctly, it was the fact that the daily stormer indicated that you guys were secret supporters of them. On our screen right now is a live picture from barcelona where i know youve already heard the horrific news that some 13 people 12 have been kill for now, although the wall street journals now saying 13. 90 wounded. It appears, matthew, that the top suspect had posted antisemitic postings on all kinds of areas and things like that. Last november you came on this show when it appears that isis sympathizers were using certain chat rooms and web sites that you actually had as clients. And unless subpoenaed, you werent going to kick them off. Why did it take daily stormer and charlottesville, virginia, to bring you to this decision and not isis, whos killed many, many people . Absolutely. And, you know, i think the first and foremost thing is that what happened in barcelona today is an absolute tragedy, and, you know, we have if theres any part that anyone who was involved posted anywhere on our network, then we will work with Law Enforcement in order to make sure that they are wrought to justice brought to justice. I think that theres a debate that we have to have of where is the right place for the internet to be regulated and for content to be controlled. If you look, for example, at a company like google, google controls a number of Different Levels of the internet stack. And it would be strange, for instance, if your browser wouldnt allow you to go to certain content because it was bad content. On the other hand, google chose to withdraw services from their Registrar Service for the daily stormer. I think that we need to think about, you know, is it the right thing for a company like cloudflare to be making a decision on should this content or that content be online. And that decision should be made, you know, both with racist content like daily stormer and should also be made with potentially terrorist content like isis. Liz yeah. And thats a debate that we have to have. And i think that the answer is going to be different for a company like facebook or youtube than it will be for cloudflare, than it will be for level three or cisco. All of us potentially could regulate the internet, the question is who should. Liz exactly. Its a very tough question. Matthew, we appreciate you coming on. Your company has 35 market share which is absolutely huge, and i guess youve decided were not going to be switzerland and neutral here. Youve kicked the daily storm off. Thank you for coming on fox business exes collusively. We appreciate it. Exclusively. Thank, liz. Liz closing bell is 27 minutes away. Vice president pence is about to speak. He is overseas, and he is expected to come before the cameras. We are going to take his remarks live. Hes actually now in panama city. He will address the vicious terrorist attack that has now left 12 people dead, 90 others injured, 15 of them very seriously. And the market is covered in red. Dow is now down 219 points, the nasdaq down 102. Were coming right back. Stay with us. Potsch you each drive a ford pickup, right . in unison russ, leland, gary yes. Gary i have a ford f150. Michael ive always been a ford guy. Potsch then i have a real treat for you today. Michael awesome. 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He is expected to address the barcelona terror attack that has left 12 people killed, 90 others injured. Meanwhile, we should say that many have tweeted about the tragedy. Blake, one of the things that i think is important to note here is this is the first deadly terrorist attack in spain since 2009. And again, using a vehicle. Weaponizeing a vehicle just like they did in nice, france, just mowing down so many people in one of the most vibrant areas of barcelona. Reporter one of the most vibrant areas if youve ever been there are,s it is in the heart of barcelona. Its an area of onelane street, oneway the other way, vendors in the middle. Its one of the first or second stops youve got to go to when youre in bars hone that. Many tourists are walking there, open air space. Hundreds, if not thousands really of people there at any given time. And that is where these terrorists chose to strike. The reaction coming in from both President Trump and the Vice President , as you mentioned, Vice President pence is in panama right now. President trump is here in new jersey in bedminster. They both have released tweets. They go as follows, and i quote here from President Trump earliered the the United States condemns the terror attack in barcelona, spain, and will do whatever is necessary to help. Be tough and strong, we love you. The Vice President tweeted moments ago, quote sickened by the horrific attack in barcelona, u. S. Will work with allies the find those responsible and bring to justice. Praying for victims. We expect to hear from mike pence on camera at any moment. Liz, though, there is another tweet from President Trump that is making the rounds at this hour. That is raising some eyebrows, i guess you could say, and here it is from the president about 20 or 30 minutes ago, and i quote study with general pershing what the United States did to to terrorists when caught. There was no more radical islamic terror for 35 years, end quote. He tweeted this out in the middle of barcelona, if this has anything to do with that, there is no way to tell you. Let me at least give you the back story. In february of 2016 in South Carolina in the leadup to the primary there, President Trump told a story about general pershing which took place, allegedly, some 100 years ago in the philippines. The story that the president told goes as follows, that there were 50 terrorists that were lined up. Pershing told his men to pull out their rifles, and that he dipped the bullets in pigs blood. And this is what the president said during that rally. He lined up the 50 people and they shot 49 of those people, and the 50th person he said you go back to your people, and you tell them what happened, and for 25 years there wasnt a problem. Heres problem, liz. Just about every single historian that you talk to has debunked that statement, that story. They call it a myth. They say there is no such fact that lies behind it, no such evidence that that story ever took place. Why the president decided to tweet that out today, i cant tell you. What he tried to accomplish with it, i cant tell you. All i can tell you is he tweeted it. This was the story that he told about a year and a half ago, and now we are left to talk about it and try to put the pieces together. The white house often says, liz, the tweets speak for themselves. Havent asked them about this, but i can guarantee they will say the tweet speaks more itself. That from the president amidst all the chaos and horror in barcelona at this hour. Liz well, even from the white house, they have said the president s tweets are official, they are officially from the president. Again, as you say, urban legend, historic legend debunked time after time. At the moment we just want to let people know that Vice President mike pence will speak after the Vice President of panama speaks. We are awaiting that, we are going to take a quick break. But now we have the Dow Jones Industrials down 243 points. Nasdaq down 110. S p down 34. Yes, you could argue, thin volume in august. And the market has been pushing right up against high after high after high. But right now were going low after low after low today. Dow is now at session lows. We will be right back. Please stay tuned. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. Ltry align probiotic. N your digestive system . Every Branch Running like headquarters. For a nonstop, sweet treat goodness, hold on to your tiara kind of day. Get 24 7 digestive support, with align. The 1 doctor recommended probiotic brand. Now in kids chewables. When i was too busy with the kids to get a repair estimate. I just snapped a photo and got an estimate in 24 hours. My Insurance Company definitely doesnt have that. You can leave worry behind when liberty stands with you™ Liberty Mutual insurance. The dinosaurs extinction. Got you outnumbered. Dont listen to them. Not appropriate. Now im mashing these potatoes with my stick of butter. Why dont you sit over here. Find your awesome with the Xfinity Stream app. Included with xfinity tv. More to stream to every screen. Liz fox business has yet to to confirm this, but spanish media is reporting that isis has claimed responsibility more the barcelona attacks. The associate press is Associated Press is reporting this as well. The markets continue to go down, down, down. The dow is down 248 points, just over 1 to the downside. Nasdaq getting hammeredded. Look at 2k3w08d, the flight to quality up 11 at the moment. What you see on the screen is panamas Vice President. Shes speaking before americas Vice President , mike pence, takes the microphones. He will discuss the terror attack in barcelona. But as we watch the markets to a springloaded response to this, Charlie Gasparino two things happened today. Number one was the terrorist attack, right . Number two, i cant believe im saying this, when gary cohn, the nec chairman, said there was a report that he might leave the Trump Administration over President Trumps, i guess, remarks about charlottesville. The market dived. Now, heres what we understand from people close to the, close to the white house liz hold on, charlie. So sorry to interrupt. Heres Vice President pence. [speaking spanish] translator ladies and gentlemen, his excellency, michael pence, Vice President of the usa. Well, thank you. Thank you, madam Vice President , for those gracious words and for this warm welcome to panama for me and my wonderful wife karen. Before i begin, id like to address the horrific terror attack that to occurred just a few hours ago in barcelona, spain. The latest scenes of carnage and and mayhem sicken us all. And as the president said earlier today, the United States condemns this terror attack, and we will do whatever is necessary to help. Whatever inspired todays terror attack, the United States stands ready to assist the people of spain and find and punish those responsible. On this dark day, our prayers and the prayers of all the American People are with the victims, their families and the good people of spain. Thank you. Ms. Vice president , administrator liz Vice President mike pence saying, in essence, we will find, we will help the Spanish Government find and punish those responsible for the terror attack, charlie, that killed 12 people, 15 of the 90 who are hospitalized are in serious condition. Right. I mean, listen, theres a lot of stuff going on here. Generally, markets dont sell off lately this dramatically on terror. Especially overseas. They just have not. There have been muted responses. Theres Something Else going on here. Theres terror, which is bad, and then theres dysfunction in the white house. And i think hen you combine those then when you i can tell you when you combine these two, gary cohn, the head of the nec, i understand if he doesnt become fed chairman, people close to him said hes likely to leave. But heres the rub, that, cohns whole thing, the whole thing with steve bannon talking off script to the american prospect magazine, the scaramucci thing which was another form of dysfunction, Donald Trumps response to charlottesville. Put all that together with terrorism, and now the markets are starting to get scared that this is an unstable administration and we have an unstable global, economic and also political environment. Liz look at this. Were going almost down point by point now you can see its really selling off. Im telling you, liz, its not just terrorism. If there was a stronger hand in the white house, it wouldnt be reacting like this. The market has blown off stuff like this in the past. Liz he did respond, putting out this urban myth and legend about general pershing, killing people with pigs blood. Think about this. This is a very difficult situation we face domestically, internationally, and we have white house dysfunction. And the president talks about pigs blood and general pershing which, by the way, is a myth liz its been debunked. Even if it wasnt, you would think there would be another type of response other than this from the leader of the free world. The markets are digesting stuff like that. They are putting that together. And you know what liz folks, we are now down 260 points for the Dow Jones Industrials. All dow 30 stocks in the red, nasdaq down 120. Liz, did you ever think i mean, i looked when the story broke, and the white house is denying that hes leaving, gary cohn, that he might leave the markets tanked. That is unprecedented. When was the last time you heard of an nec chief i remember liz National Economic counsel. In the Obama Administration i forgot who his chief actually was. I broke the story, i cant remember. Im going to i just dont remember. Liz when he departed. Broke it maybe on your show, guess what . The markets didnt react to that. The markets are not supposed to react to the nec chief leaving. The markets are saying liz and that report, by the way, was before the barcelona attack yes. And that added fuel to the fire. Liz exactly. What the markets are saying if gary cohn is thinking about leaving, they view him even though he is a former obama supporter, and lets face it, the president of goldman. But, you know, this isnt Thomas Edison here or warren buffett. They view him as one of the few adults in the white house, and if he goes, theyre pretty thin. And im telling you, when you get that type of market angst about gary cohn, you know youve got an unstable situation. Markets are saying that, anyway. Liz nicole, you can hear quite loudly what markets are saying down on the floor of the New York Stock Exchange, and were just watching as gold rises, the vix is just spiking right now, showing a lot of fear, and the dow keeps falling and falling and falling. Reporter thats right. So the vix is up about 32 right now. You certainly have type of market where youre this type of market where youre seeing volatility. The risk is off the table now. There, the trades that are happening are more the safe haven trades where they go to the tenyear bond yield which is at lowest since last friday. Theyre going to gold which continues to accelerate hour over hour which is now up 11. Traders overall are saying it is a collaboration of things of the day. First of all, youve had the aftermath, the fallout of charlottesville, youve had the disbanding of the ceo council, worries about the agenda, the gary cohn rumor in the middle of the day where we saw stocks sell off and come back after they said hes not leaving and then now barcelona. I will say that, and its a terrible, terrible story in barcelona. I never want to minimize attacks and terrorism and all of that. I will say that they really are digesting multiple stories. The aftermath of politics of washington, but also since 2016 of july youve had so many deaths, over 100 deaths with cars no go into crowds nice, berlin, london, stockholm and attack all disbelievers. And the market has had mixed reaction. So thats really the big picture. Liz yeah. You know, its a selloff but its 400 points nicole, the markets didnt really sell off on those last terrorist attacks reporter right, thats the point. What makes this different is why is this terrorist attack we get such a sharp selloff . And by the way, with volatility as the vix is showing you, ask and you would know this better than i, its because of the political environment here. Liz colonel peters . Why is this terror attack having such an effect . Weve seen many others, sadly, where more have been killed, but is it this compoundingof global instability and concerns about the administration, concerns about north korea all piling into what is now whats called the hindenburg to men for the markets . Omen for the markets . In times of cry us, its always crisis, its always a mistake to assume ration aal responses. Were basicallier ration aal and liz im not sure about that. Weve heard president reagan be very, president george bush in the wake of 9 11. Oh, of course. But this particular thing, first of all, i think charlies explanations and remarks were right on point. But i think two things. Right now at this point investors just have to understand, this isnt going to be over soon. This is a hundred years war. Factor it in now, your grandchild are going to inherit this. And its not our fault. Its because the civilization of the middle east everywhere except israel has failed, period. If youve got a european vacation booked, go. Statistics on are on your side. Liz all right. Boy, all of were joining into the conversation id rather go to disney world at point. Liz chief market strategist, oliver, as you look at the Market Reaction, what next week do you believe this gets quieter and quieter in august which means the swings the swings can be more pronounced because its lower volume. Look, rule number one in the Asset Management business is when you have an emotional reaction to an event, you step away and wait two, three days and let the dust settle a little bit. So the advice that we are giving our clients is dont react today or tomorrow on these news. Now, there are a number of factors, as charlie pointed out, as fox Business News has been reporting that are impacting markets today and yesterday as well, you know . The scare of potentially cohn leaving the white house and the Business Leaders leaving the white house. Those are all troubling events for the market because it puts the entire policy agenda at risk. See, i tend to i agree with you, and i also agree with colonel peters a lot. I just want to make one point. We might be at an Inflection Point here. I did hundreds of hits, i mean, its unfortunately, theres been a lot of terrorism attacks over the last five years since ive been at fox business. Ive been here longer, but thats when you saw a rampup of terrorist attacks. The markets rarely sold off liz look at this, oliver this is different. It might be an Inflection Point. Liz fluctuating pretty much at the bottom of the barrel, just 1. 25 . Liz per sector, absolutely. Over the last week were essentially down 1 so thats, again, not a huge number all things considered. S p year to date including todays selloff is up about 9 year to date. Right. Fundamentally speaking, things are still looking good. Good. So theres no need to pan pick. However, having said that, theres certainly a number of events that can take us down 8, 10, 12 as part of a correction, and thats part of a normal market cycle. We have to remember as investors. An 810 correction annually is historically normal, and we havent seen that in nine years. These are not gigantic percentage losses. However, the global instability, just yesterday we were saying things calmed down a bit, and therefore do you suspect things will slightly become less jittery on monday . It is impossible to say. I think the important thing, you want to look what happens between President Trump and gary cohn, to see if there is any further deterioration of the relationship there. You wan to take a look at economic things. Anything that comes out of jackson hole, you know. Liz gotcha. We do have, tell our viewers, closing bell coming up in 15 seconds. Oliver, thank you. Charlie gasparino, ralph peters. [closing bell rings] there is the biggest drop of the dow and s p 500 as closing bell hits right you no. David and melissa for after the bell. David going into the close, the dow ending the day. This is biggest decline since may after a van plowed into a crowd of pedestrians in barcelona, spain. There is problems with what the fed had said yesterday. But again it was terror attack that really dragged the markets down. Hi, everybody, im david asman