Hes all three. Hes about to hop off the the ways and Means Committee markup to give us the inside scoop on the amendment that was just voted down and why that carried interest loophole is still wide open and gaping. Plus, what happened to the fire and fury that President Trump threatened north korea with . Now hes offering to play lets make a deal with dictator kim jong un. Are we about to see a nuclear compromise . Ambassador Stuart Holliday here on whats really behind the president s 180degree turn. On wall street the markets are about to pull off something thats only been seen twice before in 18 years, and its not necessarily a good thing. With red on the screen were less than an hour to the closing bell, lets start the countdown. Liz okay, so that market move, if all three indices finish lower and they all look to be on track for that right now it will be just the third time in 18 years that all three hit intraday record highs during the session but then finished lower. Well get to our floor show traders in a sec to find out why that could be a pretty significant red flag for the bulls. But in the meantime, tax reform. Like a brand new romantic relationship, the promise of tax reform has investors feeling all kinds of emotions; nervous, excited, totally anxious, hopeful but also furious. We call it furious and anxious today as the back and forth with the tax cuts putting the future of the bill in question. After hitting alltime highs in the morning, stocks, as i mentioned, falling to session lows before rebounding. But right now we do see a very slight rebound, all red. But if the dow, the s p and the nasdaq claw their way back into the green, it would be another day in the history books with the 27th trifecta of record closes. But at this hour one group is saying, not so fast, and holding the back the dow jones industrials. Currently on track for its worst daily decline since early september. Jpmorgan and Goldman Sachs together shaving 40 points off the dow. Goldman down one and twothirds, jpmorgan down two and a quarter. But actually bank of america and wells fargo are down just a bit more. What do we have . The dow lower by 25, and then you can see a lot of these companies are questioning the viability of the tax bill. Now, nasdaq is feeling the heat from the big travel services companies, trip adviser, priceline in particular. And expedia tumbling at this hour after pricelines outlook failed to impress investors. In fact, they lowered their outlook. Looks like its not the worst thing in the world though. Theyre actually lowering it because theyll be spending a ton of cash to compete with each other specifically. Its priceline that says weve got to spend a whole bunch on marketing for tripadviser. Com. Exfield ya down 2 . Expedia down 2 . Lets us get to election day. Take a look at a live polling station in new jersey. A couple of people moving in and out. These polling stations get very busy before the work hours and after. New jersey is a high tax seat where the governors seat is up for grabs as Chris Christie moves on having reached his term limits. Our cameras caught up with phil murphy, the frontrunner, democratic candidate and Goldman Sachs alum. He was voting this morning, and new jerseys current Lieutenant Governor as well, republican kim guadagno. She went in to cast her ballot in monmouth beach, new jersey. This is one of the highest profile elections particularly because new jersey could be considered a petri dish or trial balloon of sorts for other hightax states. It will be crucial to see how the next governor responds to the gop tax bill but, more importantly, how voters will react. Will voters pick candidates who they believe will cut state income taxes to make up for the elimination of state and local Tax Deductions which is threatened right now, connell, in the current gop tax reform plan. Youre in middletown, new jersey. Reporter yeah. No doubt, liz, that its very interesting the way you put that together, because the democrat in this race, phil murphy, has actually talked about higher state taxes as part of his platform, higher taxes on high income earners. Hell tell you its an issue of economic fairness, but, you know, the way this plays out depending on what passes, who wins, who doesnt, it could be a double whammy for high income new jersey residents especially because of the federal debate in washington and all the talk about getting rid of the state and local deductions. These hightax states are certainly under the microscope. I asked murphy about it. He was here at the school where we are in the state of new jersey, and i asked him how he would handle it if he wins. Heres what he told me. Its devastating. Weve got to make sure that not just our democratic brothers and sisters in the house and senate and theyve all been 100 , as you would imagine, 100 on it weve got to make sure all of the republican congressmen and women in hightax states like new jersey and new york vote the right way. Reporter yeah. So, you know, murphy there talking all about what they do down in washington but no mention of the fact that he wants to raise taxes locally. His opponent is kim guadagno, shes talked about lower taxes especially on the Property Side as a big part of her campaign platform. Now, the issue politically for guadagno has been her boss, the Current GovernorChris Christie whos very unpopular here in the polls. And, you know, the more murphy can keep christie in the news, the better its been for him as this campaign unfolded. Christie got into a little bit of a verbal confrontation with a female voter when he was out voting, going back and forth with her and telling her its very, very easy to criticize but difficult to actually run for office. And as we know, hes not running for office because hes term limited. Again, liz, hes become a big part of the story here in the state of new jersey, and well see how that plays out. Well also, as i come back to you, see how turnout plays out. Last time around, 40 turnout, alltime low. Monmouth ran some numbers, they were expecting 38 . A little rainstorm in the afternoon, and that might have an impact on things as well. Back to you. Liz it seems no matter which side is the governor, every year i live in new jersey taxes go up no matter what. Com, thank you very much. Reporter yes. Liz interesting that connell said phil murphy said raising taxes was economic fairness. I would have felt much more comfortable if he said he we hae to raise taxes to get us a better, you know, Credit Rating. Under Chris Christie the Credit Rating for new jersey fell to almost the worst in america. So this brings up the big question how do tax lawyers and accountants see this bill and how it may change the entire political land scawp of landscape of this entire country . We just happen to have both in one person. He also happens to be a u. S. Congressman on the house ways and committees committee, South Carolina republican tom rice just ducking out of the markup meeting to speak with us. Congressman, thank you very much for joining us. Hey, liz, an honor to be with you. Liz budget director Mick Mulvaney told neil cavuto the administration will not pass a tax bill where the middle class ends up paying more. Can you confidently say that right now republicans have that in their bill, or how close are you to that . Liz, im absolutely confident. The joint committee on taxation has said every quintile in the Income Distribution of american taxpayers will get a tax reduction. The Tax Foundation has said the average middle class family of four will get a 1200 additional tax refund. And even the New York Times said that 90 of taxpayers in the bottom three quintiles will get a tax refund. So, no, im very confident of this. Im very proud of this plan. You know, too much time i think we focus on the distribution of the tax cuts, and thats important, but thats not the most important thing. Liz right. The most important thing is this plan is designed to create economic stimulus to boost our economy. You know, for eight years under the Obama Administration we tried their way of higher taxes and higher regulation, and we never got one single year of 3 growth liz okay. I will absolutely give you that, congressman. Under the Obama Administration too, carried interest survived and thrived. This is, of course, what is known by some as welfare for the rich. It is the loophole for often multibillion dollar finance years. Financiers. One minute were hearing its safe and clear, then its in peril because it was supposedly brought up by kevin brady, chairman of the house ways and Means Committee. But Charlie Gasparino about to break some news that it might be in the clear once again. Please tell us where this loophole for the ubererwealthy that puts them in a lower tax rate than many people watching who make way less, where that stands, in peril or safe . Well, there was an amendment offered by kevin brady last night that was appended to the bill, the amendment passed, that would make it harder to claim carried interest. It makes the Holding Period three years, and that was one of the big arguments against it. You know, there are, there are certainly a thousand facets to this bill, and you can pick one out and argue it this way or other. But heres the thing, i was listening to your conversation before i came on about state and local taxes, for example. I dont think that the average taxpayer back home cares about whats deductible and whats not. What he cares about is, is he going to take more money home, and is this going to stimulate our economy, and i can answer emphatically yes on both those counts. This will grow our gdp by. 4 , aye heard estimates ive heard estimates of up to. 9 . Were headed north. And with this we could get up over 3. 5, maybe even 4 , who knows . And that is trillions of dollars more revenue, that is millions of more jobs, that is recreating this land of opportunity. Liz okay. Let me finish by asking you this important question, because we do have, you know, the Home Builders association, the realtors furious that there is going to be, at least for now, a cap on mortgage interest deduction. That does offer something to the middle class that they use often. Do you, congressman, see that some perceive the elimination or capping of deductions that the middle class use as a tax hike in a way . Do you see that, or is it completely aside for special interests, and youve got to let all of that go . Again, i dont think that anybody cares whats deductible and whats not as long as they get more money back in their tax refund, as long as they dont have as much withheld from their paycheck. Now, theres always i mean, for the last 20 years theres always been a cap on the mortgage interest. Most recently its been a million dollars, were knocking it down to 500,000. Only 2 of American Families have a more to gang thats more than 500,000 mortgage thats more than 500,000. 2 . Thisll cover the vast swath of the american public. We limit property Tax Deductions to 10,000. I dont know what percentage of the American People pay more than 10,000 a year in home property taxes, but i guarantee its not very much. So, no, we are covering the vast majority of the middle class. Again, study after study after study have shown that every quintile of distribution will receive more, a bigger tax refund. This cuts taxes and stimulates the economy. Liz all right. Well, lets wait and see. Its still being marked up at the moment, but this is news. Kevin brady did have it attached last night, and it passed regarding carried interest. Were still working on this, because people get very upset when they see billionaires getting a lower tax rate than they do. Congressman, we appreciate it. Know you have to run back into that meeting. Tom rice, thank you very much. Thank you, liz. Thank you for having me. Liz keep it here on fox business for complete coverage of the tax reform bill and how it plays into voters opinions and votes, Election Night 2017. Neil cavuto hosts a special edition of cavuto coast to coast, 8 p. M. Eastern. Dow jones industrials down 28, had been higher by 53 if that tells you anything. Stop the presses. Just a few hours ago the markets were ordering up a new edition of the recordbooks before reversing course. The stunning record stocks were about to break. Our traders give us the over under on 2017s record rally. The one, the only floor show is next. My experience with usaa has been excellent. They always refer to me as master sergeant. 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. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Whentertaining us,es getting us back on track,hing . And finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. Liz wall streets merry go round isd of spinning around, everybodys getting dizzy on this one. We started off looking for a historymaking 27th trifecta of record closes, but after hitting alltime highs about five minutes into the trading session, the i dow, the s p and the nasdaq kind of got stuck in quick sand. So if we close in the red, if that happens, itll only be the third time since way back in 1999 where we started with intraday records and ended with three losses. So does this Market Action possibly signal a top or at least a red flag for the bulls . Lets get right to the floor show. John corpina, what do you think . I dont think this signals a top to the market. I dont think investors are going to look at that fact and start emptying out their portfolio. But yet it is an interesting fact that you bring up there. I think overall the momentum has been to the upside. There are different factors that move each one of those indices, and right now investors have been waiting for this tax reform information to come about, waiting for information from the fed, new chair, what are they going to do at the end of the year here, and were forced into waiting at this point to really see how the next six, seven weeks of this years going to end up. Liz all right. So weve got six or seven weeks, we were already, john, at 26 triple records here each day. So whats the over under on what well hit by the end of this year . Would you say 30 . Would you say 28 . 40 . What do you think . Listen, i think were consistently going to hit higher price points in this market here. It doesnt mean were going to continue to blow it out the window, but every time we hit another point, we are going to be there. I would think were going to hit probably ten more highs in the market before the end of the year. Liz larry, what do you think . Over under on hitting triple record closes, dow, nasdaq, s p 35 more times . Im going to put it at 32. [laughter] im going to say less than that. I mean, consider the fact i mean, i know data flow has been great, Earnings Seasons been resilient. Theres really no wage pressure to speak of. But the fact is were long in the tooth, is im going to say its ten or less but not based at all on any kind of statistics that we saw with any kind of, like, probability. Its all just about momentum and relative value, in my mind. Liz yeah. Not even a small pullback in equities, phil this. You know, i think you have to Pay Attention to the charts once in a while, and if you look at this technically just if youre a chartist and you dont care about the fundamentals, this is a warning sign, you know . In the technical books sometimes they call it a key reversal when you make a higher high, and we close below the previous days low, thats a sign that a lot of people if youre a computer, you dont care about fundamentals. You start to get out. Youve got to focus on this close, probably the most important in some time. Liz chartists. Yeah, they look at charts and fundamentals. Great to see all of you. Well bring this one back up on december 313st. [laughter] good to see you. Does 21st century fox want to be like cbs . With the closing bell ringing in 39 minutes, just a day after news broke that fbn parent 21st century fox was in talks to sell a bunch of assets to disney, both are higher for a second day in a row. Walt disney by just under a percent, 21st century fox just under 2 . The wall street journal reports that fox apparently feels a slimdown in news and Sports Media Company could compete just like cbs has after splitting from viacom. And more bread for oprah. Weight watchers skyrocketing higher after Third Quarter earnings came in strong. We do have it higher by 15. 5 . Oprah winfrey seeing her investment in the Weight Loss Company soaring some 617 over just the last two years. Weight watchers up 291 year to date. Thats got to be one of the biggest winners. And next, the winds of change blowing hard as the gops tax reform plan has one Energy Sector