We have set up a highfrequency trading bull and bear to battle it all out. As the president spends the day focusing on School Safety following last weeks shooting at Parkland High School in florida, blake burman grills the president s economic adviser about the administrations myth on that promised 4 growth. Blake will join us and youre going to see how it all went down. Amazon accused of corporate welfare for Holding Contest to get the best deal from communities across the nation in search for a Second Headquarters. Hillary vaughn live on the billionaire brothers who have actually taken corporate welfares themselves and why theyre accusing amazon now. And did you see this . Kylie crushes a stock with a single tweet. Kylie jenner puts out a tweet about aump and try to take it back because it was negative. The stocks the kardashianjenner tweet sent stocks snapping into a nose die. Less than an hour to the closing bell, investors are not happy about that. Lets start the countdown. Liz breaking news, the navys Nuclear Submarine base in banger, washington is closed after a potential threat. We wanted to tell you that suspicious items were found in a vehicle near a gate earlier this morning, were going to keep our eyes on the situation as you see, this is a live picture from banger, washingtons komo television station. Not a lot of activity at the moment but we do see some vehicles there that are obviously looking into the situation. Well get more to you as soon as we find out more. Let us go to wall street. Im watching the dow, up 161, could this be another looped loop for the markets . Upside right now but 24 hours ago it was a crushing selloff that happened right during this hour. Stocks right now are on track to sort of snap that two day losing streak but the tenyear treasury yield which had jumped just before the complete reversal yesterday, are now a bit lower from yesterday. Yesterday they had been at 2. 95 , now were at 2. 92 for the 10year yield. I would like to remind you, about an hour ago we looked at it, at 2. 91. Were climbing a steep here. Were watching this closely. We have a few jitters with the markets, you can see that with gold that is flat. Thats not a good place to look to see anything happening. Its the nasdaq that has pretty much lost most of the gains. In fact all of the 60point gains are down 13 points. Will the dow and s p follow . Were watching it. Need to get to snap, snaps market cap, the parent of snapchat disappearing faster than Snapchat Stories themselves, thanks to a single tweet last night from this gal on your screen. This is kylie jenner. Shes a social media giant, and she hit the social Media Company which has lost a stunning 1. 5 billion in market value after kylie, a celebrity and social media maven with 24 million twitter followers put out this tweet now look lower, it says 253,900 likes on that. Investors hate it. Okay . The stock is now down 7. 63 , it opened completely trashed down 7 pshgs you see thats accelerating. The youngest kardashian sister later walking back her comment. She must have heard from somebody saying, quote okay. That obviously has done nothing, folks, down 7. 75. A buck 43. The stock at 17. 20 not keeping up with the kardashians, and the only person happy about this might be evan spiegel, the ceo because earlier there was news that people found out how much he made last year, 638 million, that was his whole payout. Problem is this is a stock that is way off its 52week high of 29. Were at 17. 22 right now. One stock blooming at this hour, the parent of outback restaurants, blooming brands hitting a threeyear high after Fourth Quarter revenues and earning topped analysts estimates. Things are just right in the outback. Were watching that, as most of the wall street area is preoccupied with the crazy intraday market swings that always seem to come in this hour. The head of the Worlds LargestHedge Fund Says we may have a much bigger problem on our hands. Sending out yet another warning flare. This is the second in 2 1 2 weeks saying the u. S. Is in a prebubble phase, and that theres now a 70 chance of a u. S. Recession in the next year or two. Before 2020. He says the economy will stumble into a recession heading into the 2020 president ial election. This is coming from a guy who just a month ago said investors would, quote, feel pretty stupid if they were holding onto cash the markets been performing so well. So now ray dalio started reversing two weeks ago and put a number on it. The 70 chance of recession, thats a bold call, folks, the last time we had recession, americans saw trillions wiped out in Household Wealth and globally multitrillion. Is the market too focused on the day to day move like we saw yesterday and missing the bigger threat lurking ahead or is this a big fear scandal. Phil flynn, matt cheslock, and how do you stand on this in the highs and lows in the market . You have to get used to that. Yesterdays reaction to the fed minutes are lower, kind of scary as far as a trader goes. Today Market Action higher based on earnings which is where it should be. I think thats what were going to focus on individual stocks leading the market higher. Today its energy. Liz matt, im looking, this is important for me to point out to our viewers. We had been up 358 points earlier today. Now up 154. Were not seeing these precipitous drops like we saw yesterday exactly at this time except that the nasdaq has wiped out all gains for the day. What is that about, do you think . I think, today its certainly a bit of rotation, lot of Technology Names that performed well earlier in the week into the energy names, thats why youre seeing the dow up and the Nasdaq Technology index down. Liz phil flynn, give me your sense of whats going on . I think were through a period of indecision and inconsolidation. We had our 10 correction in the stock market, and now the markets trying to decide whether were going to go higher or lower, and really havent gone anywhere . Weve seen a lot of fluctuation day to day but the market is holding ground. To me, its a very, very positive sign. You know, and as far as ray dalios call that we may go in a recession in two years, thats like trying predict the weather in two years. We might get cold next week or a year down the road. Were overdue for a slowdown in the economy and after a long cycle. Its not the end of the world if we get a slight recession, a normal part of the business cycle. If you look at Energy Inventory number today, were not anywhere close to a recession. We have smoking demand in the u. S. , smoking demand globally. If Oil Inventories were really a predictor of the future economy, things are looking really strong and getting stronger. Liz we saw a surprise draw of 1. 6 Million Barrels luke, when the expectation was a build of 1. 8 Million Barrels and you look at energy, there is a story in the energy world, chesapeake, jumping 20 right now. This is a Big Energy Company because, by the way, its a 3 stock, keep that in mind. A 55cent gain. Because they cut costs . I dont know, do you get tricked by that . They have 10 billion in debt. Yeah, i think that chesapeake number, though things are looking better its a short squeeze on the way up because people are so negative on it. And as far as oil, i think that a lot of the gains in oil have been because opec cutback and also because of the weaker dollar, right . So im just not that positive on oil and global demand, looking forward for the rest of the year, but im worried about whats happening in the oil markets as far as geopolitical. Russia has a base in syria. We talked about that two years ago, we said quietly the russians have a base of operations in syria. The saudis want higher oil prices, the russians do, the iranians do, and when everybody walks drama in the oil markets, i dont like it, i dont want to be short, i dont want to have short cards in oil, there could be action going on and could spike oil prices. Great points all, guys, i would note were seeing some dropping right now in the dow. Were still up about 124 points but im going to remind you throughout, this is a big cut of more than 100 points already. Were watching it closely. Matt, phil, luke, see you next time. We need to go to the white house, the administration is in defense mode right now. This as Kevin Hassett, the cochair of the council of economic advisers making this appearance in the last hour at the White House Press briefing, defending the president s economic report which came out yesterday. We talked to you about that. That said well see growth in the future of anywhere between 2 and 4 which was a broad swath. President trump said definitely 3 maybe even 4 . Meanwhile, calls for new gun control laws continue to spread nationwide or at least just stopping the sale of ar15s. The president holding another listening session today on School Safety, making bold statements how teachers should be armed. Fox business blake burman just left the briefing room. Interesting give and take with Kevin Hassett on drilling down where is the growth that were expecting. Reporter you saw the chart yesterday ten years out that they predicted gdp, 2 or 3 and the middle window portion and you get the 3 number. The president had campaigned, though, as you very well remembered and talked about since not just 3 gdp, 3, 4, maybe even 5 gdp. I asked the head of the cea Kevin Hassett what is it with the 3 projection . He made a multilayered argument saying listen, it is better than the obama years, moving ahead of that, but also he said when you get a gdp number for the course of a year, its for ratings, one might have a 2 in front of it, one might have a 4 in front of it, mix it together you get the 3 number, in line with the report that have been put out for decades for the prior decades. Either way, its somewhat fair to say, liz, either dialed back expectations or reality check from the top economic adviser who at least wants to put a conservative face on it in case they end up exceeding expectations and going above that 3 level. Well see. As far as the story at the white house, it is, of course the focus, the National Conversation on how to keep schools safe . President trump hosting yet another listening session today. This time with state and local officials, and the president made clear he is very open to the idea of having some teachers, teachers that he says are adept at having firearms within schools. Listen. What id recommend doing is the people that do carry, we give them a bonus, we give them a little bit of a bonus, so practically for free, you have now made the school into a hardened target. We need to let people know, you come into our schools, you are going to be dead, and its going to be fast. Reporter the White House Press secretary raj shah, the president is open to all options on the conversations shut the door on a ban on assault weapons. They dont want to ban an entire class of weapons for everyone, but ban certain weapons for certain kinds of people. The white house walked back comments that the president made in that listening session in which he said he is firmly against what is known as the active Shooter Drill which so many schools do in order to prepare for shootings. Raj shah, the Deputy Press Secretary said heould like to call it a safety drill and takes issue witthe term, liz . Liz thank you very much. Lets get to the dow component that helped the u. S. Win world war ii. Its about to lose the war to keep its own company from breaking up. With the closing bell ringing in 46 minutes. Its united technologies. Utx. It is right there, very close to being on top of the dow, there it is. In the lead position, its up 4 bucks to 133. 35. Thats for the second day in a row seeing gains after ceo revealed the parent of Pratt Whitney jet engines and otis elevators is exploring a breakup into three separate businesses, plans to officially announce a decision on this by the end of the year. 3, 2, 1 [cheers]. Liz not government owned, thats Spacexs Falcon 9 blasting off from Vandenberg Air force base in california. Elon musks Space Company launching two of its own test satellites today for the very first time. Theyre the first part of spacexs plan to string together a network of satellites that would bring highspeed internet to the entire planet. Once again, elon musk thinking big. At the other business, tesla leading the nasdaq up 3. 5 announcing its taking orders for model 3 electric car, from first time reservation holders waiting patiently. Tesla now trading with volume of 5. 8 million shares. Up next, two violent market moves, not seen in more than a year, so now weve got two in a month . 1500 point move on february 5th. Youre seeing it right now, was the whopper, algorithnick or computerized trading blamed . The robots are running wall street, can you the individual trader beat them . Our panel of highfrequency traders, bull and bear, battle it out. I want you to pick a new truck for your mom or dad, knowing that they could possibly pass it down to you one day. Cool. But before you decide, you should know that chevy silverados are the most dependable, longest lasting fullsize pickups on the road. Which means that ford f150s are not. laughs which truck would you pick . The chevy. The chevy. The chevy. There you go. Boom. That was obvious. Plus it looks cooler. No doubt about it. Now they know what to get me. laughs 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. Liz i hate to keep bringing up yesterday, but 24 hours ago, we witnessed whats on the screen. The dow suddenly dropping nearly 500 points, wasnt just the dow, all the major averages gave up big gains after the 2 00 p. M. Release of the fed minutes january meeting, sent treasury yields to a fresh fouryear high which triggered, well, we asked one of the traders ira epstein what is causing it, he said this. Highfrequency trading, hft, as it comes out, you stand in front of a train, thats what happens, that type of money comes into the market. Liz theres a huge battle whether hes right. Were going to report, you decide. The company that pioneered highspeed computerized trading in the entire nation of india, and joe is the author of broken markets, he says hf trading is destroying investor confidence. Im going to guess, joe, that you agree with what ira epstein said, how do you know . This has been going on for a while. Thanks for having me on. We wrote the book in 2012, what most investors need to understand todays markets are different. We dont have the specialist and Market Makers of yesteryear, we have electronic Market Makers, supplying liquidity, trade faring spread throughout the day and times during volatility like the past few days where they could exacerbate the volatility and go in the same direction, lets say, not adding that liquidity that were expecting, and i think thats what the guest yesterday was mentioning. Liz fox business translator said they effectuate the trades over short periods of time. Were talking one millionth of a second, way faster than individual investor can even press a button. How does it work . This is your company doing these fast trades. Well, you know, its like any other trade. You have a model, and especially for the quantitative systematic trading, you use large amounts of data to come up with a model and using that model to trade. If youre a liquidity provider. Liz do you understand the role, do you agree that highfrequency trading takes a role here. In the year 2000, highfrequency trades were 10 of the equity market. Now, the numbers only go to 2009. They jump to 164 to 73 of all trades. Yeah, and i think this is a natural sort of ball of technology rolling forward, like now all are ruled by algorithms. Liz revolution. What movies we watch to what book we read is driven by algorithms, this is Better Technology making markets more efficient. Liz joe billionaire, mark cuban put out a tweet, he tagged you, he seems to agree, hes concerned about. This we can put the tweet up on the screen. And by the way, he said algorithmics trading is a significant threat to our countrys wellbeing, he calls on gary cohn and Steven Mnuchin to conduct a market stress test to see if we can handle that. What do you say about that . I think mark is an extremely astute observer of todays modern market structure. Hes on that. And the firm is doing great things and proprietary traders. Liz theyre not breaking the law. When youre a proprietary trader, youre going to trade whats available. The problems started at the Stock Exchange level. They were the once, the new york Stock Exchange, nasdaq, that gave out the ability for speed trading. In other words, co location, proprieta proprietary data feeds and rebates aid the in the fragmented market that we have. There are things we can do to get diversity into the limit order books why do we plunge down so fast . There are no limit orders, no retail or institutional bias because they are afraid theyre going to get picked off all day. Bring the guys back in. Liz can you do that and deal with proprietary experience . Really quick . I think we should bring more into the market, we should bring in everyone who is afraid of the market. There is no reason to be afraid. You should be in the market. Liz thank you very much, well be right