Government shutdown. Can congress get anything done . I will ask indiana senator mike braun. Johnson johnson is the latest vaccine to enter phase three. What it means for your portfolio. All that and so much more on making money. Charles well the market gave up early gains pretty quickly as the rally attempts continue to fade and wouldbe buyers continue to hold back. The pendulum from investors asking more questions, waiting for more answers before they buy. That means the bias remains to the downside. This includes stimulus from the Federal Reserve or congress, the future of lockdowns, those political shenanigans in our nations capitol and market valuations. The atlanta fed handicapping the third quarter, saying gdp at 32 . Lets ask our panel how this will shake out. Kaltbaum Capital Management president Fox News Contributor gary kaltbaum, katheryne rooney vera and Ladenberg Thalmann manager phil blancato. Gary, start with you first. The bias is to the downside, what turns this around . Time and price. We had our way in the markets for quite a while. You know fox business alert, markets do correct every now and then usually there can be 10 to 15 range, maybe more sometimes. I think that is all youre seeing right now. The good news there are areas and pockets of strength in software and stay at home and things like that. My biggest worries remain the same though. Financials, just acting like they did in 2007. Im not saying the same thing is going to happen but theyre acting terribly and Energy Stocks are heading back towards the lows of march now. Im wondering what that means for demand. I know well have a 30 quarter but that is off the big lows. Those things have me worried. Again, just a correction mode right here. Not much to do about it. You be a little bit more patient, eventually it will turn hopefully. Charles right. Phil, markets go up, markets pull back, corrections and pullbacks are are part of it. Were in the midst of it right now. We start to handicap, what exactly is the market telling us . What do you think is the most important thing we need to see right now . First of all history is your guide, september is the first month of the year. You expect this. This is normal. Market is saying things are not inexpensive in the equity market. There are headwinds, election, lack of therapeutic yet this is what the viewers should want. To garys point all summer we have a nice rally. You get opportunity to rotate into names you want to buy. Look at apple, its a little cheaper. Not today, maybe six months from now, therapeutic vaccine, economy is fully open, im in the camp were out of the recession already expand more into the new year. This is a good thing, not a bad thing, rotate into the names you like, look for opportunity september brings to you. Charles last monday and tuesday the market came out of the gate with gusto. Then it came out of the gate with even more gusto last wednesday. Kathryn, it all fell apart. I think a lot had to do with jay powell. He was not clear on the course of action. He is leaving investors to worry about future accommodation. I know the fed says they will be there, this has been a few now fomc meetings where the inability of jay powell to truly articulate what theyre going to do next in my mind sparked some selling . Well, charles, gary and phil are such tremendous contributors. Im so happy they didnt steal my answer, we dont have the physical stimuli. That has taken us up to record highs. If there is any doubt, there currently is in the markets right now, a third fiscal stimulus package doesnt come to fruition very short term, people get upset about that the market have the taper tantrum. We saw the Federal Reserve tapering asset purchases. The market reacting negatively. The market is used to government management of the economy, charles. So i think once we get more clear, more clarity with regard to fiscal stimulus, i think it will come after the election. Doesnt matter who wins. Somebody will want to keep the party going. So, yes, were going to get more fiscal stimulus. It is going to be in the trillions. We already have 10 trillion in the system, but hey, lets do more. Yes, the fed is going to back up the markets. On your show ive been saying this ad nauseum. The way it worked for the past 10 years. In the absence of inflation, charles, and in the absence of any replacement to the u. S. Dollars dominance on a global level there is no reason to change course. So bank on it. Charles all right. So we know that markets go up, they pull back. We had one of the best augusts i think in 30 years. Phil youre talking about this being somewhat normal. Where on the downside . The audience is watching. Theyre taking notes. Theyre ready to buy the weakness. Where on the downside should people reasonably see some support, if it doesnt hold, how dangerous would that be . I would be, you see im a fan before of good brush fire in the market exactly what we want. We have a bit of one right now. Another 5 on the downside s p is where you want to look for your opportunity. Set your mindset. What is the name i wanted . What is the price i wanted regardless of Broader Market . When it hits it go get it. Dont forget the consumer drives us. A couple things are critical. Youre about to go into halloween, the second biggest Holiday Spending of the year. After that comes the holiday season. Yes while we would like to see more stimulus, retail sales are positive every single month since may. Im not in the camp we get another broadbased selloff. You get past the election, the market moments up, you got a chance to participate do now, not in october or november. Charles to that point, gary, consumer has been pretty strong. Nike had the blowout numbers last night. Under armour up pretty good today, chipotle, hanesbrands, carmax, car vanna up yesterday 30 . Guest stores, tapestry. There are pockets but since the 600 bucks ran out even that is starting be questionable right now. There are still 7 or 8 Million People unemployed. I will tell you there are a ton of Small Businesses that are not coming back. That has to be addressed. Im not a Big Government guy, i am big believer there are moments in time where the government has to act. Kathryn really harshed my buzz to think every time the fed makes the move it is only reason markets go up really scares the willies out of me. That is something to watch closely. If we ever get tote point where they announce big money printing markets go down, they were it is trouble. Agree. One thing i have to address is the election. Nobody is talking loud enough about bidens tax policy. If he gets the senate, wins the white house, i must tell you his tax policy makes obamas tax policy look like reagans. It is that bad to where selfemployed people in hightaxed states are paying in the 60s. Anything above 400. Then if you want to write off business expenses, you only get to write off 28 . Not enough talk about this. It is an absolute economic nightmare. Dont think for a second there is not a component of that in the market right now as we head closer towards the election. Something im watching real closely. Charles we got a minute to go. Kathryn, i want to give you the last word. I heard you trying to get in there a little bit . No. I think gary is right. Lets face facts the past decade the s p has moved one to unwith in line with a direct relationship with the Federal Reserve balance sheet. So look, i think elections will bring volatility. I think we can even make money off of that. Say we get a blue sweep. The market could sell off 5 . I doubt it does more. We want to be positioned, i heard phil say this before, the barbell strategy. You want to be buying today the s p and buying gold as well. You want to be buying tips. You want to be buying treasurys. You want the protected position where youre long the markets on drawdowns and youre protected with assets that benefit when times get tough. I agree with gary on this point. I think that you know, the things come to the fore when the market internalizes the fact that the Federal Reserve does not create economic growth. So once we get this exponential growth in liquidity and we dont get economic growth, and market says, oh, shoot we have so much liquidity, we dont see benefit of it, market has fallen, we come to the realization what led us to this point has to be sustained by fundamentals. With all due respect i dont know that the market will have that kind of epiphany. The market says we want the Federal Reserve to act today and the Federal Reserve says we Want Congress to act today. The markets are not panicking but drifting. Amazing points from all of you. Gary, kathryn, phil. Thank you very much. White house budget direct russ vogt about the antiamerica, radical agenda. The public is paying respects to Justice Ruth Bader ginsburg at the Supreme Court as the battle to fill the empty seat continues to divide congress. Indiana senator mike braun will give us the his take and a lot more after the break Climate Change is the fight of our generation. The biggest obstacle right now is that were running out of time. Amazon now has a goal to be net zero carbon by 2040. We dont really know exactly how we are going to get there. Its going to be pretty hard. But one way or another were going to reduce our Carbon Footprint to net zero. I want my son to know that i tried my hardest to make things better for his generation. Here . I want my son to know that i tried my hardest nah. Here . Nope. Here. When the middle of nowhere. Is somewhere. The allnew chevy trailblazer. If i could, baby id how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. Charles the house passing a stopgap measure to keep the government open until december while it is not stimulus, the measure gives 30 billion in aid to farmers, another 8 billion to a program to help feed kids who otherwise rely on free school lunch. Lunch at school, rather. This maybe could clear the way of obstacles to get a stimulus done. Joining us, republican indiana senator, member of agriculture and budget committees, senator mike braun. Senator, before a vote in your committee, has the cbo coming here in a few minutes, i want to get your concerns. Okay, weve got this. There was already haggling over this. Every one is saying we need more fiscal stimulus. Now the Federal Reserve pushing hard. Are things going to get easier in this Election Year . Is it even possible to get some of these things done . I think charles the chance of anything getting done preelection does not look good to me. When you have, what were dealing with on the appointment schedule, the Supreme Court justice, i think that will be top priority. Got the scheduled break that is in place. So i have mean it could happen. What im hearing on the economic front is a different story, maybe from every state. A lot of it dependent how strong your economy was going into it. Probably as good as it has been for any state. I think the big differentiator would be state and local governments and i know that is part of the heroes act, part of what pelosi is wanting on the other side. That gets to be a difficult conversation because even in these great Economic Times precovid many places were still having trouble balancing their budgets. So indiana was not like that. Thats why i think weve got a very vshaped recovery and most of what ive been hearing from Business Owners would be trouble getting people back during that stretch when the unemployment was out there. You know i this incentivizing some not to come back. Different story every state. Charles yeah. You know, someone who watch this is very closely my great fear is that were going to fall off an economic cliff before Congress Getting its act together. You know, just remember with 30 Million People getting some form of unemployment benefits, some pockets of the economy states are doing well but it is just too dangerous for the entire country not to get one more jolt. I want to get back to your comments with respect the Supreme Court. You think President Trump should nominate Amy Coney Barrett to the Supreme Court. What put the her at the top of your list . Number one, she is from indiana. That is important. We know her. I watched her probably more closely. I never met her, when i look at her record, she is a constitutionalist. I dont think there is any fear of legislating from the bench. And i think the big risk for many, what do they do once they get there . Everything i can see about amy is she will not waiver from the consistency of what we know about her as an appellate judge. So to me that is a big issue pause ive been disappointed somewhat where that has occurred on recent appointments including Supreme CourtJustice Roberts in certain cases. So i think that she gives me confidence that she will stick with the process that we know her for and be consistent with the rulings she has done at the appellate level. Charles i want to ask you about our relationship with china. Both President Trump and xi at the u. N. Xi calling for the world to come together with democracy. President trump bashing china for its role in covid19. Away from all of this, were seeing Soybean Prices go through the roof. You always stand up for the farmers in your state and the farmers in the midwest. What do you think . It seems like china is buying, starting to live up to their commitment and how important is it since were talking about the economy . Well the thing i worry about with china is will they be fair weather friend . Will they be there through thick and thin and i think whenever they do come in probably because of a reason that is not consistent with that stability you would want to see in a good, longterm relationship. And i think their behavior leading up over the last five to seven years in terms of how they have reneged on some stuff, i would take the bounty, while it is occurring and be careful that you dont build it into your longterm plan until midterm and long term behavior starts to dovetail with their performance. Charles i got you. Senator, thank you very much. Appreciate your time as always. Thank you. You bet. Charles Johnson Johnson shares, theyre ticking higher as it advances in the race for the covid19 vaccine. Well give you the very latest coming up. Also how is that news fueling the reopening stocks . Remember them . Should you consider buying any of them. We have details for you right after stomize your car the break before and during treatment, your doctor should check for infections, like tb and do blood tests. Tell your doctor if youve had hepatitis b or c, have flulike symptoms, or are prone to infections. Serious, sometimes fatal infections, cancers including lymphoma, and blood clots have happened. Taking a higher than recommended dose of xeljanz for ra may increase risk of death. Tears in the stomach or intestines and serious allergic reactions have happened. Dont let another morning go by without asking your doctor about the pill first prescribed for ra more than seven years ago. Xeljanz. Charles some break news to bring you now out of california. Its a case of i told you so. Governor newsom announcing a ban on sale of new gas powered vehicles starting in 2035. He says all passenger cars sold in that state must have zero emissions vehicles by 2035. People can still own gas vehicles and buy used ones but not new ones. His proclamation is only for new vehicles, 2035. I have a feeling california wont be the last. Another American Company stepping up into phase three trials on the coronavirus vaccine. Cheryl casone is live now with the details. Cheryl . Reporter thats right, charles. New jersey based Johnson Johnson is starting a 60,000 person Clinical Trial after single dose vaccine. The trial will expand three continents. The Company Hopes to have results by early 2021 with emergency government approval, that final step obviously to fight the pandemic. The study is expected to cost 480 million. It is partly being funded by the National Institutes of health and the department of health and human services. J j is the Fourth Company or pairing of companies in face three trials of coronavirus vaccine. There is the stock up more than half a percent. Other Companies Already in phase three include moderna which started phase three in 26,000 in july. Theyre hoping to get a few more. Pfizer started a phase three trial in july. 32,000 enrolledded so far. They want to get that up to 40,000. Astrazeneca started a 30,000 person trial last month but on hold over a single safety matter. J J Astrazeneca of course are higher. The timing of all of this is the biggest question for everyone, right . The mode derna and Pfizer Vaccine studies could wrap up in october. Remember in phase three of studies, some subjects get the vaccine, others get a placebo. J j signed a billion dollar contract with the federal government to supply 100 million doses for the United States. High pressure, highstakes game here, charles. You always know, r d, we covered these companies for years is the biggest expense these companies have. At least the federal government is kicking in to help them advance the cause of getting a vaccine. Charles right and speed up the resul