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tv   After the Bell  FOX Business  August 21, 2015 4:00pm-5:01pm EDT

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roughly 2,000, the dow industrial average in correction territory. 10%. >> this is the closing bell on wall street, the final trading day for the week, and you can see it has been a very rough one. down better than 500 points into correction territory. here on the dow, let's go back to nicole on the floor of the new york stock exchange. a lot to cleanup down there, nicole >> and here's the other thing. you look at the market value and changing hands here on wall street, that's due to the expectations. the question is who is really selling today and whether there was a lack of better to move the market to the upside. and some of the traders were watching the key level of 2,000 on the s&p 500. we closed well below that. at 19,071. so whether or not we're going to continue to see the selling next week is a big question. i don't think the bottom feeders are ready to step in >> well, nicole, before we wrap up, we're still settling on the markets, and they're settling to the downside
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people's no. that is not a good sign as to what might happen on monday. of course we still have the weekend. there may be all kinds of action, talking it each either collectively or phone conversations. china, there's some question whether there would be some type of intervention from chinese government into the chinese market. there's a lot that can happen between now and monday >> no. doubt. and there's been a lot of talk that china needs to double down and get propped up over there. the growth numbers of 7% certainly seem extreme and too high overall. and when you get in that manufacturing number that shows contraction once again over that 47.1 number, that level, it shows weakness and back to years ago; right? so overall the big picture here as you have global weakness. so the question is what the fed does with all this information >> yeah. nicole, thank you so much. we haven't seen the close down more than 50 points in four years.
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let's go to adam shapiro who is going to tell us about the names that are getting hit the hardest. i imagine among them exxon mobile >> exxon mobile hit a new 52-low, in fact, let's jump right to it. at one point it was down 70, it was trading at $72 and the low today was 72.07 cents. so especially in that last hour of trading, exxon mobile got hit because of oil at one point trading below $40 a barrel and there's still demand for oil but investors wondering how much longer can that stand. but, look, chevron got hit today too, they were down 4% and also hit a low, $75.71. and big looser was apple. those are two words you never say with apple; right? big loser. but their growth is coming from china, they close down today ruffle 5%. microsoft down as well.
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about 5.5%. nike was down today. some of the apparel companies, macy's, target, goldman sachs, down 4.5% today. melissa. >> okay, adam. thank you very much. it's not just stocks, by the way. oil having the worst week in 29 years. phil is a trader at the fox business contributor. phil, let's put it in the context of stocks because that divide between the low price of oil and these high price stocks was getting wider and wider. a lot of people say what that happens, something snaps, and it becomes too much of a divide and that's when stock traders begin to sell off >> absolutely. and i think you hit the nail on the head. the divergence between stocks and oil was outlandish. i mean how can stocks be going up and doing sole if oil is going down and there's no demand? so there was definitely a divergence between stocks and commodities. it's not just oil, it's the
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entire commodity complex. we've never seen that kind of divergence for any period of time, and i think it just cracked today. we have seen -- >> we have seen a pump up of gold over the past week. a lot of that might have to do with individual traders getting into gold thinking that perhaps that was too low. >> well, i agree, and i also think it's a reflection of what's happening in china in the rest of the world. the currency daw devaluation. if i'm a chinese billionaire yesterday and i'm not today, and my currency is getting devalued, my stock market is getting crushed. so that would be very bullish for the physical demand side out of china and the rest ofation. we're going to see competitive devaluations continue over the next couple of months in that part of the world, and i think gold is going to be a beneficiary of that >> now, china was trying desperately to control its devaluation. it looked like it was getting out of control, but i'm just wondering over the weekend
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whether they may panic a little and start to get back into the devaluation mode. do you think we may see another big devaluation happen either over the weekend or set it up for monday? >> i think they are. i think central banks around the global are going to be on the telephones over the weekend, you know, trying to get a handle on this. we heard from treasury secretary that they're watching this very carefully out of the white house. this is a growing concern that this is getting out of hand, and i wouldn't be surprised to see that intervention not in just china but maybe coordinated intervention intervention >> it's either going to be highly coordinated, good bit of corporation between central banks around the world, or it's going to be exactly the opposite. we could have the beginning of a global currency war. it's one or the other, let's
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hope it's corporation. phil, thank you very much. melissa. >> thank you. >> all right. let's bring in jack, senior editor, president of voice view management, and, boy, am i happy to see you guys. three of the smartest guys that i know out here. i don't know how they scrambled you all here right now but, boy, am i happy to see you. paul said something really interesting the last hour where we've been kidding ourselves. this has kind of been an economy and market built on very little. and i wonder if now the chickens are come home to roost. james >> well, you do have corrections. this happens. i think it's not just sort of a bubble bursting if that's what he was getting at. we do have global growth coming down, what efficient markets do is they factor that in and now we have a lower price, so we're sort of flat for the year >> yeah. >> it's ain't crisis, it's not something that requires intervention by government >> but we've been saying all along that this was a market
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built on what the fed has been doing, not fundamentals, not six months forward, but whether abuilt on the fact that there's a lot of loose money out there looking for a return and the market was the place to do it. david >> well, i think you're absolutely right. the fed has been the instigator of the economy. but the one irony here for so many years the people said the market's going up and there's nothing to the economy. today the market was going down but you do have a better economy. 5.3% unemployment, the auto industry on the rebound, so certainly better than three or four years ago >> i'll give you the middle one. the housing markets are rebounding and a lot of people sitting on the sidelines who have given up all together need full-time jobs >> it's not important to tank the whole u.s. economy, but it has been an out sized contributor to growth >> yeah. >> we're already seeing that
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growth evaporate. we've got more than 400 companies in the s&p 500 giving negative numbers, we haven't seen a negative number in years. people saying to themselves why am i paying 17, 18 times earnings for the s&p 500? maybe i should be paying 14 times >> yeah. the china thing is twofold. when you talk about them about devaluing their currency, that's an instant dugout profits and revenue. but also the issue that charlie raised is that we don't even know what the numbers out of china are. so if they're admitting that things are slowing down, we don't know what it looks like >> it is a black box. this the 7% growth in the year number is a official statistic that comes from dictatorship. so you really make a guess, you look at public disclosures from the companies, you make a guess. but i do think this period we've been going through here, it's not just fed printing money, it was responded well, done a great job cutting costs.
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so this is not all bubble, and i think staying cool here, this is actually a moment to show her medal and not panic and move away from the rate increase >> maybe it's nothing as strong as we thought it was or the market would have you believe but it's also than the weak either. the truth is somewhere in the middle. let me ask you about oil. because that has been one of the most interesting points of this. down. and is it all about supply? or is it a canary in the coal mine. what do you think? >> i think it's a little bit of both. there's no question about it. with u.s. fraction, with the phenomena potential of iran coming back online, the supply has been abundant. but the best prices are secure prices. so i think we're going to see some stablization before long >> boy, are we testing that because we dipped below 40 and we haven't seen that in so
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long. the fed has gotten us to this point now. it's one of those they're damned if they do and damned if they don't. they've backed themselves into a corner >> they're damned if they don't. they've stepped away so much to back away now everything we've been doing at this point hasn't worked well enough for us to get off zero. we're not talking about to get back to 3, 4%, we're talking about going from zero to 50 basis points. there is not a person out there who is not doing a piece of business because the loan that they need is off by a quarter percent. i mean we're we're not talking about things -- an amount that can really move the economy. i think they need to raise a little at some point >> what about the points that are most vulnerable, the little momentum we have going, james >> yeah. i agree. low rates, they haven't delivered what we were hoping but what we want is honest prices. we don't want the china model, the u.s. financial crisis model where the washington
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tinkers are moving the levers every time we think there's a problem. we got some new information so the prices came down. it's okay. position position 112 >> the rest of the world is lowering interest rates >> so you say they don't move? >> i say they do move. >> you say they do move. >> they should move. i hope they do? >> they are or they aren't. >> they're going to move. they're going to raise rates. >> on that table harder over there. nicole; is that right, guys? >> take a look again at the markets. take a look at the dow jones because it settled at 31 points to the downside. now, the last time it was down anywhere near. that 530 points let's say. it was close to this. four years ago september 22nd,
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2011, it closed at 528 points. that was as close as we got to today's downward move. so today's downward move is even greater than that of which we saw four years ago, which were kind of looking at as our low benchmark for where this market went. we have to ask our own charlie, our economist here at fox business where it was this far down. but, again, we exceeded the downward trend from four years ago, september 22nd, 2011, which was our latest downward move, greater than that to the downside. and nicole has been talking to traders since the dow is into that correction territory right now. that's 10% down from its high mark a couple of months ago ago. nicole, go ahead >> what we're seeing is the market down 530 points. that comes on the heels of yesterday. what we saw yesterday 360 point drop. what happens monday? you buy them or no?
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>> i don't buy them here. i may lay in the book with some discounts, but i'm not buying them here, i'm hedged where i'm, and i'm fine >> so monday you don't come in here and say wow we're over sold, you would put bids even lower where the market currently? >> i would catch something on a inbalance on the open but not on fair value, no. >> talk about hedge going into today. you were mentioning disney and intel and silver and gold, what did you do with those? >> i had a good week, i bought in the right spots, i went up in cash wednesday, and i bought into the metals. and a bad week for the markets, i did all right. this week. >> sometimes they say the clock is right two times a day. i'm kidding you, but basically you got it really right this week, and we saw the selling and people were more likely to short today throughout the day than buy anything. they would rather buy them on the way up; right? >> in the end that's the momentum time play.
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it's scarier to get onboard a moving train >> the vicks had the biggest week ever. tech stocks biggest selloff that that we've seen weeks. what thing on that big board oil, below $40, which one strikes you? >> oil is the big story but it's news at this point. it's news driven. and global demand is the issue. >> and when we talk about the global story too, we can't leave out china >> well, china is the engine behind global demand. so, yes, it is one story. you're absolutely right >> and what else are you going to be watching next week then? >> can jackson hole. >> but don't forget, at this point you've got to wait and see what you can pick up at this point because you saw consumer discretionary, energy, there was no safe haven other than gold >> even without janet, you're going to get fed, and she's avoiding it on purposes
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>> and you mentioned when do you think the fed raise? >> december at the earliest >> so the traderers taking september off the table >> all right, nicole. thank you very much. by the way, kudos to tom mcclellan had a piece in the market watch. it was monday or tuesday suggesting on the very day that the market first went down over 300 points that it would do so. he timed it right. there are just a couple of people that timed it right. you can't make -- everybody can't make money by timing the market right but some people did. let's bring in a trader from the cme. scott has been advising people to keep a lot of cash around for a while, suspecting that this market was getting a little top heavy. scott, did you think it would come down this far this fast? >> i thought it would come down this far, but nowhere near this fast. my last headline i wrote to our customers was today the rational man celebrates. when we had the stocks at all-time highs but you couldn't look me in the face
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and say the economy humming at all times. we knew the fed goosing in there. so we're seeing main street come together at a price, and i'm not so sure what's going to happen next week because there are traders -- the markets are odd this time of year, so i'm not >> you did just yet. i agree with the last guy speaking, we're going to see how this play out because we could see it move in a way over done scenario before we find our legs >> and it certainly did come down at the end of the trading day, that's where there was a strong downward move, a lot of it depends what happens over the weekend. and correct me if i'm wrong but i've gone back to look at the five corrections since we've had since this bull market began and basically all of them have been very sharp, very hard, the come back is slow, but the fall is fast and hard. >> and typically what happens, unfortunately, the mom and pop investors that have been forced out that risk curve and
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buying equities that they normally wouldn't buy because they have been doing well are the ones that are now selling and that's unfortunate and that's why we see these moves get exaggerated to the downside and then they don't come back as soon as they should because they're all scared and by that time they miss the move on the way back up. so this is the time where if they haven't made moves, you're better sitting around and see what happens because we don't want to make a bet that the sun explodes because if you win that bet, i would take it easier right now and let's wait and see how the next week plays out because ultimately you'll see us gravitate and grind higher at a healthier pace rather than a fed induced pace >> scott, are you willing to put a price tag on that point at which the market comes more in alignment with the general economy? have we just about reached that level now? >> no. i don't think so. i mean i still think that there would be another 5% to the downside before i would get comfortable about really believing that. we've seen so many gains over
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the last three or four, five years that we've had the fed involved -- and mind you, all the banks around the world involved. have things gotten so out of hand, the five central banks, japan, china, ecb, and bank of england, those fed governors or chairpeople that run those have been in office 13, 14 years in total. how many of them ever raised rates? >> none of them. zero. >> and the question is whether they react more to the stock market than they do to the economy. a lot of people suspected that's what's been going on in the past couple of years. if that's so, chances are when they talk to each other on the phone this weekend, they're going to react to this more in a panic mode than in a strong and steady mode. that's what concerns me. >> and it should concern you. you're exactly right. and this is the fed that's been looking for any reason not to raise the rates. they missed their chance. they should have done it nine, 12 months on ago when gdp was 3%.
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they keep furnishing off in hopes that it comes back off. the more time we push off fed, the worse things are going to get. that's why nothing in september, we might have qe in 2016 >> we're going to move to melissa, but what are you doing this weekend? >> as far as investing or as far as personally? >> in just general. is there any way that you can enjoy a weekend after a week like this? >> i tell you what. i had the double whammy day, but one of my calls is oil going through $40 today, but the refinery right where i live has been shut down for the month and the gas spike 70 cents at the bump pump so i can't win >> good to see you. i hope you get a beer at least >> let's bring our panel back. we've got president of the fox news contributor and add him to our markets panel along with jack, david, james, and carrie. jack with let me start with you because you've been making
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a shopping list over here. >> bank of america sent me they really week what turned out to be timely research. they pointed out so far this year there's been tremendous leadership by these momentum stocks. the amazons, the netflix. when you see this margin of out performance for these stocks, it tends to end badly, what sharp decline. what happens next, the best performers statistically they say have been companies what they call high quality companies. companies with high returns on the capital they invest. not necessarily the cheapies. some are expensive, some are cheap. kind of something for everyone on the group >> okay. >> one example american airlines. i think people are nuts if they don't want to pay five times earnings for american airlines right now. we're watching the price of oil plunge, this is a hedge, and it's their biggest cost >> yeah. >> so the airline industry is booming right now, memory maker, people are worried about stock demand for pcs, and iphone double memory in next model, like airlines this is a business where you've had more than a dozen competitors
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gobble each other up. and we've seen tj maxx grab share. first of all, they're taking market share and department stores can't sell their goods, they off-load it to tj maxx, growing sales 6%. >> gary, you're on remote, we'll go to you next because you don't have the benefit of being in the studio with us. have you had a moment to get together what do you think? >> i'm at 100% cash. i'm going to sit back, put my feet up, and then i'm going to start making a list. but i think we've got a ways to go. look, i think this market topped out months in vance, the average stock, i really do think it is a major top in the market that's going to last a while as far as time and price, and i think you have plenty of time to wait. i know what stocks i love, i know what companies i love, i just think it's the wrong time now. i love the cruise lines, the airlines, tj maxx and things
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like that, but i think they're going to go lower. >> gary >> stocks go down in bear market >> are you literally 100% cash? >> 100% cash >> that's amazing to me. the whole panel took a breath back when you said that >> cash is never yield as less. i think some of these retailers are going to benefit big time by cheaper prices by asia, tj maxx is a good one. i like market. walmart imports from asia than any company on the globe. their prices are going to go down >> melissa >> yeah. go ahead >> a very important point here. there is more margin and leverage in the system now than there were in '08 and that's going to just start coming off the next couple of weeks. i have not seen really any panicky selling, even though somebody said it. that wasn't panic today >> i agree >> that was normal selling here, i think there's more to go and, again, the fed has created another boom and, unfortunately, every time you've had a boom, i'm worried
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about a bust, and we'll see what happens >> gerri says you ain't seen nothing yet. do you have a helmet? >> you're wondering what i like besides musical >> sure. go ahead. >> be careful with walmart because they've got the media up their back by going to $9 a hour minimum wage for all of their employees. but you saw in the earnings call this week sitting their profit >> right. >> i'm not recommending either way on that. but i just think generally the u.s. equity market. i don't really know how you go anywhere else. we're still the best house in a bad neighborhood. and if you look at a opted mistake case, he's only in field office another 16 months, you started to see a policy turn, and everyone -- >> wow. >> wait we started to see a policy turn from the fed or the white house? >> washington policy. >> i don't know. >> the business legislating is over and then we're talking about oil being such a bad story, down to $40 a barrel.
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12 states in america now you can find gasoline for $2 a gallon or less >> i know but that hasn't translated into consumer spending >> i know you haven't seen it yet, i know we've been waiting each month >> it's not happening. that's worrisome >> by the way, -- >> long term this is good for growth >> go ahead, gary, last word >> the potentially only good news. first off there's no chance, zero percent that the fed is going to raise rates this year, and i'm pretty sure you're going to start to hear rumbling, another round of printing money and that's bleeding. i'm not so sure this time >> is all the money in stacks around your bed? is it in your office? what does that look like? can we get a shot? >> i'm going to buy a ton of beanie babies over the weekend. >> i love that. all right, david, over to you >> i hate to tell you, melissa, i'm in cash too. it happened in accident, i
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wanted to buy a house, i didn't buy the house, it happened on accident. and average joe options author, todd, some people -- some of the traders would say even a broken clock is right twice a day. now is your time so go for it, man, you've got bragging rights >> hi, david, well, look, it's just something you look at and the markets tipped us off by the way we were -- rounding top coming in. but look at a couple of things. you've got the student debt and auto debt hit $2 trillion. that's bigger than the housing bubble. and all of these banks scrambling to devaluing their currency. identifies surprised we didn't go down sooner last week and then all of a sudden all of these people are now waking up and they're saying what you know? maybe it is time to get out, and we saw a little bit of a rush, actually the last couple of days because we're going to go much lower, and i think scott mentioned it. i think there's going to be a qe4, and i wouldn't be surprised it was sooner than later. i said it all along, but i
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think we've got a problem here, and you're going to see that they're going to try to scramble here >> hold on a second. avoiding terms like qe2, qe4, qe whatever. the fact is a lot of people say the fed has done just about everything they could. what more could the fed do than zero interest rates? >> they could try to infuse more currency into the system. they can -- >> so literally dropping currency out of helicopters, like -- >> absolutely. and that's the problem when you have a fed that doesn't know how to make a decision. when you have a fed that backs themselves into a corner and continues with this theory that the problem will go away if we continue to ignore it >> now, i don't know precisely the technique they would use, it's like melissa wondering how gary keeps his cash. that's the problem is that banks are already have these huge reserves, most of which they're not using, by the way, because they haven't found enough good bets. but where would that cash go?
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there's a problem with logistics. >> the whole idea from the beginning is force the banks to lend and maybe they can figure out to get the bionics put money out >> so hold on a second. you're saying that the government may come in and act as a banker and decide where to put the money that the banks now have on reserve? >> yeah. well, aren't -- >> that's a very dangerous position, is it not? >> 100% and that's -- we put ourselves the fed put ourselves into this dangerous position now, which we've now seen a dramatic, dramatic commodity crash, the currency wars that you've mentioned. look what's going on around the globe >> okay. but you have also seen -- forgive me, todd, but you've also seen the united states try to be in the mode of entrepreneur, and you saw it fail terribly whether it was in green energy projects or stimulus projects, et cetera. all of those policies where
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the u.s. government tried to be the entrepreneur, ended in disaster. and are you suggesting they may go into that mood sort of as a panic mode over the weekend? >> i think there's an outside chance that they're going to panic is correct. i think that they -- >> let's hope they don't >> i think they watch the market very closely, and you've seen -- if you remember in may of '13 when the rates were going to raise, the market backed off because he gave into the traders, he gave into the bankers and said we can't do that >> todd, you've got all this cash, advising people to be in cash for a while now, where are you spending that cash or holding tight with it the same as gary? >> actually i've been short the market. so that's for my trading cash and my long term stuff i'm 100% in the market but i'm 100% hedged through options. so this is actually a big benefit to me >> cashing in shorts as our friend todd, thank you, todd. >> thank you >> don't go anywhere market coverage continues. the dow ending down 500 points
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now in correction territory. look at that. 530 points to be precise. david >> well, there is a little other news. hillary clinton facing a whole new set of legal questions over her e-mails as her camp goes on the offensive. we're going to be talking about that >> and kim jong-un says north korea is in a war, tensions rising ahead of a key saturday deadline at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. technology empowers us it pushes us to go further. special olympics has almost five million athletes in 170 countries. the microsoft cloud allows us to immediately be able to access information, wherever we are. information for an athlete's medical care, or information
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to track their personal best. with microsoft cloud, we save millions of man hours, and that's time that we can invest in our athletes and changing the world.
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at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping.
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>> major selloff on wall street. the dow ending down over 500 points for the first time in four years in correction territory. down over 10% from this year's highs back in may. the vicks, that is wall street's fear gauge, more than doubling to close at a four-year high. and let's go back to nicole on the floor of the new york stock exchange with more of what we can expect going forward, that's the big question >> that is the big question because we see the selling this week. we've dropped 530 points today. 360 yesterday. so what are they looking at? and that's i didn't grabbed every trader walking out of here and said what are you going to do on monday? and one thing i certainly saw was china, asia, europe, a lot of traders not taking positions today, and we certainly saw the evidence of that. but waiting to see what happens overnight from sunday into monday and that could be
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an indicator of what would happen on our trades here monday morning. there's certainly a lot of nervousness here on wall street, which was evidence by the vicks; right? up over 100% this week. that fear gauge had its biggest weekly move ever in history. so that being said, and just about every stock that we know of has sold off today; right? certainly the big ones such as netflix, weekly lost 15%, chevron down 12% this week, twitter down 11%, and the dow components under pressure. so, melissa, the big picture here is what will the traders do on monday and the theme i heard is, well, a lot have moved into cash this week, a little bit nervous, they're going to wait and see what the other countries do overnight in europe and asia in particular. and we'll see if china doubles down on that stimulus and that's what everybody is watching as well >> nicole, thank you so much for that. david >> all right. our panel is back, jack david gains and gary, portfolio manager at
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nickelous and president of investors. chad, first to you. we've seen china try to do their best to stem the bleeding in their own stock market. they failed terribly. it's -- it was one of the hallmarks of what a controlled economy cannot do. i mean they cannot change market direction. what could they possibly do over the weekend to stem the bleeding? >> i don't generally think they'll do anything over the weekend. the monetary stimulus that they're trying to put in their financial markets has not worked out to say the least. the fiscal stimulus, you haven't really seen a major fiscal stimulus man over the last 12 months, hence the reason why you're seeing their growth trajectory going substantially lower, we're expecting 5% and that's even if you believe the numbers.
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that's having a feedback loop onto the emerging markets. on the emerging market balance of payments, which is destabilizing, not only the united states but also brazil. and that is really the issue with the markets are trading down today >> yeah. >> it's all global growth issues >> yeah. and emerging markets getting hit more than any other -- let's talk jason about certain saving accounts here that are getting hit and we don't want to catch a following night but on the other hand there may be some baring. let's look at the worst sector, the energy sector, which was killed today. something like hall down $35 a share. that is historically extraordinarily low for that stock. we know the companies going to be around for years to come is now the time to buy into a stock like that and i should mention. there's a lot of stocks that are out there that are involved in network that are -- have been so beaten down. a lot of people are looking at that time them greedily right
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now >> i havetoring. i mean not only the energy sector but real estate -- i mean i can go on and on. i actually believe at the end of the day the markets are almost deny going down. we're going to find a bottom here very, very soon. i have been saying to the world that the markets are going to trade weak, into next week's meeting and then we're going to have a year-end rally because then the fear is going to turn into buying enthusiasm again but right now we're still in fear mode. the markets are going to go a little bit lower but it is almost a bottom. i don't think we're going to see a 20% correction >> gary, i know you're not greedy, but you've got all that cash, you say you're 100% in cash. you must be gleeful at the opportunity to buy something. how do you restrain yourself and when you can't restain yourself anymore, what do you buy >> well, you restain yourself because you know the markets in dire straights right now and the most important thing you can do in markets is be patient, be patient when
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patience is a necessity. so i'm just sitting back and going to keep a scoreboard going of what companies are doing best, revenue growth >> right. >> and holding up best. but i have to say. i don't think markets top out for good three or four, five, six, seven months and then drop a couple of days and turn back up. i think there's more to it, again, the only potential save is janet -- first off they're not raising rates. take that out of the equation. but if she announces another round of quantitative easing, every time they've done that, the markets have reacted well. i'm just worried to the point where the markets don't give a you know what about what they do >> right. >> going around the global right now >> i know james friedman to get in here because he's been critical of what they've been doing and as you heard my last discussion with todd, what could they do? they've used every bow and arrow they have to slave the dragons that they see in the economy and the markets, and it hasn't worked.
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what do you think they could do right now and could the cure be worse than the disease? >> yes. seven years of -- near zero interest rates, q1, 2, 3, 4, blew up the balance sheet for less than a trillion, over 4 trillion at the federal reserve, i don't think why we think more of this policy is going to help. david has been arguing that you're actually hurting the economy, that if you've got to more normal rates >> right. >> that better allocation of credit might increase in the rate might actually -- >> thank you >> i think the last thing we need is another stimulus plan >> yeah. >> from china. just get out of the way >> david, -- the point is banks right now have a lot of money. they've got tons of money on reserve. a lot of it with the fed directly. what good is it going to do if they print more money, so much money the banks already have? >> you know, i think it's a situation here where they don't have to have more stimulus, they just is to
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announce that that they're on hold the monetary >> okay. that would be enough. >> jack, how -- you're in a very critical position right now. you're going to be the first people to talk to the investors out there through barron's magazine over the weekend. what are you going to tell them? >> we're going to talk testimony about good stocks. many diverse companies. not all these companies have big runs nup price like amazon and netflix, some of them have remained cheap. and, look, we're talking about a 10% correction here. if you're down 10% personally, that means you put all your money to work on the day the market hit its high. don't stand next to me because a piano is about to fall on you. they've done well in this market, stocks are coming down from elevated to moderate valuations >> bigger jack, by the way >> thank you very much. melissa, over to you. >> all right. we are continuing to watch the markets, massive plunge today in the worst week for the markets in years.
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and trying to make sure congress rubber stamps the iran nuclear deal. the new lengths that president obama is going to now to pressure other democrats. we'll be right back it's more than the cloud.
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let me start with you. so this document comes out and shows this side deal has been all of the talk over the past few days, what it does, what it doesn't, it seems to be clear that they're going to be able to collect their own samples and bring it back to the international atomic agency. does that make sense to you? >> it's like the fries with the hamburger. it's the deal that's bad and this is a distraction. to me the smoking gun is the president's letter. which says, hey, i'm going to keep pressure on these guys. if you had a good deal, you would have to promise that. and the only argument for the deal is will we be able to engage with iran? well, if you're pressuring them and threatening with military force, they're not going to engage. so to me, this is like offering somebody a broken umbrella in a rainstorm. your deal is just not going to work >> lots of great metaphors there. but first off i have to say that i think this deal -- we're in a situation where the nuclear program has gotten out of control with iran, there are no good options on the table.
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so i think one of the strategies that can be used here is he need the international communities support against iran. one of the ways to get that support is we do this deal and then iran uses its trickery we show everyone that iran doesn't do what it's support to do and then we have support from them >> but in a way we're supposed to allow the atomic energy to establish a baseline where it is in september. and this percent step they're not furnishing their scientists their military leaders, they were already hearing from the japanese diplomats that they're not complying already, alan >> at any point we can go back and use any option. this doesn't take anything off the table. and, by the way, there's a report that iran would do its own inspections. that would turn out -- that was debunked >> no. it wasn't, i have it right in front of me. the exact document is on fox news website, and it says
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right there iran will provide the samples, video the locations, take photos >> with iaea inspection. >> no. not with them. they're going to bring it back to the agency and is here are our photos >> no. the iaea has 24/7 access >> no. they believe of. they don't even get to go there. they get the photos from me of. i've got to move on, there are tensions going on in the korean peninsula, north korean leader >> yes, i am kunsays his country is in a state of war. you're going there next week. are you bringing a helmet? what are your thoughts? >> fortunately i'm not going on tuesday. so the war starts on friday, so i should be okay. he's done this before. he's actually -- so they're actually already in a state of war, so it's did you believe -- so in that sense it's not new. but we shouldn't diminish this
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because the provocations the south korean's said we're going to respond more force fortunately. so the tensions are higher. we shouldn't diminish this but i don't think quite world war iii yet. thanks to all three of you. appreciate your time. david >> melissa, it's just a war we're talking about. don't get over excited. meanwhile new details in the hillary e-mail scandal. why the presidential hopeful may need to take her e-mail scandal a little bit more seriously
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here at td ameritrade, they love innovating. and apparently, they also love stickers. what's up with these things, victor? we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who reads all those?
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he does. for all the confidence you need. td ameritrade. you got this.
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>> markets plunging today. down over 500 points to end the day firmly in correction territory. the last time the dow closed down more than 500 was in august of 2001 -- or 2011 i should say. although this downward draft
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was more. the vicks wall street fear gauge seeking its highest weekly gain ever. doubling from last week up 188%. melissa. >> hillary clinton a whole new set of legal questions over her e-mail as her camp goes on the offense. fox business peter barns has details from washington. peter. >> hey, melissa according to a story from wire service, the state department owns regulations on the classification of e-mails were issued in 1999 and updated in 2009, and they are clear, all department employees quote must safeguard nato information securely as secret or top secret to help from it leaking out. now, department of staff including secretaries of state received training and how to handle classified information and just in march clinton said that she was certainly well
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aware of classification requirements. one former government records official said quote it's born classified if a foreign minister just told the secretary of state in confidence by u.s. rules, that is classified at the moment it's in u.s. channels and possessions. back to you. >> wow. all right. thank you so much for that. teflon trump still serging despite the controversy surrounding the billionaire, how will it all end? world of mobile technology, but it is not the device that is mobile, it is you.
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>> standing out from the crowd. in three hours from now, 42,000 supporters are expected to attend a donald trump campaign rally. let's bring in the panel to talk about this. hadley heath manning from the independent women's forum. keith koffler and matt welsh from "reason" magazine. a great crew. keith, this week, maybe toward last week as well seems to be
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happening. a new poll out that 57% of likely gop voters think that trump is going to be the likely nominee. people are beginning tong this guy could really be president. it's sinking in. >> it is starting to sink in, that's because everybody was predicting he was going to implode, and he hasn't. he keeps saying controversial things, he does nothing but get stronger. people are responding to his message. they feel that they have great concerns about the changes that are occurring in this country, and feel that donald trump is not afraid of the politically correct people. he's not afraid to be accused of waging a war on women or races or anything like that. people will continue to fight for him, that's why there will be 42,000 in a stadium to hear him speak. >> hadley, balloons have been popped, one by going after women, one after wounded vets,
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so many different ways he could have exploded and instead keeps going. is there any pin that could pop his bubble? >> you know, these other gaffs would have sunk different politicians for different reasons. donald trump built it into the brand. he's going to say inflammatory things and i think the upcoming rally is more evidence, we can't dismiss him, he's part of the race until the very end. it's very early, support for the other gop candidates has spread very thin, amid a broad field. let's wait and see what happens. >> matt, people instead of dismissing him, perhaps the idea of persuading him to people's views, whether they are libertarian, such as yours, focused on taxes such as steve forbes, maybe that's the strategy the gop should take towards this guy? >> should take him seriously since it's a decent chance he'll become a nominee. i don't think he'll do it because of the poll negatives but take his positions seriously, many are fundamentally unserious.
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>> so talk to him instead of shunning him? >> engage him on the ideas. if we really think we're going to get mexico to build a fence to impound all remittances to mexico while calling them rapists, if you want to live in the fantasy world, have a conversation about it, because at some point the gop is going to have to talk to its own base and say there is no such thing as feeling the border unless -- >> we got to make this quick. i was talking to a top gop insider who said no way he's going to become president. i think that attitude has to go away. >> that is the attitude that republican leadership has had, that the rnc had had for weeks, it's not true. he's not going away, he's here to stay right through january. >> gang, thanks so much. we had to condense that segment because of breaking news. "lou dobbs tonight" will have analysis of donald trump's
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rally in alabama. starts at 7:00 p.m. eastern time. you don't want to miss it. >> thank you for joining us on this friday, the final day of trading. the market trade down 530 points. look at that. moving into correction territory. we can see the dow closing at 16,459. that does it for us. "risk & reward" starts now. deirdre: it is a global stock market sell-off, melissa. you said it, the worst week for u.s. stock markets in four years. the dow had its steepest intra-day plunge, down more than 500 points, grave concerns about global growth. this hour we have statistics and the context you need. first to the floor of the new york stock exchange. nicole petallides has the latest. nicole? >> reporter: deirdre, what a busy day on wall street, that's an understatement with the dow dropping 530 points and tacking onto yesterday's 360-point loss. what happened? wow, everything fell out of bed and nobody was biting anything.

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