tv Making Money With Charles Payne FOX Business August 27, 2015 6:00pm-7:01pm EDT
we will be tuned into that every day at three3:00 p.m. every day 3:00 p.m. risk and reward. >> good evening, everyone. today's rally, the biggest two-day.gain in the history of the market putting the market well out of correction territory. bigger than the nosedive in 2010. is this the flash crash the gets no respect? where are the regulators and can you trust this market? hillary clinton has some competition. vice president biden has not announced is running yet, and he would have a better lead than hillary clinton.
we will tell you what voters think of that. gas prices keep getting lower, that was a whopper of a move. while the low the low price at the pump last as long as analysts told you you get that to dollar gallon of gas? we will tell you all about that. making money starts right now. talk about a wild day for the market. the dow holding onto a triple digit gain. about an hour left into the trading day the dow began plunging, nearly losing all of today's gains. then it quickly gains again. ending the day of 369 points. what triggered that downfall? we will ask our very own liz klayman, again on the floor of the stock exchange grabbing traders.
what is impressive and i think that when people are buying that is when the bottom is formed. is it over? >> there was not any selling into the rally. that dip shortlythe dip shortly after 2:00 p.m. eastern where we were only up 65 points whereas earlier we were up 385, excuse me, seri, what happened? the risk managers just got spooked when there was a tiny glitch in one data expenditure which was thomson reuters. touchy and jittery. that is there description.
it's the final day of a very volatile week. the last hour of trade we will be extremely important. we will be here. one week from tomorrow getting the august jobs report. let's get back to a calm her perspective and look at real data and see how the us economy is doing and what it means for growing and solid companies. >> you are a skier. that dip before the close looked like the backend of a doublea double black diamond. slobs that you would be heading. >> the black balls avail they're for a 2nd. >> you do the sidestepping all the way down. i can only do difficult blues. today we saw agreed at the end.
oil was a big propellant. well prices jumped ten and a quarter percent back-to-back updates for the dow. the dow is up nearly a thousand points. we want to no and you want to no this. is the rally here to stay? well, let's ask our investment pros. we also have capital wave editor and i'll advisors. >> i think we will be fairly quiet, even though mr. market has been notoriously nagged --
manic-depressive. we will be quiet into the next fed meeting. that is the key. in this holiday season november or december with sales going on apple will release new phones. i believe we will have an end of year rally. the fed we will be supportive of the markets. we will must see interest rates going up and will have a strong holiday rally. >> that's interesting. >> i think that the retail stocks have shown us today, stocks like smuckers, really strong topline revenue growth and pet foods. we were seeing the consumer is very strong and you combine these reports. yesterday we had the durable goods report, gdp revised upwards. >> a solid upward revision. >> very much so. there was governments building, but basically we are strong. the fed we will not be tightening this year which seems to be the head we had yesterday. it all ends up.
>> let's go over. she called this market crackup. >> icrackup. >> i would like to think the market is strengthening and will gather momentum, but i don't think it has a lot further to go. they willthey will all hit resistance levels close to them already and that it will be a question of whether they can break out. we have come down so far and fast. plenty of room on the downside. >> let's take it to jason. we reported it last night and will reported again. the flash crash on monday was a deeper dive than what happened in may of 2010. the dow is a lower levels, i understand, but market regulators are saying all those awful etf plunges, busted trades, they are not going to cancel those trades just like even though they canceled trades after the
flash crash. they will sit and stomach that get clenching ride down popular etf's. do nothing. the little guy could get screwed. >> that is one perspective. to tell you, my honest opinion, i think that's a good thing for the big picture free-market perspective. there is no free lunch. this is not -- this is a free market. >> it's not. >> it's not about a free lunch. the individual investor got totally slammed your. the individual investor did not know they're would be these big huge swings in the price at the underlying stock that had not opened up what end up hurting them. >> the matter.
>> the regulators telling foxbusiness, the circuit breakers, trading halts, trading halts, rule 48's. when the market makers open in the stocks we don't want to sit 15 minutes with risky trades and dump. thedump. the rules that were meant to stop and smooth out worsened it. that is what is happening now. >> making the perfect statement. the mechanics are broken. this was another flash crash not so much. >> no congressional hearings. >> we still don't know what happened in may of 2010. the problems within the market. better-than-expected news on the economy.
the economy grew at a 3.7 percent annual rate way up from the prior estimate of 2.3%. the number of people filing for jobless benefits falling 6,000 to 271,000, the 1st drop after four straight weekly gains. so is the economy really better? >> smith & wesson all reported strong earnings on the top side. the consumer is out there and spending money. >> one of the biggest decisions of the obama presidency just came in. the national labor relations board effectively said that the labor union can step in and try to unionize temporary workforces and contractors bidding companies like mcdonald's, yum brands, and fedex, those type of companies pretty
hard in trading tomorrow. >> i don't really see that having a huge effect. there are much larger forces at play. the bigger picture is people are looking at the gdp number, the unemployment rate.rate. this economy is coming along internally in the us. china is aa small trading partner. we don't derive a huge percent of our gdp from them the fed will remain dovish. i disagree with anyone who says the fed will raise rates this year. they will raise rates but over the next two meetings they will support the market >> not a matter of fed credibility. really what it is about is data dependent, look at the data. the economy is good. the economy is all of a sudden looking brighter.
>> stepping back things are looking pretty good. just moments ago 1 billion users on facebook. that is a historic moment for the company. >> as to graham is this huge driver. when facebook started to fall in the last few days everyone said go into a company like facebook. twitter is coming down and off. facebook is showing. >> your loving it. what do you think? >> facebook has the advertising model of the millennium. you cannot be facebook. is going to triple digits and then some. closing back about 40 bucks a barrel, a parabolic move.
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improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. >> as gas prices continue to fall adam shapiro heads to new jersey where one gas station is retailing gasoline for an especially low price. >> the price of oil went up, but the price of gas has fallen. it is part of the trend all year long. you can see in ramsey, ramsey,ramsey, new jersey. if you fill up with cash a dollar 89 a gallon.
nationwide analysts are saying it is costing people on average $2.53 a gallon for as a year ago was $3 a gallon. by decemberby december of this year one group of analysts say the average cost will be $2.15 nationwide whereas a year ago it was over $3. there is definitely a depreciation in the price of gas which spells good news for consumers. this drop is putting anywhere from 60 to $80 billion in 2015 back into the pockets of consumers. and they will spend that money going to restaurants, at retail places like target and walmart. in the words of elwood blues , don't fail me now, now,now, the kind of accelerator for the economy, lower gas prices that could
boost stocks. keep an eye on target and walmart. back to you. >> thank you very much. oil did move up higher. over 10 percent, that was the biggest pop in six years. the stock party down on wall street with oil moving higher. can low gas prices last? gas prices going up. clipper data. stress so far in terms of positions being held in the green market. get stretched so far and started to see a rebound. the snapback, short covering we are here now, andnow, and
that gasoline price is based on demand. but we see the deathknell of driving season coming up with labor day the seasonal trend falling into bottom. we should see these as a seasonal aspect command reducing oil price as an input having a significant part to play, but a year ago we were offering more than double that. gasoline prices are here to stay. >> where do you think gas prices are headed by the end of the year? how much lower can they go? >> on the national outreach $2.50$2.50 a gallon. they could easily get down.
as long as oil prices remain in the range. looking strong in terms of inventory. demand is stronger as well in response to low prices, but we will see prices edging lower. refinery maintenance season will come up and get offset by strong inventories. gasoline we will continue to gradually move lower. >> in a surprise move venezuela is asking for a meeting to talk about the plunge and prices, possibly cutting production to get oil and gasoline prices go back up. that country is in a world of trouble. about a hundred dollars a barrel to basically pay off what it owes to keep the country going. perhaps trying to get some sort of collaboration with russia to get opec together again.
it'sis not venezuela that wants to cut production. they want to get these gulf states to cut production. while we have been hearing increasing rumors and murmurs has to opec members with their disdain about what has happened, there is not anything that venezuela can do because they are not willing to cut production. >> nothing coming out of that. thank youthank you for joining us. thank you so much. vice president joe biden basically making a good solid showing against hillary clinton and a recent poll. will these new numbers finally push the vice president closer to announcing? we will tell you all about that next. don't go away
>> i recently launched a snap chat account. [applause] ii love it. i love it. those messages disappear all by themselves. >> my use of personal e-mail was allowed by the state department. it clearly was not the best choice. i should have used to e-mails, one personal, one for work. i take responsibility for that decision. >> have the american people had enough of hillary clinton's flip-flopping? any national poll shows vice president joe biden would fare better than hillary clinton and matchups against top republican presidential candidates. does this mean serious trouble?
and pat caddell, former democratic pollster, let's set the record straight. it basically to five and just has been bringing this up, handily beat joe biden if they were stacked up against each other. seems to fare better than hillary. first of all i think that's true. clinton's problems extend to independence than where she is really getting killed. also look, you cannot overlook the fact that she has been tumbling down. she is still ahead. her lead is now much less. thethe highest numbers i have seen in 18 percent. bernie sanders and biden
have almost many is hillary. i have said since may, late april, it is a metastasizing cancer and everything points to it. >> to past points, people really are engaged in with the potential candidates are saying and their policies and what have you. as we share the soundbites, the same poll showed they were asked the words that come to mind when you think of hillary clinton. liar, dishonest. her on favorability on favorability rating is now at 51 percent. this is trouble. >> it is definitely trouble but does not mean that it is over. completely corrected and slipped. forty-five to 22. get the general election matchups. the issue now is to change
the conversation by talking about her policies. democrats are squarely behind her policy. >> to jessica's., here's the headline. the pay to play action. if joe biden steps into the race. that would mean they would start talking about policies joe biden versus hillary clinton might be a good thing for hillary clinton. >> they both have this problem that they are tied to the obama administration but people will be talking about process, talking about the numbers, the fact that joe biden, who would've thought he would have numbers this good, let alone the republican commander a republican candidate we will
they run toward the obama record and embrace it will be running away from it and which we will the democrats want them to do? >> news breaking that the president will be meeting with mr. richard trumka. joe biden likely is running. trump held as conference. his desire to make america great is very real. >> ii do not where a to pay. it's my hair, i swear. come here. come here. come here. you have to do an inspection. this is great. real quick. we don't want to mess it we don't want to mess it up too much because i do use hairspray.
say it. >> yes, believe it is. >> thank you. >> this is why people love donald trump. millennial's seem to be moving toward mr. donald trump. these are not the millennial's of 2,007 or 2,008. they are talking about the economy and jobs. >> right now he is the one they know. the apprentice star. the other candidates are not even being covered. this is donald trump's summer. the clown show as far as i'm concerned and what we just saw it reinforces that. >> is also taking attention away from the other gop candidates. >> the amount of media attention is unbelievable. i mean, every cable network covers it because not because they like him but look the truth is he has got support across-the-board on
the republican side. he has serious problems with the general electorate but when you talk about millennial's is talking about jobs they don't have, and economy that has hurt them then today he did it in a bloomberg where he tore into hedge funds and offered to raise his taxes along with the hedge fund industry which is the greatest scandal of all time produced by both parties in washington for money. he is hitting on themes no one else's. there is room for others. it's anything but a clown show. your party leadership has screwed the base of your party. >> i'm not going to disagree with you on that. we are all full of crap. >> the fact of the matter is when it comes down to it voters will look at the electability. doing better.
ultimately they will look at that and look at that with trump when they see he is absolutely unelectable in a general election. >> he is bringing a lot of passion. >> so far in the republican party, the base of the republican party has no use. leadership has done nothing must sell them out. two landslide elections. they are upset and angry, and he speaks to things with an authenticity. voters are worried about electability. >> what jessica judge. >> i agree with a great deal of what has happened.
he speaks about truth and incredibly on characteristic things. levy a tax. >> for illegal immigration. the challenging birthright citizenship. electability. some of the things trump talked about are popular. they have been for a long time. others are not getting a chance to speak. they aren't speak. they aren't representative of the republican leadership. we don't -- we have a field. >> final word. >> more of them in the political class the not. the ones that are not,
carson, fiorini, and trump have 60 percent right they're. >> that was a fiery debate. the nlrb just made it easier to unionize afranchisee workforce. it will cost companies a lot of money. we will tell you who else is affected next. stick around. don't go away. what super poligrip does for me is it keeps the food out. before those little pieces would get in between my dentures and my gum and it was uncomfortable. just a few dabs is clinically proven to seal out more food particles. super poligrip is part of my life now.
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obama administration ever and could hit companies hard. the national labor relations board handing down a ruling today that will make it easier for unions to step in and unionize temporary workers including contractors and workers who work for franchisees. mcdonald's, yum brand, dunkin' donuts and more. hillary claim and jessica tarlac, a stunning move. what does this mean? >> industries will be impacted and if unions go in they're the whole process from compensation to benefit packages becomes more expensive, is not what our economy needs. it is not just about mcdonald's, not just -- dunkin' donuts. >> one thing that's interesting, 3100 franchises.
>> okay. hotels, hilton, star wars, hrt, all the sheridan's, another one is marriott. 123,000 employees. mcdonald's is 420,000. the. mcdonald's is 420,000. the defense industry, the it spending. what about healthcare. a company called the hospitalist. this is really. sharing the economy will for many months and there are 90 million americans who don't just have one job. they have two or more. they more. they feel there is a responsibility to make sure we negotiate benefit packages and people get taking care of. >> but the problem is the franchise model is a painful one.
>> for the little mom-and-pop's. >> very much. people go after mcdonald's. >> couldn't they bump it up to the corporate headquarters? >> flow it right down to franchise owners. >> the irony is in health reform obama care basically create a lot of temporary workers. now they want to demand more benefits. retiree benefits, you name it. >> tremendous irony at every level and a lot of unintended consequences. >> from this decision absolutely. also this goes along with what we've been talking about with the minimum wage. >> the minimum wage in this is going to affect everyone. >> look at this big story.
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pay a 40 percent tax on these plans. the additional cost is being shifted to you. plus more premium hikes are on the way. mr. pres.,mr. president, what did you say about premiums not going up? joining us, back with us.us. what do you make of this cadillac tax? >> i think this whole health care plan is a disaster. insurance companies are making a lot of money. patients are getting hurt. they cannot afford deductibles or co-pays or coinsurance. and it is another negative feature. the whole health care probably needs a total redo. we need to look at other symptoms that need to be more cost effective. >> just made a great point. when you are talking about companies.
this knew tax and wall street conference call, companies like cvs, at&t, boeing. this is a big deal. >> and they will just pass it along. it is probably going to be the little guy. is this now essentially like a luxury tax on health care? it sounds like it. it is starting to sound like a good old-fashioned luxury tax under healthcare. >> and labor unions did not like this tax at all. you have seen in your practice, a worker can have a spouse with a chronic illness and they are not cadillac plans. they help play for chronic disease. >> in my practice in manhattan, i have been running it for 27 years.
we have seen a big change in healthcare. premiums are going up. deductibles are going up. people don't always understand what that means. a deductible can be two or $3,000. your insurance does not kick in until you have spent that out-of-pocket. the coinsurance and co-pay. they could be $50. the healthcare insurance company is charging more money, chargeable money, cutting back with there paying for care, making a lot of money and the people are patient.patient. look at the pharmaceutical company. how many pharmaceutical advertisements on television now it's a whole problem.
back with me, a lot of money, hillary shine jason. >> i think the demise of netflix is greatly exaggerated. they have ridiculously powerful growth potential ahead of them for multiple reasons. was it a versa find a planet earth. there going to explode. making large investments in there own in-house production and people are complaining you can't track the metrics. let -- netflix knows what there doing, can track it. they know what's working and will keep doing what is working. >> would you buy this now? jason is making some great points. >> this is an excellent company. i missed the boat.
>> chiming in again. probably at the beginning of the possibility. >> netflix's business model does not work anymore because of the 6 billion they want to spend. >> what do you mean? >> something like seven 7 billion, 5 billion against 6 billion in spending on production. amazon prime. >> you don't have to spend all that it once, partner with studios. >> people really like netflix. they have a great documentary section? great classic movies. people like picking and choosing what they want to watch. >> i do know. we are subscribers. the. the beauty is in the simplicity. it does not have a bunch of moving parts.
the business model is over. no way. >> in terms of content, in terms of content with netflix there really isn't as much content as people think there is. every single week. charles: we have to wrap it up. one thing that netflix could do that apple does pretty well, hitchcock section, hitchcock classic. all out of correction territory after today's a pretty good gains. will discuss that next. can a bu? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul?
the rally continue tomorrow, with us shah gilani, jason rodman and hilary kramer. >> waiting for the market to go higher. i don't know how high it's going to go. liz: you're rooting for the markets to go higher? >> i want to short the market more. we're not done here. we can't have an action like today, out of nowhere the market gives up the gains and finishes strong. what does that mean? liz: hilary, what do you think? >> the market is encouraged by oil prices firming up, seeing a bottom. liz: do you think we saw the bottom in the market? . >> i think so. liz: short covering. >> short covering rally, yet to go below 40, 39, 38, 35, settle down somewhere. >> next week car sales will be important. ford, gm. liz: jason, we're in the dog days of summer.
it's a friday tomorrow, summer friday. you know, it's going to be more dog days for the dow or up market, what do you think? >> tomorrow is going to be quiet. the volatility happened. today is classic overeuphoria day, if i could just give everybody a little clue as to what to look for technically, put my trader hat on, we're well below the 200-day moving average, okay? liz: what does that mean? >> the average of where the mark's been on average in each of the past 200 days. when the market is well above the 200-day moving average, typically the institutions think that's bullish. when the market is below the 200-day moving average for several days in a row, that's in bearish territory. we've had a correction higher. the s&p is 70 points below the 200-day moving average. that makes me temper my enthusiasm for an immediate
rally tomorrow and next week. liz: so slightly bearish he sounds, right? >> exactly. liz: you agree with that, shah? >> absolutely 100% agree, well put. we have problems technically and the market has to get past the technical problems. forget the fundamental problems, the technical problems and the mechanical problems like the big dips, lot of stuff to get past. liz: hilary, what do you think? >> we're heading towards september, positive to see momentum come back. liz: will you think auto sales are enough to drive it higher? >> we have auto sales and catalysts, before we know it we're going to be into earnings again, the dollar is weakened enough that so many of our multinationals, many companies are going to be better. liz: cheaper chinese goods. >> absolutely. liz: jason, you get the final word. >> listen, we're going to have a low volatility, maybe even slightly weak environment until the fed, the fed's going to come in and be dovish, we're going to have a year end rally.
liz: great show, hope you join me every night through the rest of the week and monday night. if you can't, set the dvr, you don't want to miss a moment of "making money." lou dobbs is next on fox business. good night.. tom: good evening, everybody, i'm tom sullivan in for lou dobbs. donald trump's candidacy, it just keeps on getting steam. the billionaire populist leaving his rivals in the dust now with the new national poll showing trump leading next closest competitor by 16 points. trump's straight talk and refusal to back down from confrontations apparently is resonating with voters fed up with typical washington politicians, and the same poll showing vice president biden's performing better against republicans in a general election matchup than hillary