tv Countdown to the Closing Bell With Liz Claman FOX Business September 18, 2015 3:00pm-4:01pm EDT
talk about the middle east, at the end of the day when people go to the voting booth, they vote their pocketbook. they want the best person for the u.s. economy. now, he's got an opportunity given his business experience to explain how he would be the best guy, but we need to get that tax plan to figure it all out. liz claman, over to you. liz: i'll take it, trish. it is a frightful friday for the bulls live from the floor of the new york stock exchange just one day after the federal reserve decided to leave rates unchanged. that was the big non-news news, but today the big news is that when traders on the floor yesterday got very excited, what did they see? is they saw this big swing of about 200 points to the upside after the initial announcement. but as the news conference went on and on, the gains slowly disappeared, and now those gains are nowhere to be found today. gone as you see right now we've got the dow down 230 points, dropping more than 200 points at
the opening bell. and you sew we have remained -- you see we have remained there. at one point we were down 301 points. the fed unintentionally, but nonetheless, creating real volatility and worry and anxiety here for the markets. so what happens next? are we in for an october surprise? that's the question. or are the traders left to wonder how do we make money in this market for the rest of the year? we have got it all covered. our finger is on the pulse of the markets from the smartest people in the business. we've got the bears taking charge on the floor of the new york stock exchange here, one hour to go. let's start the "countdown." ♪ ♪ liz: well, forget halloween, one of the scariest days that is about to come out on the calendar will be october 28th. that is day two of the two-day
scheduled federal reserve meeting that is expected to happen in october. it is a day that could spook investors even more after janet yellen put the markets on notice yesterday. >> every meeting is a live meeting where the committee can make a decision. were we to decide to do that, we would call a press briefing so, yes, october remains a possibility. [laughter] liz: no, that was not me, that's the halloween fear that the markets may very well have. traders, though, are not sold on an october rate hike. why? if you look at the betting that's going on and the fed funds futures kit, that's where they predict what's going to happen, so far at this hour the prediction is only a 14% chance that we will see a move by the fed in october. but, of course, remember just two days ago that expectation
was at 42%. so ihas dropped pretty exponentially. let's bring in the money men, we have jim rosenberg, blackrock chief investment strategist. fixed income. brian bethune, and jim frischling, he's president of new oak capital. all three are here exclusively, and we bring in the traders, chris robinson from the cme, and come on in, john corpina's just been fixing orders, he's with me on the floor of the new york stock exchange. jeff rosenberg, to you first. i need to know right off the bat, do you expect an october move? >> you know, liz, i listened to the premise, i have to say i totally disagree. you know, let's not make this all about the fed and take the attention that we have just put on this last meeting and now put it into october. you missed the whole message. what she talked about, what was so important and why stocks are doing what they're doing yesterday at the end of the day
and today is because she introduced international developments as the reason that they're spooked. so the market's not going to be focused on what the fed is doing, the market's going to be focused on those international developments, and that isn't on october 28th, that's every day. so i don't think this is about the fed here. i think it's really about the fed introducing a risk that has been with us for a long time but bringing it front and center to a lot of other people who haven't been focused on it until now. liz: i really hear what you're saying, but i have to ask you, john corpina, do you agree with jeff? all of those headlines she talked about, he mentioned, quote, introducing all of these problems. we've known about china, we've known about the problems that europe is now facing, and we've known about what's going on in south america. is it that, or is it the fed unintentionally but nonetheless realistically creating the problems we see today with the dow down 260 points? >> right. i think the wording we heard out of washington has added a lot of uncertainty to this already-uncertain market. heading into yesterday there was
the big debate as to what was going to happen, but the bigger debate was what happens afterwards. so clearly the text that we got yesterday, especially in the q&a session is, has added much more to the uncertainty, and then you add in the international issues that have been developing over time -- and, yes, we've known about this -- but the fact the fed has said we're going to really look at jobs and our domestic economic data to make our decision. well, now if that's going to be led by international elements, that adds a different aspect to it. liz: so it does, in a way, lead back to how janet yellen perceives what these headlines are. brian bethune, is it no longer about earnings here in the united states, the gdp here in the united states or the labor numbers which have actually looked a little bit better lately? >> well, i think that is true, that the u.s. economy does look fairly good. but if you look at the global economy, as you said, there are problems. growth is weak, the export markets are not doing well. but on top of that, and this is
a point that is relatively new, the u.s. dollar has resurged up to a new record high. so big companies that are based in the u.s., that's ge, boeing, john deere, caterpillar that are selling their equipment overseas not only have weak overseas market, but also an extremely high u.s. dollar: so this is putting downward pressure on their pricing and on their sales. so that's feeding back. it'll feed back to the u.s. economy, and we'll see more of that in the next couple months. i think we'll see weak growth in the third quarter, and that will not play well into the october meeting, and i think the fed will seek a gain at the end of october. liz: for the retail investor, chris robinson, who's watching the pits and what you guys do in chicago and here at the new york stock exchange, where's the money flow ban in these last several hours? it looks like the bears have firm control here. >> well, yeah. i think the bigger thing is look at the ten-year, two-year,
ten-year and thirty-year bond futures. they've gone straight up. the market's anticipating that interest rates are going to go lower or stay pat. that's the key. to see the correction we've had in the stock market, i know people get excited about 200 points, 300 points, we're still right around a 10% correction off the record high. if that bothers you, i mean, imagine what happens if we have a correction of another 10% and go down to 14,5. so if you're a retail investor, if you're worried about that, i think you've got to make sure that you've got some plan for that. i think a lot of people are looking for that as an opportunity to buy. if you're really concerned that you don't want to own stocks, then you need to do some risk management, and that's really what we're here to do, you know? buy yourself some s&p puts if you're worried about, you know, the market really going lower. but the big thing you've got to watch is, and you said it earlier, the u.s. dollar and also the bond market. the bond market has spoke. liz: yeah. let's show some of those bond yields if we can get those up and rotate.
let's bring in jim frischling because you're working your money regardless. you're told what the land scape is for now. as we wait until what's going on in october, you've got to make money for your clients. how are you doing that? >> we do think the u.s. economy is performing, and we like some of the domestic-centric opportunities. and one of the things the fed just did is make one of our views on housing and the real estate market actually more compelling because the low interest rate environment is certainly helpful both keeping mortgage rates at historic lows and continuing this kind of uptick in housing. you asked at the top of the segment about an october fed move. the answer is i now think -- the answer is, no. could they surprise us? yes. but all the signaling has only created more uncertainty to something i wish that chair yellen would have taken away. and to a certain educate tent, we -- extent, we might be obsessed with the fed, but they're obsess with the the markets. she said no hike was based on deflationary or lack of
inflation, that's one thing, but she's spooked by china, and you're seeing a vote of no confidence. she gave a no confidence vote, the market's reacting to that. liz: okay. let me go back to what happened yesterday, and we go back to jeff because you're the fixed income guy here. savers are not getting rewarded because the yields are so unbelievably low. is there a way in fixed income that you feel is an opportunity that is relatively safe? i'm not talking about, you know, costa rica airport and bond investments. [laughter] what are you looking at where you can get great yield and later bit of safety -- a little bit of safety? >> i'm going to pivot off what janet janet yellen said. she talked about the focus of international developments, and we're going to be focused on international opportunities. bond people are a little bit weird when bad things happen in the world, that's good for certain types of bond investing. thinking about global bond investing where interest rate policy in local terms has to become more accommodative is where your bond opportunities are going to be.
and you just have to manage your currency risk when doing that. so it's not taking global bond risks with global fx risks, it's taking global currency risks in markets where monetary policy can get more accommodate i. look at the market action in europe and the periphery today. if the fed is not going to be raising rates, the euro is getting stronger. liz: it is. >> that's the worst thing that can happen to the european economy. you see that in the european bond markets. those are some of the places and opportunities. liz: okay. for people listening on xm, all the european markets were down, the ftse, france. what mom and pop investor's going the sit there and parse each currency out there because there's so much exposure? >> there is. and that's not really an investment that mom and pop want to get into and have the access -- liz: but is the fed forcing them into that? >> i don't think they're forcing them into that, but it's definitely putting them on their
radar screen. liz: quick comment as we look ahead to the next gdp. >> yes. i think the third quarter is going to be slightly below 2%, so it's not going to be a very strong report. and you combine that with further downward pressure on inflation, that just sets up the situation for the fed to basically sit tight for another meeting at least, is the way i think about it. so even though the u.s. economy has been doing fairly well, generally what we've been seeing since really coming out of the recession is these fits and starts, and there is this potential of a slowdown. the last thing the fed wants to do right now is raise interest rates and then have to reverse that policy decision three months later. liz: oh, exactly, exactly. so let's all reconvene in october, gentlemen. it's great to have all of you. >> we'll be here. liz: everybody's going to be here, trust me. [laughter] we're about 30 points away from the lows of the session for the dow jones industrials, my thanks
to all of you, really appreciate it. the obama administration, we're talking about politics next. it's making its first major move to make it easier to do business in cuba. of course, the doors have been open now between the u.s. and cuba. the pope is set to arrive, we're on that dramatic story. and donald trump says vladimir putin, of all leaders, doesn't respect president obama or the u.s., but could the two be getting ready to show respect to each other in a meeting later this month? our political panel ready to break down trump, hillary, biden, jeb and the rest of the 2016 field next on account "countdown." don't move. we've got a hoer market. could it move lower? we don't know, maybe. we're watching it right here. [ male announcer ] whether it takes 200,000 parts, ♪ 800,000 hours of supercomputing time, 3 million lines of code,
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liz: an untouched market is becoming more open. president obama chipping away at the cuban embargo today, easing rules on business and travel. so here's what the new changes will allow. it'll allow certain, certain u.s. companies to establish offices in cuba. that would be the first time they're allowed to do that in decades. it would also expand banking activities and remove limits on the amount of money that can be taken off the island. who's up? well, verizon. verizon's not wasting any time. it's become the first u.s.
wireless company to let its customers make calls and send texts and use data while visiting cuba. however, general tourism to cuba is still banned under the embargo. so this is going to be a very slow process. let's quickly check verizon shares, they are down more than 1% in today's trade. nothing to do with cuba, this after yesterday where verizon said 2016 earnings may, quote, plateau. so we're keeping an eye on all of that and more. drama in south carolina today. in the last couple of hours, the republican front runner for president dropping out of the huge event in south carolina. he's doing so at the very last minute. yes, donald trump is leaving the spotlight to the ten other gop contenders who are set to speak there in just about an hour there now in greenville, south carolina. yeah. it was very sudden. joining us now to talk about what's going on here is chris hahn, former aide to democratic senator chuck schumer, also a
syndicated radio host, as well as keith hawkler. people are saying something different than what trump is saying. trump put out a notice that says i have a business situation coming down to the wire, i'm so sorry, i have to back out. others are saying it was his inability to stand up to somebody who threw him a question about president obama's citizenship, the question that, you know, that birther stuff that is so yesterday. >> right. liz: trump didn't say it was so yesterday. >> well, trump was the king birther four years ago, so i don't know why anybody would expect him to disagree with the statements that were made at that meeting? and the question is, you know, will this impact him in the polls? i have said for a long time that what gop primary voters are looking for right now is someone who is going to prosecute their democratic opponent, call them names and treat them rudely. and i think that donald trump is the answer that they're looking for. as for him not going to this debate or this event down in south carolina, he could walk out of his front door and get
more press and more media attention than any of those other ten candidates going to that debate today. so him skipping it is really not even a factor for him. liz: okay, keith, do you expect any blowback from the fact that he remained silent in the wake of this birther question? >> no. this is where the d.c. establishment and a lot of the pundits just don't understand how the rest of america thinks. this is not a gaffe. there's something like 45% of republicans who believe that barack obama is a muslim. liz: okay, and incorrectly, right? >> i agree, it is not correct. but what i'm talking about is, is this going to hurt him in the polls, and the answer is, no, i don't think it is. now, he should have shot down this guy and said, no, you don't condemn all muslims -- >> right. >> you know what? there are probably a lot of republicans out there who are concerned about any kind of excessive immigration of muslims, whether they will fit into society as in many cases they haven't in europe, whether it will breed radicalization. as a political matter, this is
not going to hurt him, it may even help him. >> i agree. liz: let's move on from that. right, and, chris, you said that. so let's talk about whether him meeting with putin -- who hates the united states -- would hurt him by sitting down and breaking bread with vladimir putin who has been known to allegedly remove or eliminate people who challenge him politically, he hates the u.s., he invaded crimea and took it. how will that go over? >> i think that there is nothing that is going to harm this man politically if he is keeping to his word saying, hey, i'll get along with everybody when i'm president. this has been a fact-free primary experience for donald trump. he has not put down any facts on the table of how he'll do things. so him standing with putin or having lunch with putin, that might actually be helpful for him in his presidential aspirations. liz: okay, but how about this, keith, will it be helpful now to jeb bush who got a little lift
from the most recent debate, and suddenly he is promoting himself perhaps as the anti-trump candidate? does he then finally figure out that maybe that's the way to get a little more attention for jeb bush? >> yeah. i don't think jeb bush has figured anything out. i mean, he has a lot of competition now in the anti-trump candidacy contest, you know? carly fiorina's rising, rubio was viewed as someone who did pretty well in that debate and is rising as well. so if anything, bush seems to be in more trouble. and if you notice what happened in the debate, he got his biggest applause line was when he referenced his brother. this was supposed to be what hurts him. >> right. >> he hasn't been able to establish himself, and he may actually start talking about george w. bush in order to separate himself from the pack, which he hasn't been able to do. >> right. liz: i can't let you both go without bringing this one up, loose lips sink amtrak trains? did you hear about this? there is a big democratic operative who was heard on an amtrak train, it goes from d.c. to new york.
bigwigs are always on it. and this guy, apparently, was on this train saying that joe is in, and people interpreted that to mean joe biden is going to announce his candidacy. chris, when and if this will happen? >> i don't think it's going to happen, liz. i know he's testing the waters somewhat right now by going on this tour to michigan and ohio, but joe biden, if he gets in, he's getting in to win. and i really don't think that hillary clinton has been fatally hurt by these e-mails. i think, in fact, most americans aren't even paying attention to it. now, look, we see the rise in the polls of bernie sanders, her falling in the polls, but it's very, very early. she's going to do very well in the debates in october. i'm pretty sure and pretty confident she'll be the democratic nominee for president in 2016. liz: we've got to go. chris, keith, thank you. i appreciate it. art cashin, the floor operations in charge just came by me, he said here's why we're at session lows, was there's a heavy bias
to sell on the close. we are 38 minutes away from that close. you've got to stay right here. it's a pretty tough day for the bulls. s&p is also at session lows. we are down, and this is a decent, this is a decent percentage, down 32 points for the s&p now at one and three-quarters percent to the downside, the s&p standing at 1957. when i walked in, traders said, liz, 1963, we've got to hold that. that was a good year, wasn't it? at least for those of us born that year, 1963. we went through that floor at 1957. stocks, as i said, deep in the red after the fed failed to raise interest rates in september. but perhaps it was more what type of ugly picture janet yellen articulated about the entire globe. and, look, lack of clarity on the future. so what did charlie gasparino do? he put his ear to the street and his feet to the street. we're talking wall street. what is the smart money thinking right now? charlie's coming down to break it all next on "countdown to the
liz: we've got some breaking news. selling pressure is sam ising the floor -- swarming the floor of the new york stock exchange right now. we're just off session lows at the moment, but there is weakness on the close here. we are about 32, 32 minutes before that closing bell rings and, by the way, the s&p 500 just turned negative for the week. down for the week. everything pretty much is down today. all major s&p sectors. energy is the biggest loser. utilities are seeing the least amount of selling which would make sense. yesterday they were the best performers, so if everything's down, the utilities are the least down. we've got a possible media merger. well, it is going to happen unless the regulators say no. the french media company says it wants to desperately buy cablevision out on long island. yes, it's a $10 billion deal. with debt, it's a lot more than that, but the new company would create the number four cable operator in the united states. executives at cablevision might
be shaking in their shoes as they say. the new boss who is a billionaire in france says he's promising to slash and burn salaries. he feels that the salaries at cablevision are very bloated, there's something like 300 executives who make more than $300,000 apiece. he, for some reason, doesn't like that. cablevision's stock, yes, while it is moving on the move today, up 2%, year to date it's up 60%. so whatever those people are getting paid, something must be working, right? and by the way, for the 52 weeks the stock is up 71%. so we'll see if he is successful in what he wants to do, but he's been successful everywhere else. today's selloff, we are down nearly 300 points right now for the dow jones industrials what does that suggest? that suggests a lot of opacity as they like to say in the markets, very unclear vision of what's going to happen globally, and you can thank janet yellen for that.
she's worried about all that's going on in the global economy and, of course, what did she do? she froze are. they did not change interest rates, did not move them to the upside. so now what happens? has wall street lost confidence in the fed? fox business senior correspondent charlie gasparino working the phones, and he's join ised by jim frischling, new oak capital, who's going to join us as well. charlie. >> yes, a resounding yes. yesterday was not the fed's finest hour. as a matter of fact, i can't remember in a long time from really seasoned market professionals that i've heard such criticism about the indecision, a lack of any sort of transparency. i mean, let's be clear here. for months and months and months -- and maybe years -- we've been hearing that the economy is growing, it's getting better, it's off its tremendous lows from when, following the financial crisis which, you know, most normal-thinking
people would say that necessitated a zero interest rate policy on the fed funds rate, it also me -- necessitated quantitative easing. that was necessary. we don't have qu anymore, so we're not doing the stuff on the long end, although the fed is still holding those bonds, it's not selling them which means, you know, prices of those london bonds, interest rates on the long end are still fairly depressed, and now we have something on the short end that we need to deal with, and they're just not dealing with it. i mean, here's the bizarre thing. you would think the market would rally 293 points, not be down, on such a doveish move. but it's down 293 points. what you hear from investors, what they're thinking, most of them -- the ones i talk to -- i've taken an unofficial survey. i guess it could have a huge margin of error, but they're telling me a lot of investors are worried about a liquidity trap. are we in the position where
interest rates are so low that the only thing you can do is raise them? because if you don't raise them, then, you know, banks won't lend. but if you keep them at this level, nothing's going to happen anyway. so this is a scary situation brought on by the fact that the fed waited way too long to raise rates. liz: jim frischling, what do you think? and let's just remember that it was goldman, i guess about 24 hours beforehand, that was saying don't raise rates. these guys love the free money. >> no, they do enjoy the free money and continue to build their balance sheet. you know, i try not to be a fed basher because i sincerely believe the onset of the financial crisis, they saved the global economy. but in the category of what have you done for us lately, they missed a great opportunity. this economy, i'd like someone to tell me why this improving and strengthening u.s. economy couldn't withstand a quarter point hike just to put it away and get moving. instead, we got mixed messages. they had kind of a no confidence vote in the global economy, and
as a result i see a lot of money guys having a no confidence vote in the fed. and charlie's point of us basically saying a zero interest rate policy is all we can do and the definition of insanity is doing the same thing again and again. the zero interest rate policy is not improving certain areas they're relying on, and in my opinion, there's enough robustness in this market that the rate should have happened. they missed this one. liz: charlie, i want to ask charlie something. these guy cans have had a very cozy place to park their money at a decent return at the fed. the fed does allow that, doesn't it? what point does the fed use that as a tool to say you guys are out, you've got to start lending your money and doing your own thing? >> well, i think the problem is the fed has a quadruple mandate these days. it's not just keeping inflation low and trying to promote employment, it's also a regulator.
they hasten to tell banks that they shouldn't deplete their capital to lend out. that is a real conflict of interest here that it's very hard to get your hands around. i will say this, liz, just more i guess based on, you know, based on what happened yesterday. and i don't think we can, you know, underplay this enough. or overplay this enough. the fed lost tremendous credibility because everything it said in the past seems to be wrong. i mean, you know, they came out with statement after statement, their minutes. janet yellen again and again and again -- liz: this year, this year, this year. >> not just this year, that things are okay. and now they're telling us that a country like china which, you know, represents a very small portion of our gdp. is somehow, or you know, because they have some issues, we can't raise rates a quarter of a point and readjust the risk taking that goes on in markets when you keep interest rates this low? it's a bizarre world we live in, and i think they've irreparably hurt themselves. i think for a while -- i don't
think you want to be in the fed's position of people questioning you now whether you know what's going on. liz: yeah. and by the way, and i'd just like to make this point, a lot of traders here did not like when janet yellen said yesterday i don't -- we don't know what the recipe should look like for a healthy atmosphere to raise rates. when she said that, one trader walked past me and said you don't know? if you guys don't know, then who does? >> liz, i need to ask you because you're on the floor, are those guys talking about an october rate increase? liz: no. >> it sounds crazy. liz: no. and the fed funds futures rate indicate only a 14% chance for an october rate hike. but if she pushes it til december, who knows what that could do. and right now, by the way, i'm glad you used the word quadruple a couple of times -- jim, thank you. quadruple witching, that is the expiration of stock index futures and stock index options, that's happening today. that's why there's a little bit, perhaps, more volatility and
volume. right now we're heading back down to the close to the lows of the session, dow jones industrials down a full 297 points. there was a very important story that flew a little bit under the radar on wednesday because there was so much other news that swamped it. well, it's about syria. and more importantly, how the u.s. is training certain people to take on the situation in syria that is becoming the isis stronghold. general lloyd austin, the head of the u.s. central command, had this to say about the u.s.' effort to create what was expected to be a large scale syrian force to fight isis. here it is. >> it's a small number. and the ones that are in the fight is -- we're talking four or five. at the pace we're going, we won't, won't reach the goal that we had initially established for ourselves. liz: okay. when he says four or five, that's what he means, four people.
four to five people. that's all we've been able to appropriately train right now. it's a very difficult situation. but now we are hearing that russia is vowing to deliver bigtime military assistance to the assad regime which is also battling isis within its own country. what does this all mean for the u.s.' presence in the region, the fight against isis and the attempt to protect israel? with me now, lieutenant colonel ralph peters. i heard five, i thought 5,000. no, he meant five people. what are we doing wrong here, what do we need to do right? >> that one's an easy one to answer. we have a persistent myth in washington to which both parties subscribe that we can convince foreign fighters, foreign populations to want what we want. to do our dirty work for us. and, unfortunately, they don't want to do that. they're going to fight for -- if they'll fight for anything, they'll fight for their own turf or their clans or their religion. but they're not going to do our dirty work for us.
liz: okay. you know, i go back to afghanistan and the famed peshmerga, the group of people who fought against the taliban because it is part of their culture. do we not just need to figure out the culture of people who want to live in syria and fight isis and then capitalize upon that? because here comes russia and, again, this is such a mess in this country, and you know that, lieutenant. but here comes russia with a lot of might saying to assad, we'll help you. does that then displace our position there? >> well, it's, this is really very straight forward as well. if you are not willing to actress lutely in a timely -- act resolutely in a timely manner, you lose. and there was a time early on when a relatively minor u.s. intervention would have made an enormous dangerous. it's not so unlike the markets. but if you wait, it gets worse and worse. or cancer. cancer doesn't get better on its own. and now you've got putin going in.
he will not put his forces under ridiculously restrictive rules of engagement. he'll do what it takes -- yes, exactly, like we do. when he fights, he means it. but the even bigger picture, liz, and this is what really matters for markets, for all of us, is that putin is consistently underestimated by washington and western european capitals because he has poor table matters. he's brilliant. liz: do we actually sit down at the same table as putin on this one? i mean, isis is a horror, and if they're going to take them on, do we even get involved this something like that? -- in something like that? >> well, i'm glad to have russians killing islamic state terrorists, but they're there first of all, immediately, to prop up the assad regime which our president said could not stand, etc. of course, he's broken every promise. but the bigger picture, i really want to make this point, is it's not just about propping up assad, it's not just about defending your naval base.
this russian move, this strategic move is about working with iran to establish a wall of countries from western afghanistan to iran, iraq, syria and lebanon to the mediterranean that will shut the u.s. and the west out of the strategic crux of the middle east. and iran will become the new hegemon backed by russia. and we are looking at the problems of individual stocks in the region while putin is looking at the broader market. liz: and we'll be left with our one friend once again that we've been alienating as of late, and that is israel. lieutenant colonel -- >> thank you. liz: exactly, right? >> and then young went to moscow. liz: he did. it wasn't a great conversation. >> and he's going again. liz: lieutenant colonel ralph peters, always a pleasure. anytime. closing bell exactly 20 minutes away, and we are down 301 points. now the low of the session is 305.
we're not quite there yet, but the s&p is negative for the month, yes, negative. and we see that the markets are near session lows. are we going to take a quick break? yes, we are, and then we will continue our special coverage right here live from the floor of the new york stock exchange. you need to stay with us. we are going commercial free until the closing bell rings. it's a big day here, see if the bulls can fight back.
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the s&p down 36, the level just a few minutes ago to watch for the s&p was 1956, suddenly we fell through that, now we're at 1953. you've got to stay right here because we have erased the gains for the week, we are commercial-free going into the close. we're bringing in all the big guns. we have jeff flock in chicago, ashley webster back at headquarters. ashley, let's get right to what the real pinpoints of news are. >> absolutely. as we see this selloff accelerating, liz, a couple of sectors leading the way, energy and financials. let's take a look at the financials for you as we can show you all the red air eaus. bank of america down more than 2%, citigroup down nearly 3%, wells fargo, jpmorgan chase also down solidly more than 2%. other stocks quickly i wanted to point out, la quinta, down more than 15% in train trading -- trading, it's warning of slower revenue growth because of weak demand in the hotel sector, and
freeport-mcmoran, one of the world's biggest copper and gold producers, obviously, been suffering from commodity prices despite the rising gold prices today. they've raised a billion dollars by selling stock, they may try and raise another billion to try and deal with this weak period in the commodities sector, and as a result we're seeing that stock move down more than 10%, liz. liz: there's one commodity that's actually doing well, gold. now up $21. we get to jeff flock in chicago. jeff? >> indeed. you know, when you have this much uncertainty out there, gold is where it's at, and it closed today up 2%, liz. it's the second highest close of september, closed up $28.80. silver up also, up 17 cents, that's up over a percent. for the week gold was up 3% and silver up 4%. on the other side of that, you can expect oil, you know, a lot of downward pressure on oil anyway thanks to overfly. but today you would have -- oversupply. but today you would have thought
the bakehughes rig count eight fewer rigs this week, that might give support to prices? absolutely not. it's moving with the stock market. oil closing today down 4.7 today, that's $2.25. we're down to $44.68 now on oil. it's the biggest drop in three weeks for oil, and it's been very volatile already. expect more of that, liz. liz: still massive oversupply and depending on the day, the market sees it. on other days it does not. >> true. liz: jeff, ashley, thank you. we are now about 12 minutes away from the closing bell. the end of the trading week and the markets are swooning. we've got what's called quadruple witching, this is the expiration of a lot of futures, options, whether it's on indexes or single-stock futures. right now dow jones industrials down 325 points, the low of the session down 327, just two points away from that. what do you need to know heading into the weekend that might impact your money with these last precious few minutes of trade? we bring in some big names with
big money behind them. with us now united capital ceo joe duran, chris bertelsen and dan heckman, senior investment consultant. also back with us, jim frisch lipping, new oak capital president. we've got a day where we're seeing a lot of selling, but what are you doing with your clients' money going into this weekend? >> i think this selling is going to collapse at some point. i think volatility really goes way down. and it's really the greatest time to buy the major oil, international oil companies. liz: because they're cheap? >> they're really cheap, and they have 5-6% yields. so, okay, they may be up or down four or five points from here. the end of this decade, i think you'll find you have doubles in them, and you're getting 300 basis points more than you do in the ten-year treasury. liz: hold on. come back out to me, please, for a second. art cashin just told me that one billion to sell on the close has now just doubled to $2 billion
to sell on the close down here at the nyse with 11 minutes to go on the session. dan heckman, it's just a single day. let's not get overhyped up about something like that, but what are you doing for your clients' money with very unclear picture regarding the federal reserve in the future? >> well, liz, we're disappointed with lack of action out of the fed. we felt like they should have raised rates all the way back in june. they had a much better opportunity, and now they're in a box, in a corner. we're advising clients to go to risk off type assets, have ample cash and, frankly, make sure you have plenty of bonds with equity prices. we differ a little bit with your previous guest in the sense that we think volatility is going to actually ramp back up here, unfortunately, in the near term. liz: okay. now, what's interesting is joe durant, you're saying right now the place to go is emerging markets and europe. why? >> you don't invest yet in emerging markets. we think there's an interesting opportunity.
i agree with your prior guest. the fed not moving has really changed the landscape because what they've said now is it's not the u.s., they're not raising rates because of china. and what that said is the u.s., central bank is not the banker to the world. that's a very dangerous position. it also says with an election next year that we're going to be very doveish for quite a while, and i think you are going to see higher roll tilt. we told all of our clients if you have tactically-managed money, you want to be defensive. and as of a month ago i suggested you'd want to batten down the hatches. that has not changed. and, frankly, the uncertainty now about the fed is not a positive for anyone. liz: okay. i know. and you did say that a couple weeks ago right here on this show. we need to break this news to you. the s&p is doing something it hasn't done in about 21 years. what is that? well, if the benchmark index finishes down for the week, it will mark -- wrap your mind around this -- it will mark the
11th week of alternating gains and losses. just ping-ponging back and forth. again, that is something we haven't seen since november of 1994. the level to watch, 1961. we're at 1955 right now. with us now as we continue, jim frischling. look, numbers, i'm not sure it matters to the average person, but we're down 314 points, and every investor understands that. >> yeah, look, i do think today we are seeing a reaction to yesterday's nonaction by the fed. but if i could take a step back, money's a zero sum game. we talk about what the zero rate policy is doing to savers, and it's negative. however, it is a positive for a lot of companies, actually for companies. it is a, it's been a tailwind of this rally and this very strong -- yes, we've had a pullback, but this is a positive for a lot of companies out there. after wedigest the mixed messaging, the uncertainty, the lack of confidence, i'm going to take a step back and say is my portfolio in better or worse
shape with the lower interest rate policy, and i think, actually, it's going to prove to be better. liz: i'm going to take a step back and go back to what chris bertelsen said. you were hike in the energy -- like in the energy sector, on a day when you see a lot of selling things are, indeed, a lot chapper. -- cheaper. conocophillips, this is a stock that has a really solid dividend. yes, it's beaten down, but it's a good company, it's not going away, right, chris? >> that's right. i can't -- yield's 5.5% on today's numbers. liz: wow. >> and, you know or they just raised their dividend in july. it shows confidence. they've decreased all of their drilling this the gulf of mexico. this is a company that's ready. we saw this in 1986 and 1999. the strong are going to devour the weak. liz: dan, talking to people well outside of wall street, you're there in kansas city, and i like that because there's sometimes different ideas. warren buffett often says the reason he went back to nebraska is because in new york he had 19
ideas whispered into his ear by noon, and none of them was any good. what's your best idea right now? >> our best idea is municipal bonds. we think for the right investor a high income tax bracket, they're a great opportunity. a lot of the muni bond market has been kind of tarred or tarnished, if you may, by issues in illinois, puerto rico, etc. and we think the yields are much more elevated. they are almost like a substitute for treasuries, which we think will do well also here. so we think munis are a very good opportunity. we don't disagree with some of your other guests about an eventual opportunity in, say, emerging markets or energy, but we still think we're a ways away from those becoming the great buys that we think, ultimately, they will become. liz: duran, looking at the problem that is the stronger dollar, janet yellen mentioned this yesterday. she doesn't want to see that dollar get stronger than it already is because it's hurting u.s. companies, and when you do
tighten rates, that does tend to be dollar positive, right? >> you do. but as you can see, the rest of the world is playing the same game we are, which is why we need to be the first one with the strongest economy to set the example. until we do, nobody in the rest of the world is going to do it either. liz: hold on, hold on. not the u.k.? >> you are going to have more bubbles. liz: people have anticipated that the u.k. would tighten interest rates and maybe even canada before us, joe. >> well, again, and we have a stronger economy. so why we aren't is really unfathomable to me. what i think you have to look at when you invest is to invest in high income-yielding securities. whether it's energy or in utilities. because if the fed has told us they're going to be more doveish, you want to be in income-generating stocks because you get the potential for -- we tell everyone we're probably closer to the end of this decline than the beginning. we're certainly beyond 50% there, so making moves now is
not a great idea because likely of having another 3-5% is high, but 10% is unlikely. liz: on a day like this, right now, folks, dow jones industrials down 295, the s&p down 32. you don't want to sell at this point, right? >> no. i do not recommend selling. and, you know, earlier in the show we talked about, you know, how housing and real estate is going to benefit from this commitment to zero rates. i'll also talk about, you know, i could talk about health care. we've seen a major consolidation in this sector, and there's unitedhealth sitting out there on its own. and, again, these people can continue to build those balance sheets thanks to this policy. so, no, i would not be a seller here. i would look at your companies, your holdings and ask yourself do you like what you own? this low rate interest policy is here to stay, and i think the u.s. stock market is going to be a beneficiary. particularly one of your guests said bigger is better? i agree. the strong are going to devour the weak, and their balance sheets are going to get stronger as a result of it. liz: four minutes, four minutes before the closing bell rings
for the week, and the bears have full control. their jaws are crushing the bulls' horns right now with the dow jones industrials down 304 points on this floor. here's the new york stock exchange. there are $2 billion worth of shares to sell. through all of these traders and is specialists around me, two billion. again, i remind you it is something called quadruple witching. what does that mean? there is going to be a pick-up one way or another, and right now it looks like it's to the downside. chris bertelsen, your best advice to investors right this second. >> i would tell you that you're going to see janet yellen get pushed into raising in december. so i think you'll se >> pushed into raising in december. so i think you'll see this volatility quiet down and there's real opportunity right now >> i go back just to watch and everybody is saying pick good quality names, hold onto them, they will just like american business always does once again if they're taking it today.
as we wrap up count down to the closing bell, three minutes to go, and we've got david and melissa. we do have the dow off the lows of the session, i want you to know that the dow is down 327, we're down 312. take it, guys >> only 312 right now. boy, it is a major market selloff. right into the close. 300 points and greater down. suppose what it's like when the fed keeps rates low. it doesn't usual react this way. usually markets love it when the fed keeps rates low. but today doing just the opposite. it looks like the markets are fed up with this fed policy >> yeah. absolutely. i mean we're going to hear from steve forbes. also going to look at oil and gold in this market as well. i mean gold's supposed to be a flight to safety. nothing really behaving in the way you would expect >> no. meanwhile trump firing another one. fiorina is a terrible manager. he said it five times. but is she really that bad? charlie gasparino is here. he's been doing reporting on
that >> and that is really the battle i mean it was so funny to watch them during the debate sort of fight with each other who was the worst ceo >> i know >> a lot of people in america don't know that much about both of their records and we're going to dive a little bit deeper on that one >> but we are looking at the stocks. this is, again, a very, very bad day, and it doesn't hurt to remind folks that usually when the fed has soft accommodating policies, the markets go crazy about it, have just the opposite reaction from what we're seeing today. the idea is that the fed has run out of bullets, it is sticking to a policy that doesn't seem to be helping overall the economy and finally the markets saying what's good for the economy is good for us and what's bad for the economy may end up being bad for us >> right. and this is a reaction. the fed -- it seems like doesn't feel secure enough to raise rates. that they don't necessarily see great things in the economy, no matter how much others in washington are talking up this recovery that we've had over the past, you know, however many years it has been since the financial crisis
>> nothing is worse for the markets than indecisiveness and that is a lot what we saw yesterday. so let's get into it. the dow dropping about 300 points right now. the major averages all down, bad for the week, over 1% down as the final closing bell sounds for the week. so it was a bad week and the fed was responsible. >> here we go. here's a look at where we are ending the days. we are off the lows of the session. you can see that we were down better than 300 points but still closing the day on the dow. down 292 points, the s&p 32 points about 1.6%, the nasdaq 1.3%, look at crude oil. really taking a dip today, down 4.2% on the day. $2. gold trader higher, and stocks getting slammed on fear over global demand. ashley webster has today's biggest movers but first let's go to alan at the cme. investors not liking what they