tv Mornings With Maria Bartiromo FOX Business January 4, 2016 6:00am-9:01am EST
job's report. it will be coming out on friday. political tensions playing. saudi arabia cutting ties with iran. crude prices spike on the news overnight and have come down of their highs. oil is 37.41. up 1% on the session. gold prices are right now up more than 1%, $12 in early trading. keith, big selloff expected. you said right away, did you see the selloff in germany, dax more than 3%. selloff had to be halted in china. >> keith: casino in china is what it is. people that didn't pay attention to the data last week missed a lot of big numbers.
if you looked at thursday, we are talking a deep recession that's developing, china, fully loaded. this is not a new story. this is basically 18 months. people don't really have to sell a lot of stocks. they open them up. you pointed out the dax 3.6%. nikkei and dax were almost 10% each. they took the gainers and took them down. nasdaq was up. we will see what they do to nasdaq today. nasdaq, by the way, year to date last year looked a lot like the dax. it'll be an interesting day for what, i guess, they call risk on. >> sandra: they see 260-point sell off, what should they be thinking. >> mike: this volatility is hear to stay. it was extremely volatile time
for the market. volatility of 100 points on the dow alone. 17-18 on average. market is starting to get off of monitory policy. as we saw from last week talking about events that happened, imf predicted 2% global growth and we are looking at the dax today. dax is germany's benchmark. one of the main trading partners as well as u.s. we are one of the main trading partners as well. this is sign of things to come as well. >> sandra: it's going to be all about china and the growth, is it what everybody predicted, is it going to be stronger? >> dagen: yes, yes and yes. this is what happened when you stop people from selling when they want to sell. this coming friday expires bans
on selling for large investors in china over the summer. some of the selling is ahead of circuit breakers, not helping. i showed keith as the show was starting. keith has focused again and again on how the market overall are telling you that bad days are ahead. don't focus on the nasdaq. seven classes were up last year and 36 were down. only seven major asset classes, nasdaq 100 being the top performing up almost 8 and a half percent but 36 were in the toilet quite frankly. >> mike: whether you look at copper, oil, gold had a bad time last year because of the deflationary pressure. china may be deflationary over the market in 2016.
>> keith: this is where i want to focus in the first quarter, how is the global recession in the u.s., we have one by the way, it's no longer a call, we are in an industrial recession, how does that find its way into the first quarter, corporate profits, how does it find its way on the friday's job's report. >> sandra: how about gold? a bit of a sleeper in 2015 and hovering right around a thousand an ounce and today it's up. >> keith: two things that make gold up on a day-to-day basis. [laughter] >> keith: if interest rates go down at the same time that the dollar goes down, gold is typically going to have an update. that's what gold absolutely loves. it loves devaluation of the dollar, if you want to see the
gold 1200, you want to see the feds stop into the rate hike and backoff. i think that's going to be the surprise of the year when pivots. >> dagen: it was copper, platinum and other. last year -- aluminum was lower than copper was. platinum. >> keith: crazy. >> dagen: industrial economy is in the toilet. >> keith: deflation generally. familiarers are in the depression. if you look at livestock -- >> sandra: they enjoyed quite a ride. >> keith: people in nebraska are feeling the same as texas.
>> sandra: we do often overlook that. we are entering an election year. the volatility that might -- >> mike: yeah, specially when you look at the healthcare sector. the healthcare sector in the u.s. is one of the strongest growing sectors but the political overhang is hampering that, you even have big companies generating tons and tons of cash flow p. they are trading below 10pe. will those drug prices be the number one subject in election year. what we need to focus on real quick, even though we are in an industrial recession, we need to focus on the services pmi's, they are growing at a strong clip. that is a nice thing for the economy. >> sandra: the job's report,
certainly one to watch. president obama looking to expand background checks on potential gun buyers among other limitations, the president will meet with attorney general loretta lynch today before moving with action. lisa, good morning to you. >> hi, sandra, good morning. >> sandra: so what are you seeing as far as polling is concerned, as far as the president going at it alone here? >> we know that the majority of americans support gun rights. 63% believe that owning a gun is the best way to protect themselves from criminals against violent crime and this is nothing more than a political stunt from obama. nothing that he would have done would have prevented mass shootings that we have seen. biggest common is health issues.
none of these expansions of background checks are going to do anything to prevent these kinds of crimes, if you go back to oregon shooting, the killer was still able to obtain a gun. if you look at the north eastern states where, you know, liberals are putting for more extreme measures, they are not even turning the pertinent information that would prevent someone from obtaining a gun. this is nothing but a political stunt. >> sandra: house speaker paul ryan put out a statement and in that statement he acknowledged the same thing, lisa, he said, these ideas -- it's apparent none of the ideas would have prevented the recent atrocities. our focus should be on the main cause which is mental health and
terrorism. you know, that's -- they're saying, no, we don't want to move forward with more gun control, but what are they suggesting? >> sandra, i would argue that we have 20,000 federal and state laws on the books and laws that we're not even following. north eastern states not turning over this in and many states not turning information that they need to the fbi database. if you look at the incident in south carolina, what is the point of increasing gun controls when it's going to give a false sense of security? it's not going to do anything to prevent mass shootings. we need to look at the biggest commonalities which is mental health breakdown and why we have a society to continue to glorify to the shooters which is exactly what they want. >> dagen: the only thing i will
add to republican candidates will turn to the issue of mental health because they can't get into specifics because it's so difficult to tackle. when you talk about watching somebody and putting somebody in a database who has mental health issues, by the way the shooter in louisiana case had been in and out of mental health institutions, his family knew that he was a risk but you get into issues of personal privacy. it's not very easy. you want the the government created a database of anyone who has seen a psychiatrist. well, who is to say that they are danger or not? it's tough to get into details and you see republican candidates struggling with that. >> sandra: expecting more limitations put on them as far as gun control with the fact that we see gun sales surging
and gun mother and manufacturerh sales. dow futures down 260 points right now, what that means with your money on 2016 next? ♪ when a moment turns romantic why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach,
delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card.
>> sandra: breaking news this morning. futures deep in the red on the new year. investors reacting out of news in asia. weaker than expected data. china pushing stocks down so far. authorities there halting trading for the rest of the day. circuit breakers that kicked in when selling out to a certain
number of percentage and they cut off trading. we are getting breaking news in the middle east as well. >> cheryl: we are getting breaking news right now. second diplomatic nation to cut ties with iran. we are following a big earthquake that happened overnight. hitting north eastern india 4:30 a.m. local time. 100 have been injured. also this morning, antigovernment protestors are taking over a building in oregon. a group is led by avin bundy. bundy accused the united states of punishing ranchers who refuse
today sell their land although says the group is not aggressive and quote, not terrorists. >> sandra: i have to get your take on your story, dagen. >> dagen: i will get a lot of hate about this because i remember covering the clivin bundy story. you're not allowed to go have a picnic in the jfk if you feel like it if you feel that your ancestors at some point in history owned the land. it's a fight over the federal government owning this land and what you're allowed to do on it. [laughter] >> dagen: there are laws in this country. again with the whole in evidence thing and the grazing issue, i got the craziest tweets about who owned the land and it's the
state rights versus the federal. you know what, it's settled in the courts. >> sandra: i want to know what kind of tweets you're getting on the markets right now because we have a major selloff, keith mccullough, dow futures 260, all down this following a global market selloff, asia, the selloff there is so big they halted trading and then europe seeing big losses. what is causing this? >> keith: china had to report numbers. even if they make them up like china does they still are to report numbers. they reported pmi at 48.2. that was just inside 48.9, whatever they got last time. it came on the heels of the chicago pmi number on thursday, rather. you get both pmi and isa in the
u.s. both of the numbers are december numbers. december was not a good month. a lot of people with stocks after october got sucked in, data has been undeniable negative in december and you'll get more. >> sandra: we had a selloff and we see selloff in the first trading of the year, one would think it's not going to be a great month. i'm not making that prediction. i'll let you. we have earnings coming up. would that be a catalyst for a turnaround. >> mike: we saw kind of what happened last august when china devalued their currency, you remember that? that was ahead of earnings. everyone was so afraid how the stronger dollar was going to impact the economy here, right, specially companies reporting earnings. earning season was okay. we are in a bad earning's
environment. we are seeing europe actually grow earnings while u.s. is in a recession. but the dollar has started to stabilize since initial decent from over 18 months ago. we should see good comparables but it's going to be really tough. >> sandra: i'm going to get the guys dial it down to retail level and investor. you wonder what you should be doing with your money. >> dagen: don't do anything. you don't have to worry about it as much as 20 years ago. >> keith: great data on that too. individuals have been running for exits. institutional guys telling a story on how there's no recession. >> dagen: outflows in u.s. stock
happened in 15 in the last 18 months. in 15 months in the last year and a half people pulled more money out of u.s. stock funds than they put in. >> sandra: all right, there you have it. first trading day of the year. dow futures off 270. keep it right here. we have all the market coverage that you need. ♪ if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. there's a lot of places you never want to see "$7.95."
[ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. type 2 diabetes doesn't care who you are. man woman or where you're from. city country we're just everyday people fighting high blood sugar. ♪i am everyday people. farxiga may help in that fight every day. along with diet and exercise, farxiga helps lower blood sugar in adults with type 2 diabetes. one pill a day helps lower your a1c. and, although it's not a weight-loss or blood-pressure drug, farxiga may help you lose weight and may even lower blood pressure when used with certain diabetes medicines. do not take if allergic to farxiga or its ingredients. symptoms of a serious allergic reaction include rash, swelling, or difficulty breathing or swallowing. if you have any of these symptoms stop taking farxiga and seek medical help right away. do not take farxiga if you have severe kidney problems,
are on dialysis, or have bladder cancer. tell your doctor right away if you have blood or red color in your urine or pain while you urinate. farxiga can cause serious side effects, including dehydration, genital yeast infections in women and men, low blood sugar, kidney problems, and increased bad cholesterol. common side effects include urinary tract infections, changes in urination, and runny nose. farxiga. we are everyday people. ♪i am everyday people. yeah. yeah.♪ ask your doctor if farxiga is right for you and visit farxiga.com to learn how you can get it for free.
lower. dow futures off 276, s&p 31, nasdaq futures on a percentage basis down the most near 80 points. let's bring adviser ceo adam johnson. so what are you seeing this morning? what is causing this global selloff? >> nothing has changed. i mean, that's the problem. as you guys have been talking about, i don't know why that would be a surprise. gordon chang, if you look at electric usage in china it's only up about one and a half percent. there's no way they're growing. [laughter] >> 2%. world relations are tense. i don't know why that would come as a surprise. >> sandra: the reason it would come as a surprise is that
everybody knows -- we know that china is still growing, we know the population is still growing, we know that people are moving out of rural areas into the cities. >> keith: it's really the rate of change. they can make up the numbers all they want but if they're growing 2 two to three percent. once in a while you might get away with it but in the end you're going to get nailed. >> sandra: if you're saying that this shouldn't have taken anybody by surprise, where do we go next? what happens now? >> number one the s&p is trading at 18 times earnings as earnings are shrinking 3%. that's not good. we have to adjust to that. rates are going up.
we can handle higher rates. you have issues like what's happening between saudi arabia, iran. that's not good. >> sandra: what's the trade? >> the trade is finding niches like the dollar index. i love what's happening between the scenes in this country in terms of america going back to work, in terms of pockets of businesses finding ways to grow. you're going to see an immense number on cancer treatments. >> dagen: yes. >> forget trying to index yourself to s&p. >> keith: it's up 9% last year. you didn't have to take on any market volatility. it's the most liquid market you could own.
>> bet on america. i would much rather bet anywhere than anywhere else. >> sandra: invest in ideas, changing the world is your investment idea. wait, hold on. hold the thought. [laughter] >> changing the world is trump's ideas. there's so many problems. let's wake up and change this, we can do this. >> sandra: hold that thought. the analysis you won't want to miss. that's going to be coming up plus tensions rising in the middle east. what it means to the landmark nuclear deal and president obama's legacy, all that coming up. ♪
here at the td ameritrade trader group, they work all the time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this. choose, choose, choose. but at bedtime? ...why settle for this? enter sleep number, and the lowest prices of the season. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store... find the lowest prices of the season, going on now. save $600 on the #1 rated i8 bed.
dow futures up nearly 300 points right now on a percentage basis that's 1.7% loss. if nasdaq selling off 83 points. nasdaq only positive average in 2015. well political tensions this morning weighing with on market saudi arabia and bahrain cutting off diplomat uk ties with iran. storm it is saudi arabia's embassy in iran after the kingdom exited a claireic. crude prices spiking on that news and settled just a bit looking at crude oil up is.2% that, of course, is the dti contract at 3747 a barrel. investors seeking safety of gold. gold prices waking up a little bit in the new years at 1,073 an ounce up one and a quarter percent. keith where should we be watching what u should we be watching? >> i like bonds if you want to
be in something like how do you set up for 2016? i'm not big on year end targets but what works today and thactd work for next three to six months. as we price in global recession. and next three to six months you can own bonds, the long being long-term treasuries, tlt ticker on that. eventually we can rotate back into buying stocks that are on sale. i love thongs that are on sale. unfortunately people on wall street like to buy things higher. >> keith thinks that we can test, hit record lows on the ten year bond dial that we hut in '08. >> become at 2.3 right now. we're down 2% 3%. .7% where we were a year ago. federal reserve has to be what they preport to do is data dependent realize it is not just china. that is interconnected with the u.s.. >> looking at dow industrials in the premarket right now.
that china selloff having a big impacts on nike caterpillar. jeanine pirro morgan. g.e. home depot, by the way nike top performers in down 2015 big selloff this morning. >> glad you brought up those names they have huge tex pow sure to china and they're in s&p 500 which had a bad year last year, right going into rising interest rate environment. you want to stick with company it is that can grow and expand and that did well last year. look at the nasdaq 100 up 100% last year microsolve the that is doing well. trading at a fair evaluation. google growing 25% at a 19. stick twhoaz names we talked about not a lot of breath. there's only select leadership but stick with that leadership because they have the balance sheets for this type of market environment to do m and a transactions, share buybacks to implement higher dividends that's the nasdaq 100. >> i want your take where we should be, but first wement to
watch oil prices big news coming out of saudi arabia. major oil producer news affecting the saudi arabia has cut off ties with iran. we're see oil prices up a bit this morning. not a huge u runup in prices still tim live at the c group this morning. what do you make of the reaction we're seeing in the energy market? >> well i think it's amazing they're still up if you look at that data coming out of china. in india first construction this three years we might see oil prices down $h 50 cents or a dollar on that news. with stock markets falling apart it shows you how much this tension is a threat to supply, in fact, probably biggest threat to supply at least we've seen over the last year. so that's why we're seeing this market so continue to be about a half a buck higher. look at gold for example. normally you would expect gold down with all of the concerns about the global economy.
but no it's about go political risk and economic risk that is sinking back into the market psyche and seeing two commodities well today. >> if you could could you stand by because we want to continue this conversation adam johnson on set with us. your take on this selloff, obviously, this is a huge go political situation that the energy market faces. where does it go from here? >> people have been trying to call the bottom on the energy market for a long time. i started as oil trader i'll tell you i keep a close eye on what happens happening. we have so much oil in the ground right now. there's no risk to supply. this is an emotional issue. understandable because you have the large test shiite state, iran, now at odes with the large pegs sunni state saudi arabia. allowing u.s. to begin exporting.
pledgets is this proof how energy independent we have become to the point where -- this morning pointed out in an e-mail had that we would have been much more with the news like this 10, 20 years ago. >> we would have been, look, there's a lot of oil in the ground that is good for u.s. consumers. it's why it cost you about $2.15 on average to fill up your car with gasoline. what you're seeing this morning in oil, stocks is an emotional trade. >> the history of this whole thing had, even with a strong dollar alone nevermind supply and demand in 1993 and 1999 during global demand periods best ever in u.s. history you have oil trading on average below 20 a barrel. this whole expectation of oil being between 30, 60, 100 is purely inflation expectation. once you have deflation you bring on this whole kind of look status point. everybody trying to catch a falling knife and try to do that
get cut. >> i want to ask you, though, saudi arabia pushed and pushed not to cut production. now what we see with the battle between saudi arabia and iran is that why? did they see this coming? >> well -- i think that they did. i think that part of the reasons why this saudi arabia has raised production is for political reasons as well to send the message to russia, and to iran, you know, that they're not going to take their political backlash. but the other thing i think if you look at the break down of bahrain that is more interesting because that population is a lot more shia than saudi arabia. which is mainly sunni, so that government even though it is controlled by saudi arabia, the people in there really lean towards iran and have more sympathy with iran. so that's with the dynamic. risk here i think g organization plitly is the fight against isis is a lot more complicated with tensions rising. the lift of iranian sanctions
that is in place once again because of the increased tensions. >> quk if you're just tuning in dow futures down 322 points. market selloff that seems to be picking up, this is as we saw selloff in china. 7% that trading was halted there. europe seeing big losses as well. german index, dax up 3% but it is translating to heavier selling here at home and i'll point out nasdaq by the way down 90 points on a percentage basis more than dow and s&p. >> this is like wakey wakey eggs and bakey people have to wake up and see futures are down 30 handle, now down 37. the key point is the point you made about the nasdaq. to kevin's points all of these thrings up on a rope. everybody owns them. same stocks, microsoft these stocks can correct just news
flash, and by the way, the narrowness of a rally has happened in the last ahead-of-the- last three storkt crashes because we're not all 80 years old. we have all three those crashes. i guess there's a narrowing leadership at the end of the movie and then kaboom. >> sing best statistic i have seen in the past two weeks came out of chris rhone and jason strategic research group if you look at the large test stocks in s&p roughly up 5% on last year, and the other 490, down 7% that is a narrow rally. >> but earnings last year if you took out energy up 6% if you included energy brought it down. >> materials first of all. it was a very, very tough time. >> particularly again this is unless it has different this time which i refute is not. back to back down earnings quarters it is a very good
predictor if not the best. so financial side -- last quarter that is a big one and not energy. >> scary thought because they have two back to back quarters. and you think it is that bad? >> markets are telling us that this morning. >> all right, well good debate to have this morning. trading day down there a lively one. thank you for joining us. good to have you. sorry adam johnson good for your tip sight and perspective there. all right president obama is set to introduce new gun control legislation to kick off the final year of his time in the white house. how this will affect gun owners, coming up, we are watching very closely this major market selloff. dow futures now up 322 points on the first trading day up twingt shaping up to be a bill selloff three hour it is from now. we'll keep breaking it down for you right here straight ahead. we'll be right back.
these are smcht big losers to watch in the tao. in the premarket you have nike, caterpillar. jeanine pirro morgan. general electric. china ties have a big impact there, but in the premarket nike down 2.8% one of the best performers something to take note. we'll talk about in that a little bit. president obama expected to use executive action to tighten gun control law. cheryl has that for us this morning. >> president's move would strengthen background checks required for gun purchases set toll hold a town hall meeting on thursday in virginia, to discuss reducing gun violence. republican hopeful strongly are criticizing the president's plan to remember executive action that is what the president plans tods this week. also this next story over weekend. power back jackpot following it kowlgd roach a near record amount. the jackpot for wednesday drawing surged to estimated 400 million dollars.
that win would be one of the biggest powerball jack pots of all time. "star wars" force awakens rakes in 8.3 million. grossed more than "jurassic world" an titanic. domestic toalings for the force awakens at 748.3 million 20 million shy of avatar lifetime gross in the u.s. and canada. sandra, i tried to see force awakens i couldn't get an imax ticket. i gave up. i walked away so i haven't seen the darn thing. >> you to see it in regular -- >> yids. i did a 3d show in the middle of connecticut saturday at 1:30 in the afternoon and it was sold out. i love it you're shocked? >> best bawftion.
a movie people are seeing twice in theaters. i went in connecticut half full. next year maybe had i'll be happy. bahrain and saudi arabia cutting diplomatic relations with iran following execution. protesters attacked in iran's capitol iranian diplomats have 48 hours they've been told to leave the kingdom. joins us now is former treasury to saudi arabia morgan, good morning to you. good morning. >> what do you mac with two of the large test oil producers aisle point out oil not much that much this morning. they've been at it per decades but for me this spoke it a new torn policy by saudi arabia. i think that united states is used to seeing very careful prudent saudi arabia one that likes to work behind scenes and it has a new aggressive stance
that speaks to what this administration has done in the region as well as dynamic of saudi arabia, they have the king's son, he's 30, 31 years old. and this is historic for saudi they have sons that were kings now muhammad is going to deputy crown of a 30-year-old. this is just my observation that i think that younger generation has a lot more inflounce and would have expected years ago because it's a big, big distraction or big change in the way that is. >> willing to escalate from here? >> it will be interesting to see one of the thingings that i read initially after reports came out that secretary kerry is on the phone with iran triecious to appease them which, you know, was sort of surprising to me. i thought why would the state department let this be one of the first staimghts out? iran is saudi biggest enemy.
isis is a threat to the royal kingdom so it is poor posturing and for politics in my mind for american secretary of state to have international newspaper say that he's on the phone with saudis biggest enemy. >> forced to choose between iran, a nation where people scream dakota to america, and this deal it that the obama administration cut, and our long time ally saudi arabia? do we have to pick one or the other here? >> i think what happened there was a lot of ramifications from this deal when for me one of the biggest ramifications for the sunni arab middle east they said for decades the u.s. is going to rescue u.s. u.s. will come to us whatever we needed. we no longer have those assurances and believe that u.s. has our black, so to speak. so this deal smengted they have to step up in the region and be bold where they've not been. >> hearing big political response coming from the yieghts
notably hillary clinton saying clearly this raises serious questions that had she would raise directly with saudi government. thank you morgan for joining us this morning. we'll be right back. n ancestry i was really surprised that i wasn't finding all of these germans in my tree. i decided to have my dna tested through ancestry dna. the big surprise was we're not german at all. 52% of my dna comes from scotland and ireland. so, i traded in my lederhosen for a kilt. ancestry has many paths to discovering your story. get started for free at ancestry.com.
>> breaking news, weak factor data out of china with global stocks in china falling to steep, steep level it is that we haven't seen for quite some time. we had a treating halt there, circuit breakers triggered when stocks in china had fallen 7%, and then here at home u.s. investors also looking to maybe take a hit this morning on the opening bell which right now u.s. futures font to sharp losses dow futures up 306 upon the. s&p futures up 35. nasdaq features up 9 points key it is first trading day of
2016 this is not exactly the great way to kick things off. >> it is a good example because they reported the quarter, numbers are goods. it's a late cycle consumer company but this stock is has gone from 57 to 67, and in the fourth quarter with u.s. stocks down. don'ts forget that in december with everyone looking for the santa claus rally. s&p 500 in december, was down 1.75% so did not show up in the stock market there were stocks like microsoft and nike susceptible to basic correction. this is going on here. >> not all china because we're pointing out thick key because it was one of the best performs in the dow but this morning, it along with caterpillar. jeanine pirro morgan. general electric, home depot they are the top losers in the dow jones industrial industrial average --
>> they have huge exposure to china and merging market it is that china was going out and trying to gather up every natural resource humanly imaginable and that was good for brazil as well as other emerging markets but now seeings because china is slowing down it has having that two emerging market as well as stronger dollar impacting that. we could see saudi arabia depeg from the u.s. dollar and that would be a big catalyst right they're having huge problem with so that's the big deal. what's happening in china is that pmi numbers came out at 48 that is signaling expansion so they're not expanding. where does that trickle into? that trickled into caterpillar not getting more orders and not spending more money on nike shoes ppg >> well put that's why we have you here. global markets set to start year with a big selloff.
when a moment turns romantic why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card may not always be clear. but at t. rowe price, we can help guide your retirement savings. so wherever your
retirement journey takes you, we can help you reach your goals. call us or your advisor t. rowe price. invest with confidence. the sandra: welcome. breaking news this morning. i market a laugh to start at the new year. i am sandra smith. maria bartiromo has the morning off. with me this morning is transpired, keith mccullough and kevin kelley. our top story this morning is the worst trading day of the new year carrying up to be possibly an ugly day on wall street. depending how your position is in the market. and around the world we are seeing stocks going off in a shed in europe. asia is or is darted at the shanghai composite dropping 7% before trading due to circuit breakers. triggering the selloff another major averages all down at least 2% on the day. having a big impact in europe.
sharp declines across the board of 2.5%. the cac and friends. on a percentage basis, look at the dax in germany now out nearly 4.5%. the selloff 462 points. that is picked up over the last hour. in the u.s. the selloff in the market opens this morning. futures right now showing a loss of 318 points and dow futures. s&p down 37. nasdaq futures on a percent basis down the most more than 2%, 95-point does the job fair. getting a good look at the health of the economy. a jobs report on friday. the market squarely focused on that in geopolitical crunches. saudi arabia cutting off diplomatic ties. iranian protesters after the kingdom executed a cleric.
crude prices overnight have since come off of the hive. 3734 a barrel up eight tenths of 1%. investors seeking the safety of gold amid the global market sellouts. prices up more than 1% to $12 above $1000 a troy ounce. worries over a slowdown in markets around the world plummeting on the first trading session of the year. you've been a journalist in china. this is a huge story developing. >> it had indicators very early on and now early on in now early on and now we see all early on in now with the help early on and now we see all this play out, basically disappointing manufacturing activity triggered the china selloff this morning. the numbers out of china with weakening r&b devalued back in august at the 300 largest stocks about 7% at 1:30 p.m. local
time. that triggered the first-ever use of the new automatic circuit breaker to kick in, halting all trading. a signature at the markets and people on the ground. the pmi number was 48.2 contract in a 10th month in a row. it is actually the number focus on the smaller and medium-sized businesses not covered in the official government data we should be pretty skeptical of that. factories laying lane off it ordering my stuff. this is obviously no surprise. that number comes out of medals the market. >> outcome of the most important thing is the length of the currency and what they do with it. things were slowing down. they got to go to move was to devalue. we taught them to do that, but they are doing it passive aggressively for december. that is an explicit signal that there's no balance in china. what we taught them to do may not be what they should be doing. that's an interesting thing in the context.
>> when they decided it was south of numbers that were really weak. exports were down 8% month over month. germany was not because germany is dependent on the euro. that's a big signal. they are trying to go from an industrial economy to a consumer based economy because they felt redundant factories, bridges to nowhere. so with all of these they've got to transition it. if you look at the world bank, household consumption is 40%. >> before you move on, you spend so much time on the ground. we talk about the numbers in the reports that come out. what you see? jo: you see not just a slowdown, but a sense of uncertainty. the back up is a political climate that is tough right now. you have a huge anticorruption campaign by the president, she's in pain. that is starting to be cut off
more. the broader economic demand, people are moving towards the consumer led economy, but a lot of jobs and skills are not where they need to be too sustained middle-class economy. the middle class is growing, but are they able to consume at a rate that keeps internal demand high. then it got the communist party to keep things stable. >> the problem is they've tried to control things that you can't control. hand in hand of the currency along with them trying to stop a stock market bubble from deflating. this is part of what is fueling the selloff today is to ban the selling by big investors about six months ago. that expires at the end of this week on friday. there will be selling because they are worried about a market collapse. >> the credibility issue is so tough. you're trying to say where the dude jim and dash a legitimate
government and then you also can't execute on that. >> they are proving they are copying us. they cannot handle the truth. jo: is not that much question. >> every time it goes down they have the halted. sandra: thank you for your perspective on this. jeff, you have been all a shamus parquet. what do you make of all this selling this morning? the dow futures off more than 300 points. >> yeah, i was looking for a rally at the december 11th and it just didn't show up this year. that doesn't mean 2016 won't be all that bad. the 35 bear market in 1900, only 12 have been preceded by a sales santa claus rally. i think the chinese news, you'll start hearing people say so goes the first three days, so goes
the month. i think there is pile on. the saudi iran thing over the weekend is impact oenophile and the feds master when she says she prefers the quicker u.s. rate hike up your data is all piling on. sandra: in the selloff, do you see opportunity? >> wield the 1992 but 2000 level was tested a number of times. i think you could put some money back to work. it's touch and go right now. sandra: jeff saut, thank you for joining us this morning by phone. we are testing some crucial levels in a lot of notes i read this morning. >> the difference between what i do and what other people do. i don't look at technical levels for a market. i look at my economic outlook. the pricing in u.s. recession with at least six left and i think you will break a lot of technical levels and get a lot of lush wall street strategists come our way.
estimates are way too high for gdp in the first half of the year. sandra: there you have it. if you were looking for innate goodness, it will not come from this. dagen: good news is they will be a good buying opportunity six months from now. brighter days ahead. >> people rh, dagen, and you are obviously younger than me. we have been paid to risk management these bubble highs. there have been three in our careers. 2000, 2007 and 2015. i'm not in the business of buying the highest. i want to see the economic play first. >> just like it overall broad-based. corporate profits are at an all-time high. jobs numbers doing really low. the services economy is plugging along. so when they are selling indiscriminately across the board, thereby --
sandra: but when you're retail investor with a retirement account or you put your money to work in the u.s. to work it, one of your followers just we did stay the course. we are in this for the long haul. what do you tell the long-term investor? >> wedgies talking about is stay with the economic field. we have taught generations of people the market is the stock market. the u.s. treasury bond in the u.s. dollar are two fantastic dishes. i can be the most lush person on the set for the next three hours. sandra: i give individual investors so much credit. they went through the credit collapse of the financial collapse. look at the fund flows of retail mutual fund flows. people on fixed income and invest in selling u.s. stop for years. they are heavy on fixed income, heavy on treasury. unless you've got some buyer
selling you a bunch of garbage. >> one of the biggest problem with the u.s. investor is they are not diversified enough. they have a lot of exposure to the u.s. markets. david better international exposure. sandra: good thing to tell them that. >> the dax last year was up 10%. guess what it is trading at? 12 times p.e. the dividend is around 4%. guess what it stopped to hold entire. i would actually -- dagen: the way the money is going, people put their money into u.s. stocks. >> also to your point, on the pie chart, don't have the seven things up last year. emerging markets are now 17% and equity. people don't understand the construct of risk. you will get hammered if you don't understand at this time.
what makes it almost like i'm unnerved by this is wall street does not change their forecasts given everything that's happened. it's the most obvious slow-moving train wreck is seen in a year. sandra: on that note futures and the only thing moving. big losses on the dow down 300 above implies. we will again how commodities as well are reacting to the news coming out of china and the middle east. that is next. and this, and donald trump out with his first campaign ad. we've got it and we are going to show it to you next. tucson. blew an amp.but good nights. sure,music's why we do this,but it's still our business.
we spend days booking gigs, then we've gotta put in the miles to get there. but it's not without its perks. like seeing our album sales go through the roof enough to finally start paying meg's little brother- i mean,our new tour manager-with real,actual money. we run on quickbooks.that's how we own it. choose, choose, choose. but at bedtime? ...why settle for this? enter sleep number, and the lowest prices of the season. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store... find the lowest prices of the season, going on now. save $600 on the #1 rated i8 bed. know better sleep with sleep number.
sandra: welcome back. let's get a check on markets. dow futures on more than 300 points. nearly 2% sell outside of the opening bell. on wall street this morning setting up to be a pretty wild ride on wall street. other major averages fallen sharply as well. s&p down 35 points, nasdaq down 93 points. that is more than a 2% loss there as we continue to see a selloff in global trading. europe done as well. saudi arabia cutting diplomatic relations with iran. cheryl casone has the latest headline this morning. >> good morning. we will continue to watch oil on the heels of the story. the decision to cut ties made after protesters attacked the saudi embassy in the capital. demonstrators are angry over the execution of a prominent shiite cleric. meanwhile, saudi arabia is using the embassy attack as an excuse to feel tensions. also there is a major earthquake hitting the country of india. at this point we've got six dead
so far. more than 100 others right now are injured again. the magnitude 6.7 quake struck the country's remote northeast region just before dawn. tremors felt in neighboring bangladesh and nepal. finally, it donald trump launching a new campaign ad. >> he will stop illegal
immigration by building a wall in our southern border that mexico will pay for. >> we will make america great again. >> okay, the campaign saying they will expect new radio as to hit the air soon. this is the first commercial. i've watched it three times now. cutting off the head of isis. he will build a wall between mexico. mexico will pay for it. he opens up the video with a picture of hillary and president
obama together and the so-called radical islamic terrorism and they won't. that is how he kicks it off. sandra: that was just a snippet. >> i didn't play the whole thing. the question is why is he spending his money on ads when it leading in the polls he hasn't had to spend any money. >> that move is smart. >> what is your take on trump now? you've been a better sense of presidency. >> is marketing genius is just what it is. it's genius. he would be a role model for my children. his spread up the middle on isis. that powerful work. >> we keep having this conversation. he wouldn't be an effective president, but the gop primary voters likely are going to support this man. dagen: i've been right about his
candidacy very early on. i just didn't think it would have the lakes it does. everything he says that he's been hammered about by the media he's gained in the polls. you can go through the long list of people he's insulted and groups of people he has insulted and it absolutely does not matter. at least this group of gop voters want tough talking mayor tired of people dancing around the bush and not hitting at home and not telling the truth and not seeking the truth. >> you want strength and resolve from the candidate and that is what is giving america right now. he is campaigning really, really hard. that guy is full throttle. when he is in iowa, the minute he started getting a threat from ben carson, whose i come on come awake. who who is this guy? he's asking for their votes and not what you need to do as a candidate and tell them what they want to hear. sandra: answering the questions
of why he's answering it now. i'm very proud. i don't know if i need it, but i don't want to take any chances because if i win we will make america great again. >> you can assume your get your message out. the people you need to reach and some of these states are necessarily watching some of these programs so you need to run ads that air in the middle of their favorite nighttime drama. sandra: $35 million under budget. only 10 days away from the first presidential debate of the new year. make sure you turn into fox business network january 14th. you will not want to miss that. by the way, everything included in the debate, not just business and economy. foreign policy, national security. first trading session of the new year. we have more on the markets next of 333 points.
sandra: breaking news. features solidly in the red after the first trading day of the new year. investors reacting to british news -- bearishness out of asia. i am all out of sorts. dow futures at 332 points. it is a global selloff. s&p futures at 39. nasdaq up 100 points right now. the selloff continues looking at 2.6. he is in a nutshell what is causing this big selloff ahead
of the opening bell? >> you can protect the house with the new year. you obviously get this because you've been a trader on the floor. people can see the house was protect into year-end. people were hoping for a year-end rally. they kept the stocks up into year-end and that is what is going to lead on the downside is all of this talk suspect really what we call up on a rope one now corrected the same time all the things crashing and will continue to crash. i think this is one more thing that continues to discount the u.s. recession in the next six months. sandra: i wouldn't be watching this daily activity on the first trading day of the year. i would be thinking about what the long-term is. i think everyone is thinking what is going to be the major theme. >> the first two days of 2008 on 300-point moves in the dow was carpenter for the long-term. it is a good harbinger for risk management. sandra: very good point.
>> the u.s. is going to be the strongest economy in the world so you want to stick with what is working in the u.s. the kit kat, look at health care. home depot was a great performer last year. the u.s. savings rate is at a three-year high and consumers put their money back in their homes. also look at companies working. there is indiscriminate selling across the board. find names that are chiefly islamic to him for a while. when facebook reported earnings we show 67% were coming from mobile and they are not treating the expensive level compared to everything else. >> can i hitch back on the home improvement chains and otto says because those two things provided by the federal reserve and with a little bit of tightening, did you expect weakness in home sales. the only thing that could help home sales may be as if the economy doesn't tactic the recession with lower mortgage rate. if yields go down, that could
give housing and the pushback -- >> ever recession is different. we will lay this out tomorrow. what we show was commercial and industrial loans have been many times before his signal of the u.s. recession. it doesn't have to be a former recession. it can be the recession you are in. that's what i've had to learn the hard way. i have made plenty of mistakes i assure you. people invest in the market they want as opposed to the market they have. we have a cyclical industrial recession. pmi loans go the wrong way. credit markets fully understand as much as commodity markets and corporate earnings. that is a lot of stuff and you've got to get through more the first opening to get through the truth on that and how does this play out. >> there is a tighter labor market out there don't matter how you paint it. the last three months of job
numbers averaged 210,000. pushing back on the new home sales. all the jobs went to construction. we see energy fall off a cliff. they are going into the construction market and it hasn't hit job numbers. 14 states have actually raised the minimum wage. that is not a great thing. but we are seeing -- dagen: that is negative for profit. >> we see wages increase across the board. the fed has been all over this. they won a tighter labor market to lead to healthy inflation because wages are growing. >> unfortunately all these things happen at the end of the cycle. impermanent consumption at the end of each economic cycle. three more quarters. >> not on the services side. we are services economy. >> employment peaked in the first quarter of last year and that is why people keep back. this year it's not good.
sandra: 7:30 a.m. on the east coast. dow futures up 325-point heading for a triple digit loss on the open a couple hours from now. there is one bright spot. crude oil has been trading higher this morning off of the ties of the session. still up seven tenths of 1%. of the $7 a barrel. we will head to the floor of the cme for the latest on the energy market. that is up next.
retirement? i could use some luck. make a wish. nice. thanks. your turn! no... thanks andrew. see,td ameritrade has everything i need for retirement. like rollover consultants for assistance and portfolio planning tools to help me manage my ira. so, i think i'm good. oh well. luck is in the air. um... td ameritrade. you got this.
happy new year. it's a big show off on wall street now showing up to be a triple digit loss on the dow. you are look up at what is a shakey day on the dow futures. overnight the composite dropping -p% 7% there. the other major averages also down 2% on the day. it's also having a big impact on markets in europe. we are seeing a sharp sell off across the board. the biggest selling in germany. tin -- the index there more than 4% there. it's lowest with dow futures down 319 at the points. there is a lot on the calendar.
right now the concerns are taking right now. inyeah was going to be -- india was going to be one of the growth stories this year. if that is weakening this year. that will not be well for future energy demands. also look at gold is seeing that risk trade come in to that. also copper that is being smashed today. we are looking at cop per places over $2. a big move off 2%. oil investors should be cautious between saudi arabia and iran. great to have you this the
morning. we will be seeing a different energy in the the market. so, this would be worth $5 for the fact of the matter is that it's only up 30-cents speaks to the notion that we have a million more oil coming on to the market than we do for the market. >> you have prediction on where crude will be in the its biggest challenges in the the new year. looking out 80-100 days in 2016. >> new money comes in to oil and you do have this backdrop with tell the emirates and the
saudis. the big pressure comes in day 80 to 110 when we have a lot of refineries on maintenance an less demand for crude. you may see crude prices going down and testing those lose around 32/324 -- 3240. it's still the biggest net throng position in anything in macro. can can that ever go flat? are we in the world where 2016 cannot be in oil? >> i think it can be long and i
think they will still be long because a lot of that sphupb -- is in hedge funds or index funds for the long haul. what's interesting is that you've got a lot of the big funds that have moved short. it's the big short positions in the last year so basically in the background. this morning when you have the saudis and iran at each other's throats you don't have a lot of people saying it's not safe to be sure. that speaks to how weak the crude mar can ket is -- >> saudi arabia doing this to raise the price of oil? it has gone up to 15%. they had to cut for the life of fuel and water and the like. they're in trouble because of where crude prices are. would you be desperate enough to do anything to drive up the price? >> i think if they were really looking to drive up the price they would be more friendly
toward iran. they are the big rival in the region and the last thing they want is to have iran have another million barrels of production there. this speaks to how lousey they get along at the moment. so, i saw the last earnings quarter. they the expect oil to average $50 a barrel this year is what they were saying. we saw last year average about 53. are they missing something? could they hit the projections and would that impact what they will do with their numbers? >> the old chinese proverb, don't ever predict what you don't want to happen. we saw 40 last year and i think $50 might be a long ways off. people buying car. some time in the the life of that car the price is going to
be double or triple what the price is now for crude oil. >> you are talking about the auto manufactures and the falling prices diesel and jet fuel effecting the airlines. >> i think we will get one more pretzel on the snack pack. they should have a good year because of that. keyskeysyou get a lot nor miles. notwithstanding what happened to volkswagen i think diesel is a good buy for american consumers this year. >> good stuff. alright, you have been standing by for us. great to have you, we will see you next hour. u.s. futures, we are looking this morning. dow futures up 311 points across the board. plus star wars closing in on becoming the top grossing film
through dna i found out that i was only 16% italian. he was 34% eastern european. so i went onto ancestry, soon learned that one of our ancestors we thought was italian was eastern european. this is my ancestor who i didn't know about. he looks a little bit like me, yes. ancestry has many paths to discovering your story. get started for free at ancestry.com choose, choose, choose. but at bedtime? ...why settle for this? enter sleep number, and the lowest prices of the season. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store... find the lowest prices of the season, going on now. save $600 on the #1 rated i8 bed. know better sleep with sleep number.
futures. they are the move in the opposite direction this morning. a gain of more than 1%. boosted by rising tensions in the the middle east. on the the flip side copper prices down sharply trading at just over $2. well stand off by armed protestors at national wild life refuge at oregon continues this morning. cheryl has the latest on that. >> reporter: big story over the weekend. protestors are objecting to a prison sentence to local ranchers that were burning federal land. one is son of bundy. he was involved in a 2014 stand off. if the government did use force to retake the wild life refuge they would be putting lives at risk. the box office over the weekend raked in additional $#
$88.3 millions. they have raked in more than than "jurassic park." remember "the force awakenss" they are expecting $2 billion world wide when this is all said and done. thank you. president obama's executive action on gun control. the president looking toebgs and background checks on potential gun buyers. president is going to be meeting with attorney general today before moving ahead with the planned executive action. joining us now is senior judicial analyst. welcome judge. >> good morning. nice to be with you. >> happy new year to you. >> great to be with you. >> what do you think of this the latest push. there are gop candidates speaking out, donald trump
speaking out. others saying this is unconstitutional. is it is. >> we don't know what the president is going to do. i don't think the president knows what he's going to do yet. there's very lit the wiggle room for him. an executive order is the president telling someone how to do their job. so an executive order doesn't tell gun sellers how to sell guns, it tells the bureau of tobacco and firearms how tone force the laws. so can the president tight the laws and enforce them more adressively if he wants? yes. but not if the effect of that is to prevent law abideing people from owning guns. here's what i think he's going the to do. if i go to a gun dealer to buy a gun they have to run a background check of me through -- i live in new jersey, through the tph*rpblg new jersey
state police. that information that they the find out about me is only as good as the database as what's in there. so if the i'm a mad man and if i'm delusional and mental issues an never been reported anywhere it will not show up in the background check. if it's not nor the database it will not come out of the database. so the president is frustrated by that. and understandably so in case mad men do get guns an get them legally. he wants to change the rules so if this gun that i lawfully bought i want to sell to my neighbor an friend i would have to do a background check on him. than has been rejected by the congress. so it's one thing for the president the to tell the burrow of tobacco and fire arms to do their job, it's another thing to create a law that congress has
expressly rejected and unconstitutional and would be stopped by the court. >> executive order says he this puts this in place can it be recended by the next president? yes. but a new president could -- >> they are saying that donald trump said we are not changing the second amendment. he said i will veto that and i will unshine that so the a -- i would unsign that so fast. >> if he was the president he would have the authority to reject any executive order. >> i don't know what these republicans have done in their own state, chris christie, jeb bush. he did that in new jersey, didn't he? >> here's the story about the no fly list. this is a sort of left wing if you are not safe enough to fly
you are not safe enough to buy a gun. you can be put on the no fly list by a bureaucrat checking a list on a piece of paper. ted kennedy was on it. they have to prosecute you and show a jury what you did wrong as opposed to a bureaucrat checking a box on a piece of paper. that may never try but will try to do it. i don't think it will be successful. the bureaucracy necessary is so extensive i don't think he can accomplish it in the 13 months he has left in office. so, alright, the president meeting with loretta lynch to discuss his options. coming up the tech-heavy nasdaq meeting the losses this morning. which should read gum -p in the new year. we will tell you straight ahead. business expenses,
the first trading day of the new year. a loss of more than 2% of the nasdaq. here to break down your heavy hitters and what to expect for that. >> tesla down 5%. they issued just 208 models in the first quarter. those supply issues and they are slowing down the manufacturing of the the top anticipating
model. the company ramped up 238 units per week. there's some good news more than 17,000 vehicles were delivered in the the last few months. that's up but it's this fire that's not happening. norwegian tv is showing a model-s catching fire. tesla is investigating. we are also watching apple down 2% with the broader sell off right now. it's sales of the iphone this year. perhaps negative for the first time ever. sales have been flat. over those apple watch number, apple music and apple tv results so a lot to watch for apple in the coming year. net flix hitting a speed bump. they have been downgraded by robert w.bare. it reduced to $1 28.
this as a russian paper announced they will expand in russia later this month. >> thank you. where do you fall in technology names this week? >> you have to pick and choose. look at amazon. it's actually doing really well in the the cloud. with the minute they started breaking out their web number. that's when investors went crazy for it because it's growing 80% quarter over quarter. apple has that tough year because it's not in a refresh cycle. everybody upgraded. that was the biggest problem we had for growing in china. you can see down today because of it exploding. >> and apple watch was of apple products. >> we have seen that across the board with apple. they still haven't figured out the tv. it will not grow 20% year over
year. >> everybody keeps telling me the tv will be the next big thing. >> the stock is crashing since july. >> chart that over the dow. >> they control the content. >> coming up, much more from all these folks. more on the market sell off. we continue to watch a 300-plus sell off. plus united states marine corps general gets his take on the implications of saudi arabia cutting ties we iran. .
kevin kelly is here. and in our news room from fox business. our top story this morning, it is the first trading day of 2016 and we are gearing up for what could be an ugly day on wall street. dow futures up 308 points. s and f futures -- s&p futures falling 85. there's a lot of data on the the calendar including december jobs coming out on friday. it started in asia overnight. the shanghai composite fell 40%. the other major averages also fell at least 2% at the day. we are also seeing the ripple effect in the european market continuing there with germany up 4% or 4 35 points. saudi arabia and bahrain can
cutting off diplomatic ties we in iran. crude prices spiking on that news. we've been watching and have come off those the highs still up 1% trading at $37.39 a barrel. gold prices are up about $11 a gain of $1%. sending markets around the world plummeting on the first trading session of the road. joe is in our news room watching this. >> it was a tough morning in china. disappointing manufacturing activity is what to watch. that happened in december out of china plus you have the weakening currency causing this drop. the 300 large test drops in zhang -- largest in shanghai
dropped. that caused an automatic circuit breaker cutting in. that con tracking for the tenth month in a row and well below estimates. here is the reason it matters. its number ter focuses on the smaller medium size businesses that are not covered in official data. they are sensitive to market movement. we saw with weak demand inside china and overseas factories are down sizing their purchases. there is a ban that will be lifted on major shareholders selling their shares after that stock crash you'll remember last summer. trading resumed later in the afternoon today and just now we're watching shanghai market close. the shanghai down almost 7%. sandra? >> joe, thank you. our first trading session of the new year. what are you specifically watching the this morning? >> the data, the data, so we get
numbers both around 9:4 5 and 10:00. it's not just china and the u.s. economy that is flowing off its late cyclele peak. we are watching how credit markets are what's going on this morning. it's an on going concern. credit markets don't have it wrong. i think they have it right. i want to watch the action for currency war perspective. i want to see if they will blame china. it will be interesting to see how the federal reserve central planers deal with a stock market that is getting hammered like it is this morning. we are watching these technology shares. amazon down 3%. net flix down 4.5%. these technology names that did well in 2015. >> you look at the vast majority
the coming from aboard. you are talking about amazon. they are trying to to do big growth when it comes to amazon prime users or in europe. were seeing the -- we are seeing the europeans may have a better market than us. their central bankers are easing over there and that's helped strengthen their markets last year. we saw the euro go down against the dollar and their markets went up. that's happening in japan as well. you have to focus on the global markets. if we see some rhetoric in there that they are going to be very hesitant to raise, you can can see the market jump up. we are seeing the trade will come back. today there's a flight to qualify you saw in gold. >> you would think that the fed would move a couple more times this year.
>> if that is what the future rate is showing that. everyone is saying the difference between 25 basis points to 75 basis points. >> europe could be the bright spot as well and a lot of investment banks many their predictions for the new year saying that europeanic equet t*eu es could out perform deutsch banc. you have it in the building. some bad trouble but he's there. one of my faves to come in. you are seeing the trading activity. you are taking the phone calls. what are you seeing and hearing with this 300-plus sell off dow and the futures ahead of the open stp. >> we are seeing a trade last august which say it trade off
nearly 10% the contracts have tpw-pb heavy. 5-7 year notes have out performed. the prices have risen more than other bonds along the curve. it has been volatile with the wand weakening. this is no way to start off the new year. everyone is coming back droggy from the holiday season. this isn't the way to do it. we do want to keep a couple things in mind. the real overnight sell off was a manufacturing report from the index within china which came in weaker than expected. most expectations look for a stronger number. this is a slightly backward look number. chinese officials have put through stimulus following the august/september volatile sessions. they put physical in the the
pipeline. careful not to read too much into one number. >> what should we be reading? forward looking, what are you seeing and watching? >> i think it's important that investors keep in mind that stocks are not overly rich. u.s. equitys are not overly rich on evaluation basis. they are not cheap but not rich. i think in our opinion, the real treat or challenge for investors this year will be how strong the u.s. economy performs. over the last week or two they had some weaker data points in the u.s. if you look at the details of the consumer confidence numbers, there are many reasons to be enthusiastic about how the u.s. economy will perform this year. >> do you get nervous phone calls on a morning like this, john? people saying, "what's going on?" and what do you tell them? >> we get calls where customers
were looking to reduce exposure or reduce their beta to the market. that's their exposure. i think positioning was rather light going in to year-end. there's not a lot of it to do. >> great point. >> seasonly, this has to be a great time of year for equitys. you do have good money coming in and thing likes that. any seug miff can't pull back we -- significant we think will be the buy back opportunity. >> you sound cautiously optimistic. refreshing points of view here. >> i think that's fair. remember, again the fundamentals here in the u.s. economy are good. they are not great but they are good. we remain the cleanest shirt in the laundry mat when it comes to globalle markets. >> great response. >> at 4 2 at the pmi.
that's dirty socks. what you end up going forward is a series of disappointments for people who came in the year. last year for most money managers who were bullish on stocks had a horrible year. they are not allowed to have a horrible year. i think there's more el severaling. >> if you were watching high yield you would know to sell stocks going in the summer. that's the mistakes that people made in the summer. thing were falling apart and people didn't last year either. >> it's a good debate to be having. it's a few weeks in the iowa caucuss. ben carson's campaign is leading staffers. they joined fox and friends just moments ago to explain the campaign shake up. one of the things that i learned during my many years in corporate america is when things are not working you have to analyze them very carefully and
you have to be willing to make changes. >> changes he made. we will be signature down with dr. car -- we will be signature down with dr. carson's new campaign manager straight ahead. turns romantic, why pause to take a pill? and why stop what you're doing to find a bathroom? cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision,
welcome back. u.s. futures deep in the red ahead of the trading in the new year. we are looking at dow futures. it's a 1.6% loss there as we kick things off for 2016. we are turning to the campaign trail. a shake up with ben carson's campaign staff. two of his top aides resigning last week. among other changes dr. carson's former senior trapblg joins us
mow. >> good morning to you. happy new year. >> how do you explain the shake up? dr. carson is making folks happy. >> how would you describe the status of dr. carson's campaign? >> well oiled, well run ready to move forward toward the io with iowa on february 1st. so, where are things going stp. >> we think we are headed in the upper direction. a very exciting day. as we know, they came a very notable point in his campaign when he talked about his tax plan.
what is the gist of it? it's a tax plan which is simple, fair and transparent all americans. it is income only once and has a rate of 14 .9%. >> okay so we are talking about a flat tax at what percent or 14.9%. >> correct for both individuals and for businesses. >> this is nor than his original tax plan was calling for. >> when he was talking more about ties -- he was talking about the concept of the same amount for each individual. we believe it met the standards that shay have been stepping all along. >> dr. carson had said in in recent interviews that he had grown frustrated over the inability of his campaign to get his message across. what sit that he's so frustrated about right now? >> i believe dr. carson wants to
get his policies out more quickly with more detail and with more intensity. that's what we are starting here this morning with the unveiling of his new tax plan. so, do you th*e think he needs to simplify. by this has to be the best tax plan that i have seen at the individual level. >> we appreciate that quick compliment greatly. we hope that as people use dynamic scoring as we move forward, everyone will see the benefits of this plan. dr. carson has a wonderful ability to communicate directly to the average voter. the voters that are looking at him closely an we look forward to getting his views and values out more to them. >> what do you think? what is he doing with reductions in this flat tax plan? >> there are no reductions on the side at all. >> that's honest as you get rid of the mortgage reduction an the charitable deduction. are you going to have a hard
time winning people over with that the? that's a reason that's it's still thereafter so many years. >> it may be. dr. carson does not believe the tax plan should be picking winners and losers. he also believes that after an analysis he will show that individuals who do go on their own will still come out ahead under his tax plan. >> my question to you s where does the doctor stand on capital gains taxes. we have seen hillary come out with some interesting policies and how she wants to shape that. only taxes income and does thatless also include dividends. corporations will pay taxes on the dividends. >> yes under dr. carson's plan we will not tax capital gains. that's income once and only once. >> if i could changing the subject a little bit to national security which is now defining this election.
a notable turning point in dr. carson's campaign was in the aftermath of the the san bernadino attacks. his followers were concerned about his knowledge and his being able to protect the country. where does he stand on that? what's his response to that? >> we view that criticism as a little bit unfair. you twain experience by traveling abroad. dr. carson has visited in 58 countries and by putting out policies and programs that are easily unstandable by the people. his 7-step approach on thousand to take on isis. isis is the most detailed approach we've seen today. >> whop does dr. carson -- who does dr. carson see as his biggest competitor. >> we think getting our message out to the voters. we examine our campaign against
ourselves and our about it to make sure that his values, views and vision is getting out there now. >> any specific tragedy that he has for the next gop debate? >> for thefection debate we are pleased to be working with fox business for the next debate an we want to make sure that he gets his fair share of time to get his views to the voters. so, alright, well, thanks for joining us this morning. >> thanks for having me, sandra. >> we are only ten days away from the next presidential debate. it's first one of the new year. you can only catch it here on the fox business network on january 14th. you will not want to miss a minute of it. come canning up, oil and other markets as rising tensions between saudi arabia and iran intensifys. we will head back for the oil trade next. .
futures aren't the only thing moving today. crude made a major cut back. saudi arabia cutoff ties with iran. gold is not a big mover. especially not in 2015. will it be the this year stp. >> it could be. especially having the tension around the globe. we are talking about saudi arabia, iran, bahrain an even india. they were up $1 5. that came back on the the day and out half a dollar right now on this tension and the thing
you have to remember is when you have tension in some of the world east biggest oil producers, even the producers continue to produce that type of oil is difficult to replace. back to you. >> a lot of the options are still remain and are still open on the floor there. treasury options, what are you seeing as far as volume and activity this morning as well as the sell off in the the equity market. >> looks like it's off to a good start. you will see a lot in these call options in case something bad happens. the ten-year options. that's down there at some time. >> that's the options here. >> that is right behind me. and these guys right now -- when there's fear a lot of buying an a lot of call options just in case something big happens. >> right. thank you. we have to point out.
alright, crude oil, gold, cammoi t*eu es. >> it might be but people need to put their cash to work because they are really under funded and there's a yield. what's really coming out of the pits is $40 a barrel put the most efficient oil producers in a bind. we will see that in the second half of next year. this is going to play through on that. and to a significant level we see that the political risk has been pulled out of a barrel oil. when turkey shot down a russian plane. we will get the price action this morning when you have two of the heavy weights of saudi
arabia and iran go at it right here. >> quickly, star wars action figures are a better investment than gold. >> look at gold. look at where the crowd leans. last week they got negative. there's over 14,000 negative short track contracts in gold. watch the next positions. you can get get this data that's readily available. that's how the pro's trade futures and options. >> we will speak to the man formally in charge of the u.s. forces during the iraq war. . if you're running a business, legalzoom has your back. over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start
red. the tech heavy nasdaq leading losses this morning with a nearly 2% loss. jo ling kent is here with the breakdown of your favorite tech stocks and what to expect in the year ahead. jo: it's a rough start for some of the tech names you know. tesla announcing it shipped just 208, the first quarter this was available. ongoing supply issues of the falcon doors. the company now says it's ramped up to 238 units per week. model x, 17,000 vehicles were delivered in the last three months, up 75% year over year. but there is another fire that's not helping their cause. norwegian tv showed a model x burned to a crisp on new years
day while plugged into a super charger. they're investigating. we're watching netflix right now. down more than 4%. that stock, which is one of the best performers on the s&p 500 last year, has been downgraded by robert w baird and that brokerage reducing the price target to $115 all the way down to 128. this, as a russian newspaper announces netflix is coming to russia later this month as part of a larger global expansion. we're watching yahoo! as marissa meyer heads into the new year, 3.4% in the pre market along with that broader selloff. shareholders continuing to put that pressure on the board after the company did a total 180 going back on the plan to spin off the alibaba stakes and 2016 could be a hard year for yahoo! sandra. >> all right, thank you very much, jo. we'll be watching for it, in addition to news out of china.
stocks are reacting to the news that saudi arabia and bahrain are cutting ties with iran. joining us now on a fox business exclusive, retired united states marine corps general and head of central command, general anthony zinni, an honor to have you this morning, but first, we'd love to get your reaction to this news. >> good morning, sandra. i think the news is really concerni concerning, if this were to escalate in any major way, we have the potential for a hot war between iran and saudi arabia, which could close the gulf. obviously, the access to energy, freedom of navigation, the implications for us and all of that, much like the old iran-iraq war in the '80s, could be, i think, deeply concerning for those who worry about the economy and stability in the region. also, this will distract from the war on isis. the saudies are deeply
concerned about what's going on in yemen, the houdi's and others with major shia populations that are demonstrating now and obviously, that unrest could cause internal problems. for those reasons, a potential hot war, distraction from isis and internal problems the region could have, this thing has to be walked back very carefully. sandra: the criticism of this administration is that they haven't had a plan, that the president has not laid forward a specific plan to defeat isis. based on what you know-- >> i think that's correct. i think the rhetoric talks about defeat, but the action on the ground looks more like a strategy of containment and slow attrition and that's a high risk strategy because it allows isis to continue to radicalize, to recruit, to gain more terrain, to obviously
conduct attacks in europe and elsewhere. if we really were about defeat, we would mobilize nato, our nato allies and us, we've been attacked and we would take more reaction, we would put pressure and give support to this new coalition that the saudies are putting together for them to get move involved. i think with our participation and authority they would and this would match what's going on with iraq, with the iraqi military, along with the kurds, finally beginning to show some strength, but there's a long way to go in that area. in my mind, we could crush them in a short period if we made the commitment for defeat. the action on the ground doesn't match the rhetoric out of the white house. sandra: what would it take as far as u.s. ground forces? what kind of numbers are you talking about that it would take to implement that kind of action? >> well, i don't think takes
many on our part. i would want nato participation. paris has been attacked, the u.k. is concerned. obviously, we've had attacks in canada in the past, of course, san bernardino and the potential here, this is not just our fight. i think if we were to commit, at least participate on the ground, provides support, you see the iraqis and the kurds beginning to stand up, the kurds need more support more weapons, better weapons, higher capacity weapons and i think the pressure on this newly formed coalition of arab forces with our support, if they saw us committed on the ground, it could be a three-pronged attack on isis. go back to the first gulf war, we followed the pal doctrine, it only took hours to defeat saddam's army. it would take a short time to
give isis a major defeat. you may not destroy them their ability to hit any place in the world, but destroy their course and base and a significant number of forces and i think reduce the number who would want to join a loser. sandra: and defense spending, what changes should we see made there in order to strengthen our military? we're facing a $18 trillion deficit in this country. what do we do as far as military spending? >> well, i think, first of all, you need a strategy, which we don't have, with i prioritizes where our interests are in the world. where the threats are and vital national interests lie. what kind of military we need. we obviously can't be all things to all people. we can't be the policemen of the world so we have to pick and choose and that ought to
drive the kind of military we fund. we can't continue to be globally responsible for everything that goes on in the world. i think another part of this though, besides military spending is forming viable coalitions. nato needs to be restructured. its mission needs to be cleaned up and clarified. its compliment, you know, we've increased from 16 to 28 countries, but the military capacity hasn't increased. so, better burden sharing, better cooperation, better support of other militaries of our allies are part and parcel of this, too. we're reducing our military far below what our strategy requires, but we can do this in a smart way by building these partnerships and by committing to a military that's carefully designed to meet the needs where our interests lie and where the threats lie. sandra: we've got to leave it there. i won't ask you to get too political or tell us your candidate, but are the presidential candidates having the right conversation? are you hearing the right
debate take place as far as the conversation to combat and defeat isis? >> the answer, the short answer is no. i have not heard anyone really talk about an effective, viable strategy as yet. if you want to defeat isis, it takes a strong commitment. i haven't-- i haven't heard that at all. and one that's reasonable and one that understands how we build coalition and alliances and you know, i would just also say part of the discussion ought to be do the candidates know what it means to be commander-in-chief? i haven't seen that discussion and i have my doubts across the board on both sides of the aisle. sandra: noted. general anthony zinni, nice having you. and we have market details next and general motors is investing 500 million in on demand ride
service lyft. and gain a seat on the lyft's board. and it's 5 1/2 billion, compared to uber's 70 billion. we'll be right back. you can't predict the market. but through good times and bad... ...at t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence. we were in a german dance group. i wore lederhosen. so i just started poking around on ancestry. then, i decided to have my dna tested through ancestry dna. it turns out i'm scottish. so, i traded in my lederhosen for a kilt.
markets are moving sharply to the down side. we continue to watch that for you. meanwhile, president obama expect today use executive action to tighten gun control laws. cheryl casone is following the latest for us this morning. cheryl: big story this week, the president's move would strengthen background checks required for gun purchases, he's also set to hold a town hall meeting in virginia to discuss reducing gun violence. gep, executive action. and california in the wake of a slew of hover board accidents. the 35 miles per hour, as fast as they can go, and preventing children under 16 from using the boards at all. and anybody caught violating any of the new rules faces a fine up to $250. and finally this, donald trump launching the first television
ad of his campaign. >> the politicians
can pretend it's something else, but donald trump calls it radical islamic terrorism, that's why he's calling for a temporary shutdown of muslims entering the united states until we figure out what's going on. he'll quickly cut the head off isis and building the wall on the southern border that mexico will pay for. we will make america great again. cheryl: as promised, sandra, that's the entire 30-second clip and the trump campaign says it will spend 2 million a week on tv ads, 1 million to iowa and another million going to the state of new hampshire. it's all about the primary and all about getting the votes, back to you. sandra: it's time, it's go time. all right, cheryl, thank you. we're less than an hour away from the opening bell on wall street and we're looking at a sharp selloff this morning even though we're off of the worst
levels of the session. is all of this a sign of things to come in the new year? welcome chief investment strategist who is going to take us through this and tell us calmly how we should handle investments in the new year. it's a bit of a rocky start in the new year. >> it's a new years hangover. some of the things we were concerned about towards the end of 2015 and how the growth and the specifically the emerging markets would play out. we're seeing that play out in 2016 as well. i want to be careful here, sandra. while we have the economic data overnight that's soft. there's a balance of economic data shows that overall, while the outward focus of the economy what you're seeing the domestic economy seems to do well. the service side. i think it's a bit of an overreaction to a single data point. it's kind of the word that we heard from john brady at the cme group in chicago a little
earlier, but the focus is now on u.s. data, you say, and we've got a jobs report at the end of the week? >> i think there are two critical pieces of data this week among others. the pmi report we get today will give us a sense if the slowdown in manufacturing is global and widespread or something that was related to china and the second point is the employment report. there are concerns if the employment report shows weakness, then there's a concern, of course, maybe the fed had moved too quickly when they raised rates in december. and we'll be back into the should they or shouldn't they have debate. sandra: there's definitely a theme developing already in the new year, if i can say that. it seems to me a lot of people like europe right now. it's taking a big hit this morning. >> here is the interesting thing, the reason that europe sold off was largely in sympathy with the china selloff
on the conflict with iran and saudi arabia. you focus what's happening on the ground in the euro zone, it's pretty encouraging. while we talk about the chinese pmi, we look the a the yur zone economy finally beginning to gain some traction after this incredibly sluggish period where they were faced with so many challenges with regard to the viability of the euro zone. sandra: and would you think-- i think these guys disagree with you, but that you would buy a dip like that headed into a new year? >> again, let's see how the next couple of days pan out. i wouldn't necessarily be buying today. i think that the selloff is a bit exaggerated and it's a reaction to a single data point. our views were that the global economy, although it's uneep we think that the earnings outlook, it's going to be okay in 2016. >> my question to you, over the euro zone we're seeing the
politics being easy and there's a stimulus going on, last year we didn't see multiples expand. we look at the german dax, it's off right now. and globally you've got bayer there versus johnson & johnson here. daimler there versus ford here. there are multiples to be had, but we didn't see them expand. what is it going to take for them to come off low valuations. >> you know, high candidates -- low single digits. you'll begin to see some multiple expansion, this is the one thing that's been missing and i think what market have been looking for is a show-me moment with regard to profitability in the euro zone. i think we get that in 2016. >> are you making the case that the euro zone is going to decouple from the u.s. and china on the basis of slowing?
>> i want to be careful we're not looking for a global growth slowdown. we think that it will pick up modestly in 2016 and management of a soft landing in china. against that back drop with domestic, we'll look at that. we'll look at policies in the yir zone, talking whether or not the fed raises rates in say, march of 2016. we see a very accommodative policy in the euro zone combined with very, very low multiples. >> you're getting a call, somebody is panicked on day one of 2016. what do you tell them? >> it's a long year. there are 250 or so trading sessions during this year and i want to tell people not to overreact especially when you have markets that are as illiquid as some of the
>> i'm nicole petallides live on the floor of the new york stock exchange. stocks start off the day under serious pressure with the dow futures pointing down about 328 points. the s&p futures down, and nasdaq nearly 100. two full percentage points. as we take our cue from asia, the shanghai dropped 7% and actually hit circuit breakers. we're seeing selling across the board and tensions in the middle east. we're seeing oil slightly
>> welcome back, u.s. futures deep in the red on this first day of the trading year. happy new years. a big morning already. some of the biggest losers that we're watching now. caterpillar, apple, nike, dupont. names that are taking a big hit. final thoughts from everybody this morning, keith, what do you make it. >> top three themes number one, the u.s. recession ongoing on cyclicals, stuff that's going to slow next is stuff everybody likes, includes employment and consumption. and second point is the credit cycle maybe in the third inning
and go on-line and then finally the global currency war which i think remains largely misunderstood and a lot people that missed the move in deflation didn't understand the strong dollar and everything else. it's a tough world for people to make money. sandra: happy new year, everybody. kevin kelly, i'm saying, mcdonald's is the business performer ahead of the hoping well, still down, but mcdonald's is the best performer i don't know what that tells you and exxonmobil and oil prices are up a little bit. >> well, going into today. we've had increasing tail winds and it's priced that the market. we've got weak earnings momentum and going back to what you asked about mcdonald's and why they're doing so not as weak because last shareholder meeting, we're going to lever up our balance sheet and buy back the stock and they've been a turn around story so it's
time that they actually turned around and exxonmobil, goes by companies on the cheap. you've got to stick with shareholder friendly companies and people, we're talking about the nasdaq 100. one of the names that can lead all year is google, they're going to actually be more transparent and leading in the sectors that you want. mobile cloud streaming and not trading unusable-- >> i quickly one to say god speed to wayne rogers, he decide, he was one of the original members on cashin' in and it premiered in 2001 in the spring. he was still appearing until recently. and jonas, my husband and wayne and me and jonathan hoenig, we were original members and lucky to know you, wayne, we loved you so much. we were lucky to know your laugh, your humor, oh, your
stories, your stories and your stories, and your intelligence and generosity of spirit and we all love you. sandra: and a beautiful tribute, dagen. and keith, kevin and jo ling next. stuart varney is next. stuart: what a rotten way to hit you. that civil war in islam, that's going to hurt, too. good morning, for investors, the new year starts now, it's already going badly. the dow is going to open roughly 300 points down. why is that? bad news from china. looks like it's sliding maybe towards recession. the world economy shudder again. and calling a