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tv   After the Bell  FOX Business  January 7, 2016 4:00pm-5:01pm EST

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on that one. david: the colonel knows. back to the bloodbath on wall street. [closing bell rings] it was over 400 points at one point. now closing at 386 points. closing none too soon for all traders down there. huge day tomorrow with jobs report coming in at 8:30. that might set the pace. so will china about which more in a moment. all indices down well over 2%. look at nasdaq over 3% drop on nasdaq alone. only thing up by 17 bucks is gold. melissa: walmart once again the lone bright spot on the board. that is not good. we have got you covered. jeff flock in the pits of cme in chicago. first cheryl casone in middle of all action on floor of new york stock exchange. tell me what happened down there. >> last ten minutes or so, volume picked up.
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bells did ring but we still have to settle. numbers might move a little bit. don't kind of settle on this number. here is what happened with big stocks that we follow. walmart got hit with contagion fear about china. china opened in a few hours. three big things. china with concern here about what that market will do when they take those circuit breakers out which the chinese government says they will do. they devalued currency. you have the jobs report tomorrow. any negative news in that jobs report could also be a factor going into tomorrow. that is part of the fear we've been seeing in last few moments. we just crossed a billion shares. that is 36% above average. this is big number. the fact, melissa, that dow is opening up the year, we're on track for the worst year in since 1991 in terms of losses. want to talk to you about
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walmart because that was one of the stocks that stayed in the green for the day. that was based on same-store sales coming in from jcpenney. that is retail story. we still need a lot of retail numbers in from december. did americans spend money because they saved it at the gas pump? that is one of the questions we're asking today. again those numbers will be coming up. that helped walmart in particular today, twice. melissa: cheryl, thanks so much for that. david? david: only time markets improved when oil began to go up a little bit. but ended day down 2%. oil falling to the lowest level in 10 years. jeff flock is with us. some analysts see $20 oil. >> some people are talking about that, david. i'll tell you, we're in front of the s&p options pit right here. that is a indication for us to talk about options in oil. i have todd colvin with me. i'm hearing some traders today they're going puts at $15, $20.
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is that crazy or is there a reason for that? >> there is a reason for it because volatility is high, you need to have that defensive insurance on you haven't had need for since the fed stepped in and made this a central bank trade so. >> how low is this growing to go? >> let's look at it. fourth day of the year. we're down 5%. that base is not going to continue. after tomorrow we may have a positive jobs number. we may see things hold steady. real issue risk assets are under pressure across the board. it is not just equities. you're seeing it in oil and other commodities. only commodity shining here, no pun intended is gold. that is safety haven. reporter: looks like $17 today. up $30 last five sessions. >> 5% year to date. opposite of stocks. certainly equities are in bear spin here. i don't know how long it will last. will depend on some data we're going to get not only for december but for first as well.
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reporter: gotcha. todd colvin. thank you. leave you with picture of options pit. famously open outcry pits gone away largely but options for s&p still happen. very active pit here today. david: $15 put on oil, that is extraordinary. particularly markets are tracking with oil. keeps going down like this, god knows what will happen with the markets. thank you, jeff. melissa: absolutely. joining me liz macdonald, scott martin united advisors, fox news contributor, managing director danielle demarch tino booth, former federal reserve advisors and jack hough bayer on east senior editor. -- baron's senior editor. what do you think about the federal reserve knowing they just tightened? >> the more markets arer rat like this, we could have a huge
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open tomorrow because of technicals short coverings. you see big down days followed by big up days. this will make federal resolve policymakers extremely nervous to see these kind ever erratic markets. going into this, stanley fischer, vice-chair said there are ups, there are down, but we intend to hike rates three or four times this year. melissa: jack, you're seeing downs. will we see up? this is reaction in china doesn't look like it will improve anytime soon. >> that is market selloff in china. that is not not like the u.s., long term savings wrapped up in stocks. there a lot more gambling goes on in main mainland china. the economy here is decent, getting better. stocks seventeen times earnings on stocks, a little above long-term average. there is no growth, with rates at zero percent so long, we got advance on stock returns. we'll have to pay it back a little bit. that gave cover for banks to get healthier, companies to improve
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their balance sheets. now time to sit on slow returns right now. melissa: john, do you agree with what jack had to say? not about china's economy but stock market and economy is not growing significantly. >> obviously devaluation of the yuan is a big deal. central bank and chinese authorities said after the first one it did in august that would be it. now they devalued again. investors are wrestling with is china a falling knife? is there a bottom? many people are skeptical about the macroeconomic data comes out of china. melissa: right. >> this could add further proof to that that is why you saw the rally in gold today. melissa: scott? >> i disagree with what jack said earlier actually if i could that the economy is getting better. i don't think it is. i think your first question to danielle melissa, the fed is saying oops. they made a policy mistake. i came on this show and said that. i don't usually sigh i said
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that. fed raised rates in december. no need to do that. stocks market is coming to grips as credit markets, higher interest rates and tighter money. that propelled market this far. this is the reckoning. it is going to be tough. melissa: emac i don't see good news anywhere. >> you're right. i still see sectors in the green on forward earnings basis. telecom, health care, consumer discretionary includes amazon. numbers out of jpmorgan chase in terms of u.s. stocks exposed to china on double-digit basis. these are the stocks with most exposure. some of them hit new lows today. tiffany's hewlett-packard. apple has nearly 20% of the its sales coming out of china. look at apple breaking down below 100, it is sticking below there. you're talking other stocks like yum! brands as well. some of these big blue chip names are getting stung today
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because of china downturn. >> if you twice are not seeing good news anywhere, look a little harder, right? u.s. car sales hit a record last year. if you take away the downturn in energy. >> because they are subprime loans. >> profit growth across blue chip companies. melissa: helps that you could fog a mirror -- melissa: one at a time. one at a time. scott martin your response. you're saying subprime loans. low interest rate. >> auto sales are largely subprime loans. those aren't good, sustainable sales. that's a flash in the pan. if auto sales are so good, why on those numbers is ford tanking? why are some other automakers tanking? volkswagen has its own problems but u.s. automakers. another thing going on, emac mentioned it. s&p 500 companies, sports fans, get 50%, five zero percent of earnings overseas. you know what that means europe contracting china slowing down, that means s&p earnings will be disaster. >> addendum to what scott is
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saying s&p capital iq, bank of america, merrill lynch, saying quarterly earnings coming in, corporate earnings season kicks off next week. talking anywhere 4.6% negative downturn, up to 5%, 6% downturn in corporate earnings. david: hey, scott, i want to go back to scott martin for a second, if in fact the fed made a mistake, there are a lot of doves in the fed probably didn't want to see a rate hikes at all, if they made a mistake will they come back and pull them down again? we saw that happen in europe. terrible thing that happened. we've seen that sort of thing happen in japan. if it happens here, i'm afraid of things like negative interest rates here. they even talked about it. >> ben bernanke says it will do that. david: scott? first scott, then danielle. >> we saw that in emerging markets too, david. turkey did something similar some years ago with reserve requirements and discount rate. it would be absolutely awful. they have already thrown the ball down the field.
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i hope they don't throw it anymore. look what happened. if the fed made good decision, guys, why are interest rates down since the fed raised them and why is the market down? david: danielle, to put a fine point on it, savers have been killed last couple years with these zero interest rates. if we have negative interest rates, if people have to pay banks to deposit their savings in those banks, what is that going to do to our whole systems of savings and loans. >> actually it would decimate it to be sure but the problem is, the fed in throwing the ba down the field as scott just said actually, it is actually impossible for the fed to go negative on interest rates because of how they raised interest rates. they have used something called reverse repo facility. david: right. >> forget ghat the name is, forget acronym, the fact they're controlling interest rates largely using money market fund industry as conduit. you can't, you can't use money market fund industry and take the rates away. you can't do it.
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mechanically, because fed funds market atrophied the fed backed themselves into a corner. negative is not an option. >> no one in real economy -- melissa: somebody who is former fed visor, danielle, what do you think they end up doing from here? >> i think their hands are tied. think i they might be one and done. stanley fischer talking very, very tough. we saw lorraine meister came out this week as well. they desperately want to raise interest rates three or four times this year. i think economy is slowing outside of lagging indicators such as labor market. as somebody brought up earlier, subprime auto juiced car sales. outside of that i don't think we're seeing very much in the way of any upward momentum in the economy. fed will have to come to that realization. i would be surprised -- >> there is absolutely no one in the real economy thinking about doing a piece of business, turning it away because fed is targeting quarter point difference on low end of the curve. it has not affected real rates
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in real world. fed has luxury see what happens now. it can scale back actions in the future. >> i want to answer scott's question before why treasury rates rallying in face of fed rate raise, japanese 10 years, 28 basis points. german bund, 48 basis points. why would safer overseas invest in your own currency and own debt? go out there buy u.s., hedge currency risk. you're picking up 150 basis points and higher credit quality. every central bank outside of u.s. globally is devaluing currency except the u.s. 10-year will catch a bid. melissa: don't want to you move anywhere. come back to all of you in just a moment. david hand it over to you for a second. david: focus on what part of this. china's troubles started a lot of this. 7% plunge triggered second trading halt for the country this year. investor face another potential drop in chinese stock markets just as we sleep tonight if we can. robert blohm, economist and
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investment banker lived in china for 10 years. now in canada. good time to take a vacation in canada, robert. what happens, do you think chinese markets will open tomorrow or might they close again? >> well, no, they removed the circuit breaker mechanisms. so yeah, they're going to open. what will happen, how much money is the government going to get in to push up stocks you know? they're spending money two-ways. they're spending reserves to support, keep the renminbi, yuan from devaluing too fast. when they do that they have also got, it es devaluing, that is pushing stock market. they have to plow in all kinds of money to buy stocks. david: how many reserves do they actually have to dip into? they could do this for some time, could they not. >> not very long. i estimated in september they have eight months left of reserves at current rate of depression rate of 37% to meet the imf's minimum.
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imf doesn't want them to go -- once it leaves 2 trillion plus, reserves in there. so they only had, now they have like half a year of that left. and then, you know, if they go down to zero, they have got less than three years. they have a couple years to go before they have no more reserves. they become a basket case. now -- david: robert, we don't have much time, how does all this spill over here? other than concerns, general concerns which the stock market down today, how can it actually spill over? a lot of countries hedged in china? >> we have multinationals. don't worry about them. they remanufacture, okay, manufacture for export. chinese consumer, okay, chinese consumer will always consume something. we're talking about systemic change. we're talking about a peace dividend. did you ever hear of a peace dividend when chinese military has no more money because the economy crashed. because leaders, it is sleepy
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time over there. the communist party has do not disturb sign over it. they don't know what they're doing. handful of people in that government know what they're doing. rest of them are all, you know putting in time. they're all marxist idealogues memorized marxists texts. this is type of people, this is like the wizard of oz. like the guy behind the curtain managing all this stuff. it is so flimsy. the communist people is a anachronism. you know, ultimately what will happen. that economy, look what we've got for the world. think better than tax reduction is low commodity prices. do you know what that will do for the world economy in the future? david: we have to wrap the segment. this could be what shumpeter called creative destruction. might look awful next couple months if not years, may end up with better system. very quickly. >> commies have been driving history for the past 15 years. they are responsible for the bubble because they sub sip
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diesed commodity prices. there was too much demand. they were determining global prices. the markets crashed in 2008 because of it. because we're worried about inflation and high oil prices then. we raised interest rates. all that crashed. now they're doing the opposite. now they're depressing global market with their lack of demand that was all fake demand in the first place. so you know, downside is good news for the rest of the world because china isn't there driving up artificial demand again. david: but a bit of a mess getting to that point. robert blohm, thank you very much. good to see you. appreciate it. melissa: i want to bring our panel back in. elizabeth macdonald, scott martin, john pet treed december, jack hough. this is officially worst start of the dow in history. john, what do you tell your clients, what do you do, how do you manage things rest of the week? let's start with tomorrow's session. >> you take a page out of warren
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buffett's book and be greedy when others are fearful and fearful when others are greed did i. sharpen pencil and look at individual stocks and companies out there where you have good visibility on cash flows trading at attractive valuations offering high dividend yields and have strong balance sheets that with stand this volatility. melissa: you go bargain hunting. scott, do you agree with that? >> not yet. i don't think there is enough fear out there yet. john is right. you do that at some point. that worked in august, september period, was frankly pretty nasty. we forget about that end on something happy. bonds are working. corporate and treasury. gold is working. john brought up in the last segment about the dollar. the dollar is going to strengthen most likely as rates go higher. that is stuff you can buy in your portfolio to keep you safe. melissa: emac. >> other thing working when the market downturn, all colorful adjectives, market pundits can truck out gets to be more fun
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these days. another saying when the tide goes out they see you swimming naked. talking about corporate earnings season it kicks off nix week. some surprises could happen to the upvied for jpmorgan chase and citigroup, comparatives are pretty good given what they went through last year. alcoa, intel may surprise to the downside. melissa: we'll squeeze in a break. thanks, guys. huge movers in stocks every day this week. what can we expect tomorrow. more on what traders are saying and what you should be doing with your money. david: tensions escalating in the middle east. we'll have update on that situation as well. melissa: colonel oliver north. how far he thinks this will go and what the u.s. needs to be doing in the region right now. >> when there is void in u.s. leadership, it will be filled, filled by dictators, by terrorists. . . it's a fact. kind of like reunions equal blatant lying.
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melissa: and we want to bring your attention to how the marks ended today in cased you missed it. the dow trading almost down 400 points, the nasdaq got
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slammed the hard website 146 points on the nasdaq, gold higher, that's that flight to safety and crude oil pulling things even lower one of the major drivers out there today. david. david: you would have to be a sound sleeper to miss that. meanwhile the threat of homegrown terror. helping to build bombs for an attack on a u.s. military base in afghanistan. fox news rick has spent quite a bit of time in afghanistan. at the u.s. district court in brooklyn today with the very latest. hi, rick. >> hey, david, the defendant spent roughly ten minutes here in federal court and didn't say a word. but his attorney pled not guilty on his behalf to the nine counts against him, two of which could carry the death penalty. he wore a blue prison jumpsuit and sneakers with a shaved head and beard, he's been in custody since last april since he was caught in pakistan where he had been on the kill list because he was involved
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in terror plots, including on a military base in afghanistan. and one of the two coconspirators he left with was charged with training the men who was carrying out an attack on the new york city subway system. and asked for a search warranty and said if the government can prove his involvement in the afghanistan attack, counts four and five of the entitlement could lead to the death penalty if he's convicted. the government hasn't specified which attack he was involved in except to say it was on or about january 19th, 2009. well, the ap report says it's most likely a dual car bomb attack near the pakistani border. that attack killed one afghan and wounded six others. the government says only one of the two vehicles actually blew up and his fingerprints were found on that second unexploded device, so he remains behind bars, david, and is expected back here next month. david: what a case. a lot at stake. rick, thank you very much. and there is turmoil in the middle east.
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iran is accusing saudi arabia of bombing its embassy in yemen. what the escalating tension between the two powers mean for the region. that's coming up next. melissa: plus a factory filled with deadly bombs. we're going to talk to lieutenant colonel oliver north about the isis weapons lab and what the united states should do about it. we'll be right back i use what's already inside me to reach my goals. so i liked when my doctor told me i may reach my blood sugar and a1c goals by activating what's within me.
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melissa: tension heating up in the middle east, iran claiming the saudis have bombed their embassy in yemen. the obama administration
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calling for calm tension sped across the middle east here to weigh in on the escalating search lieutenant colonel oliver north and host of war stories. colonel, thank you so much for joining us. what do you think is going on here? i mean the iranians say of course their embassy was bombed, however, an ap reporter who reached the site just after the announcement said that they saw no visible damage to the building. what's going on? >> since then, you're absolutely right, melissa. listen, this saudi iranian confrontation was inevitable after the nuke deal. it's going downhill quickly, i think faster than most people expected, and it's going to continue to do so without an incredible intermediateiary who can get the two sides to talk to each other. this administration, the obama administration is no longer a credible intermediary and this is because the shi'a iraqi government could somehow play the role -- not going to happen.
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melissa: do you think that the administration understood that they would be setting off this fight between these two by going ahead with the iranian nuclear agreement? >> well, you know, the saudis have been watching the u.s. ignore the green revolution in iran in judge o 2009, they watched abandon and ignore who has now brought calm to egypt. and of course the brace is further the -- absolute concern that the united states had not just tilted. we tipped the canoe over in favor. so what this administration has done, melissa, is they have unleashed the dogs of war, the big dogs of war because we're talking the very strong likelihood of a nuclear attack on iran -- not by the israelis. but by the egyptians and of course riyadh. melissa: yeah, i don't want to let you go without having asking you about this other
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story that had been everywhere the last couple of days. been called the gold mine by security experts. the video footage inside an isis terror lab where scientists and weapons experts, they show aspiring terrorists how to make dangerous weapons. listen. >> the work in this room reveals some of the they're converting a missile from a jet fighter and making it a surface to air missile. there's a heat-seeking warhead that can take out a passenger jet 99% of the time these missiles hit their targets. melissa: so, colonel rudy giuliani was on and earlier saying if we know where this is, we should go blow it up. what do you think about that. >> well, absolutely right about it. and of course the idea that sky news could get this footage obviously brought out probably from a computer that was captured during one of these raids. what i've been told by folks whose job it is to determine what this stuff really is. they believe that this is part
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of an enormous training operation. not just, by the way, converting air-to-air missiles to something else but building chemical weapons perhaps biological weapons. it's an how to manual video showing this is the problem when you give the terror organization the likes of isis a safe haven in which they can operate. that's why this is much bigger than just the -- isis. it is the entirety of radical islam. and now what you've got is a very, very extraordinary possibility of a shi'ite versus sunni conflict that involves nuclear weapons. melissa: and people talking about the collateral damage of going in and bombing something like this that is thought about and very serious and you wonder how many people will die as a result of this training. it's a big problem, colonel north, thank you very much for coming on. we appreciate your time. >> thank you. david: meanwhile not just the committee but taking action against north korea's claim of
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testing a hydrogen bomb. the house is set to vote against tougher sanctions but it may do little to deter the regime from developing nuclear capabilities beyond which they already have. joining me now former u.s. ambassador to korea and outpost, live in the front lines of american diplomacy. ambassador, good to see you. you know, all administrations we know have had trouble with north korea. they're bad actors. but this administration came in saying we're not going to lead from behind. we're going to let international institutions do the hard work, plow ahead, for the diplomats -- it looks like we just lost the ambassador; is that right? producers? okay. we're going to see if we can get ambassador hill back. we just lost his satellite. we'll be right back with that . melissa: meanwhile an unhappy new year on wall street. what you need to know about the opening bell tomorrow. we'll be right back if a denture were to be
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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.
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david: the dow getting hammered. down about 400 points today. melissa: cheryl is at the new york stock exchange. cheryl, what are traders telling you about what they expect to see tomorrow. >> a lot of it is going to depend on what happens in china. and we're actually just a few hours short from chinese stocks, japan going to start trading. you know, we're going to get those numbers and start to get those numbers in just in a couple of hours here. so that's going to give us an idea of what tomorrow looks like for europe and then of course for american markets. now, there's two things going on here. tomorrow's going to really -- . melissa: i think we lost cheryl there for some reason. all right, david, i'm going to send it over to you. david: i'm looking at our next guest. we have jack right in studio, point view wealth management, managing director and scott from wells fargo. forgive us, gentleman, all of that talk about north korea. i'm sure they've hacked in and messing up our satellite feeds. >> all over this technology, david. david: steamer huge day at 8:30 a.m. we get the jobs
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report. of course sometimes good jobs number makes the markets fearful because they think of another perhaps another fed rate hike. what do you think is going to happen? >> well, i think the opposite could happen in that situation. we saw this story happen in august, september, and october. august the chinese devalued their currency the first time. september janet yellen came out and said the fed was not going to raise rates because of what was happening internationally and october, november, december, you saw huge job numbers come out and the stocks rallied, i think if we get a big jobs number something from 250 to 280,000, stocks rally hard what's happening is that china is not affecting the u.s. economy. david: but it could, scott, it could in several ways. let's take one of those ways, they've been devaluing their currency while our currency has been strengthening because of a rate hike. they're scrambling to do anything they can to increase their imports. >> i think it's wise to guess
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at least for our target that the dollar is going to strengthen just a little bit more this year. you have to remember, david we were stuck at a buck 35 or so against the euro for two or three years. all of that deflation, that was our fed moving quicker than what i think they're going to move. so i wouldn't expect a big time appreciation in the dollar and i'm with your other guest. i mean i think if we had better news that somewhat of a relief because i think the fed is going to let inflation run a little harder than maybe they normally would. it would give relief to the market that, hey, the u.s. recovery is going to continue, which can he certainly believe it will. melissa: jack, do you think they could possibly raise three more times this year given what's going on with the market and the tension and everything else that's going around the world as they have planned? the fed? >> i would hope that the fed is not basing monetary policy on one day's trading in the stock market.
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melissa: not one day, though. it's been the tenure, the end of the year ended this way. we've been on the slide for a bit. >> but, melissa, the last thing you would want right now is stocks charging higher every day. when valuations are full and markets are looking peeky and not a lot of earnings growth in the stock market, what you want right now is a cool down period where best case scenario we go through a year or two of stock prices staying flat, valuations resetting and no one getting hurt. worst-case scenario is we have a sell off and share prices get cheaper. but i'm hoping that the fed isn't watching that. do they have room to raise a few more times? i suppose, but it depends on what happens from here. it depends on numbers that we or they haven't seen yet. david: all right, gentlemen, thank you very much. melissa: tomorrow's jobs day in america, maria bartiromo will have a live report 8:00 p.m. eastern right here on fox business. david: let's go back to the new york story here,
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ambassador chris hill rejoining us. i'm sure the north korean's tapped into our line, ambassador, aren't you? >> absolutely. david: they're screwing up our satellite feed somehow. let me continue with a question, though, if i can. which is that this administration -- not unlike all of the other administrations before it have had problems with north korea. but this administration thought international institutions could better deal with it than us alone. that hasn't worked out well, has it? >> well, no, and what the administration tried to do is to say, hey, we ought to be patient and then you put the word strategic in front of patient for real wisdom about it. but in the meantime the north korean's have three more nuclear detonations with the latest one coming this week. so what we know is that there is not a lot of time and that sooner or later they're going to get a weapon on top of a missile and then we have a huge problem. david: well, we already have a problem as long as they're exploding these bombs. but relying on international institutions like the united
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nations, for example, has done no good without u.s. muffle behind it. the fact is that they're -- according to un doctrine, they're not supposed to explode atom bombs, they do, iran is not supposed to experiment with missiles, they are. so these international institutions, again, flying for cover. but without the strong leadership of the u.s., you don't get anything done. the bad actors have their way, no? >> i think it's important to understand that international organizations are only as strong as the member states. so when you turn -- david: excuse me for interrupting, ambassador. >> yeah. david: without the united states specifically. without the united states taking the lead, it doesn't matter what they come up with at the un. >> well, i think that's right. but we have to work with the chinese. but we can't just outsource it to the chinese. we have to work with them, we have to pressure them, we have to really try to see what can be done together. because this is a serious problem.
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it's clear all the available bandwidth went to the middle east and there have not been, you know, enough people working on this issue in recent years. so this has been a serious problem. in the meantime the north korean's have grown this program far more, by the way, than the iranians have in their program. melissa: ambassador, do you have any faith in the diplomatic skills of this administration? you have the deputy national security advisor to the united states. the deputy national security advisor whose qualifications for the job is an advanced degree in creative writing. i mean these are the guys who are telling the generals and the career diplomats like yourself what to do. >> i tell you without getting about this, this is a serious job for serious people. and -- david: but are those serious people in those jobs right now? >> i think people are stretched a little willing thin. let me be diplomatic about it. david: always a diplomat. thank you, sir. appreciate for coming in. melissa: major market volatility. who does this help? who does it hurt on the
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you could save up to $509 call today at see car insurance in a whole new light. liberty mutual insurance. david: all right. let's talk a little bit about how all of this economic chaos is affecting the political candidates. big problems occurring right now between donald trump and mr. cruz as well. but we want to talk again specifically about how the economic market crash today actually affecting the markets. joining us now is drid and chuck, democratic strategist. first to you. hillary clinton of course i think is most vulnerable to a weak economy right now. a weak economy and weak market play into what donald trump and all the republicans are talking about.
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if this downward trend continues, could that have an election for the republicans? >> yeah. god forbid we go into another recession, another major downturn, this gives the republicans a muchary opportunity to say, look, obama didn't prop up the economy. he may have come in with a poor hand of cards but has had seven years to improve the situation and either didn't make it strong enough to understand things going on in china or respond in any kind of away to keep us from suffering a contagion asian flu if you will coming out of china. david: chuck, i'm sure you agree. >> well, what i know when you're talking to voters all across the country, the economy and jobs is always number one whether you're talking about iowa or new hampshire. so i think this volatility feeds into what we're seeing, which is unique in campaigns, which is all of this great, great anxiety, and i think that's why you see the rise of donald trump and also bernie sanders. you have this whole group of american electorate who are sick of tired of being sick and tired, and this does not
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help anybody else. melissa: yeah, that's a great point and there are candidates on either side that can capitalize on that but a lot would say donald trump is better to capitalize on that. >> sure. i think what americans are suffering is not just specific economic concerns. broad generalized anxiety. obviously a weak economy, the economy's crawling forward at 2% a year. middle class in the accident have been completely flat for the last eight years and then weak leadership, the fear of terrorism, crime is ticking up, so it just seems like everything is going wrong. i read a piece can a couple of weeks ago, yes, virginia, no, virginia there's no good news anymore. i think a lot of people feel that way, and it adds additional fuel that things are unraveling. melissa: chuck, it seems the person that is at the greatest disadvantage is hillary clinton. how would she spend this in a way that is answering to the chaos that's going on right now. >> i don't think it's just
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hillary clinton. it's anyone who would be conceptualized about what's going on. that's part of the overall anxiety. if you have a democratic president or just like we did with george bush after his eight years. you put a blame there. she can drawl redraw a wall but you've got 30 seconds with a voter, you don't have a long time to explain yourself. so you have to make a hit or move like donald trump does. it's time to have a in government. david: this is much of the establishment electorate, the fact that you can have a socialist rising at all is extraordinary. that speaks to the point. but the question is how far it goes. how far the antiestablishment goes. would it go so far as to elect donald trump particularly if there's an economic downturn as we go into 2016? >> i think it's entirely possible. i mean it seems no matter what donald trump says or does, he just keeps going up, up, up, he'll make a comment and will say this is the end of his
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campaign and what happens? he goes up another three or four points. i think another thing that will happen if the economy goes downhill. hillary clinton needs obama to excite voters, particularly black and younger voters and she'll have trouble showing up to promote her as a person to -- david: she is the establishment candidate. how does she court that side of the electorate at all? >> well, the one thing that you have when you're -- and i'm a political consultant. so the one thing she does have is a lot of money and universal name id. but what we find when we test that message is there's not a lot of middle ground with hillary. there are people that are beloved to her and people who don't like her. it's that small sliver in the million dollars who this does not help which is whom she and other democrats -- david: but she doesn't have a chance with the antiestablishment vote i don't think. melissa: we'll leave it there. david: gentlemen, thank you very much. appreciate it. melissa: and fox business second republican debate is weeks away. it will kick off 6:00 p.m. eastern hosted by trish and
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sandra, the second debate with maria bartiromo and neil cavuto, it will be announced tonight with lou dobbs 7:00 p.m. eastern. david: well, you may have lost money in the stock market today, but you still have a chance at a record powerball jackpot. you may have already won a million bucks and not even realize it. we'll tell you in just a moment
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david: the stakes have been raised in powerball after no one produced a matching combination in numbers in last night's drawing. the jackpot for saturday's powerball is expected to be the largest in history. an estimated $700 million. melissa: amazing. well, you may not have won last night, you may want to recheck your ticket and carefully. about $2 billion in lottery prices go unclaimed every year. can you imagine that? many of those tickets are worth between 1 and $5 but some players never realize
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they have won serious cash. about 114 prices worth a million or more went unclaimed last year. how is that possible? david: guys you look at the tickets opinion the president. you may have a million dollars ticket. melissa: there you have it. here's risk and reward. >> an up happy start to the new year for investors, so far the dow off to its worst start ever. this is risk and reward, i'm diedre bolton. stocks around the world from the china to the uk to the u.s., you can see the sell off. we ended the day here triple digit down. for analysis, we have our in-house experts my colleague cheryl covering the sellings from the floor of the new york stock exchange. money managers, jamie cox, they're going to be sharing their best advice with what to do with your money. cheryl with me now from the floor, so,

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