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tv   FBN AM  FOX Business  January 8, 2016 5:00am-6:01am EST

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>> breaking news. stocks in china rise as government dumbs circuit breakers. good morning the i'm lauren simonetti. nicole: good morning i'm nicole petallides. in the u.s. prices falling china's lead. nicole: oil prices moving off
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the 12 year lows. they're on the rise with china stocks as well. look at oil, 33.78. lauren: stocks and oil moving in the same direction this week. market chaos in china certainly becomes a political issue on the campaign trail. we'll tell you what candidates like donald trump had to say. nicole: we'll talk to gordon chang. he is the author of the coming collapse of china. is this just the beginning of the end? we'll hear reassuring words from charles schwab chief investment strategist liz ann sonders. live reports and analysis. we have you covered from beijing, new york, and chicago. fbam, your look at -- "fbn:am," your look at markets and breaking news, what to expect in the day ahead. mike ingram, market analyst at bgc partners joins us on the phone. mike what are you thinking now,
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after this crazy week? look, we're down 5% but up arrows this morning. now what? >> frankly i would just stay well away. very controversially underweight equity markets end of the first quarter of last year. and i'm still quite happy to be that way. we don't know what the end game in china is yet. i don't think we can look for durable stabilization in risk markets until we know what the endgame is. my best guess we'll see much weaker currency. maybe 7.3 versus the dollar. very little policy transparency out of peoples bank of china and government doesn't helpers. we don't know what happens next. yes, china is up but own after massive government intervention. nicole: what advice would you give to regulators there? >> very difficult to offer
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useful advice. we want to see the market clear where it is going to go but you have a stock market where manipulation is almost a national sport. well it is. shanghai stock exchange is casino. that is being uncharitable to casinos. you have a situation where the government needs to rebalance from investment in net exports to consumerism but also, at the same time, they want political control of the economy. they want to keep control of these state owned enterprises. the two are actually incompatable. we need economic reform but it is not consistent with a one-party system in china. so is seismic steps that has to be taken. you know, i'm not so sure that china, when push comes to shove will actually find it is actually that committed to the path of reform. nicole: right. mike ingram, bgc partners, thanks for joining us as we watch chinese stocks moving to the upside, lauren.
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up 2%. dow so far so good if you're a bull. lauren: the screen we showed had a wild ride for stocks in asia around the world. dow jones and nasdaq, look at that so far this year, this week. in china stocks there losing roughly 10% on the week, gaining back some of that ground today. look at asian markets with business reporter tracy yu. tracy is business reporter for chinese state television. good morning, tracy. things looking better today. >> good morning, ladies things are looking much better. crc officially suspended circuit breaker last night, gaining 2% led by blue chip stocks. in hong kong the hang seng rebounded as well. after the chinese central bank, pboc gave the chinese yuan much firmer midpoint range. tokyo, trading is looking pretty
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directionless today. investors are pretty directionless but nikkei still ended in negative territory by 1.3% led by retail stocks and tech companies. in south korea kospi also ending in the green gaining .7 of 1% but heavy foreign selling continued. back to you. lauren: tracy, thank you so much. nicole: chinese stocks are bouncing back today following a week of wild trading. that is an understatement. but they're still down 10% for this week okay? this is ongoing serious story. we have a great guest for you guard done chang, author of, "coming collapse of china." you joined us this week. you've been a big part of fox business. now what? they get of circuit breakers. we're still worried about the yuan and chinese economy. >> yes. the concerns about economy have not gone away despite the marginal increase today. the reason is the manufacturing
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sector is contracting. services are growing but not growing fast enough to compensate for that. the chinese stock market, i think you know, today was calmed down. that is -- of course, because the government was in evidence in some of the trading. the big story is going to be this weekend. there are rumors that the head of the china securities regulatory commission is going to resign. there have been rumors like that in the past. we're going to see he what happens on monday. this will be fascinating. someone has to pay a political price what is happening this week and it will probably be a senior figure. nicole: if he does in fact resign what does that say about the underlying problems within the chinese economy. >> the economy, the growth model is exhausted and chinese leaders have yet to figure out what to do. they really can't do anything within the context of the political system which they won't change. which means that the only things that will change are the officials.
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and many people say that begins this weekend. and so all eyes are coming to be on what happens on saturday and sunday. nicole: we're here at home. we're waiting on the jobs report. we have a market running wild because of what we're seeing in china. what do you tell american folks watching this wild ride, waiting for economic news? just how intertwined we are globally? >> well we are intertwined but an no the less -- nicole: going forward why does it matter so much? >> it shouldn't matter in the sense that investors in the u.s. should understand that the chinese economy going through a transition. this has nothing to do, little to do with the rest of the global economy because china is not as connected as most people think. and the economy in the world is very deep and resilient t can transition. so therefore, it can get around the problems in china. so i think that essentially investors have overreacted. nicole: but, gordon, china
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playing with their currency, devaluing the yuan, what that does create competitive conditions in other markets, particularly emerging markets so it does affect other countries? >> it will. but i notice countries can react. that is going to be a good thing. chinese currency will probably fall much more than investors in the united states and around the world think. nicole: wow. how far will it fall? >> i think within this year you could see anywhere from 10 to 20 to 30%. nicole: wow. >> because the problem is that the china's economy is just on the precipice right now. that means things could go really, really bad. the currency could collapse. i'm not saying that will happen but it could happen and investors have not discounted china properly. nicole: gordon chang, thank you so much. author of "the coming collapse of china." explaining this to us. wild week. lauren: china story big.
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u.s. oil price story just as big this week. yesterday they plunged to about $32 a barrel, the lowest level in 12 years. this of course in reaction to the stock market turmoil going on in china. phil flynn senior market analyst at price futures group. fox business contributor, joining us live with the latest. phil, what should investors be focused on in the oil market today? what is the story? >> i think rig counts and how the u.s. stock market continues to follow through on this rally. this reminds me very much of what happened in july when the chinese stock market crashed. if you remember, that is the time we were panicking. oil went below $40 a barrel. everybody thought the world was coming apart. china stablized and oil prices rally $10 a barrel over next couple weeks. we could be a in a very similar situation. everybody is betting on lower prices. they got the spike down to the 2003 low. we took it out by one tick and
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rebound. that seems to be capitulation bottom at least for short term. nicole: whether we look what is going on with energy trading the spdr which is a basket of energy stocks down about 5% this week, people invested in energy have been waiting all last year, they got hit so hard, thinking 2016 is their year to get hit hard again. what are you hearing about investing in the gripe overall? >> i think the gripe overall is risky because there will be a lot more bankruptcies but at same time there are very big names, you know, oil majors that are really undervalued because the big companies are going to be able to withstand that. but you know -- nicole: oil companies can you say? >> sure. exxon mobile, chevron. chevron cut everything to the bone. you look at those big stocks, i mean they're undervalued. big company everybody will be talking about today is saudi aramco. that story to me is huge today.
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you know, with saudi aramco, their pride and joy, biggest energy company in the world is thinking about, you know, offering shares in their company. that's a sign that saudi arabia has big economic problems. it could be a sign that this production war is taking its toll and at some point they may have to cry uncle. lauren: phil flynn, thank you, analyst at price futures group and fox business contributor. nicole: -- spreading fears about chinese economy. >> how poorly they will be doing. they will be up six 1/2% this year. so china has got difficulties. i agree with that because they're sitting on a little bit after bubble. could be a lot of bubble. >> china is in a lot of trouble. their government badly managed their economy. they haven't been transparent this will be ongoing cycle months perhaps years to come.
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the best way to protect america is have a strong economy. >> we faced a government that didn't let markets work. the world paying a price. if they sneeze, parts ever the world will get a cold. this has to settle down if the chinese will be participating being part of the market basket. you understand that means they got to come clean because they're going to have to let this thing work out. they can't keep manipulating things. nicole: that was trump, rubio, kasich all giving their opinions on our ties to china. make sure to tune in for the next fox business republican debate, thursday, january 14th, sandra smith and trish regan will kick off the early debate at 6:00 p.m. eastern time. then you will join maria bartiromo and neil cavuto for the later debate, 9:00 p.m. eastern time. it is sure to be exciting and informative and all business, all right here on the fox business network. lauren: politics, the debate, oil, china and then you've got the jobs report, in the middle of turmoil this week. the december jobs report comes out later this morning three
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hours from now. it will provide the first major incation how the u.s. economy fared for all of last year. it will provide clues about momentum in the job market heading into the new year. economist expecting 200,000 non-farm jobs will be added in december. inemployment rate holding steady at 5%. of the investors focus whether wage growth is picking up. mornings with maria will have a special jobs in america report beginning 8:30 a.m. eastern here on fox business. nicole: we have to check on the shanghai composite index which yesterday was halted down 7%. today up 2% as they got rid of circuit breakers. kospi up 3/4 of 1%. lauren: flip the board to europe to see how those stocks are trading in the early going there. you can see the ftse up by 40 points. the cac up by 16.
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german dax up by 73 this morning. nicole: technology, financials, everything fall out of bed yesterday, look what is going on today? dow futures up 1.1%. like s&p is up 1.1%. nasdaq is up 57. lauren: worst start to any year. it has been awful. how are commodities doing this morning? oil rebounding. up more than 1%. gold, great week for gold. it is giving up some gains today as stocks rally. gold is down 11 bucks. $1096 a troy ounce. nicole: look how the u.s. dollar is trading against other key currencies. complete reversal of yesterday. today the euro and yen are weaker against the green back. lauren: yield on 10-year treasury, 2.17%, up three basis points. nicole: china moving to lower the value of its currency. yesterday the yuan hit its lowest level since 2011. that certainly spooked u.s.
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markets. gives us a closer look at all that, jane foley, senior currency strategist at rabobank. thank you for joining us, jane. we look what is going on with the yuan. what can we expect going forward and why should everybody in the u.s. focus on this? tell us how important this is? >> it is important because it will work back through the value of the u.s. dollar which affects u.s. corporates and affects u.s. policy potentially. what we see in china, they have a defacto bid against the u.s. dollar. the u.s. dollar has been appreciating. that has been dragging value of the renminbi higher last few years. china is economy weakening with weak inflation. last month they released a paper that said we shouldn't focus so much on the value of the u.s. dollar-renminbi rate, the effective exchange traded weight. as dollar is dragging higher the
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value of renminbi has been appreciating almost against everyone else. now, the chinese authorities have been intervening in the market to support the value of the renminbi. they spent a lot of money last month. they're still supporting it. this month they appear to be walking a way a little bit, allowing it to fall to some degree. that spooked markets. because it affects trading partners of china and how cheap their goods will be to enter china. nicole: coming into today chinese currency down eight days in a row. what does that say about the strength or weakness rather of the chinese economy? >> well, again, many people were looking at fact that the chinese authorities were allowing their exchange rate to fall this week as signal how weak the currency is. it is a bit of a chicken and egg story. i think they were allowing it to fall really because the economy perhaps needs a little bit more stimulus. they have been trying to stimulate policies such as fiscal policies through interest
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rates. but still perhaps they need a little bit more. the facts, the problem potentially for china, if the dollar rallies on back of federal reserve interest rate hikes, that will tighten monetary conditions in china even more. so china loosened up the peg to some degree. trouble is for everybody who exports into china, particularly commodity producers, that can be very painful for them. nicole: right. jane foley of rabobank, thank you very much. this is a big controversy, right? very controversial about the pboc when they're manipulating the currency, propping up the markets. you heard all the gop candidates coming in to talk about the controversial moves. lauren: one of many casualties of the market week meltdown, apple closing down below $100 for the first time in 15 months. apple is hurt by slowing growth in the iphone in china. apple shares they were 425 down to close at $96.45.
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if you put that in perspective that is down 25% from the july peak. that july peak, if you remember, $132. we're showing you how apple is doing in premarket trading. it is such a big part. market. the bid-ask is higher. we're looking above $97 a share. nicole: silicon valley ceos meeting with senior obama administration officials including fbi director james comey. this comes as the government is pushing tech giants to do more to block terrorists from using internet, using social media to incite violence. the executives from major firms, this includes facebook, google, yahoo! are expected to attend this very important meeting. lauren: let's get you caught up once again on global market action overnight. we'll start with asia. we have green arrows. shanghai up 2%. hang seng up half of 1% and kospi up 1%. nicole: look at europe. everything is turned around.
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completely different picture. dax and ftse up more than a half of a percent. lauren: here in the u.s. still a tough week but hoping to end on brighter note ahead of jobs report in three hours from now. dow jones industrial average futures up 184 points. s&p futures up 23. nasdaq up 57. that is all more than 1% on each of those indices. nicole: you're right. the dow and s&p are down 5%. check out commodities. oil with up arrow. up more than 1%. gold pulling back now. people are taking a breather getting out of gold which is a safe haven. 10 the 6 an ounce. -- 1096. lauren: china gaining well-needed ground back today. let's look at close look at asian markets with tracy yu, live in beijing. she is reporter for chinese state television. good morning, tracy how are
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things shaping up or where do they end today where you are? >> good morning, ladies things are looking much, much better. chinese composite rebounded after they officially suspended circuit breaker last night. officially note they used word suspended and not canceled. yuan bouncing back 2% led by blue chip stocks. in hong kong markets rebounded, hang seng gaining .6 of 1% after pbpboc gave them a rate. nikkei inding in negative territory down about .4 of 1% led by tech companies and retail shares. kospi the ending up in the green by .7 of 1%. heavy foreign selling continued. back to you. lauren: tracy, thank you very much. nicole: let's bring it home. u.s. stock index futures pointing to higher start for wall street when the opening bell rings 9:30 a.m. eastern time. will the release of the december jobs report, what will that do to stocks as well?
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we're waiting on that very important piece of news. rob morgan chief investment officer joins us now this morning. rob, we are waiting for this key jobs report and that could be another wildcard here. >> well it could be, nicole but i think the recent jobs reports have had some stability to them. i'm looking for 200,000 jobs here. i'm also looking for some wage growth and that should continue to show that the u.s. economy is in fact accelerating. lauren: so the u.s. economy is a bright spot. i was out with couple people last night, rob, some older people said, lauren, what do we do with our money right now. i'm older. i said call your broker. what do you do, what do do you in environment like this especially if you need income from your portfolio? >> lauren i suggested at end of the year clients take equity
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money off the table and rotate into more defensive sectors. but if they -- hopefully they did that to buffer themselves against the type of volatility. if they didn't and question now was should i get out now? i think there is definitely some risk to being out of equities in the u.s. markets for number of reasons. number one i talked about the fact we'll probably get good news today on jobs report. next week the u.s. earnings season starts and expectations are so low, that i think we're going to see some, quite a bit of positive surprises there. and then finally, if you look at average u.s. stock it is down substantially. even though you pointed out at beginning of the show couple of indices are in correction territory. so i think that there is definitely risk, if you didn't rotate into defensive sectors, take some equity off the table i think i stay where i am right now because i think we're going to see a lift here. nicole: rob morgan, chief
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investment officer at sethy financial group. she told her friends to keep watching fox business. we have great people on like rob. lauren: rob told us all to relax a little bit. look at headlines in today's edition of "wall street journal" here is the first one for you. saudi arabia mulls selling shares in aramco. the kingdom said to be considering offering a small slice of the state owned oil company in an ipo. united -- word that as car muniz underwent heart transplant operation raising questions about how and when the airline disclosed information about his health. not all retailers are cheery. foot traffic declined but money flowed online amid a late surge. nicole: coming up the economic and market chaos in china becomes a political issue on the campaign trail. we'll have a live report from beijing, and latest how the wild
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swings in china's stock market is playing out in the global markets. and always calming liz ann sonders from charles schwab will tell you what to do with your money and the markets, what has been going on. check out stock index futures. we're seeing up arrows for the week. the dow and s&p are down 5%. nasdaq, transports, russell are down more than 6% this week. dow futures this second up 174 points. s&p up 20 one. nasdaq up 53. you're watching "fbn:am," your first look at morning markets and breaking news. ♪
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nicole: it's friday, it's jobs day. it has been a wild week. get you caught up on market action overnight. shanghai up 2%. hang seng up half a% just like the kospi. only one with a down arrow, the nikkei, down 1/3 of bunn%. lauren: i like how you highlight stocks in china up. it's a huge week. ftse gaining 30 points. dax in germany up by 54 this morning. >> the dow down about 5% this week but this morning we're seeing up arrows. dow futures up 172.
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s&p futures up 21 handle. nasdaq up 53. that is the best of the three. that is the 1.25%. lauren: that index in correction territory. investors were nervous this week, they put their money into gold. that is not coming today as equities rise. crude oil prices up almost 1% at 33.58 a barrel. nicole: 2016 is certainly off to a very rocky start. looks like volatility is far from over. what steps should investors take to make that their portfolios can handle this trading environment? we have ron devari with us, new oak ceo, cofounder, joins us by telephone. ron, thank you for being with us this morning. what can investors to protect their portfolio? what advice can you give them? they have money in the market and saw the pullback last year and worries that kick off 2016? >> good morning. first thing is to stay calm. that is number of one. never get nervous. condwhen the markets gives
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it to you buy some. i think it's a great time. it's a great time. i think long term these are some -- market has overreacted obviously. things in china i think will improve over time and we're going to get over these geopolitical issues we're seeing in the middle east. and i think, the engine is going to be obviously the u.s. and europe. lauren: all right. i think we'll see growth in both places. and as i said, long term, i'm bullish. nicole: appreciate the positivity, but what does the damage of this week, what message k that's -- the federal reserve obviously was under a lot of pressure to show that it has the guts to actually move, and obviously the market is moving for other reasons. i think you know, the long-term concerns have been the weakness that we're seeing in the
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emerging markets. well not, really emergeing as much as developing markets such as china. when you put china, russia, and middle east all under pressure, the, the people who have been having lots of money and buying stuff, then, you can't really expect the market to, to do well globally. nicole: give us a quick, we have to go, we want to quickly ask you about bonds. >> sure. nicole: people investing in fixed income. is this good investment in 2016 or not really? >> i think it is. nicole: all right. >> i don't think people should worry about rates rising that much. , a lot more pressure, long-term growth will not be all that great. inflation is not coming back. so, with those two, i think fixed income is always a good investment. nicole: you have asset allocation. some fixed income, buy the dips,
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bullish long term. >> buy some mortgages. those are the best. nicole: thanks, ron, new okay oak see yo thanks for joining us. lauren: china become as political issue on the campaign trail. >> china has difficults, i agree with that. sitting on a little bit of bubble. could be a lot of bubble. lauren: we'll have live report on beijing and latest on wild swings in the stock market playing out in the global market. the always calming liz ann sonders from charles schwab will tell you what to do with your money amid this market carnage. checking stocks and futures this friday morning we have a rally on our hand. dow futures indicating much higher open. coming into today down 911. nasdaq up 52. you're watching "fbn:am." it is jobs day, people. this is your first look at morning markets and breaking news. ♪
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nicole: breaking news this morning stocks in china rise after the government dumbs the controversial circuit breakers. the news lifts stocks prices around the world. good friday mornings, i'm nicole petallides. lauren: good morning, nicole. i'm lauren simonetti. stocks up close to 2%. that is helping lift other asian stock markets. in u.s., stocks following china's lead as they have done all week after the dow nearly fell 400 point yesterday. right now the dow is up 166. s&p is up 21. nasdaq up 51 points. crude oil, 33.52 right now. nicole: market chaos in china become as political issue on the campaign trail. we'll tell you which candidates like donald trump, what they had to say.
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lauren: we'll talk to charles schwab chief investment strategist liz ann sonders and live reports, analysis from beijing, new york and chicago. welcome to "fbn:am." latest in breaking markets, and what to expect in the day ahead. nicole: wild week for markets particularly in asia and around the world. chinese stocks lost 10%. gained back some ground today. closer look at asian markets. we go to tracy yu, business reporter for chinese state television. tracy, how are things today? reporter: good morning, ladies, we're breathing a sigh of relief after the csrc officially suspended circuit breaker. note they used the word suspended, not canceled. shank lie gained 2% led by blue chip stocks. hang seng gained after the pboc
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gave the chinese yen much stronger midpoint rate. in tokyo japanese stocks looking directionless. nikkei ending in negative territory down about .4 of 1%, led by retail stocks and tech companies. over in south korea, kospi rebounded with china, gaining about .7 of 1%, but heavy foreign selling continued. nicole: in beijing, tracy yu, thank you very much. lauren: s&p five hundred and dow industrials having worst start ever. down 5% over past four trading days. s&p 500 off 5% as well. nasdaq is having the worst year since the year 2000, down more than 6%. so the question is how should investors position their portfolios this year? let's ask liz ann sonders chief investment strategist at charles schwab. she joins us on the phone. any optimism today? >> obviously futures are up so a little bit of a rebound. unique to see this type of cluster of big down opening
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days. i think the problem it happened to have occurred in the first several days of the year. another part of the year, we saw similar activity last august but we're starting the year this way i think adds to angst investor are feeling. nicole: does this continue. good morning, liz, this is nicolle. does this continue or day by day type of thing? what do investors do? sit back -- >> that is the indicates. look at history of multiple days of big gap opening days, in many cases we've seen a little bit of a recovery throughout the day suggesting that some of the institutional buyers are desirous of stepping in. you know, normally these things ultimately recover themselves. we recently saw that last augment we retested in september i would say this is year ever caution. we came into 2016 with cautious outlook, telling investors
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maintain no more than normal allocation of equities. we put out our 2016 outlook. it is -- story. lauren: what do you do, if you have time since world war ii, history shows if you stay in stocks for 15 years or more you make money, big money often. what if you have don't have 15 years? >> every individual investor, there is no one right answer. diversification not only within asset classes but among asset classes. some asset classes fared pretty well, defensive areas, fixed income. not only be diversified, to rebalance your portfolio, if you drop below normal exposure or appropriate allocation, use that as opportunity. same thing on up side. i don't think investors do that, they freeze up getting a big move, particularly on downside. nicole: they freeze up. they get nervous. you're absolutely right. cautionary tone for 2015.
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cautionary tone for 2016 that continues. when you talk about asset allocation, is there an area, is it fixed income, is it a particular part of equities where you see the safe haven? we talk about defensive plays, liz, where do you suggest people put their money? not all caps, right? >> fixed income, look at what gold has done the last several days. i'm not a big advocate of gold. just shows you during times of tour moyle, whether type of asset that is point of diversification. what we never do is come on a show like yours and say, investors should have most of their money in x asset class. but having that base of diversification, having fixed income in your portfolio is buffer against periods like this is the way to approach long term asset allocation and portfolio management. this is boring to talk about i
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suppose because i don't have any bombastic call on one asset class. that is why diversification helps you ride through something like this. why we said over and over again, panic is not a strategy. lauren: liz ann sonders, thank you very much. >> thank you. nicole: talking to traders on the floor of the exchange, john corpina actually saying we saw a selling a lot of it, 5% for averages on heavy volume, yesterday was 33% higher volume, we saw the volume, there wasn't that sense of panic. so you are seeing selling but people are making choices. u.s. oil prices trading higher this morning after plunging to the lowest levels in more than 12 years in reaction to china's market turmoil. phil flynn, senior analyst at price futures group, fox business contribute to, joining us live live on the telephone. he is looking at all geopolitical worries and commodity of u.s. oil and how affects u.s. markets. what about next week. what are people saying now, phil? >> there is obviously the camp
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still very, very bearish. other people are saying, hey wait a second, maybe we're oversold a little bit. we've got a lot of data today we have to get through. jobs report can have big impact on oil it may impact the fed what not to do. we're look at rig counts this afternoon to see how much pain the oil patch is having. we'll see a big drop in those rig counts. i would not be surprised if we didn't after the down week that we had on oil. nicole: phil flynn, expecting rig count to drop. come on, you know they're not putting out all that -- not pumping it out. i wouldn't be surprised. phil flynn, price futures group, thanks for joining us. lauren: spreading fears about china's economy. >> you know how poorly they will be doing? they will be up six 1/2% this year. china has got difficulties. i agree with that because
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they're sitting on a little bit after bubble. could be a lot of bubble. >> china is in a lot of trouble. their government badly mismanaged economy. they haven't been transparent this will be a cycle for months or years to come. best way to protect america from turbulence of global economy is have a strong economy. >> we face ad government that never let markets work. the world is paying a price. if they sneeze like parts of the world will get a cold. this has to settle down if the chinese will be participating being part of the market basket. you understand that mean they have got to come clean because they will have to let this thing work out. they can't keep ma -- manipulating things. nicole: be sure to tune in next fox business debate. january 14th. trish regan, sandra smith kick off the earlier debate at 6:00 p.m. maria bartiromo, neil cavuto for the later debate, 9:00 p.m.
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eastern on fox business network. monthly jobs report comes out this morning. it will also provide clues about the momentum we're seeing in labor market headed into 2016. economists are expecting 200,000 non-farm jobs to have been added in the month of december. the unemployment rate to hold steady at 5%. investors will also focus on whether wage growth is picking up. that's a key part of it. "mornings with maria" will have complete coverage for you in its special jobs in america report. it begins at 8:00 a.m. eastern time. lauren: let's get you caught up on global market action overnight. we'll start in asia. up arrows for the shanghai up 2%. hang seng up half a percent. nikkei down a third of 1% today. nicole: check out europe. all green arrows, we're seeing ftse right now up half a percent. i'm going to correct it because the cac just turned slightly
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negative. dacs holds on to a gain almost a percent. lauren: tough week for investors. worst start to the year ever but the dow is up 156 points. s&p up 19. we're waiting for the jobs report. nicole: looking at commodities, we see oil up 11 cents. gold down about 10.50 at 1097 a troy ounce. coming up how are investors reacting to wild swings we're seeing in the stock market this week. we'll ask the senior vice president of td ameritrade what his clients are asking him and what he is telling them. if you're licking wounds with losses in the stock market, might give a shot to win the $700 million powerball drawing. i will try but it will be a very long shot. we'll slain that. watching "fbn:am," markets and breaking news, if you win, call us into the show-and-tell us what you will do with the money. ♪
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lauren: good friday morning. action in china. hang seng up half of 1%, kospi up .7. nikkei down 1/3 of a percent. nicole: we saw the cac dip negative territory for the first time. ftse and dax hold on to gains, up 1/3 of 1% each. lauren: u.s. stock futures look likes we have a higher open but we're off the highs of the session. dow futures 145, s&p up 18. nicole: we know you're watching gap and bed, bath & beyond,
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we're keeping eye on commodities. gold is pulling back by 10.50 at 1097 a troy ounce. lauren: investors bracing themselves for this wild stock market volatility that we've seen. steve quirk, senior vice president, trader group at td ameritrade joining us now. good morning, steve. what would you say to investors to calm them down, if you will? what is the advice you give in times like this? >> first of all good morning, lauren and nicole. happy new year to you and your viewers. nicole: hi. >> we have six million plus clients that transact with us and invest with us and trade with us. we're hearing from a lot of them. we're hearing from those that we don't hear from often because they're pretty spooked. lauren: obviously why you would be spooked, right? >> 900 points for the dow is first four-days gets some people's attention. on positive side what we tell
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them, and they know this, continually amazed about, been in this business since the '80s how sophisticated, savvy and educated many of today's retail investors ours, thanks to you guys. nicole: what are you telling them, steve. we want to get to the point. >> yeah, sure. nicole: what do you tell them? >> what we tell them stay the course. the duration of their inquestioning career will dictate what they do but clearly all the things we constantly preach which are diversification but they love apple. they have been looking for opportunity to get apple under 100. take advantage of it. they have also pointed out to us and everybody has, this movie has been played out once in august with similar concerns. within a month the market was higher than where we dipped to so i think -- lauren: what stocks are good to buy cheap right now? >> i think you're seeing it this morning. the stocks that led us down are
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the ones leading us right back up. nasdaq is taking lead and will take the lead on rally. those are ones obviously most popular traded in our world and many worlds. the apples and all the tech stocks. those are closely followed bit financials. nicole: also the financials as well. those have been beaten down too. >> they have been because there are concerns about the interest rate serve et cetera. lauren: do you like financials for longer term as investment right here? >> again we're a self-directed shop. if you have longer duration. if you're investing for a while, that is clearly place where a lot of people see opportunity. lauren: do you think china picture, china economy slowing down, that story do you think it is worse than chinese officials are letting on? you know i honestly do not know. hard to get a good read what is going on there but i think what our clients tend to do is understand what that means to them in the grand scheme of things. it doesn't mean that much to
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them. what is going to happen here with our jobs number is far more important to most of their investments. lauren: okay. you're looking what happens one hour before the stock market open this is friday. steve quirk, senior vice president of the trader group at td ameritrade. thank you very much. >> thank you. nicole: saturday's power ball drawing got even bigger. no winner in wednesday night's drawing. the jackpot is estimated $700 million, the largest in u.s. history. the previous record was 356 megamillion jackpot. that was in march of 2012. what are your odds of winning? the odds of winning it all are one in 292.2 million. that means it is harder than being struck by lightning easily, dying in a plane crash or killed by vending machine. lauren: that is optimistic. nicole: long shot but wish you luck. 700 mil. lauren: share it. we'll run down global market
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action before we hand it over to "mornings with maria." stay with us. ♪ you stay up. you listen. you laugh. you worry. you do whatever it takes to take care of your family. and when it's time to plan for your family's future, we're here for you. we're legalzoom, and for over 10 years we've helped families just like yours with wills and living trusts. so when you're ready, start with us. doing the right thing has never been easier. legalzoom. legal help is here.
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>> let's take a look how stocks are faring so far. this is friday. for 2016 the dow jones industrial average is down 5.2%. we've lost 900 points thus far. nasdaq is down 6%, actually in correction territory. the transports and russell also down more than 6%. but today we have up arrows this morning. we'll see if 2016 can turn around next several trading days. i don't know. might be tough. dow futures up 147. nasdaq and s&p up about 1%. taking a little breather from the big selloff we saw yesterday. "mornings with maria" begins
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right now on jobs friday, very important day as well. we have dagen mcdowell to take us through. good morning, dagen. >> thank you, nicole. dow would have to gain 900 points to break even. no laughing matter. friday, january 8th. it is jobs friday. with me monster worldwide joanie courtney, keith mccullough, baron's online editor jack otter and michael breaking news. we have a dow futures up 150 points. worst ever for the dow and s&p 500. dow is down more than 5% this week.
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that is the worst weekly performance since august. but the worst start to a year ever. for the dow and s&p. now we could see more wild action at 8:30 a.m. eastern time when the december jobs report comes out. economists expecting a healthy 200,000 jobs created last month with the unemployment rate holding steady at 5%. of course wage growth will be critical as well. we have a special report, jobs in america, that starts at 8:00 a.m. eastern time. much to cover between now and then. checking markets around the world, asian markets mostly higher. look at china. china finally scrapped those wretched circuit breakers that caused market to shut down on monday and yesterday. there are reports that state-run investment funds drove markets higher. they started investing in the market. so much for a communist government. shanghai, it was crazy day but ended up almost 2%. let's move on to europe. modest gains across the board.


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