tv The Intelligence Report With Trish Regan FOX Business January 15, 2016 2:00pm-3:01pm EST
not one nasty comment for trish regan or sandra smith. which makes me think it is trish regan and sandra smith writing aforementioned nasty comments. hello. trish: i happen to like that broadway outfit that you had on. i think it looked fantastic. neil: a certain friend of ours called it a guys and dolls tryout. leave it at that. trish: it was a terrific debate. neil: it was fun. we had a fun time. trish: lots of ground covered and fireworks. neil: your debate as well. trish: cruz and trump. i thought it was one of the best performances we ever seen. neil: people can look at the same thing and have different opinions. whatever. trish: indeed. great to work with you. neil: to you as well. get home safe. trish: we got a market, everybody, selling off big time. big selloff underway on wall street. dow down almost well, 430 points there. you can see that we are off the lows of the session but nonetheless a lot of red on your screen.
i'm trish regan. welcome to "the intelligence report." we're live from charleston, south carolina where the republican candidates just hours ago laid out their best prescription for the u.s. economy, an economy that is clearly on shaky ground as we watch this market right now that has erased 1600 points since the start of the year. get right to it. floor of the new york stock exchange with trader steven guilfoyle. selling begets selling in this environment. a lot of fears about china and a lot of fears that we could be heading into recession? >> i think we could be heading into recession, trish. oil below 30. trains are not rolling. ships are not sailing. manufacturing is in collapse. energy is in collapse. you saw economic data. everything was contracting. i guess people are not watching news.
trish: sentiment figure is always a tough one in that people may say feel one way or another but don't necessarily carry through with actions. even though we saw u.s. sentiment is improving, and that may be in part because of looking at lower prices at gas pumps, we haven't seen that, steven, translate that into action. people are still not spending that has a lot of people is concerned that the economy is not sustainable and market is not sustainable at these levels. >> one thing that might save the market down the road is that you can't really make money anywhere else. so there will come a point where the trading public, the investing public will day take them. they will buy shares. right now they're nervous. they have been running for the hills a little bit. one good thing i also might say, we got below the august lows, and selloff didn't go into "beast mode." we stablized. the vix stayed under 30 which is kind of a big deal. trish: i love this, you're
looking at the glass half-full. would you get in at these levels? this seems to be somewhat scary stuff, down 1600 points since january 1. >> people going to treasurys as safe haven. going into gold as safe haven. if you're married to the stock market you have to play utilities with stocks that have dividends. that way if the bet goes against you they will pay you four times a year with their dividend. trish: steven, thank you so much we'll keep checking in with you. and your friends there at new york stock exchange throughout the hour, everyone. but i want to go to the cme because oil is also getting hit pretty hard today, touching 12-year low, trading below $30 a barrel. pretty incredible when you think about it. we were upwards to the 150 at one point. ever since november of 2014 we've been on the steady decline which is really kicked into full gear in recent months. phil strieble at the cme with more insight into the selloff here in oil.
is it going to continue? i mean at what point do traders say enough, i'm willing to go back in? >> it's really interesting too. the thing is i think oil prices they still have another leg i think ahead of themselves to come lower. i mean we saw the first reaction below 30 and then a bounce up yesterday here. but this failure, the thing when you have the dow jones down 500 points that will impact global growth. global growth, crude oil demand. crude oil demand will slack as a result of that production continues to build on it. one of the interesting things people have been talking about today is that brent crude prices are lower than west texas and the reason is because if you look far down the curve and really got that long-term perspective you know that u.s. production, it will get curbed, it will start to dry up, wells will start to shut down. at least we'll have problems from the financial standpoint. trish: harold is a good example,
who told me in the past, look at some level you got to say enough. and for him, at least a year ago that was around $60 a barrel. we have plunged well below $60 a barrel. he said at 60 you're not making any new investment. i think it's a given, phil, there is no new investment going into the sector here in the u.s. and you know at some point to what you said you're just going to turn off production because it's not worth it from a refining standpoint to be in that business when you're trading at 29 bucks a barrel? >> i think the thing is that the production, it is going to get shut off. when will it turn back on? when will there be companies ending up with bankruptcy that they can't come in there and start turning these things back on. there is a lot of headwinds ahead for crude oil. i think it goes lower. i think long run i think prospects of it are pretty good. trish: all right. what do you think the low could be?
>> i think closer to the $25 level. i think that is it there, another 20% from $30. it is right there. trish: thank you so much. phil, good to see you. more analysis on the markets and oil, jamie cox, and gary kaltbaum. guys, 1600 points since the start of the year. market off almost 500. did touch more than 500 a short time ago. jamie, are we now in a bear market territory? if so, how should investors be prepared. >> trish, we don't want this global freakout to turn into global fallout. when you have markets that are down like this at the start of the year in particular people really get nervous and they worry about what's going to happen six months from now, eight months from now to my portfolio? will i be able to stay retired once i go back to work. what i tell everybody, i need to pay attention to dividend yields. pay attention to things you can control. look at markets that have become
unhinged. look at price opportunities for high yield. that market way overshot to the downside. if you've been out of high yield, now time to look at it. trish: brave man. you're a brave man. you want to venture into high yield. look, gary, walk us through the concerns with high yield right now. and the concerns is about how this could be contributing to a larger problem for this market. we're talking high yield debt, everyone, which is kind of like that junk bond stuff. low quality debt that people have been buying in droves because they're so hungry for yield and now there's a fear that a lot of these issuers may be out of luck with people defaulting on some of this stuff. gary, walk us through. >> look, central banks rigged interest rates a few years ago and caused high yield bonds that should yield 9% to yield 4% and ones yield should be yielding 5%, to yield 1%.
they have been ridiculously distorted. now we have a comeuppance. we're seeing it in a lot of areas. i believe we just started drop in high yield and we have a ways to go. eventually, regardless of central banks and trillions of dollars that have been printed prices will get normalized. i think we're in the process now in high yield, in stocks. you will see it in the housing market also. and this is a comeuppance of ben bernanke and folly what he did with easy money policy. trish: okay. i think that you make a pretty interesting and valid point here, gary, a point that i myself found myself making over the last couple years, which you can not be in a low interest rate environment for years and years and years and not run the risk that investors start dabbling in areas that they wouldn't normally dabble in. i made the comparison that, you got ma and pa out there buying things like puerto rico because
it yielded so much money and then puerto rico suddenly goes bust and they're left with nothing. i mean, gary, what is the fed done to people's willingness to take on risk? >> trish, you're so right, what the fed has done they have screwed the safer. they have taken all of the riskless investing out of play what did the savers do they had to reach. they had to reach because you're getting zero on your money. they ended up reaching for bond funds paying 6 or 7% but they're leveraged. and mlps, master limited partnerships paying ridiculous amounts. this is comeuppance. this is now about price discovery. for years central banks got in front of price discovery. now we're starting to get it. it is painful. i have to tell you, i know some people are saying this correction in bull market. no, this is bear market for asset prices. i think we just started it. trish: wow.
so what kind of downside are you looking at this year, do you think, gary. >> wealthy about this. the dow high was 18, 3. 20% is the mid 14s. i think it will be more than that. i'm thinking 13s. maybe 12s. this is important point we have not had bear market for seven years. because the fed and central banks and rest of lemmings around the globe interfering every time the market would drop, they would announce printing of money to keep things up. due the fact we haven't had one in seven years we may get a doozy of a one like one we saw in '08. hopefully not but we'll see. trish: david, flip side, the fed could come in and maybe save the day again? >> i hope not. i hope they have learned their lesson. i agree with gary a little bit on some of this. raising interest rates in december, although difficult may have kicked off what will, what i think will be a good decision on getting some much these errors corrected because we do need to get some of these
markets that are out of sorts definitely corrected and if we do, we can actually have a market we can floor a base and grow from and people make money in the market again. that is the point for all this. trish: good to have both of you here. need to take a quick break. we have more topics to get to. gary i see you later on in the hour. i want to explore this more. gary telling us we could see 12, 13,000 on the dow. that this is beginning of something much bigger. jamie, good to see you. coming up, job creation, taxes obamacare, they're all very much in focus right now. they're very much a part of our debate. so which candidate has the best plan to fix this economy? former reagan advisor art laffer is here with the scorecard, right after this.
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>> talk to me, i will talk to you about that. trish: everyone, we're off the lows of the session but nonetheless, pretty down day on wall street right now. the worst market selloff perhaps we've seen to the start of the year. we were down 511 points. the markets down 415. the economy very much in focus as people worry about the u.s. slipping into recession. that is it one of the things we talked about last night on stage both in the first debate at 6:00 p.m. and again in prime time at 9:00 p.m. here is what ted cruz had to say about his plan. >> art laffer, has written publicly my flat tax plan is the best of any individuals of on this stage.
it raises wages and hips everyone from poorest to the richest. >> that is not accurate description of plan. [applause] you may rename irs, but not abolish irs, someone will have to collect the vat tax. someone will have to collect the tax. ronald reagan's treasury, when ronald reagan's treasury looked at vat tax they found, they would have hire 20,000 new irs agents to collect it. trish: okay. trish: does art laffer think this is the best plan? art is right here. he joins me on set. >> good to see. >> great to see you. >> great job on that. much better than the second part. trish: we won't tell neil. >> or maria. trish: i want to ask you about cruz's tax plan. there are elements of it that i know you like a lot. and, you know, some things like marco rubio brought up, the vat tax, which may not be as
positive what are things you like about it. >> talk about vat tax. total amount you can tax in the u.s. is gdp, total production of good and services. you can tax it at differ stages. you can tax it at the income level or spending level in retail which is the fair tax. or you can do it as you collect it along each stage of product which they want to call a vat. net sales tax. not european one but they are the same base. anyone who says this is bad, they're just trying to get one up on you. this is, what you wanted to have the lowest possible rate on broadest possible tax base. trish: do you like ted cruz's? >> i like ted cruz's a lot. trish: art laffer says mine is the best. >> when he has the highest rate is 16%, that's pretty good, trish. that is what you really want to do. lowest rate on broadest base. that is what he has pretty much done. rand paul's tax was great.
ben carson's wonderful. rubio's is too high. different confusing rates. that is ripe for game playing. >> donald trump? >> trim is great. goes back to ronald reagan tax rates basically what he does. trish: we're watching this market, everyone. you can see we're off 430 points right now in the dow. a lot of fears about china contributing to this. about, slow down obviously throughout the entire global economy as well as here at home. oil hitting a 12-year low today. art, what is it we need to jump-start us? >> i don't think oil is the reason why the market is down. low-priced oil is not bad for the u.s. economy. when you really think of high prices of oil is not good for the economy. when price of oil dropped from $32 a barrel to $8 a barrel under reagan, it didn't stop our
boom, did it? trish: think about the difference between now and then. in reagan stays we dent r didn't have energy industry. thanks to fracking we have tremendous amount of growth in that sector here at home. if oil continues falling, that sector is in jeopardy. those jobs are in jeopardy. >> imagine for a moment, a $500 a barrel oil or two dollars barrel oil, which will one be better for country . from the very beginning buying
american programs. buy oil programs. we're finally developing into we're almost self-sufficient in oil. that is spectacular. imagine what which do if we didn't have regulation. it would be crazy good. trish: let me ask you about another tax proposal. one that we heard about in the first debate. if we have sound from this it would be great, of governor huckabee of his consumption tax which he calls, a fair tax. do we, do we, perhaps we don't have that. >> i know the plan well. trish: you know the plan. we calls it a fair tax. basically he would be taxing everything from, that we go out and buy as opposed to everything that we produce. what do you think about that? >> if you look at all the taxes, there are three of them. you earn the money. one when you spend the money which is huckabee's fair tax, exactly. when you collect it from each stage of production. which is netbusiness tax. trish: okay. they're the. >> they're exact same taxes they work really well. get all excited.
like, my three daughters arguing which one is the prettiest. trish: i'm sure they are. here is governor huckabee on the tax plan, everyone. >> i still support strongly, that we get rid of the 7thousand pages of the monsterous tax code, pass the fair tax. supercharge this . certainly innovative proposals. trish: i don't know any of them will stick. you will see lower taxes as platform of whoever succeeds. the but the fact that we have some different things talked about. that has got to get you excited.
>> taxes. you can't tax economy into prosperity. that doesn't make any sense at all. we tax speeders who speed. why do we do that? to stop speeders from speeding. we tax smokers why in to stop them from smoking. why do we tax people who employ people? why do we tax businesses that make successful product? we don't do that to stop them from doing it. we do that to collect money we need to run government. trish: hillary clinton said recently she will add on a surcharge. a tax would be surcharge to anyone earning, a lot of, i think it is five million dollars. so it's a narrow group. but, just the idea of a surcharge. >> every single time we raise taxes revenues go down and economy suffered. every single time. in the '30s, the rich didn't pay anymore. revenues of share of gdp by the rich went down. got kennedy tax cuts where we cut taxes on rich.
revenues went way up. trish: doesn't have to be political, right, art? >> i voted for clinton. i'm a kennedy democrat. and i'm a reagan republican. just so happens this round the republicans happen to have grasped on better ideas than the democrats but i loved hillary's husband. i voted for him twice. trish: art laffer. >> i was everywhere. trish: this is just economic. >> but she is not her husband. trish: prove it out with the laffer curve. >> thank you. that is my profile, by the way. thank you, trish. trish: we're going to take a quick break. we watch the market off 450 points. losses accelerating nonetheless, off the loys that we saw earlier down 511 points at one point in this market. this is turning out to be a pretty rough start to the year, off about 1600 points. full market coverage, right after this.
here we are watching a pretty steep selloff on the streets. a lot of concerns about china. a lot of concerns about the u.s. liz claman is keeping an eye on all day. that loss is pretty steep. a tough start to the year. what are traders telling you? liz: you could argue gold may be. it is still up. only $17. reaching 1100. the market are an absolute mess on this friday. we are 32 and a half away from the top hour of trade. i am hearing from traders that we may see a pretty germanic move.
oil seems to be the big story. even with china. oil, at the moment, looking very, very ugly. 6%. we know that over the weekend, a flashing green light to start conducting business. the same shins will be listed. a system where too much overproduction is really adding to suit on june -- really adding to the supply. a real crisis mode. clearly different. nonetheless, some kind of debt oriented crisis. how much chatter do you hear from traders on the floor about that? >> you are not wrong.
you look at the clock and you look on the calendar. 2009. covering the markets. march of 2000. looking at it very ugly situation. traders here are way more calm. they have seen it before. great times. i think you are right. certainly coming off of a terrific stay. i think that today people care about their 401(k)s. there is a huge? we cannot give you the answer right now. liz will be at the new york stock exchange. make sure you tune in. we will see you soon. the debate. very much in focus there.
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trish: okay. losses they are on the street. 465 we are up right now on the markets. a pretty brutal gear. the final moments of trading on this economy year. it was a big topic in last night's gop debate. >> tuesday night i watched storytime with barack obama. it sounded like everything in the world was going amazing. >> the president try to paint a rosy picture of jobs. you are right, you are washington lobbyist if you make your money in and around. things are going great. >> they are affecting everybody here. particularly, our small businesses. they are in a position where they are smothering people. we are nowhere near a balanced budget for fiscal discipline. trish: we have meghan mccain. chris haun. hahn.
former aide to senator chuck schumer. who is best positioned. a weak economy to become president of the united states. megan, i will start with you. the republicans seem to have different policies. they are putting forward in this environment compared to what we have seen over the last seven years. how much of an advantage does that give republicans? >> i think that this is our election to lose. it does not look like the future is looking bright for anyone. it is absolutely unlivable election. i think president obama -- you know this better than anyone. i am no-trump supporter, but he really sells a really good name saying he knows about china and the world economy. that was the first debate where
i would give him the win. i am no-trump supporter. trish: hearing you say this. >> you one last night. he is not my candidate. you have to give credit where credit is due. he won last night. very respectable to the average american. it was awesome to watch you and sandra host last night. really awesome to see two women out there doing an awesome job. >> thank you. two women have not hosted before. we were honored to do it. the candidates answer the question. which is, extraordinarily important. they do not always want to, but they did. i think that it is very interesting that you are saying that about trump. i did think he did an extremely good job last night.
the issue of trade with china. when you talk about terrorists, people's eyes just glaze over. he brought that home. the talk about new york. ted cruz being shot down very quickly. chris, do you agree with meghan and myself? really performing well. perhaps that is best last night. >> i do not support donald trump either. i have new york values. i do think that he won that debate last night. ted cruz is clearly a master debater. anyone in america who thinks that he is real, i think he came across better than anyone.
he had a lot of success in his life. trish: we will leave that one aside. continue talking about trump and his candidacy. whether or not republicans can get behind him. you are saying credit where credit is due. if they had their choice between donald trump and ted cruz, what do you think they would be saying? who would they rather see on this nomination? i think ted cruz has made a lot of enemies on capitol hill. there is something about him. he is a great debater. not incredibly authentic. something about it that seemed very rehearsed. general election nationally. it may not fly as easily.
>> rehearsed about donald trump. >> there is nothing rehearsed about donald trump. is donald trump prepared for these debates? he is a natural debater. i think it would be very scary if he actually sat down for a week and prepared for a debate. i just do not see him prepared at all. trish: scary good? >> okay. had he prepared better for these debates, the process would be over right now. >> he is not campaigning full-time. >> he did it to the kids. let them run the business. he should run for president. he should prepare. i am frightened by the idea of a donald trump presidency. he has torn these guys apart. he is still in it.
i was completely wrong about him, trish. i thought that he would be out by like november. it is very scary. trish: we will see. >> much more adult. once at jeb bush. he is definitely turning into a different kind of candidate. you just see this evolution of this man. there is obvious growth. telling her that i can say you have definitely won by a longshot last night. i expected him to come out a lot more swinging. >> very interesting analysis from both of you. final word to chris and then i have to go. >> i give a lot of credit to neil and maria last night. i think that they kept the candidates in line.
the fact that there were fewer on the stage health as well. >> absolutely. thank you so much. we are continuing to watch the red on the screen right now. 2.6%. it has been a very rough start to the year. a lot of this is extending from global concerns. china really struggling right now. of course, throughout europe. a lot of concerns there. adding up to trouble back here at home. we are going to talk about how you protect yourself. how you protect your money in this environment. maybe how you make some, too. that is next. ♪
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marco rubio. he ran for senate saying he opposed amnesty... then he flipped, and worked with liberal chuck schumer to co-author the
path to citizenship bill. he threatened to vote against it. and then voted for it. he supported his own dream act and then he abandoned it. marco rubio. just another washington politician you can't trust. jeb bush. he's a leader, so you always know where he stands. right to rise usa is responsible for the content of this message. trish: breaking right now. 140 points on the dow. a 12 year low.
below $30 a barrel. a lot of energy companies really taking a hit today. also joining us by phone. pnc financial. pretty and equity partners. jonathan. we are coming into the final moments of trading here. we are coming up on a street day weekend. how does that affect? >> i think that is a major effect. risk on, risk off trade. people put on risks yesterday on a short-term basis. some economic data. a lot can happen over the weekend. there was this feeling at the end of the day yesterday. i used to think -- >> you have consumer sentiment.
>> it will not really move our markets right now. those are various small pieces to the puzzle. anything can happen with asian markets in any headlines that come out of china. three days out of trading is a long time. >> stay with us. gary is very worried about a real systemic crisis here. a selloff for today. explain what the concern is. >> let's think about the facts that are at hand. not just oil, but crash. that is basically deflation. our stock and housing. the major, major central bank intervention. i think that game is probably
up. i am worried about them playing a lot of catch-up. by the way, here is the other point. there is no way the economy is in good shape. industrials while oil prices are sinking. the market is screaming now recession. we will see some negative numbers. >> the fed should not have done what it did. but, this is a very dovish spread. we are looking at potentially another recession. can we anticipate qa for? they will just print more money. continue keeping rates low. theoretically, it should benefit asset prices like the stock market. >> going back to zero. we will start hearing that qe
four. just remember, eventually, markets do not care anymore. they will not react to whatever the fed does. the last two months, both europe and japan and china more quantitative easing. the markets reacting negatively to it. the other part of the equation, i still think that there is a lot of leverage. that still has to come off here. >> another point of no return. joining us by phone right now. >> we are telling them not to worry. we have job growth better than 200,000 per month. >> the president's prognosis on the economy. 200,000 a month.
>> that is a very good number. up with normal growth in the labor force. >> how do you justify wages that are not budging? >> the labor market is getting tighter. i think we will be close to full employment by the middle of this year. >> i will just jump in. my fear is in part because of obamacare. people are being added to the workforce. they are not being added in full-time jobs. they are counted, right? they are counted in the system. you do see a low unemployment rate. 5.0%. 5.0%. just not what it used to be. >> workers declined.
>> all anybody has to do is google the words labor participation rate chart and you will see a chart that has crashed over the last year. if you just cut it in half and said that these numbers are not correct, we would be at seven and a half, 8% right now. the empire number came out today. minus 19. quite suspect. i am a great believer that the market is the greatest forecast. the market is yelling and screaming something right now. they will show up in the next two-three months. mark my word. >> you make some interesting points there. investors are trying to figure out how they navigate this environment. it does not seem as there is anywhere to hide.
>> i do not think that there is a real safety play out there right now. clearly some stocks out there that are household names. impacted severely over the last couple of weeks. ten-15-20%. there is plenty of those big names, those higher dividend names that are out there. maybe missing their opportunities to buy certain stocks. you certainly will not hit the bottom. you have money that has been on the sideline. now may be the time to start taking it away. trish: thank you so much. good to have the whole team here. jonathan, gary and gus. foster freeze. good to see you. >> good to see you in person.
what would you be telling clients right now? >> never invest in the stock market. invest in individual businesses. interest rate trends. the economy. we want them to do very well despite those factors. i love the idea that the stock market has predicted 10. >> oh, it does. ten-nine months ahead of what the real economy is doing. one thing has been peculiar about this economic malaise. the market has done as well in the past. how do you make sense of that? >> i think it is because of a phony interest rate. all of this money pours in. where can the money go? i can remember trying to raise
cash as a money manager. we hired you to invest in a specific segment. i had a lot of individuals. they wanted me to go to cash. it is hard for me. you just cannot do it. they have to buy. artificial stimulation that obama has created through the banking system. >> let's turn to something that one of the guest just said. 5.0%. unemployment. 200,000 a month being created. we are in a good economic spot. >> gary nailed it. take people out of the workforce. you can take the employment rate to 2%. who determines that? >> how is it that someone that
needs to take care of their family can suddenly say, i am not going to look for a job. how do you take yourself out of a workforce like that? >> that is what i think is such a smart question. what are the number of people that remove themselves from the workforce. what is the percentage of the american people that are working. where is this phony unemployment rate coming up? >> is this in part because of government programs? it has become okay to not work in this economy? >> rick santorum in wisconsin last year. if you are a single mom with two kids, you make less than $15,000, you get government aid food stamps. medical care. equivalent of $60,000. trish: i have looked at the
numbers myself on this. you get about $60,000. if you live in new hampshire higher, in the nationstate, you get about 38,000. a lot of these moms are making rational decisions. i can sit at home with my kids and take care of them. earn 60,000 in hawaii from the government. maybe that is better than trying to take them to daycare and barely having any money left over. i asked about the family and single motherhood. so many babies now are being born to single moms. let's show you that clip. >> from a policy perspective, should the government be doing anything to encourage? >> if you are a single-parent, a child of a single-parent, you grew up in a single-parent
neighborhood, the chance that you would ever, ever, reach into the top 20% of income workers, they do not have a shot. we do not have the courage to have leadership. the most powerful tool it president has. encouraging each and every one of your churches and businesses. educators. community leaders. let's have a national campaign to rebuild the american family. >> part of that question was just cut off. 40% of babies being born today are born to single moms. that is six times as high as 1980. eleven times as high as 1940. what is happening in the society from an economic policy perspective that seems to be encouraging that? >> i think that it is a chicken and egg sort of thing.
i followed 30 babies. maybe you ought to think about coming culturally conservative. who will pay child support. maybe i have a vested interest in getting on santorum's bandwagon. restructuring our so society and culture. they are not political. cultural and spiritual in our country. ben carson. >> is there a thing anything that we can do from a policy perspective that and fantasize certain behavior? >> you are absolutely right. i remember my grandfather. a real strong german immigrant guy. he said i will start before i take welfare. at one time, when i was growing
up, they used to be a sin, inventing our very government. it is a cultural spiritual dementia in our country that we have to resuscitate what happened in ferguson? what happened in baltimore. trish: this is very much coming into focus, and your candidate senator santorum is part of that. good to have you. >> thank you, trish. delighted to be here. trish: all right, we're off 361 points. i just want to say, it was really exciting to be moderating that debate last night here in north charleston at the coliseum. we had a group of thousands, very rowdy crowd. we'll have more on monday, i'll tell you more about it and we'll talk more about the candidates and their policies,
i can pretty much guarantee you the economy is very much going to play in this election as we watch a market that is off roughly 1600 points since the start of the year. as we head into the final hour of trading, you can expect more volatility. we're coming up on a three-day weekend. see you back in new york! liz, over to you. liz: thank you very much, i hesitate to call it a comeback, the breaking news is we have come up off the floor, but we don't want to jinx it. all we have seen is a sea of red. calling it the red tide. swamping wall street at this hour. what have we got? no good news to stop the bleeding into the final hour of trade. dow jones industrials down 360 points, at the worst point of the session, we were down 537 on heavy volume, ahead of that three-day weekend. markets tumbled right out of the gate. this started the minutes the markets opened falling below 16,000 for the first time since september. we're 15 points above 16,000