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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  May 25, 2016 3:00pm-4:01pm EDT

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use whatever bathroom or locker room they gender identify with. be to tune in tonight 6:00 p.m. eastern when my fox news colleague, you don't want to miss it. in the meantime over to you. liz: you don't want to miss this one. it's no mickey mouse rally. markets up triple digits now in the second day in a row. as oil approaches $60 per barrel and asia looks pretty darn good. positive for the month of may. right now up 146 points. meanwhile the center of the political world. today just a stone throw from disneyland. donald trump is expected to take that stage to hold a rally in california. we are told in the last couple of minutes donald trump has arrived at the building, will make his way to the stage any time soon and, again, this is right next to disneyland, land of fairy tales but no fairy tale
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yesterday when protestors jumped on police cars and smashed through window and fought with trump supporters and police last night. we are also waiting on senator bernie sanders who is expected to hold a rally in california at any moment. he attacks the disney ceo who makes 646 million in compensation. there's a lot going on the political front. the clinton campaign, though, frozen today by a new state department report that says the former secretary of state broke federal records rules by using her personal e-mail servers. a political panel tell us if or how bad it could hurt her campaign. venezuela, south american's economy in freefall, riots in
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the streets. what is going on there? in a fox business exclusive, we asked a former u.s. embassador to venezuela patrick duddy how close venezuela is to descending into outright disaster and whether it'll split and spill over into other countries, let's start the countdown. ♪ ♪ ♪ liz: for those who fear the fed, you're missing out. right now on a two day close to 400-point rally for the dow. today we are up 149 adding on to the 200-plus point gain yesterday. the rest of the markets are charging along for the ride. the dow is now up for the month
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by just under 1%, but i need to stress here, anything could change. you know how this is a very headline driven market. we have pretty significant gains for the s&p, 13 points nasdaq 29. the asian markets mainly hong kong and japan took the ball and ran with it. the hang seng jumped nearly 3% overnight and nikkei 2.25. in japan 1 and a half percent but at least one asian stock is definitely raising alarm bells here at the u.s. at this hour, take a look at alibaba. this was down 5%, right now down 7 and a half percent. the chinese e-commerce is plummeting after been revealed that the commission is investigating baba for accounting practices particularly one day in particular. alibaba invented holidays where singles are supposed to buy themselves presents.
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they do more than a billion in sales that day. it's turned into a shopping event. alibaba is being investigated for how it's actually crunched the numbers for that day. companies say it's cooperating with the investigation. we should look at hewlett-packard intrer fees, that's not why the stock is jumping, the company says it's going to stin off technology consulting business to computer science's corporation, shares of fpe up 65% but computer sciences is also jumping at the moment. to politics and donald trump about to take that stage in anaheim, california, you're looking at a live aerial shot. security at the event is tight, take a look at the chopper zooms. you do not see protestors. our reporters on the scene are telling us there's no mass protest action going on. few people here and there but a
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far cry from what we have seen recently, and i'm talking yesterday in new mexico. the trump campaign was contract today limit the amount of tickets, rather sold and that was supposed to be the 7500 but it could be because of this, what we saw as information just mentioning, remember last month in california in the beginning of may there were so many protestors on the scene back then that mr. trump who was attending the california republican convention actually had with to climb within that area within freeway and side street and slip over, you know, cement barriers to avoid the crowd. let's bring blake berman. we remember the shot april 29. more importantly what he's going to say is more hefty. blake: what a difference a day makes here.
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no reports at the moment of any malicious activity in the area but police in an mile, california are gearing up right now outside of donald trump's rally. we have been watching here. he's expected to take the stage in minutes. police are passing out a flyer called protest expectations, warning of legal consequences should things get out of control, they are stated among them. they say do not vanned alize, damage -- vandalize but comes after a day after protestors got incredibly unruly at a rally in new mexico last night. the police department there says officers sustained injuries, even police horses. police described the scene last night as awry yacht.
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trump reacted on tweeter, the protestors in new mexico were thugs who were flying the mexican flag, the rally inside was big and beautiful but outside criminals. now back to california where we are watching trump on stage shortly protestors do have a history of becoming late april, orange county, crowds pretty much overtook the police there. good news from what we can see is nothing like last month and last night. >> there's a line of police officers and lines of police on horseback so it appear that is the police are outnumbering the protestors at this point, you know, anaheim considerably perhaps a more conservative area, but what you do have here, you've got a lot of surrounding universities where perhaps students might feel that way but looks rather peaceful right now so we will keep an eye very closely and as soon as donald trump takes to that stage, we
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will at least get you the picture of it. blake, thank you. blake is going to standby in case we get more information. we have more in the 2016 race with our panel. we will focus on the democrats, new state department of hillary clinton's emails, by the way she's depending on what market you're in on ellen, the talk show right now, we will tell you what she's saying. look at this, the bulls are back, dow jones industrial getting charged in a good way, if you are certainly along this market, a lot of people are missing out on the rally, why, they feared the fed, they feared the gdp numbers, they think they are too weak. wall street is climbing the wall of worry right now this as oil settles at highest level of the year. we are up nearly 2% in the aftermarket. is that what's driving the rally right now?
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cme group, the new york stock exchange john, two days near 400-point rally at this point. >> pretty significant and i'm not fully buying into this market just yet. if you look at the headlines that we have seen so far over the last two weeks, i don't think there's a strong headline that's warranted the movement. i wouldn't be surprised if we see a sell off as we get closer. we normally see that historically in three-day weekend. but right now, investors are so confused as to what to do, as you said, the fear of the fed, what is the fed going to do, what are -- how are they going to do it, as soon as the market moves higher or lower, they have to jump on board. liz: and then they are late, john. >> they are playing catchup and sometimes they get in at too high of a point. the only bright spot coming into tonight, with this rally we have
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three pretty big ipo's tomorrow. we haven't had a lot of ipo's this year. that money that's been on the sidelines, the companies have been waiting, have appropriately to see markets trading higher and ipo's coming tomorrow we will see the rally. liz: it appeared that there was fear on behalf of the companies that timing is everything. luke, i want to oil here. oil hoovering just below $50 a barrel. well, for once we did see a significant drawdown for oil. we saw inventories coming down $4.2 million a barrel, we then sagas line inventories coming up. so that was interesting. they appeared to have overcompensated and refined way too much gasoline in the wake of the canadian fires. >> yeah, a little bit. we will see. i think it's going to be a big summer drive-in season. you know, i think oil moves a
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lot on fundamentals but takes a little while for the fundamentals in the oil market to actually wash out and get to the prices. i know you remember in 2007, remember oil in $200 a barrel and maybe seven months ten-dollar oil and nobody is ever going to need oil. the fundamentals plays out in oil but takes a while. liz: i will wait for the chart because it's important to see as we start to see gasoline going into the driving season, it just looks like that is the one coming down. we have heating oil, crude, right now -- sorry, are we going to get that chart? it's down about two-thirds of a percent. so gasoline is certainly an important issue that we are looking up considering that we did see that build of $2 million a barrel. ira, looking at how oil plays into with the equity's market, there's more than higher oil today, though, we had a great asian market performance, same with europe.
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europe was up two days in a row. looking at all that's happening here are the earnings coming through to be enough to propel this market. >> is it the earnings or that the banks are going to be in better shape because what's happened the market shifted gears and looking at, hey, if interest rates are going up, the financial sector can move up with it a bit. i'm not in the bull campaign either like john said that this rally is going to have legs to it. we have crude oil no longer the problem that it was. it started with the housing numbers yesterday, the market now is shifting gears and saying, hey, the fed has a better chance of raising rates as we watch the fed watch page, maybe high 30's of a probability of a june rate hike. that's the way to look at it. on that embrace when it happens, typically you get the rate hike, you go on this break, once the
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first rate hike happens, i think gold will come to the upside, you have to get it out of the way. liz: okay, i'm going to believe you on that. i know our gold bugs are absolutely thrilled and looking at gold right now, we can see that gold is at the moment is looking pretty bad. it's not that 5-dollar loss is bad, yesterday was even worse. so again, it's very interesting to be watching these markets. they are turning very quickly on a dime and thank goodness you guys are right there with us. make sure to turn in to cavuto, coast to coast. niel is speaking with alan greenspan, what does he see for the next june meeting? what's going to happen? niel is going to ask him on fox business. diamonds not a girl's best
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friend at least for today. falling 7%. the sixth straight quarter of decline. it's more than just a one off here, you can blame what, a strong dollar perhaps for eating into revenue outside of u.s. markets, we shall see. moving higher by a quarter of a percent. violence in venezuela, chaos in caracas, not just, of course, violence but the economy as well. the economy of what should be an oil-rich nation is crumbling with devastating effects. we have an exclusive fox business interview with the foxer embassador of venezuela standing by, he was once kicked out of the country by former president hugo chávez. will revr if he thinks venezuela is about to descend in total disaster. the embassador coming right up.
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to -- maduro to be removed from office. we have been asking major money, major investors and i got opposing views for some of the most-watched investors how do they feel about investing in venezuela, listen. would venezuela ever look interest to go you? >> sure, there's no inherent reason why venezuela shouldn't be a very successful country. i just needs a change in management. a very radical change in management. liz: if you saw new management going in -- >> absolutely. >> but their time will come. liz: the government has to change. joining me right now in a fox business exclusive somebody who really understand venezuela, he's been on the ground there for years and fox business
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exclusive former u.s. embassador to venezuela patrick duddy. does any of this surprise you, what's happening on the ground in venezuela right now? >> no. the economic model that president chávez sought to impose in which -- to a very large degree president maduro has supported since his election in 2013, essentially is a flawed one. it has devastated the private sector. now for a long time record high oil prices essentially masked the weaknesses in the system, but the decline in oil prices over the last year have revealed its flaws but some of the flaws were evident a long time ago. liz: how close are we of a tipping point here into complete chaos, we have crisis, we have violence, how close are we to a point where somebody storms the
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presidential building, something has to happen, something has to give? >> well, it's clearly a very alarming skeptical. venezuela is on verge-state status. the currency has collapsed. there's economic chaos, the government is has actually reduce it had workweek for public employees to two days a week in a deseparate effort to try and save power but it's not clear yet just when or if the situation -- the situation will hit ground zero. liz: people cannot afford -- people can't eat. we did a little bit of research here. a happy meal f they can get it is more than 1 forty dollars. they can't drink their morning coffee can lech'. at what point does it turn
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humble people to do serious things? >> it's unraveling before our eyes as we speak. at least economically things are going to get worse before they get better. critical to oil industry have announced that they are reducing their activities in venezuela. bridge stone which has been there for 60 years has announced they're selling their business. coca-cola is not producing soft drinks because they can't produce sugar. even the beer -- liz: could we see a -- are the police officers in the video, are they getting paid, is it maybe a police cue? >> certainly there's been
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speculation of some or the of takeover from within the chavista movement. the government has a monopoly on force. it's not going to come from the opposition. the question is how do the armed forces, the police and others understand their equities in the current crisis. in the current crisis is more severe than anything we have ever seen in venezuela, at least in the last 30 years. liz: and you would know having been there. thank you so much. something tells us that we will have you speaking with us if anything descends any further. at this moment you're saying that vens wella is -- venezuela is unraveling before our eyes. >> it is. liz: when these types of things happen, folks, they do tend to affect our markets. not right now. dow jones industrial hold to go most of the gains today. we are up 161 points.
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high in the session, up 182, and again you compile the two-day rally here and we are close to 400 points to the upside with the bell ringing in minutes. the relief in sight for travelers, changes being made for travelers right now. the information ahead of traveling plans. donald trump still has not taken the stage yet, but when he does, we will take you live. more countdown on the way.
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. liz: breaking news. we promised it, here it is. donald trump is walking through the throngs in the crowds in anaheim, california to speak right before lots fans here, as he's walking to the stage, a
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couple things we're watching for. what's he going to say about opponents or opponent because bernie sanders is in the game with hillary clinton. people holding signs that say we stand with trump, the groups that stand with trump, and let's listen in. >> good to be with you. good to be with you. thank you, everybody. so here's what happened. i got here, and they all said we have a great crowd, we don't have time for the national anthem. i said yes, we do. we have time for the national anthem, right? and we have a young lady that is going to sing, and i said what are you doing? she said i was supposed to sing but they had time because of the television cameras they couldn't do it. i said guess what, we're going to do the national anthem, okay? so sherri wilkins, come up. come on. >> usa! usa! usa! usa! usa!
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♪ o, say can you see ♪ by the dawn's early light ♪ what so proudly we hail ♪ at the twilight's last gleaming ♪ ♪ whose broad stripes and bright stars ♪ ♪ through the perilous fight ♪ o'er the ramparts we watched ♪ ♪ were so galantly streaming ♪ and the rockets red glare ♪ the bomb's bursting in air ♪ gave proof through the night
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that our flag was still there ♪ ♪ o, say does that star-spangled banner yet wave ♪ ♪ o'er the land of the free ♪ and the home of the brave [cheers] >> great voice! thank you! so when i got here, there was a group of a couple of hundred women, great women, and i didn't know about this, and they were in one of the
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conference rooms and it was packed, and i spoke to them for a little while and i said, where are you all? you're in the audience someplace here. [ cheers ] >> i said bring some of them up. come on up here. these people. look at them. they're women that love trump. i'm telling you women do like me. i'm telling you. [cheers] >> god bless america! thank you, god, for sending us donald j. trump to be our next president of the united states of america. [cheers and applause] >> he's a job creator, he's a father, he's an american
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patriot. thank you. >> go have a good time, okay? thank you, thank you, everybody. thank you. thank you. >> boy, there were hundreds, they were a representative group. chinese-americans, chinese-americans. good. [cheers and applause] >> hey, it's our leader's fault, it's not the chinese fault. they do take advantage of us folks but it's our leader's fault because we have leaders that don't know what the hell they're doing, believe me. they don't know what they're doing. so it's been an amazing few weeks. last night we had the state of washington. we got a tremendous number, and now we have more votes than ever cast in the primaries, in the history of the republican
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party. [cheers] that's big. that's big. and what we have is a movement. we have a movement. last night we were in new mexico, and it was beautiful. and we actually, you wouldn't believe it, to watch television within that arena, it was so like a lovefest, it was beautiful. packed, packed place, and outside they showed some other things, but it's one of those things, lot of flags. thank you, thank you. don't worry about them. don't worry. don't worry. that's all right. the police will get them out do. we love our police? do we love our firemen? we love our police. we love our firemen. they do an amazing job, they don't get credit for the job they do. so i began and we had 17 people
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running for what we're doing right now today, and right now, it's myself and it was supposed to be hillary watching us get to the convention, and then they said we may not even be able to finish in the july convention. we were going to need another convention in august. they didn't know what they were going to do, but it wasn't going to happen, and i said i think you're wrong, i think we're going to make it easily. and boy, did i turn out to be right. did i turn out to be right. and everybody said the pundits, the geniuses said hillary, as i say crooked hillary, crooked hillary. [ cheers ] >> she's as crooked as they come. she had a little bad news today, as you know from some reports came down, that weren't so good, but not so good. inspector general's report, not
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good, but i want to run against hillary. i just want to run against her. look, i don't know if you're going to be able to. could be we're going to run against crazy bernie. that could be. could be. crazy bernie. he's a crazy man, that's okay, we like crazy people, and i hear they want to put biden in, i hear they're going to actually slip joe biden in and he's going to take bernie's place. [booing] >> i hear they want to slip in -- i will say the system is rigged against bernie, 100%. get him out of here. get him out. get him out. [ cheers ] >> out! out! out! [cheers] . liz: donald trump has come up
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with a moniker now for bernie sanders. he just called him, quote, crazy bernie. he, of course, was calling ted cruz lyin' ted, crooked hillary but right now donald trump speaking before a very large and energized crowd in anaheim, california. to the left of your screen, bernie sanders, the senator of vermont is also speaking, this time in cathedral city, california. of course, the california primary days away, it will be next tuesday. bernie sanders drawing still massive crowds, he's also bringing in money in small donations, millions in small donations. so these two gentlemen on the screen head-to-head, donald trump making it clear at the start of this speech, he would prefer to battle hillary clinton, probably because he knows that the math is on her side, the momentum may be on bernie sanders side. he did make reference to the news that broke today that the state department's watchdog, the inspector general issued the report that says hillary
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clinton did not comply with e-mail or records' rules when she was secretary of state, quote, at a minimum secretary clinton should have surrendered all e-mails dealing with department business before leaving government service, and because she did not do so, she did not comply with the department's policies. let us bring in democratic strategist craig baroga and republican strategist adam goodman. if we take the shots, donald trump is speaking and bernie sanders is speaking, hillary clinton has already spoken and she's also on ellen at the moment, the talk show. the california primary days away here and this is definitely not good news that is dogging hillary clinton at the moment. does it hurt her? does it impede her march? or is it shoved to the side as this point? >> i don't know if it's shoved to the side, and i think sanders may start talking about it, but there have probably been 20 polls in california. hillary clinton has been ahead in all of them. a poll two days ago that had
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her ahead i think it was 18 point. california is not a classic bernie state in the sense it's going to have a large turnout. there's a senate primary, two democratic women are running. i think it helps hillary. it's far too soon to say she's in trouble there. there is the appearance bernie has momentum but see how that translates in the couple of weeks before the primary. liz: it would seem, adam, to favor in the news flow and how it goes, it would favor donald trump, he has more ammunition for elephant verbal guns that he uses against his opponents. he also just, i don't know if you heard that, he came up with the moniker, he's doing this with his opponents, but calling bernie sanders crazy bernie. we need to say that sanders came out and by the way we're looking at live pictures of what appears to be a growing crowd outside donald trump's anaheim rally and speech at the moment. looked to be slightly smaller
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earlier. if this grows in numbers, perhaps we might see activity. don't know, looks very peaceful at the moment. adam, bernie sanders says he has no pressure to drop out. donald trump said he would much rather battle hillary. >> she has her hands full. bernie on the left, trump on the right and the inspector general up the middle. these are not good times for her. i disagree a little bit with craig, every poll that showed bernie hopelessly losing many states on election night a tight verdict if not a sanders win. sanders movement is a message of momentum and the quintessential power broker on the democratic side of the fence and whether she likes it or not, secretary clinton has to not only deal with bernie sanders, she has to deal with a movement he's created that's not simply cast aside with the
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line of rhetoric or a superdelegate count. liz: look, right now, we never want to forget what's going on in a business network, we have a significant rally, gentlemen, over the past two days, and granted it is just two days, seen big moves on behalf the bulls. aside from that, we started to get better data. new home sales surprised way to the upside. stabilization in other areas, craig, that may favor hillary clinton. some pundits are saying, the people say things are starting to look better. >> things are starting to look better and the economy is improving. but the one thing we know that this is an unpredictable year, and trump defied all the expectations but did that within the republican party. i would argue that the republican party is far more broken than america is, and i think that that helped him then and think he may take the wrong lessans from primary experience and extend that through a general election which would favor hillary.
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liz: it does look like the gop is a little less disspirited than the democratic party, which is strange, because it was completely reversed, adam. let me just say, though, we still don't have paul ryan endorsing donald trump. there were all kinds of rumors on a couple of other networks and the ryan campus saying absolutely not true. the rumors are he would endorse donald trump soon, maybe today. does donald trump need paul ryan right now? >> my opinion is that washington, when i say paul ryan and others in washington need donald trump more than he needs them. he's created a movement that's gone beyond them and this is not as craig was mentioning, not a conventional year for playbooks. we're seeing new developments in the way we feel about things, and this campaign ultimately, the reason i think people are starting to feel something for donald trump is this is not a litmus test election, this is not where you
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check all the boxes and appeal to the heart. it's whoever appeals to the mind but who appeals to the heart that it's going to break through, and in a time of 12 years, americans' lives have been down on where the country is moving and want someone to give them a shot in the arm again. even though the economy is showing signs of favor, we've seen that before, it's not enough to address a central question in this campaign, which is a broken system that the american people have basically decided they are tired of and want to do something to replace it. liz: craig, what is hillary clinton doing about that? >> i want to add to that. i think americans have a lot of questions about the current system are and skeptical about that. however, however, and i think this is important to remember, just yesterday donald trump attacked the republican woman hispanic governor of new mexico. it was completely unnecessary. it was politically stupid to me
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and i think to a lot of people including republicans, that indicates that he has a lack of discipline. that his first impulse is to attack and trash people. in addition to that, he has not united the republican party yet, he has a divided campaign where corey lewandowski and paul manafort are going at each other. he does not have the temperament to be president and people are going to look at that. liz: got to leave it there. we're looking at donald trump speaking in anaheim. there is a slightly growing group of protesters outside with a lot of police presence. that's important to note. but, again, just as important to note, no violence, the likes of what we saw in new mexico yesterday or what we saw in california, back on april 29th. we're going to monitor. this want to thank craig and adam. dow is up 162 points. solid day for the bulls right now. watching it every minute. 15 more minutes to go before the closing bell rings. we hope to make you money in the next 15 minutes so don't go
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and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ . liz: breaking, exclusive news, may be a bidding war on the horizon, one day after american seed giant monsanto rejected germany's bayer, germany's bayer wants to buy monsanto and putting on a full court press in order to complete the deal. guess who has the details? charlie gasparino along with an exclusive guest here, investment adviser. >> i didn't want to step on joe, or you. liz: you are already jumping in, so eager with the news. first of all, joe, thank you for being here, you've been watching this very closely, right? >> joe has. let me get the headlines out here, let the viewers hear and
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possibly trade on it and you want to do what you want to do. bayer was supposed to have investor meeting scheduled for tomorrow. they canceled that as the talks are heating up with monsanto. people inside monsanto expect them to come back with a higher bid, not guaranteed. that's what they expect. what we do know is people inside bayer are worried about a bidding war developing here. basf. liz: also german. >> also german, might jump in, start bidding on this and they will have competition for monsanto. so right now this is a very interesting thing, watch this day to day. bayer is hampered because its investors aren't too crazy about paying $122 a share, they believe this is strategic, if you notice the stock is up again which is interesting. monsanto's stock, investors are starting to bet this is going to happen. it's fluid, but that's some of
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the scuttlebutt from bankers on the deal. bayer is worried about a bidding war, monsanto postponed investor meeting and worried about basf coming in. want to update people on co negotiate with the ftc. no deal has been reached. people close to the investigation say the deal with the ftc, the settlement over the charges that bill ackman leveled could take as long as four weeks. reports are it was imminent, obviously are not true. liz: joe, explain to viewers why the potential jumpin with basf matters for bayer and monsanto. that would be the biggest takeover ever for a german company buying a u.s. company. it's a massive deal, do you think it happens? >> i think it does. we're going to see a lot more m&a before the potential rate hikes go up because financing will be cheaper.
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we're going to continue to see large deals that happen in all sectors. >> can monsanto say no to this? >> they could. >> don't they have a fiduciary responsibility? if you're the board of monsanto, $122, say they go up to 125. liz: they are certainly not near 122 right now. >> what do you make of herbalife. you noticed interesting activity? >> following unusual call action activity, there is bullish call activity for august and november in herbalife for the last couple of weeks. liz: what does that mean? >> bets that the stocks will be at strikes of 75, 80, 85 by november. people are betting that if the decision is favorable, we could see a short squeeze in the stock, that will be behind it, the headwinds behind it. >> people are betting a favorable decision on herbalife. liz: can we get a chart? >> the stock is starting to go down on our report right now.
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what's interesting, what joe pointed out, the "new york post" was a little early, i think there's clearly some template on the table, but they still have to get it approved by the ftc. the ftc could say we want another pound of flesh which could change the terms, there is no doubt about that until the thing is approved. bottom line is i think this investigation didn't turn up that much. liz: and for a guy like bill ackman, the billionaire at pershing, took a short bet, he may lose out. he already has in a way, correct? >> if they haven't found something in this amount of time, what are the likelihood they're going to find something over two years, three years? >> you've been talking to me about dow 20,000. are you like high? [laughter] >> well, we're at 17,000 right now, charlie. >> explain why you think without heroin needles in your arms -- liz: guys, we gotta run.
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when we hit that, get close to it, joe, come back. jump on it charlie gasparino. as we have six minutes to go before the closing bell rings, we're looking at a big gain of 148 off the highs of the session, though. don't go away.
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liz: financials are driving what you see on the screen for the second day in a row. although you could argue this is a pretty broad based rally on relatively thin volume but my next guest is here to tell you there is one good way to get into big by buying small. you don't want to buy the big banks. that is what don scriber is saying. he is of course is with wbi. good to see you. >> thanks so much, liz. liz: you have a couple billion under management but you say avoid the big financials. why? >> we're seeing strong earnings and strong revenue growth. one of the companies that we really like is a bank out of
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texas, in dallas and fort worth, the largest independent bank, legacy texas financial and it has really strong dividend growth, 2% dividend. and -- liz: can we get legacy financial up here so our viewers can see because it is an interesting pick here. >> yes. it's a small cap. we're finding a lot more value in the small caps than we were in the large caps. those are tough to find with still positive earnings and revenue. liz: what do you make of the two-day rally? 155 points today. dow jones industrials. we have cloud happening over the markets. maybe a ray of sunlight if you think good news is good news, the fed may raise a quarter of a point in june. they're making a lot of noise. it could be june or july. market doesn't seem spooked by that. >> market is a looking for reason to go higher. bad news is good news and okay
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news is good news. this couple day rally feels good, i don't think it will stick. central bankers continue to talk the markets higher or at least support them. we see a big downside. liz: big downside. markets are not economy. those are two separate things. we can't confuse them for our viewers. you say a big downside? correction, recession. >> right now we're about 30, 35% overvalued from a trailing price to earnings standpoint. and so we could see a correction just to get to normal pes of 14 or 15 of 30, 35% on s&p 500. brings us down to -- liz: would you advise people on that correction? >> we need people to move to act. more populist opinion about need photographies call stimulus. monetary policy is a short-term tool and we need the long-term tool which is fiscal stimulus to come in. we hear folks on the campaign
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trail starting to talk about fiscal stimulus. we think that is really good. it could launch a really significant rally. liz: good to see you. we really love him. on a day big gains for the bulls once again. the dow is positive more the month of may. [closing bell rings] here is the closing bell. david and melissa pick it up here for "after the bell." david: another triple-digit gain for the dow, ending up more than 150 points. these two days of gains put markets in positive territory for the month of may. i'm david asman. melissa: i'm melissa francis. this is "after the bell." we have you covered on the markets. first here is what else we have for you at this hour. donald trump firing up the crowd in anaheim, california right now. police out in full force to deter violent chem straighttores like the ones weigh saw in new mexico -- demonstrators. in chicago they are calling for


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