tv Countdown to the Closing Bell With Liz Claman FOX Business August 17, 2016 3:00pm-4:01pm EDT
talk resonate with voters. tell me what you think, i'll see you tonight, 9:00 p.m. on the kelly file on fox news. i hope to see you there, make sure you tune in, in the meantime, we've got a market that's just barely higher, liz claman is taking you into the close. liz: guess what, trish? donald trump is about to be entrusted with america's top foreign secrets for the very first time. take a look. this is a live shot from cameras that are trained at the fbi's new york field office where trump is expected to receive his first classified briefing as both presidential candidates are allowed. he's expected to bring with him new jersey governor chris christie and retired lieutenant general michael flynn. this as the trump campaign makes second major staff shake-up in two months, a move experts say marginalizes campaign chairman paul manafort and gives trump a better shot perhaps at winning. hillary clinton continues assault for trump's plan for the economy.
wrapped up event in cleveland moments ago, but as both candidates bigger, quality tech jobs are disappearing at record speed! cisco, one hour away from confirming whether it will vaporize 14,000 jobs. that stock down 1.25%. that would make more than 70,000 jobs macheted over the last year in high-tech land alone. political panel tackles that. and kevin hassett tells us why he thinks the american economy could go south no matter who becomes the next president. on wall street, look at dow. up ten, that doesn't look like a lot, but had been down about 11 before the federal reserve meeting minutes came out. what did they reveal that a rate hike might be warranted? but the markets aren't worried about that. as we see the dow, s&p and nasdaq composite on a roller coaster.
come join the ride with us and let's start the "countdown." yeah, the dow and the s&p are both in the green at the moment with the fed frenzy. so 60 minutes ago, hawkish fed minutes signal to investors yes, a 2016 rate hike might be on the table but the market does not appear to buy it. how do we know? put this up on the screen. before the announcement, the chances of rate hike at december meeting stood at 52%. that's been downgraded to just under 48%. you can forget september and november. if the traders and the fed funds futures pits are correct, that's not what bill dudley said to peter barnes, and he is the new york federal reserve guy, he said it will happen. but, look, the markets weren't so sure either. showing you intra-days right now. the s&p 500 intra-day right before the actual announcement. the s&p was down about 2.
look at it up, it is up. the dow was up 11, it was up 5. this is changing, we were up 10. now only up 3. nasdaq composite down 4. up off the floor here. let's get to the cisco news, if you don't own the stock, it sends an interesting and depressing message. cisco employees on pins and needles waiting not so much to report earnings after the bell but to find out if reports are true. sources close to the matter say the network equipment giant might be laying off 14,000 workers? that's about 20% of workforce. eight years after the financial crisis? why is silicon valley dumping jobs. let's look at target. target missing the bull's-eye, cutting fiscal full year profit outlook for quarterly sales. they fell more than expected. shares getting slashed. down 6%. standing at $70.82 and lowe's
in need of home improvement. cutting full year forecast in large part due to the company's seasonal exposure to lawn care? this is a big move here. down 5.5% for lowe's. if you end up losing your job at staples, could you blame the government? the office retailer falling 17%. it desperately tried to merge with office depot to safety business, a judge said nope, the 6$6.3 billion would-be merger would hurt customers. forecasting 15th straight quarter of declining office sales and has to close stores nationwide. they tried to merge with office depot to save themselves. nope. and here's what you have. who knows. let's take that live camera. can we do that? donald trump has not yet arrived. this is the fbi headquarters downtown in manhattan.
he's expected to arrive in new jersey. governor chris christie and retired army lieutenant general michael flynn for the very first of his u.s. government intelligence briefings as the republican nominee. so as soon as he arrives, we're going to take that shot. the billionaire businessman's campaign as it grapples with just a bit of chaos here and there, includes the addition of two new members of the campaign. trump adding breitbart executive chair and former goldman sachs banker stephen bannon as campaign ceo and kellyanne conway as campaign manager. trump supporter legendary republican strategist and co-chair of great america pac, ed rollins telling fox business earlier that the changes have to be paired with strategic action by the campaign and mr. trump himself. listen. >> if you know your own mind and doesn't mix with where the country is, it's not a good thing. i think the reality is you've got to basically have some sense of going beyond the hard-core republican base and reaching out to democrats.
you are reaching out to women, and if you don't, you're going to end up with 39% of the vote. liz: that's why the change came in, and kellyanne conway, blake, obviously a woman but highly, highly regarded by people on both sides of the aisle. as we look at the changes, what's the most important part for the trump campaign? >> you do have kellyanne conway, a longtime pollster as you mentioned. she gets the promotion to campaign manager. paul manafort stays at the top of the hierarchy of the campaign team. the thing that's getting the biggest exposure today is the hire of stephen bannon who stepped aside from the post, top post of the popular conservative website breitbart to become the trump campaign chief executive officer. it is that hire that has many suggesting we could possibly see the anti-establishment roots of trump that led hem to the historic primary victory to potentially reemerge once
again, despite the calls for republican for trump to be more moderated, more controlled. the changes come as the campaign is set to unveil first television ads. conway spoke earlier with charles payne on on "coast-to-coast," watch. >> see us very much focus on five to seven to eight swing states immediately. watch for our ads this weekend, first ads will go up this weekend, in addition to where we are beefing up ground game, canada experiences by mr. trump and governor pence. >> she very briefly touched upon trump's new hire. while the operation tries to readjust, she said this, and i'm quoting here. there is no new donald trump. this is it. liz? liz: okay, he stays true to what got him where he is, that is slaying 16 other candidates on the republican side, and it
does sound like that's what he's always wanted to do is just let him be him, right? >> yeah, there's been really two divides, do you let trump be trump? which was the original phrase from corey lewandowski, or do you try to rein him in with the breitbart hiring of executive stephen bannon, there's the thinking it might be let trump be trump. liz: stephen bannon known as a scorched earth guy, take no prisoners guy, that works with donald trump's personality. we'll be watching it blake burman, thank you very much. here's what's stunning, all the talk about campaign pivots and e-mail scandals takes center stage during the election drama. the audience, the voters are fretting about this. massive job cuts hitting tech industry usa. tech news site crn reporting in less than an hour cisco will
announce plans to axe 14,000 jobs from 20% of the company's workforce. they're not alone, cisco joining companies like intel, hewlett-packard, ibm, slashing and burning -- these are high-quality jobs. this adds to the massive number of layoffs seen in the tech world. 72,000 positions and counting in the last 12-month period leading up to march 31 of this year. should donald trump and hillary clinton be spending more time on the campaign trail talking solely about how to save and grow jobs like these that have been cut in such large numbers? let's bring in brad blakeman and democratic strategist craig beroga. when we are eight years beyond the financial crisis, isn't this issue number one to quote the great john mclaughlin, rest in peace, john mclaughlin. isn't this what we should be discussing?
craig? >> absolutely, i think we should be discussing the economy, and talking about donald trump's bankruptcies which would indicate that the way he ran his businesses was about as successful as running his campaign. we should be talking about the economy, and should be an issue because the voters care about it in both parties and certainly among persuadables and independents, absolutely. liz: brad, i vote to eliminate the talk about his bankruptcies and eliminate the talk about the clinton foundation and force these people to solely talk about the u.s. economy now because we can get into bitter battles that really make both these candidates extremely unlikable. none of that helps the u.s.? >> right, let's talk about the record of eight years of obama which hillary clinton is going to inherit if she were to be president, and she believes she's going to continue on this path. look, our growth rate is 1.2%? liz: exactly. >> atrocious, after the financial collapse and obama promising full employment.
we're not at full employment. the white house would like us to believe that. they say 5%, we know it's probably 11%. if you take the people underemployed and who have left the workforce. and our inner cities are about 20%. and the candidate that speaks to the economy and jobs and re-creating that new spirit of invention and ingenuity not only in silicon valley but throughout the marketplace and creating jobs here in america and manufacturing, that's the candidate that's going to capture the imagination of the american people, that's what they're worried about. every poll tells us it is the economy. liz: craig, the reason i bring up silicon valley, i've covered it extensively. these are high-quality jobs. we don't know what's going to happen with cisco. we don't know if some of them are overseas and some in the u.s. we've seen bay area tech jobs
layoffs double since the first half of the year. manufacturing has shrunk. we have real problems here, so if hillary clinton is leaning on an obama economy at 1.2% growth and lots of layoffs, that doesn't bode well. >> look, the economy is better than it was eight years ago. we were about to go into a depression. but better is not good enough and i think that certainly hillary clinton believes that better is not good enough and we need to improve the economy. you're not going to get a disagreement on that. if anybody is looking for detailed plan where to move the economy that's hillary clinton. donald trump is not ever going to have details to any plan he talks about. liz: maybe he'll now, brad, and what he needs to do, he can say the sign the front of check, i've paid employees, hired people. he's got stick to that because that may be, as some believe, the saving grace here? >> no doubt.
if you look at economic programs of that hillary and trump, they're night and day. donald trump is talk about empowering the people. hillary clinton is saying let me take money from the people and it's the government who spends their money. i believe in the velocity of money. that is every time a dollar changes hands in the private sector what gins up the economy. not us sending money to the government. soaking the rich is no incentive for the rich to spend money and hire people. we need to repatriate the money waiting offshore. some say more than a trillion dollars. to get it back in our economy and growing the economy. liz: we don't want to see more layoffs and sometimes that's what we've seen. we've gotta run. a lot of this has to do with the tax plan, we're discussing that in just a minute. it has morphed since they were first released. we're going to be talking about that, but in the meantime, what about the gary johnsons of the world? what about the green party presidential nominee, jill stein?
she's going to be with us 3:00 p.m. easternn the x business network. is she an alternative to two unlikable candidates? closing bell. we are 46 minutes away. cisco dragging on the dow 30 today. yes, it is one of the big drags, here are the gainers, 3m, pfizer and du pont. the federal reserve confirms what fox business revealed exclusively yesterday. peter barnes interview with bill dudley, the head of the new york fed. we may be closer to a rate hike than you think. market is flat on that news. floor show traders on the fascinating stock move since the fed minutes came out. and urban outfitters dressed for a little success with record second quarter sales, apparel retailer, you know this, a favorite with the college set and dorm room sets, surprising the markets by beating estimates. urban jumping to the sky here, up 15.75% on trading volume of 12 million.
that stock is jumping $4.92 right now. the battle for viacom moved into entirely new galaxy as settlement talks resume. are founder sumner redstone and philippe dauman on the bitter edge of the final frontier? the details next on "countdown." stay tuned. to folks out there whose diabetic nerve pain...
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. liz: we've got an alert on viacom. bitter board battle may be coming to an end. just exactly as we anticipated it would and told you so two months ago. according to reports ceo philip dauman is expected to be replaced by this man, current chief operating officer tom dooley. as i told you was a distinct possibility. dooley is a longtime viacom employee but had a provision in his contract said that if he wasn't given the ceo job, he'd be graced with a $63 million consolation prize, and at a time when the stock isn't doing so well, they didn't want to go to shareholders and say. that the redstone family including shari fighting to prevent the overhaul of a large
stake of paramount pictures. the family believes the movie studio is a crucial component for the company's operations but it's been a tough year for paramount. analysts expect the movie studio will see a loss of 300 million in 2016 as movies like "star trek beyond" fail to perform. warner bros.s and twenty-first century fox doing better on that front. shares of viacom jumping on the news, up 1.75%. for all of you who thought buy viacom when it's lower, it's getting close to happening. viacom at $48.53. to the markets, the dow jones industrials just straddling the fed line, slightly higher by under one point. why? the fed minutes released about an hour ago indicate it seems like a rate hike is on the table for 2016. with hawkish commentary, are traders buying that? get to the floor show, traders
of the new york stock exchange, cme group and nymex. usually the market shows fear when it thinks there might be a move in interest rates, and the fed said another increase will soon be warranted and yet, markets are flat? >> i don't think we're buying into it just yet. liz: why not? >> we figured out they're pushing the can down the road, using the same commentary and language and able to hold onto the ammunition as long as they can. why pull the trigger now? they should have pulled it six months ago. we're getting closer and closer to election, i don't think they're going to make that type of move as we get closer to the november date. in december when we saw the last rate hike, the market wasn't sure how to absorb it. we saw volatility and, yes we have recovered since then, but at this point, i don't think they're going want to to shake the apple kaurt. liz: 47.9% chance for a trend for december hike. are you calling it? will we see a hike before the end? just yesterday, we had been of
the perma voters, permanent voting member of the fed, william dudley telling peter barnes exclusively, it's going to happen this year, and you say what, trent? >> i believe they want it to happen, liz, i don't believe they will. for reasons that jonathan touched on as well. i think the main thing traders keyed on today, liz, and continue to be a problem for the fed is inflation running below target. if we were basing this just on jobs report specifically the last two months, there's a good argument we could raise rates as early as september, but the problem is when we have inflation running at 1.6%, almost 25% below the fed's target, if you raise rates and what that does to the dollar, it's going to be counterproductive to reaching the all-important inflation target. when they take a look at it and accommodate policies for seven years and they're not there,
let's raise rates. that's a difficult thing to justify. it wouldn't surprise me if they did raise, liz, if you base it on inflation, i'm going to say no. liz: we could look at dollar, and today snapped a three-day route. it is slightly off seven week lows. i'm wondering how it plays into things like commodities which are priced according to the dollar and what we have, we have a slightly stronger dollar and oil, it's slightly higher at the moment. i think it's more a function of the fact that the saudis could boost to a record output, daily output in august to say to the russians we put out more oil than you. they want market share and that's it? >> you took away my three minute speech. liz: sorry! [laughter]. >> the saudis are running the show. they put the marginal producers. they've crushed them. and the oil traders are waiting to see what happens in two weeks if the saudis say they're
going to back off. a new number for you to consider is $55 per barrel in dollar terms today. you need six months to nine months of sustained $55 oil for the marginal produceers to come back. in i don't think that's going to happen. but it does give the saudis room to raise at 10%. maybe get oil up to 47, 48. i think for the rest of the year where 40 is our floor and 50 is the ceiling, i don't think we're breaking those two numbers any time soon. liz: we told you, but i'll tell you, i've been slightly wrong, i said oil is going to continue to go lower. with moments of clarity, you start to see that it, should but you can't fight the market and what the herd is doing, and oil is continuing to slightly move higher. great to see all of you, john, trent, luke, we love you guys. keep it right here. immediately following "countdown to the closing bell," cisco earnings, "after
the bell" the top of the hour, you need to wlr they confirm they will be slicing 20% of their workforce. tough day if you work at cisco right now. sitting on pins and needles. could hillary clinton and donald trump be driving the american economy into recession soon? what? meet the former economic adviser to presidents with both parties who says it is actually a very real possibility. his name is kevin hassett. he will join me exclusively in just moments. and another california wildfire, the second one in 48 hours blazing out of control causing mass evacuations as firefighters fight to tame the beast. adam housley live on the scene, next on "countdown." you got to see what he's looking at.
that is a good thing, however, as water recedes in certain parishes in baton rouge, louisiana, which is suffering from the worst flooding in state history, it is rising elsewhere sending new people fleeing to shelters. people say at least 40,000 homes have been damaged. 11 people lost their lives. thousands displaced from homes and businesses. berry agricultural farmlands among areas flooded. no word on the economic damage scened there but get ready for price increases are real problems as people suffer terribly in the region. mother nature wreaking havoc in southern california, just a day after northern california saw a massive wildfire start. the state's latest wildfire is now in san bernanadino county, just an hour east of los angeles. consuming everything in its path. look at these pictures. this is being called the blue cut blaze. it has burned through three how
acres of drought-stricken vegetation, forcing 82,000 people to evacuate. we thought we need to take you there. fox news reporter adam housley at the scene in little creek, california. this is unbelievable devastation and it hasn't stopped, right, adam? reporter: no, liz, it hasn't. impact on families and environment as well as economy. talking about a lot of people who lost businesses and home. this was some sort of a car facility behind me that burned out yesterday. they lost fifteen vehicles here. also a bus. come this direction. you see how the fire blew through here. look at fire as you come through the area. california five years of drought. this fire is being fueled by that and hot winds that continue to blow, 25 miles an hour they are gusting. it shut down interstate 15 to vegas. commerce from california and southern nevada is pretty much shut down. that is the active fire literally leapfrog peak to peak. that is what firefighters have to face.
there is no way to face it. they have to funnel it. there are 1100 homes we saw earlier today. we didn't see the smoke an hour ago, but when the wind came in it is blowing fire right towards the homes. dire situation in california. fire burning near wine country as well, destroying 200 homes. problem is not only winds, low humidity, high temperatures and drought, fire season really doesn't end until the end of october. liz? liz: oh, my. can we look to peek into the bus, adam? i'm stunned by this? reporter: the bus, sure. keith, show liz the bus. liz: unbelievable. >> look inside of the bus. liz: fire torching -- reporter: pure metal. it melted stuff on the ground a little bit out of our way. you can see where it melted aluminum. looks like someone pour ad silver liquid on the ground. a trail of liquid. that is the aluminum basically melted because of heat and intensity of this fire. there is helicopter coming through.
this is battle all around us, really. 180-degree fire battle where we're located. constant. i-15, the main thoroughfare between vegas and southern california is closed. no idea when it is going to open. liz: you're right. that may very well hurt las vegas. we'll watch all of that as a business channel that is precisely the thing we focus on as well as the human toll. thank you so much, adam housley live, 60 miles east of los angeles. a terrible situation there. closing bell, 27 minutes away. i have a question. can you step on the gas as you take your hands off the steering wheel? well, ford is about to do that in a way. ford announcing a dedication to developing autonomous vehicles and where will they build them? made in america or built south of the border? jeff flock at a ford factory in chicago with that story. hillary clinton sharpening
her words on donald trump the next hour. t will the president, no matter who it is have to deal with ugly downturn in the economy? goldman sachs economist, kevin hassett thinks that is a real possibility. he will explain next on "countdown" and what maybe can be done about it. there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your
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liz: we want to quickly take you back to fbi headquarters here in new york, where, listen, he may already be in there but donald trump is scheduled, actually about, 20, 38 minutes ago he was supposed to arrive at the fbi field office to have his first official intel briefing. see when you're a candidate, you're the official candidate, both he and hillary clinton are now justified in getting intelligence information at the
highest less, of what's going on globally so they can actually be ready, if they win to deal with the problems that our country faces, not just here in the u.s. but elsewhere. he may have gone in a backdoor. that sometimes happens. we'll coop our eyes and cameras right there to let you know if anything happens. in the last hour in cleveland, ohio, hillary clinton shared more details on her tax plan, strongly contrasting her own plan from republican opponent, donald trump. listen. >> if you were to implement what i am proposing we would create at least 10 million new jobs in thfirst term of my administration. [cheers and applause] if you look at what trump is proposing, and how he wants to give huge tax breaks to people who are wealthy like him it, would cost our economy 3.4 million jobs. now this is not me saying it. this is an independent analysis saying it. liz: both sides have independent analysis. there are a lot ifs, ifs and ifs.
guess what, here is not an if. this is a when. we have somebody who says no matter which candidate puts forth their proposal, so much uncertainty may push us into recession again. let's bring in kevin has set. joining me fox business exclusive. former treasury department policy consultant and kevin, explain to people. you've been an economic advisor to george bush, mitt romney, john mccain. you have worked for herbert walker bush, bill clinton. we have no hope for either candidate? how is that possible? >> we put out a study suggests that the recession risks are much higher than people are talking about. we looked all the way back to the civil war, we saw what happens in election years. what happens in election years, especially candidates far apart, we sure have that this time, what happens businesses stop investing. they decide, i will wait until november to figure out where i go with this thing.
left-wing guy wins, maybe i wish i didn't build the factory i would build this summer. can see it in the data. remember how weak gdp was, because of capital spending, going back all the way to the civil war but also second world war, you see the same pattern. the odds of a recession 12 months after the november of a presidential election about double what they normally are. liz: okay. >> the data are trajectorying in that way, whoever wins will inherit a very weak economy, economy weaker than the data. liz: my head hurts, we're 19 minutes away finding out whether cisco will announce something crazy like 14,000 layoffs but can't tax plans change concerns things? we could roll through a couple of points of both of their tax plans. donald trump wants to make the top for upper income, top tax rate 33% and hillary clinton wants to add a 4% surcharg f income over five million dollars. then you go to middle and lower income, donald trump wants to
reduce the 15% income tax bracket to 12%, for the lower income people. that would raise their after-tax income to spend, possibly help the economy. you can see what hillary clinton is expected to do on middle and lower income families. bottom 95% would see little or no change. can't we fix certain things through tax policy? >> yeah, and the big thing that trump actually addresses but clinton doesn't is the corporate tax rate. we have the highest corporate tax on earth. we talked about that here on the show before. with that really high rate, businesses are locating jobs overseas. you were talking a little earlier the maybe the ford plant is in mexico. if we get the corporate rate lower, which trump proposed we could get job creation back here. clinton's ideas increase taxes an increase government spending and let government spending stimulate job creation. that is what president obama tried and it didn't really work. if you're disappointed in the economy right now, you probably understand that the clinton plan is something we shouldn't try
again. liz: i'm glad you're smiling because i'm feeling extremely depressed. you're right, $830 billion stimulus that president obama put out there, and we did not see what we should have seen during, what we saw during fdr's, the new deal or eisenhower. >> correct. liz: we built things. we just put people to work. we fixed stuff. >> clinton's talking about 900 bullish. liz: i thought she was saying 275 billion and donald trump was talking more like 500 billion? >> no, no. her spending over 10 years i think is closer to 900 billion. yeah, that's right. that 10-year spending increase calling the biggest jobs spending program ever and she is trying to say it will create a lot of jobs but the fact is, history of such programs they don't really succeed. if we want to create more jobs we need something more believe it or not like the trump plan. cutting taxes, traditional supplyside economics.
liz: kevin says we may realize we're much closer to recession than they which. vin, thanks very much. i think. >> thanks, liz. liz: kevin kevin has set. go to liz claman dot-com and all -- lizclaman.com and all the other exclusive interviews. look at this. we quintupled at the top of the show. we were up couple points. we're up 17 for the dow. i don't mean to put on cheerleading skirt and dance around. it is not that big of a gain but it's a gain. a carmaker can't stay out of the headlines. hey, they're in the business. tesla feeling the heat after a test drive goes horribly wrong in france. video is burning up the internet. we'll show it to you and what the electric carmaker says about the latest flap. if that weren't enough, ford taking on tesla to grab the autonomous vehicle.
one of detroit's big three speeding it up. jeff flock, will be here or south. border benefit? reporter: we may not need to build the wall down there after all. if you stay tuned, i will explain why that is the case at the ford plant here in chicago. stay tuned. ♪ you do all this research on a perfect car,
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liz: breaking news. appears donald trump is arriving. you're looking live shot of a big convoy of vehicles. this is individual grow tape of these vehicles arriveing. this is seconds ago at the fbi field office in new york city where the gop nominee is set to receive classified intelligence briefings. this is required for anybody who is an actual nominee.
they get the briefings on all emerging concerns and threats around the globe. this will be a long meeting. russian issues, syrian problems, isis. what is going on in turkey. all kinds of props. things that you don't even know about we're not even told about, donald trump gets to find out now. hillary clinton will have her turn. you can see them arriving here at the field office just moments ago. we told you we would show you. here it is. let's get to some auto news i guarranty you will find interesting. test drives are done to work out kinks of new cars, right? tesla did not expect this. a model s caught fire during a test drive in france on monday. according to the reports the vehicle made a loud noise and sent a wning to the dashboard, there was issue withing charging mechanism. after they pulled over and exited the vehicle, the car was
engulfed in flames. cause still unknown. tesla said we're working with anothers to establish the facts of incident and offer our full cooperation. the passengers were unharmed and able to exit the vehicle before the incident occurred. while we're at it. shares of tesla moving slightly lower. 237.37% a share. drive on the 405 any given day you will see a car fire. car fires are so common. gets more attention when it's a tesla. expensive technology. tesla is not just dealing with that, but fallout from the autopilot features issues. while it is looking at that problem, ford is saying we have to take it a step further. the american carmaker announce it plans to have fully driverless cars on the road within five years. now we told you that, by fully driverless, they mean no steering wheels and no pedals? the car will initially be used for commercial ride hailing or ride sharing services likes of
uber. but with mexican labor costs rising, where will ford build these cars? jeff flock, you teased us the before the commercial break, you said we may not have the to build donald trump's wall. does that mean those jobs could be coming here? reporter: i have a non-classified briefing for donald trump and it has to do with wages in mexico and the difficulty, potentially in the future of attracting enough mexican workers to build the cars they want to build down there. take a look at this number, liz. this is staggering. since the year 2000, wages in mexico up more than 128%. that is more than double. if you look at the last 10 years, wage growth in the u.s., half of what it was in mexico. this is meant that mexican factories are now starting to have trouble attracting enough workers, and holding on to workers they have. now admittedly if you look at average wages in the country, still much lower in mexico than they are in the u.s. but they make a lot more in those auto
plan down there, and ford, at this point that i'm at right now, the ford assembly plant in chicago, they figure wages and benefits costs 60 bucks an hour per worker. in mexico they're thinking it is close to $8. that was their projection.ole le than that there may not be enough workers down. if you're going to build a wall, maybe sure there is enough doors in it so mexican immigrants can go back to mexico to get a good job if they need to, liz. liz: i find this alphas nating because the free market does tend to work, does it not? now the cost of employing somebody down there. reporter: this is what it was nafta was supposed to do, right? it was supposed to make jobs easier in mexico so they wouldn't come across the border here. maybe it is working. liz: we're proud of ford certainly.
bring some jobs back here. jeff, thank you. we hit session highs, up 27 points. we're up 11 right now. as we all know the 3 rs, the reading, writing, arithmetic, none of those words start with r except reading. we're talking about the three es. he says the three es are major for profits in your portfolio. next on "countdown." look at nasdaq. it just turned positive.
>> if you focus on those three es, first of all you need to understand them. you need to have strong opinion about the economy, about the the election, about the employment. if you have the opinion we do we'll see a nicely-growing economy -- liz: who has that opinion? i'm waiting for that? >> we hope the fed confirmed that today. they see the economy growing and don't see pressure from inflation to raise rates but the economy is moving in right direction. employment is strong. when consumers have jobs they spend money. so we're seeing consumer stocks continue to do well. the big question mark out there is the election. when we're talking with our clients, their opinions are all over the place. very confused. liz: how do we assign the three es to stocks picking? explain that. i'm having trouble wrapping my mind around it. >> what you want to do is focus on those stocks geared toward a growing economy. what we saw in the first half of the year utility stocks, telecom stocks, sort of recession stocks did very well. we thought that that was a mistake. we're underweight those areas right now.
our portfolios are built for that gradually rising economy. you want to focus on those types of stocks and not recession stocks. ashley: seems like you're picking best in class, disney, starbucks, microsoft. >> we are absolutely picking the best in class. you're seeing, especially the technology sector if you're not embracing the cloud right now you're in big trouble, you're in big trouble. >> liz: cisco ask about to do that, reporting earnings seconds from now and they may announce massive job cuts. does this not concern you about jobs and employment, the e in employment? >> it does, it does but what you're seeing with cisco, this is not new news with cisco. we like cisco. they're well-positioned. they're late to the cloud party. they need to catch up. what you're seeing unfortunately with the layoff announcements. they realize this and have to restructure their business. liz: quickly, kevin hassett from the fed says we're heading to recession, no matter who comes
president of the yes or no? >> we believe you're three years away from recession. we don't believe there is recession anytime soon. liz: thank you, john treanor, people's united. [closing bell rings] the fed is attempting, not succeeding to take the air out of the markets. there is closing bell. ashley, melissa, interesting to see green on the screen here. ashley: interesting day, liz, thank you very much. stocks fighting for gains in the final moments for trading. i'm ashley webster, in this afternoon for david asman. melissa: i'm melissa francis. this is "after the bell." we have you covered on the big market movers but first here is what else we have for you coming up this hour. major shake-up in the trump campaign, as new polls show him trailing double digits in key swing states. how hillary clinton is responding. trump blaming democrats for taking advantage of the african-american community. activist and niece of the late martin luther king, jr., will join us with her take coming up,