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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  September 20, 2016 3:00pm-4:01pm EDT

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day, actress angelina filed for divorce from brad pitt. check your local listing on where to find it. liz claman. liz: senator after senator from the house banking committee sat on him for the phoney account scandal but none more than democratic senator from massachusetts liz warren. she demanded resignation. senate committee member bob me menendes joins me live and jeff
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of texas, his committee is actually demanding hard documents and records of management knew and when they knew it. he's with us. 24 hours before janet yellen and the fed make their september rate decision, dow jones industrial is hoping gaining of 49 points, latest on the suspected terrorist, president obama's un refugee proposal and what donald trump is saying today about the vetting process of migrants. with less than an hour to the closing bell, let's start the countdown. [music] liz: will they or won't they is the trillion dollar question on wall street? you can see investors are fine with it. they're waiting on not one but two major monetary policy decision from the federal reserve bank. the bank of japan as well is coming out with something. after climbing as much as 100 points earlier, the dow is pairing back some of the gains,
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now trading by 51 points to the upside. let's take a look at what's weighing. exxon mobile tumbling following report that is the securities and exchange commission will investigate the company on climate change but also on accounting practices. exxon is the worst performer in the dow. accounting practices involve how they manage today really value assets as the price of crude began falling more than a year ago. we also need to tell you about a name broking out, this is a biopharmaceutical company, develops therapies for like liver disease, surging after 700% after allergan said it wants to buy the company. that turns out to be a 500% premium to the stocks price right now closing price is a moving target 38.65 and on the climb.
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to capitol hill, this one will be remembered for a long time and it is not over for wells fargo ceo john stumpf, he apologized and promise to repay customers who lost must be and had credit report hammered when 2 million bank accounts were created but questions from senators on both sides of the aisle, stumpf looked unprepared when and how he heard of the scam which he argued it wasn't a scam. >> it was sometime in the may time frame of 2015 -- well, '13, maybe it was. i'm sorry i'm missing on dates here. >> you take the sergeant schultz position that you knew nothing as this was moving ahead? >> if one of your tellers took a
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handful of $20 bills out of your cash drawer, they would probably be looking at criminal charges for theft. they could end up in prison, but you squeezed your employees to the breaking point so they would cheat customers and you could drive up the value of your stock. >> you have done something that has never happened in the last ten years on a major topic and not in the good way. >> in the last week you and your chief financial officer have taken to the press and layed the blame squarely on low-paid retail bank employees and while i don't excuse what they did by any stretch of the imagination, i find that despicable. liz: that member of the senate banking committee joins us now exclusively bob menendes of new jersey. >> good to be here. liz: what was, perhaps, the most stunning reveal for you? >> well, i don't know where to begin.
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i guess the most stunning is that i thought that mr. stumpf was going to come with a whole different presentation and basically the depth of not only clarity, the depth of ownership, the depth of how long they waited before they acted and told their regulators, the fact that he still would not admit that their practices created a pressure-cooker situation that led these 5300 employees to do what they did was pretty outstanding and the depth that he won't comment about the responsibility he or the lady who ran this division of wells fargo has as it relates to what happened. liz: senator, i was in essence saying that once he discovered the behavior they worked to fix it. he was sure to say that he wasn't a part of it. he also said in the last couple of days, not with us, he won't talk to us, we are going to be
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throwing more hardballs at him, the company didn't reveal investigation in sec filings because, quote, it wasn't material. how can that not be material? 5300 employees fired to behavior that affected 2 million accounts? >> i pursued the line of questioning in second round, not material, once it becomes public look at the material consequences for shareholders and the devaluation of the stocks since this became public and it just goes to the lack of transparency and responsibility here that mr. stumpf has and the superiors, the senior executives in the company have and his unwillingness, not only to take responsibility himself but to subscribe to the person who was the leader of this pressure-cooker that created 2 million accounts that were uncalled for, many of which i heard from energians who told me they never asked for these accounts and faced consequences including credit issues as a
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result of it. liz: let me talk about that. you've been speak to go people in new jersey, it's my state too and i have been talking to people that they said they had a couple of accounts, here you are standing with a woman linda edwards who was also on varney & company this morning and she said she was most shocked by the fact that she found out she wasn't the only one. her daughter had been hit with one of these fake accounts and now her daughter has a harmed credit rating and she can't get rid of it, you know how hard it is to get these things changed and we count on lawmakers to do something about it. senator, what are you and the banking committee going to do about it? >> well, we pressed mr. stumpf very hard and made commitments under oath before the full committee that they will work to clear up the credit or any person, customer that they harmed and looked at what type of compensation may be necessary if somebody was not actually harmed in their credit but bar rowed some money whether a loan or mortgage or whatever and face
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a higher credit consequence -- higher cost as a result of the harmed credit. so i also hope the regulators are referring to law enforcement officials which they have the authority to do and we are going to continue to pursue this because i'm also concerned about how far in the industry it exists. liz: senator, before i let you go. yesterday some very brave new jersey police officer, one of them even taking a bullet himself apprehend it had new york-new jersey bombing suspect rahami, it turns out that the suspect had taken multiple trips to pakistan, the fbi had been called about him, senator, what must happen to flag our law enforcement to keep us safe from potentially dangerous people including naturalized citizens who leave the country, go to dangerous places where we know people are being radicalized and freely come back? >> well, first of all, i want to
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salute the law enforcement, particularly local law enforcement because as we learned on september 11th, it's not the federal government that responds, it's police and firefighters and courageous people, as it relates to the broader question, this is why i pushed the sharing of intelligence across our agencies and down through state and local agencies and i think when someone like the fbi was told by his father, oh, he's a terrorist, although he recanted it, i don't know that you should so quickly reject it. liz: amen. we agree about that. senator, bob menendes of new jersey, thank you very much, we do appreciate you coming on exclusively. by today's hearing was driven by the senate, the house financial services committee has actually launched an outright investigation demanding any documents that wells fargo might have that show who knew about this aggressive banking behavior. house financial services committee chairman, jeb has
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called on ceo john stumpf and top executives to testify this month. the texas republican joins us right now. i don't know if he'll agree to come before you guys after what happened today, do you think he will? >> well, he may not have a choice in the matter. bottom line is we are going to get to the bottom of this because millions, potentially millions of customers have been ripped off by wells fargo and they've also in many respects been ripped off by their government. there's an open question. how can something of this massive scale that's obvious been going on for years right under the noses of hundreds and hundreds of federal regulators who are either embedded at wells fargo or have gone to conduct examinations, how does this go on so long? i mean, why does it take the la times to break this story when we are paying federal investigators to investigate, but we are going to get to the bottom of this because there could be violations of the truth and lending act, the truth and
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savings act, the electronic funds transfer act and a whole host of other consumer-protection laws and our committee is going to get to the bottom of this so we launched a full investigation. liz: congressman, you just don't want to talk to john stumpf, as i understand it you requested top executives, millions of dollars top wells fargo executive including carey who was in charge of community banking there, they want it clawed back. let's listen to some of that and i will ask for your response. >> to not invoke some degree of clawback for yourself and others involved would be committee malpractice. >> will you personally support clawing back any or all of the pay for the person in charge of compliance? >> the one person that was responsible directly other than yourself for making sure this doesn't happen isn't in front of this committee today.
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in fact, she's walked off with a pretty good deal. liz: she is carey, will you subpoena her if she doesn't agree to come before you. do you even want to hear from her? >> absolutely, duo want -- we do want to hear from her. we will subpoena documents as necessary. it is beyond belief or credibility that this could go on in somebody up the food chain knew about it. it went on for years. we are talking about 2 million improper accounts. we are talking about thousands of fired employees and how could this go on at this magnitude and somebody at the top did not know about it. we need accountability for these government agencies that are if charge of enforcing the law. i want to find out why did it take the la times to break the story, why was this the los
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angeles city attorney? where was the occ, where was the sfpd, why did they come in so late in the game? this is their job to enforce these basic consumer laws and it appears that they were asleep at the switch. liz: dodd-frank, requires that ceo's sign off on quarterly reports and if they sign off on something that turns out not to be true they must face consequences for that. you mention it had consumer protection bureau, the list does go on. so what do you hope to glean out of your hearing? >> who was responsible, what did they know and we want to make sure that appropriate, civil and if the facts warrant it, criminal penalties are assessed and we want to find out, i mean, this is basic theft, this was basic fraud.
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i mean, why did it take so long for this to come to light? i mean, we've had 24 major consumer protection laws on the books for decades and so supposedly it is the job of the consumer financial protection bureau to enforce these, why did it take so long? why did they not apparently get into the game until years after the first complaints were aired and so our job is to make law in -- and our job to provide accountability for those who are supposed to enforce the law and we have tough questions to ask of wells fargo and frankly a lot of tough questions to ask those in the obama administration who were responsible for fairing this out. liz: let's ceeb everybody -- keep everybody posted. at the moment, wells fargo is about 2%. somebody is making money. the top people who own a lot of the stock options. thank you very much, representative.
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we will have you back again. >> thank you. liz: now, while wells fargo does cling gain we have exxon mobile lagging but merk is the leader of 89 cents, mcdonalds, ge and coca-cola follow closely behind but sea world doing a belly-flp, doing away with the orka whale shows and investors are not happy. sea world cutting dividend to 10 cents from 21 cents per share that takes effect in the october 7th payment, we are going to suspend all other dividend payments so the stock is getting hammered, down about 5% at this hour. for now the market is keeping the head above water shrugging up uncertainty, we will be talking about, of course, the latest in the terror
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investigation. we are heading to the floor show next. stay tune. you pay your car insurance premium like clockwork.
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that the weight will be over -- wait will be over. the decision will have already happened by tomorrow at this time, while most of wall street is expecting janet yellen and company to keep rates steady at half percent, there are two economists who do business bond dealings with the fed who are refusing to rule out a surprising rate hike. they say it will happen tomorrow. so let's get to our floor show because the traders often can anticipate and sniff in the air what's going on. teddy, barkleys and b&p are the two banks that say we do expect one tomorrow, do you? >> no, i actually don't but i would simply say, liz, that in my opinion the market has zero tolerances, in fact, they do raise rates. if they don't do anything with rates but she backs it up with a hawkish statement, i don't think the market is going to see that
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as very friendly either. liz: yeah, 18% chance that we wi those are the odds we are seeing at the cme, alan, tell me what you hear and if there's the sort of outside possibility, we like our viewers to be ready, anticipate the worst, be ready for the best. >> right, if you look at 82% chance that they're not going to raise rates. i'm confident with going with what the market tells us. there are surprises. look-- looking at it is about the dollars. that could help some of the markets that have stalled like gold and crude who are trying to find a bottom. liz: at this moment crude isn't stalling. we are up three quarters of a percent. i found it funny, though, crude
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was falling because of the pessimism that opec won't get done next week and it's not an official meeting but then suddenly we were so low that we were hit by short covering and now we are up again, how are you suppose today read the market if you want to invest in this market? >> well, you know, my first advice do not invest in crude, however, i would say -- [laughter] liz: that's what -- >> i am not a believer in crude. you look at it, we were down around 40 bucks a few weeks ago and rallied 8 bucks because of opec and iran said they were going to cut production. i don't see them ever getting together and doing that. i also think as you know, there's a huge amount of oil and any time we sort of uptick, they increase production because they sort of step on the wrong foot trying to just sort of finance themselves. you can look at american frackers they have to pay for fracking equipment.
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liz: true. elliot, i have to get to gasoline. gasoline futures are moving down about 4% because tomorrow that colonial pipeline which has been leaking all over alabama, at least in alabama, i don't mean to make it some type of situation, it has been a financial situation for anybody trying to invest in gasoline. gas prices have surged in the area because so much has been offline. 1.3million-barrels per day. that comes online tomorrow because they fixed colonial. supposed to restart. how before the customer at the gas pump starts to see the prices at the pump move and start falling? >> you know what, liz, i can't speak to that. up here in the northeast we haven't seen outrageous gas prices or shortages that i'm aware of. i can't speak of what's happening down there at the pump but i will point out, you should be looking at natural gas as well.
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i'm sorry to change the topic. natural gas broke out of a long-term range that we had. it got over 3 bucks, it's been stuck. liz: 3.06. juing 4%. >> it's been in the range. ye. it had a big move today. i think that that might be worth looking at. i still think it's overbought today. liz: how much is it going to cost me to fill up my boat gas tank? >> the big boat uses a lot of gas. liz: don't they all. greet to see all of you. we appreciate it. fox business will have federal reserve decision-making wall to wall. the decision 2:00 p.m. eastern and at 3:20 fed chair janet yellen holds the hour conference. they may speak hawkishly if they speak rates term. watch out, it's coming. around 3:30 p.m. eastern the best post game analysis in the business for you right here on countdown, former council of
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economic adviser alan, trump economic advisory council peter navarro. much, much more. most importantly it's about your money and where it ends in session. gopro looking for karma. straight ahead on counterdown. gogo away. dow is at 55.
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♪ liz: well the rally holding. dow up about 58 points. from electric to driverless vehicles asherially webster is grabbing the wheel for us from the floor of the new york stock exchange. with today's fox business tech minute. >> liz, general motors announced the base price for all electric chevy volt. more expensive from the upcoming tesla model 3 with a price tag
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of over 37,000 bucks. the car can be much cheaper to federal tax incentives that may push the vehicle under 30,000. the obama administration rolling out recommendation for driverless cars today. the guidelines urging carmakers and developers to put a 15-point safety assessment how the driverless cars are tested and safeguards should they fail. we may have similar guidelines for driverless boats. why not. mit and two dutch universities carrying out a five-year research initiative to create self driving boats as future option in amsterdam. they are named rowboat. they are planning to have the first prototype by 2017. maybe a robot will not solve all of gopro's problems. they are down 7% after revealing highly anticipated drone known as karma.
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and two new cameras, hero 5 black and hero 7. they have remote control and they are waterproof. liz? liz: kind of watching that guy. waterproof, yeah. but is it crash proof? >> yes. liz: ashley, thank you very much. the closing bell. we are 29 minutes away with the dow holding on to gains of about 511 points. everything could change exactly at this time tomorrow. you have got to watch tomorrow. we'll know by then what the federal reserve has done with interest rates. new charges for the man accused of trying to blow up new york and new jersey neighborhoods as the search for accomplices continues. adam shapiro live right outside of the suspect's home with the latest. and there is a new development involving something that was found on the suspect's body. president obama set to host a refugee summit at the united nations. that is a live picture what is going on there. this as german leader angela merkel expresses regret whoever how she has handled the
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influx of refugees into her country. "countdown to the closing bell" is coming right back. ♪ what powers the digital world? communication. like centurylink's broadband network that gives 35,000 fans a cutting edge game experience. or the network that keeps a leading hotel chain's guests connected at work, and at play. or the it platform that powers millions of ecards every day for one of the largest greeting card companies. businesses count on communication, and communication counts on centurylink.
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liz: we have breaking new details in that on going investigation of the new york and new jersey bombings. fox business has just learned that a notebook owned by this man, new york and new jersey bombing suspect ahmad khan rahami, seen on your screen has been deciphered. two u.s. officials with knowledge of what is in it. they found the notebook with extremist ramblings. the suspect was taken into custody. this is the suspect's wife who has not been named. left for pakistan a few days before the attacks. she has been intercepted by authorities in the united arab emirates. currently she is being held for questioning.
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the bombing suspect is being held on $5.2 million bail. charged with five accounts of attempted murder after police officer in new jersey. rahami expected to make his first court appearance as early as this friday. adam shapiro is actually standing right outside of the suspect's family business in elizabeth, new jersey. what is the latest, adam? reporter: want to bring you up to speed on statements from the father. this is mr. rahami's father, mohamed, he told the police and fbi two years ago that his son, he suspected, it was his word, not ours, that his ton was a terrorist. they initiated what they called as assessment. way on the to read the statement regarding that from the fbi. in august of 2014 they initiated assessment off ahmad rahami after domestic dispute reported to authorities. fbi conducted internal database reviews and interagency checks and multiple interviews none of which revealed ties to
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terrorism. his father this afternoon was telling a much different story. take a listen. reporter: the reason the father says he reported his son to authorities was numerous. he had been traveling to pakistan. he had come back, the father told fbi according to sources briefing fox news the father was worried that his son was talking to people about explosives. the altercation which he hit the father's wife and stabbed his own brother, the father's other son, nasir. [gunfire] liz: adam, thank you very much. we appreciate it. we have this. president obama just entered the room in the united nations where he is having a refugee summit.
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very important to point out this is a group of leaders involving everyone from the prime minister of canada, justin trudeau, ethiopia's president, germany's america americas, jordan's king be king abdullah. alongside these leaders to figure out exactly how they deal with the refugee situation. the group will discuss the world's largest my grant refugee crisis since world war ii. that is 65 million people displaced from their homes around the world, much it coming due to the conflict in syria. this comes as a recent string of terror attacks in new york and new jersey, quite frankly, min society, have prompted increased focus on immigration policy. zuhdi jasser is the founder and president of the american-islamic forum for democracy. zuhdi, angela merkel is there with the president and this morning she actually expressed regret, and i quote, she said, if i could turn back time for
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the many years to better prepare i would. preparing for influx of migrants who have already come into germany and caused some safety situation, real problems there. are we headed for the same thing, or, we properly handling our migrant situation of people coming into this nation? >> listen, i come to this as american muslim who has family in aleppo trying to escape. so i certainly have sympathy for those who are trying to escape for freedom but at the end of the day we can't do national fratricide. by allowing people who come in here, don't share our ideology, don't believe in freedom and cue lar states it is fratricide. angela merkel is trying to save her political hide, realizing she surrendered her national identity to the influx. now there is a sonic boom of cultural clash happening inside of germany. we saw the results of "brexit." we saw trying to regrasp national identity. that is what is happening in america. americans get this.
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we are immigrant nation. we don't want to surrender our american national identity to a foreign ideology. that is what political islam is. but majority of refugees are not islamist. 20 to 30% share the islamist ideas. we should vet against those, not let the 20 to 30% in. then we would let more appropriate numbers christians, yazidis and other minorities who should be welcomed into our country. liz: push them to the front of the line i'm hear you say? >> yeah. liz: how it works in reverse because i say that the suspect mr. rahami, he came from afghanistan in 1995. that is the not issue. he was actualized later in this -- naturalized later in this new millennium. the more important factor in the story he went back to countries we know have specific ability to radicalize people who might be vulnerable. shouldn't we, no matter who leaves this country be much more
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careful about who comes back from those countries, zuhdi? >> there are two teaching points here. one is the fact that the travelers back and forth, be they refugees or citizens going to syria, going to pakistan and coming back, we aren't vetting what they were doing there. are they participating in a war? are they working against our interests? in paris and belgium those same individuals committed two acts of terror four months apart. they are protected by communities in belgium. they traveled and allowed to come back because they were citizens. liz: right. >> nobody vet what they were doing. the second teaching point is when they come back into here, when refugees are coming here, we are, islamic community, the leadership is radicalizing them by telling them the west is against them. this grievance narrative that the obama administration feeds into. jeh johnson just last week spoke to the islamic site of north america told muslims are experiencing like jim crow laws. you can't tell me that doesn't radicalize our community. we see what the family of
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rahami, suing the police and city for discrimination. this feeds into the swimming pool of radicalization. liz: donald trump spoke about this in the last couple hours. i want you to hear what he said. here is donald trump on this subject. >> i've been saying this for a long time. this just didn't happen like yesterday. immigration security is national security. liz: and zuhdi, we should let everybody know president obama is now walking up to the stage here. he is about the to speak on this very subject. and again, have to be ideas you but we're also learning that a whole bunch of u.s. companies, everybody from jpmorgan, to trip advisor, mastercard, hewlett-packard, airbnb, they're actually donating their services to help people assimilate once they get to this country. that has to be part of the plan, doesn't it be? >> absolutely. immigration is not zero sum. not all or none. i change my icon to son of
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skittles because i'm son of those came here seeking liberty and freedom but we can't accept everybody. those corporations need to donate not just humanitarian aid but soroses of the world to wake up to counterideology and national identity movements that make us the idea who we. they're not doing that. it is all about humanitarian aid. liz: zuhdi jasser, american-islamic forum for democracy president. thank you. >> thank you. >> fox business will have full coverage of the first presidential debate where no doubt this issue will come up. next monday, live from hofstra university. lou dobbs gets things started, 7:00 p.m. eastern. called by "cavuto: coast to coast." we're 15 minutes away, calling for resignation of wells fargo ceo john stumpf on capitol hill. do investors in wells fargo stock want the same thing? charlie gasparino tells us what the street thinks in today's senate banking hearing.
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charlie breaks it next. mylan ceo about to get the wells farring go treatment over the epipen gouging scandal but there is a new source of outrage developing about this. wait until you hear the latest charge against the embattled company and the ceo.
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liz: we got breaking news on the mylan epipen scandal. turns out it may have been a family affair when it came to the pharmaceutical company profiting from skyrocketing prices for the life saving device. heather bresch's own mother played a fundamental role in the scandal. gayle manchin, reportedly using position as head of national association of state boards of education to boost epipen sales in schools across the nation. the news comes as mylan is
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slapped with a barrage of new hurdles. breaking news just moments ago, the u.s. senate finance committee is now looking to launch mylan epipen rebate investigations. we have bloomberg reporting that the state of west virginia has opened a medicaid fraud probe into the embattled epipen maker this is as mylan ceo heather bresch is headed to capitol hill tomorrow to explain the epipen sticker shock in front of the house oversight and governmental reform committee. mylan shares tumbled 15 percent since the scandal broke a month ago, following another quarter of a percent. we didn't say that the ceo heather bresch is the daughter of the west virginia senator joe manchin. liz war -- warren giving the wells fargo ceo john stumpf a capitol hill beat down. she led the charge specifically
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to the underfire ceo he should be criminally investigated. that he was one who inspired intense sales tactics that led to creation of millions of fraught lent accounts. >> you set the target at 8 accounts. every customer of wells should have eight accounts with the bank. and that is not because you ran the numbers and found that the average customer needed eight banking accounts. it is because quote, eight rhymes with great. this was your rationale right there in your 2010 annual report. liz: using his own words against him that are actually on paper, charlie. >> just want you to know i tweeted out here and you can go to twitter page. kiss of death, wells fargo speech john stumpf, giving exclusive interview to jim cramer couple weeks ago. reminded me -- liz: after the -- >> after the scandal broke where they allegedly created millions of fake accounts, lower level employees did there all under
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the nose of mr. stumpf. these were fake accounts, bank accounts, credit card accounts that these people had to pay fees on. mr. stumpf gave exclusive, put that in coats, to mr. cramer at cnbc, which i thought was fairly laughable. more or less like, it was like a, it was like a segment of excuses. >> we would have taken if we had gotten it. >> we would ask different questions. liz: they didn't give it to us. >> we ask different questions. i would say this. reminded me the sort of interview jim gave to the head of wachovia bob steele, right before the financial crisis where bob steel said, listen we're fine. days later they employeded. -- imploded. reminded me. they didn't give it to us because we would ask tougher questions. hearse what we know, liz, every bank executive i spoke to, i spoke to a bunch in the last 4hours and i was dubious about this at first, they think stumpf is a goner.
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that he will have to resign at some. >> reported on the show. >> i reported last week people close to him say he concedes his job is in jeopardy. there seems to be, you know, a lot was riding on this hearing and he did not do very well at this hearing. so the general consensus right you now is, people i talked to just before and after is that he's done. why didn't he do well? this is fascinating. that a guy who created bank culture of cross-selling which is not in itself a bad thing. liz: not illegal. >> not illegal at all. this is aggressive sales tactics people got carried away obviously, he was not able to answer legitimate questions about compensation. if you hear him say i don't know, i will get back to you, it was actually frightening. >> i lost count of six. i kept count of some of this. he did say i can't recall at least three times. look, there were a lot of dates asking him to regurgitate. >> things about basic corporate governance stuff.
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you're the chairman of the board. could there be a claw back here? yes, there could be a claw back. we'll talk about a claw back. he kind of seemed flummoxed answering it. i will say this, last week the banking analyst, dick bove said that he is likely to survive. mr. stumpf likely to survive because he did very well in his job. today we talked to him. and he said, no, he won't survive. dick bove. here is the real wildcard in this, liz? where is warren buffett? someone you're close to. why isn't he commenting on this? liz: he will wait and see. he is a big fan of john stumpf. >> yeah. liz: don't know if he is. >> you should ask him. liz: i will. thank you very much, charlie gasparino. closing bell we're six minutes away. we're coming right back. the dow is still up 41 points. don't go away.
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melissa: we are less than 24
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hours away hearing what the federal reserve may do. we expect they might not hike rates. we're more interested in the projection for the u.s. economy. either way we don't want you to wait around to decide what to do with your money. should you buy or sell stocks? we'll bring in michael binger, a billion under assets. are you buy or sell on markets? >> right now when i say sell, i say trim. i think recently soft economic data. the fact we get a rate increase at least by december, maybe a surprise tomorrow, we'll see. markets are kind of a rich valuation. we could see five to 10% pullback. but at that point you have to be ready to jump in because 2017 will be a good year. liz: that is good to know. when it hits, there is the point to jump in, what do you scoop up? >> well, i'll tell you what, i really like general motors now. i think it's a great dividend stock. it pays 5% on dividend yield on itself without any price return
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of the company is doing well. they're a cyclical stock. the financials are really good right now. you have the great dividend. it is way too cheap where they are in the cycle. liz: i notice it was up it 1/2%, got upgrade to overweight from morgan stanley -- 2 1/2%. i hate the fact we're wondering which fed head said what. bill dudley, mr. lockhart, all kinds of things. leyla brainard who squashed all of it. should the fed tune out what the fed says? we don't want them to tune out to us but tune out what the fed says on a day-to-day basis? >> when you think about it i think you should. we'll get another rate in 2016. if it is september or december, does it really matter. we're at so low rates i don't think 25 will make a big difference. people need to focus on an economy that gets a little better and earnings that get better. earnings have been a little punk. we expect that to reverse.
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that will really drive stock prices, not what the fed does, not what they do or when they do it. [closing bell rings] liz: michael binger, good to see you. speaking of earnings, we're waiting on fedex and kb homes and adobe. david, melissa, for "after the bell," guys. melissa: stocks ending the day on a positive note i'm melissa francis. david: i'm david asman. this is "after the bell." we have you covered on the big market movers but first here's what else we have for you this hour. new intel on the bombing suspect in new york and new jersey as investigators are on a desperate hunt to determine if the man acted alone. the suspect's father is now speaking out and the warning he supposedly gave to federal authorities years ago. why he believed his own son was a terrorist. meanwhile the nominees are preparing for the fight of the century. donald trump blasting hillary clinton for taking a day off from the campaign trail.

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