tv Countdown to the Closing Bell With Liz Claman FOX Business July 5, 2017 3:00pm-4:01pm EDT
pretty muted reaction is down 11 points. let's send it over to liz claman. i was just watching a live feed. beyond 15 members of the u.s. security council. taking their seats at the united nations. they are gathered for an emergency meeting. after north korea successfully tested its first inter- continental missile. it is capable of carrying a u.s. warhead to the u.s. mainland. they are responding with a gift of their own.
president trump is set to arrive in poland in just over an hour ahead of friday's group. does the gift exchange now shove north korea to the top of the agenda. the former u.s. ambassador to the night states john bolton getting in the chair. what is going on behind closed doors. will they get the condemnation against korea. they are permanent members. they are about to meet them. the former ambassador in belgium. on this first full trading day. they are kind of taking a back seat. the inside scoop in the power
that gave the dow jones industrial a leg up. and then of course they lock -- lost that. oil is plummeting. we are less than an hour to the closing bell. let's start the countdown. breaking is we want to dip into the camera shot we had right now of what is happening at the united nations here in new york city. we have un security council officials they are gathering to discuss what to do with what some are calling the most difficult issues they have yet to have to face. see aggression from north korea. it just got ramped up. we will bring you all of the breaking headlines as they come in. it's all about a divided set at this hour.
they showed a growing risk. they are unwinding the 4 trillion-dollar balance sheet and does a couple of months and others on the battlefront. right now it is low. way below the 2% level that is really the target for inflation. the transportation average has airlines and has things like fedex and ups in of course railroads touching and intraday all day high moments after the federal reserve released those minutes. you can see climbing back down about eight and two thirds points. anyone will be the second close. we are also watching the russell 2000. it hit a new record close they
are pulling back slightly but we have the russell at this moment. i can't even see it slightly down at the moment. we do have a big black eye for the market right now. it's bruising even more as we speak. look at the intraday picture. snapping the longest winning streak in more than seven years. the energy sector is the biggest loser among the 11 sectors on the s&p. what is that about. you have russia certainly saying we will rule out any opec push to deepen the cuts that they have already done. for many investors in the past few weeks. the tech sector has everybody smiling. right now it is leading them up. with those among the tech giants you all know and some of you love or love to hate. unfortunately for those who love to hate them they are
getting very nice pop today. investors view this as an opportunity a relative discount because of the sell off over the past couple of hours. breaking right now we have the shots from the united states general security council. fifteen members it was hastily called by the u.s. ambassador to the united nations. as soon as we got word that north korea had set off a missile that could actually reach the united states alaska in particular she said we have to get this together. they are members right now. and they called this emergency meeting regarding the nuclear threat. the meeting was happening as it officially warns that war is now on the table and could be a real possibility with north korea. the pentagon sports person confirming that 37 minutes with the inter- continental
ballistic missile is the longest time of any flight for any ballistic missile they had launched today. so what did it do. it traveled 1,700 miles into space and the fact that it could reenter the atmosphere is the big part of this. it did. it makes it makes it quite capable of striking in the region and reaching as far as alaska. adam shapiro is live at the white house with the very latest. the president is in the air right now. but he knows what happens and what is developing. this morning they were responding as they head for the past couple of days to this lunch president trump there were two key tweets. the first came this morning when the united states made some of the worst trade deals in the world history while why should we continue these deals with countries that do not help us. and then is confirmed with the
following tweet. i grew almost 40% in the first quarter so much for china working with us but we have to give it a try. there have been a note that china would put pressure on north korea to ramp down its missile program. there was also is the statement yesterday from the trump administration as you take a look at the un security council meeting that is in place right now in a country that host north korea provides economic benefits for failed to fully implement the security council resolution is aiding and abetting a dangerous bridging. those are the cards that are on the table. and then the tweets from president trump. when he lands in the next hour. he should have some kind of comment about what is developing in new york. back to you. we know about the markets are very tentative here. we had crossed it unchanged 65
times so far. seven minutes into the final hour of trade. it is is hired by one. how about the asian markets. they were up into trading when this happened. in response to the turmoil. the south korean stocks we can show you and intraday. before making a recovery in and actually finishing the trading session. they followed suit for the most part. also seen a bit before. the all ordinary index. just a shave off. will the global financial markets survive going from the drum beat of war to actual war that seems to be looming right now in the distance. john bolton joining us now on whether he believes the u.s.
is ready for war with north korea. >> i don't think we have all of the preparations made because we have to worry about the contingencies. what may come up is in the near future we see a north korean icbm we don't know what is under the nose cone. what are we going to do. we are going to take other steps. but an attack even if it starts off limited to the nuclear issue may not stay that way because the north koreans might respond by attacking. nikki haley is talking right now the u.s. ambassador just after china let's listen.
it showed that north korea does not want to be part of a peaceful world. they had cast a dark shadow of conflict on all nations that strive for peace. yesterday that came from the same vicious dictator unresponsive in in a coma. the true nature of the regime was painfully brought home with the images. as they transported them from a prison he should never be in. he is but one person at of millions who have been killed, tortured, or deprived of their human rights by the north korean regime. two americans the death of one innocent person can be as powerful as the death of millions. all men and women are created in god's image to head depravity towards one is the sure sign to do much more
harm. the nature of that is clear. only in the scale of the damage it does could become different. that's what yesterday's escalation is so alarming. if north korea well treat an innocent young student the way it treated him we should not be surprised if it acts barbaric late on a larger scale. they do not seek conflict. we seek to avoid it. we seek only the peaceful denuclearization of the korean peninsula and end to the threatening actions by north korea. regrettably we are witnessing just the opposite. make no mistake north korea's launch of an icbm is a clear and sharp military escalation. it openly states that its missiles are intended to deliver nuclear weapons. and now it has greater
capacity to do so. in truth it is not only the united states and our allies that are threatened as a threat to our nation in the region and beyond. their actions are quickly closing off. the possibility of a medical solution. the united states is prepared to use the full range. we will use them if we must but we prefer we have great capabilities in the area of trade. president trump has spoken repeatedly about this. i spoke with him at length about it this morning. there are countries that are allowing even encouraging trade with north korea in violation of un security
council resolutions. such countries would also like to continue their trade arrangements with the united states. that is i can happen. our attitude on trade changes when countries do not take security threats seriously. before the path to a peaceful solution is entirely close however that remains more that the international community can and must do diplomatically and economically. in the coming days we will bring before the security council a resolution that raises the response in a way that is proportionate to north korea's new escalation. i will not detail the resolution here today. but the options are all known to us. if we are unified they can cut out the major sources of hard currency to the north korean regime. we can restrict the flow of oil.
we can hold senior regimes officials accountable. the international community has spoken frequently against the illegal and dangerous actions of the north korean regime. for many years there have been numerous un sanctions against north korea. but they had been insufficient to get them to change their destructive course. we must do more. we will not look exclusively at north korea, we will look at any country that chooses to do business with this a lot regime. we will not have patients for stalling or talking our way down to a watered-down resolution. yesterday's diplomatic response. action is required. the world is on notice.
there will be a different response. 90% of trade with north korea is from china. we will work with china we will work with any and every country that believes in peace. but we will not repeat the inadequate. we cannot forget the multiple missile test this year. we will not forget. we will not delay. thank you. the u.s. ambassador nikki haley at the united nations speaking quite frankly but also just flat out putting
forth an idea and is anybody who doesn't stand with us on this no more trade with you 90 seats. the u.s. will cut energy. what was the strongest point you just made. the security council is never better. what she is has put on the table and appropriate leash so whether they are able to take would we be prepared to do that.
i don't expect any substantial increase. but nothing significant off ultimately. they put out the statement from his military. that north korea had sent out a package of gifts on independence day for the united states. obviously, he is completely unhinged but the fact is that as we look at this missile test we can't control north korea but we can control ourselves what is the biggest mistake that the u.s. could make in the coming weeks. not the way to go we know how we been going but the biggest mistake the u.s. could make. >> to accommodate our short asset attention. >> to accommodate our short asset attention they broke a seven year monitory them. on july the fifth we were in
the security council passing the first sanctions revolution. -- resolution. that was 11 years ago. you have the human aspect and then military aspect and showing how barbaric north korea is. this is change the attitudes of the statement was strong. and appropriately so. it doesn't phase china and it doesn't phase russia. if we put a really tough resolution to a vote in the security council and it may be worth doing they will veto it. >> it is good to see. i believe we will be talking to you soon. it may be the beginning of the next phase. the former u.s. ambassador to the united nations.
as only the first full trading session of the second half of this year. one waving goodbye to the longest run in seven years. the fact is right now oil is getting crushed not just today but in the after our market plunging more than 4% hurt by rising exports in a stronger dollar. is the air getting even thinner into the end what about the dow jones industrial. to the floor show and our traders are traders all over the market. scott to you first. what is driving this. in the end there is only the fed.
there's no more confidence that they would go again in september. the market is trying to figure out. maybe a little bit worse in the broader industry. that hasn't happened yet. we are in a new quarter. the one assertion wind down. i think we will see that. you have a bull's-eye in the hawkeye. you have an oil in today i just thought it was very interesting and i guess climbing back out in them after market started to go worse. what's going on. this market got hit with a triple to me. the first one you mentioned a little earlier was the story coming out of the oil company
that said they went joint and opec production cut. the only people that can talk with any authority on russian oil production is the russian oil minister. if you listen to the russian oil countries they misled you. the bigger story their production cuts are real. the exports are so going on that they don't have a quota.
i could be a sign of pressure within the cartel. they are having a harder time keeping this production yield together. the average today is $2.23 for regular. i love it. with the stocks do they benefit from that. we know that the integrated oil gets hurt watch sectors are really benefiting right now. not too many are benefiting but i think it's one of the things when it happened before you does have to go after the blue-chip names in oil. they have to look for value. value the value and all of those stocks. some of the oil services.
if it continues to plummet and they continue to go down i would look for some of those blue-chip names. good for you guys for helping us figure out what they are. >> the closing bell ringing in 37 minutes. which car would you choose either of these on your screen. straight ahead to the wall street journal top car guy is and it will be the winner in this battle. stay tuned. liberty mutual stood with me
move over tesla there may be an moot new competitor on the road. volvo is taking a page out of the book and making the decision to go all in on electric and hybrid vehicles hoping to and reliance on the combustible engine by 2019. they also roll out a five electric cars all electric by 2021. this is news that they are also a jumping ship. they would reach 50 miles per hour parent 3.3 seconds. bring in the electric call --
car goober. no. beginning of the end. we are definitely on the road to having more electric vehicles. the regulations in both places are pushing it for the automakers and now we are seeing companies come out with what they might want to buy. do you think they will buy volvo. it's known as the car of choice for soccer moms berkeley professors. i would imagine i would imagine they are going with customer desires. it's not just volvo we are seen. and by doing that.
since 2010. within the next decade or so gas powered cars will probably be on the electric powered vehicles. it could be a big push in a big win. and the stock is responding rather favorably. should they be worried about this or should general motors do you look at them and say they've got an issue and maybe the least. it the is going to be bringing out the production. he is talking about half a million vehicles next year. building that muscle is something that he has not
quite shown that he can do. they've many years of experience. there is a 400,000 person wait list. and then you also had people that are looking and wondering. do sales take a hit. it's one thing to put an order down it's another thing to see if you actually go through with buying it. as part of the pressure that elon musk is under. not so hot. it is going all electric at some point. we will forget to click cars
for the moment. right now it's all about bikes for me. i'm not ready. my team foxbusiness i need to thank you so much for your help already. just after i mentioned once on friday he got $3,000 in donations from you guys. it's just in the first hour. you all came to the rescue. it's now up to nearly 5,000. our goal is to raise $50,000 for this great organization. defending our country. and getting a new lease on life. i don't care if it's 1 dollar or $5 or 50 cents. anything you find.
eleven days and counting to get in shape. wish me luck. we have never gone to $5,000 this quickly. which one should matter more. with the possible fireworks between german chancellor. and our commander in chief. he is meeting with both of them one on one. stated by to answer that question. howard gutman that is where he is. count on is coming right back.
this is an warsaw. he is stopping there. for a brief visit before heading to germany for the g20 summit. the present has one-on-one meetings with russian president vladimir putin and also with the german chancellor who is condemned present trumps approach and then no longer considers the u.s. a very close friend. which one should you pay attention to the most. that could be a very quiet room.
trump is taking the nine states out of the conversation on trade and on climate in on migration. so she has nothing to talk to him about whatsoever. and it will regard as a waste of time. he might have provided about north korea. do you think it's over between those two. it's a pretty strong statement. she is counting the days until 2020 perhaps but she will talk to mcmaster and she will talk to tillerson why should we trade he has converted us. we care about our own safaris and she doesn't deal with that. how closely they watch this. and what they said when they get out.
what he said upon his exiting will be very important for a lot of people. they want to get rid of the sanctions. they will say whatever it trump needs to hear. i've gotten great concessions. is there really meaningful conversations. the covert line of investigation. we know that other and ministrations had had lines of communications between certain people on the russian government in the past. more to the point of what happens at this meeting. we just had them come out
there. anyone that doesn't side there will lose trade opportunities. two points. one on the line of medications. you always had that channel line of communication. it's something that they didn't know. you don't try to set up covert ones that's the difference. just like they did from china last time they met. trump finally figured out the trade relations had never been stronger. we are running out of time ambassador because we have all this breaking news. of course she should.
if he tells andrea merkel that we will have confrontations of more than one front. it will be one heck of a time. by trying to start a trade war. that could be real fireworks. thank you very much. as we look for 18 minutes ago. one hundred plus times that's how many times they have been up eight points. till illinois and the great -- grave situation there. they came up swinging in the last hour. they moved to override the veto to a shocked on budget deal.
corporate taxes. let's not just taxes that are worried about that. they have not yet receive their state tax refunds. we are joined by one of those people. they're still waiting on the tax refund. i did the right thing. to say that i am in illinois and i am annoyed. thirty maybe 60 days for the longest. let me just clarify.
some people say a high net worth. have you ever seen it take this long. i don't make that clear. this goes along the lines of what we are seen on this. up until recently. they are not doing the lottery anymore. they don't have to pay some of these people. it has already taken a lot of these measures with how they are not paying people. they did not give a clear view today in fact they are pushing until tomorrow when they will decide whether to override the governor's veto.
having a business perspective. some mismanagement. you don't want to state to default. you don't want the state to not keep up and have the credit rating gone to junk status. his higher taxes the answer what is the answer for raising taxes. i think that's what they're trying to do when they got down to springfield illinois. they have a little bit of this with a little bit of that. maybe we need a tax hike somewhere along the line. gifted prepare that with lower regulatory. and you have to attach that
thing. it does not do. especially workmen's comp. i think they should feel that. what are you going to do that. i'm hoping you're going to come help me load my u-haul. i say that as a joke. would you really come do that with me. i will say what. the scary thing is they have folks that are not mobile. but for the folks that can there are people that are already talking about given the run rate of what were saying already looking at making some plans to move away. i am surprised that you have not already moved. it is just horrifying. thank you so much.
she said we will not look exclusively at north korea. any country that chooses to do business with us a lot regime. we will not have patience for stalling or talking our way down to a watered-down resolution. she wants the strong resolution speaking out against the missile launch yesterday. foreman is to minutes to go before the closing bell rings. the auto parts makers hit by weak sales at least for one of them i think the others are getting swamped by that. >> do you remember this group. they were the ones hitting the all-time highs. it was 13 to 14 years. this group was a stellar group however we got the latest report and this is from the auto parts company. they have weak cop sales. they talked about the difficult environment. and also the analyst is
talking about the consumer demand. overall the confidence among the lower end consumers is under 50,000. whether that is health care costs or debt or whatever. and they are just not spending the money. they sell off 18%. the lowest since early 2015. three year low. you saw the big sellout. what a day. maybe that is swamping the automakers. i see for chrysler and gm all down. the stocks and at the first half of 2017 with quite the bank as you can see from this picture. but will the fireworks continue as we kick off the second half of the year. the next guest with more than 3 billion in assets under the belt.
you just give us the crystal ball. what will spark the fire. sizzle might be a strong word. but what i think is going to help us is the earnings growth. we are poised to have almost double digits again in this quarter. we will have to see that fizzle out. there are companies out there that do extremely well. i think there is some real validity to their questions. they were some of the best performance. we've a lot of them doing rather well today. do they continue the run that feels a little bit like a momentum play that you want to be careful of and when you start to hear people say some most of them have high valuations but it's justified.
i can start thinking of the.com bubble. there are some really strong players. this is a stock we've owned since april 2015. we actually added to in february. it sold off 8% in june. they lost almost $50 billion in market cap. i think there is some value there. i do think other tech names look pretty rich. and of course alphabet which we've already mentioned. is there a common thread. >> all global leaders. it's not a well-known industry. they do is 60% of their business. with the third-party payers. not as much as a regular. it's really strong. and then obviously the global
brand leader doing great at a great earnings report. it closed up four points although we are losing some steam here. thank you very much. we will send it over on the first day as we close out they were jittery today. it is ending up the day to slightly down. they look to be just slightly up. more on some of the big names. this is what else they are recovering entering the very basic us hour. in the highly anticipated face-to-face with vladimir