tv Countdown to the Closing Bell With Liz Claman FOX Business October 31, 2017 3:00pm-4:00pm EDT
reform. >> so while sarah huckabee sanders was speaking, the markets did lose a few points, since regaining. and, of course, this idea of whether or not corporate taxes will be phased in or not is one that many investors are focused on. getting town to that 20% rate by 2022. trish: deirdre, thank you. liz, over to you. liz: trish, of course, i was listening right alongside you and deirdre as sarah sanders said donald trump did not collude with the russians to throw the election. we know that the cold war is long gone, but the old soviet art of espionage is alive and kicking online. who let it happen? at this hour the big trifecta of social media goliaths under fire on capitol hill. facebook, google and twitter fending off questions from lawmakers on just exactly how russia was able to push thousands of political ads and bogus election articles in front of hundreds of millions of
american users. former kgb spy turned american patriot jack daughter can-- jack bar sky might know, he spent ten years hiding in plain sight in the u.s. as a soviet spy. he is about to reveal russia's propaganda techniques of 2017. plus, the former fbi bigwig who spent his career chasing soviet spies just like jack, they'll give their two rubles, so to speak, on the russian election probe. and right now behind closed doors we're hearing that how speaker paul ryan is on capitol hill feverishly working to iron out last minute details before the president presents the tax plan to the american people, the big unveil. will wall street and regular joes like you and i get the answers we've all been waiting for on what we will see as far as tax cuts and/or reforms in our all-star panel is weighing in with the latest breaking
news. on wall street, stocks tracking for their best monthly gains since february as the nasdaq tries for another record at the close. a lot of news packing in right now. i need you to stay right where you are, watching fox business. we're less than an hour to the closing bell, let's start the "countdown." ♪ ♪ liz: so to that breaking news, we are watching capitol hill. every door right there, especially on the republican side because house speaker paul ryan is meeting at very moment, and we're hearing possibly with vice president mike pence in atten dance along with representatives of 14 conservative groups that look at things like tax cuts and tax reform. this all ahead of tomorrow's tax framework reveal in less than 24 hours, so we're going to bring you those pictures and any kind of sound as we call it here on television as soon we as soon ae them. we will let you know. investors are showing no fear as
october come toss a close -- comes to a close. october and september are usually the scariest two months, right? not so this time around. the dow, s&p and nasdaq are all trading higher today and for the entire month. the dow surging more than 4% the past 31 days. the s&p up more than 2%, and the nasdaq pushing over 3% higher on the month, driving toward another record close for the nasdaq. the level to watch that we really need you to look at right here is about 6,701. right now we do have it at 6, 6,734. the only index pumping the brakes in october is the i dow transport index. so as we look at the dow transports, down about 18 points at the moment or just a fraction of a percent, but all in all it has been an excellent month for equities right now. not bad at all. can you believe october's already over? >> not yet. halloween, whoo hoo! [laughter]
liz: okay, austin. genius, this one. apple pumping the brakes as well on its relationship with qualcomm. apple already locked in a legal battle with qualcomm over the business practices and things like licensing the chips? well, now according to sources apple may be taking steps to develop its iphones and ipads sans qualcomm chips. no more, maybe? it's just a report, but apple shares are hitting a new record. they are continually up right now about $2.40, they stand at $169.12. qualcomm investors clearly unhappy, shares are down about $4 or 7%, and i believe intel may very well be the beneficiary here because if people look and say it's not going to be qualcomm, maybe it is intel which is moving higher now by 2.75. broader chip sector as well, you can't ignore invidia, on track for the third record close in a
row. three dramatic sessions, and, you know, it's a fascinating sort of graphic chips area that has just exploded for that company. that stock now $206 and change. advanced micro devices also hitting multi-year highs. micron too. athletic apparel maker under armour sinking to its lowest point since 2009 after it flashed its full-year outlook -- slashed its full-year outlook on weak demand in the u.s. and canada. is it out? i don't know, one minute these things are cool, and the next? under armour is in the way, way back as we used to call it in my mom's station wagon. i tap the way, way back. it's down 20% right now. under armour is just a $13 stock. to the white house where the press briefing just wrapped up, press secretary sarah sanders hit with a barrage of questions concerning paul manafort as the russian probe charges deepen swirling around what were the
early bones and skeletal structure of the trump administration. fox business' blake burman was right there. as you get before our cameras, i was kind of taking score. up until your question, only one other question had been about tax reform, the rest were about george papadopoulos who has already pled guilty -- >> reporter: right. liz: as we told our viewers yesterday. but what else did you hear today that matters to that line, to that thread of the russia investigation? >> reporter: well, look, liz, the white house in a way feels vindicated with the charges that came against paul manafort and rick gates because those happened before manafort ever got to the trump campaign, from 2006 to 2015, predates his existence with then-candidate trump. however, there is a different headache now, and it's involves someone most people had never heard of until yesterday, and that is george papadopoulos, this low-level adviser to the president who admitted to lying to federal investigators that he was seeking contact with a
russian national. and now papadopoulos is cooperating with the mueller investigation. this has risen now to the level of the president, so much so that he tweeted about it earlier today, and here's what he said. i quote here, he said the fake news is working overtime as paul manafort's lawyer said, there was no collusion and events mentioned took place before he came to the campaign. he then goes on to write: few people knew the young, low-level volunteer named george who has already prune to be a liar. his -- proven to be a liar. his last point, check the dems. it is very clear right now, liz, that this trump white house is trying to discredit george papadopoulos, one time a low-level contributor to the campaign has somebody who should not be trusted. here was sarah sanders. >> i think it's an example of, actually, somebody doing the wrong thing while the president's campaign did the right thing. all of his e-mails were voluntarily provided to the special counsel by the campaign, and that is what led to the process and the place that we're in right now with the campaign
fully cooperating and helping with that. what papadopoulos did was lie, and that's on him and not the campaign. we can't speak for that. >> reporter: by the way, sarah sanders has been saying for a handful of days they believe this mueller investigation is winding to an end or at least saying nearing its conclusion. sanders today would not say what information they have or maybe don't have that leads them to believe that is the case. liz? liz: blake, again, this story is twisting and turning, of course, and again we don't forget george papadopoulos, and we also pointed out that it's not just the republicans who have been in the special counsel's crosshairs. it ising -- it is, of course, very important to point out that the democrats are too. we told you that yesterday because democratic lobbyist tony podesta has resigned to fight charges. in doing so, we inadvertently showed you a picture of john
podesta, his brother. we regret9 the mistake here. it's actually tony podesta who has resigned due to the mueller investigation swirling right now and, again, we regret that error. back to this story about the russians, here's how insidious the russians really get when it comes to being online. have you seen these handles on twitter? look at this one, @it's time to secede which advocated for the secession of texas from the united states or how about this one? @ten underscore gop. guess what? both have been found to be linked to russian operatives, and both have been kicked off twitter, suspended. so right now representatives from twitter along with facebook and google are testifying on capitol hill. these are live pictures from the senate governmental affairs committee as they look to determine what role the numerous now-suspended accounts with russian links played in meddling or convincing some americans -- maybe even just one -- to change
his or her vote in this presidential election of 2016. we bring in a former kgb agent who spent ten years undercover spying on the united states. he is also the author of "deep undercover." his name is jack barski. i became fascinated with your story when i saw the incredible "60 minutes" piece on you, sir. back when you were here in the united states hiding in plain sight, you would do what? a chalk mark under the west side highway to indicate to other russian operatives here in the u.s. that you needed to meet? >> yeah, that was a means of communication. let me tell you, that hasn't changed that much either. liz: really? >> we still use some rather primitive measures -- because they can, you know, they're not subject to technical breakdowns. liz: you just said "we." let's clarify. you -- [laughter] okay, i just need to be sure. we, you mean -- >> you know, there's a worldwide, listen, there's a
worldwide community of intelligence operatives that sort of respect one another when they get together. liz: i understand. >> that's the way i meant we. liz: are you surprised at all when we have all these investigations going on that russia meddled in our election? go back to when you were doing this in the '70s here. now, of course, you're an american citizen and a patriot, but does any of this surprise you? >> let me just clarify one thing. there's a difference between espionage and what we are call in the business active measures. what we're talking about, the meddling aspect, that's called active measures. i have here a book with me that is the definitive history of the kgb because it was put together based on notes that were taken directly from the kgb archives. there's a 30-page chapter in here that says active measures. and i give you just one
egregious example. the kgb was really, really good at this. there was at a time there were a lot of americans who believed that j. edgar hoover was a secret cross-dresser e invented by the kgb, fed into friendly news media, and it made the news media, and there were other such stories. nothing much has changed. the idea is the same, to create disinformation, to create confusion. what they're now doing, they're using the internet. and, obvious, it's a whole lot easier, and you get a lot more -- and on top of it, not only is it more widely spread, but it's, you, the gullibility of the american public has reached astronomic proportions. liz: well, we want to bring in bob anderson to the conversation, a former fbi executive assistant in charge of global cyber, criminal and international operations. you spent, sir, 15 years chasing and arresting russian spies just like jack here.
but give me a sense, now we've got -- and he's right. they don't have to fight to get fake passports or documents or have that totally tense moment as they go through tsa or anything like that. their using automated bots, they're going on twitter. and now facebook is testifying at this moment and admitting that 126 million americans looked at fake news that came through russia and on to facebook. does that surprise you at all? >> no, it doesn't surprise me at all, liz. i'll tell you, some of the things jack was saying earlier, he's dead nuts on. the russian intelligence services whether it's the sfb which is their external and internal services, haven't changed much in the last hundred years. extremely aggressive intelligence service, and all you've got to do is look to the president of russia current hi who was a former colonel in the kgb, and now you let him have the aspects of cyber and everything that can be brought with it, it is a formidable challenge for the united states. liz: bob, it's on us then. it's on the twitters and the
facebooks and the googles to figure out how russia is spewing out these algorithmic bots and millions and millions different kinds of articles that are completely fake and affecting us, is it not? what do you think will come of this hearing here? >> i think you're going to see a lot come of it. i think it's finally got to the point where the twitters and facebooks are collecting absolutely so much i raw intelligence from americans and then also being able to be manipulated and used for disinformation campaigns. that's what jack's talking about when he's talking about active measures that the russian intelligence services would deploy. i think there needs to be a check and balance on exactly how they do that and what aspects of it they can use. liz: jack, vladimir putin was kgb. now you see -- >> yes. liz: -- all of the tactics that they are using today. is he a danger to our democracy even not passing a single border, not using his passport, just staying in russia and guiding all of these tech heads to do what they apparently have
done with our election? >> he absolutely is. he was and he will be. and it isn't just putin himself. it's, i believe, the entire state. if putin were not the president, there's something in the russian character -- and i love russian people -- but in the character of the russian state that is expansionist, that is aggressive, and it has been through the soviet years, and it is now. and it is a permanent threat. and the threat is enhancedded by the fact that a lot of ex-kgb came to power, and they use whatever means available to them and whatever they can get away with to cause trouble. liz: bob, we must run, but should we look at vladimir putin as a very serious enemy right now? >> oh, he's a formidable enemy and a formidable threat especially with everything he has at his power, liz. liz: it's a really interesting
moment to have both of you on together to, robert anderson, the former bigwig at fbi and the former kgb sky, jack barsky. incredible stories to tell. please come back, both of you. >> thanks, liz. liz: closing bell is about 44 minutes away. call it a fedhead fright fest. 48 hours to go until president trump makes his choice for the top seat at the central bank. what's the one thing janet yellen's successor -- or yellen herself -- will have to do so as to not repeat history and spook stocks after the big announcement? that and much more next on "countdown." ♪ ♪
our recent online sales success seems a little... strange?nk na. ever since we switched to fedex ground business has been great. they're affordable and fast... maybe "too affordable and fast." what if... "people" aren't buying these books online, but "they" are buying them to protect their secrets?!?! hi bill. if that is your real name. it's william actually. hmph! affordable, fast fedex ground. ♪ ♪ i can do more to lower my a1c. because my body can still make its own insulin. and i take trulicity once a week to activate my body to release it, like it's supposed to.
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>> i just came from a meeting with the president. he is all in on tack reform -- tax reform, 100% onboard. so we are linked, we are ready, we're excited, we're moving. we know the special interest groups are going to come and try to protect various carveouts and loopholes, but we believe this is right for the american people, and i'm excited to have this engagement with our conservative leaders to help make sure this gets done to the benefit of the american economy and the people in this country. thank you very much. >> thanks, guys. liz: house speaker paul ryan moments ago emphatically promising he and republican house members are working up to
the 11th hour ahead of tomorrow when president trump reveals the tax framework he would like to see and what the house has cobbled together. tax reform sure to be a market mover but also we have thursday's federal reserve chairman announcement. the big pick. it's one of the most high profile job hunts in the world, and it's about to come to an end in less than 48 hours. we're going to get the name of the new fed chief. the name, for sure. i mean, we've heard rumors, but president trump is expected to make that announcement after the federal open market committee meeting wraps up. it's a two-day meeting, it's happening right now. we decided to take a trip down memory lane -- it's not always a good one -- and discovered since the first fed head was appointed back in 1914, the dow's returns on average dip six months after a new chair takes the job. is it, like, the freshman nerves? who knows? will this be the case this time?
let's get to the traders, john corpina, i was looking. i'll tell you something, alan greenspan looked the worst. he was appointed by ronald reagan but served through a couple of presidents, and six months after he was down 28% at least on the dow. >> and just on that screen before what was the average? itit was 0.3, is that correct? liz: yes. >> that's not a major market mover. like we've said before, the way this market is looking for headlines to react to, if we do get a pullback from something like a new fed chair announcement, a 5% pullback is not that big of a deal. so let's not get too panicky over what's happened in the past and what can really happen to this market here. so many things are happening, like you said, this week; tax reform, fed announcements. we still are in the middle of earnings season, and that seems to be adding a lot too. today's the last day of the month, heading into the last two months to of the quarter, end of the year. portfolio managers are really forced to watch and see how this
market's going to react the major headline. liz: yeah, i think you're right. especially for friday, the october jobs report. luke, again jerome powell is the name that's been floated. he is sort of a mimeographed copy of yellen if you talk to fedex perts here because he's sort of on the -- fed experts here. he's a former fed governor. what do we see if he takes over? and what makes it a little bit different is that december shows a 96-plus percent chance odds are we will see another rate hike again. does that add any tension to the announcement? >> i think it adds a little tension. but you've got to remember how low we've come and what's going to be the increase in that rate. just a quarter of a percent maybe, maybe lower, right? and i think it depends on how he carries himself for the next six months, the year after that. that's why you see after the fed governor's appointed for those six months people are kind of feeling it out, seeing how he reacts, what he says.
they're trying to interpret his statements. but i think he's probably going to do what yellen -- [audio difficulty] normalize rates. this market can take a big hit. liz: except that, larry, look at the dow jones industrials, we're higher by 53 points at near-record highs, 23,402 for the dow. we are no longer in an emergency situation which would require such low interest rates. >> no, we're not. but i think, you know, short-term rates a different story. right now developed market rates, long rates on the year are up about 17 basis points. you know, they could go up another 100 basis points. i'm talking about the ten-year yield without any really effect on the market. corporate financing, they're awash with cash, so for them to borrow money for capital expenditures doesn't make a whole lot of sense. i just think we need to realize that raising the short-term rate, the two-year yield, a different story. liz: okay. >> this helps with the velocity
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♪ ♪ liz: we have breaking news. you do not see this very often. a coal company surging at this hour, arch coal is jumping 8%. why do we care about this name? this may very well be the strongest manifestation of at least one of president trump's first-year promises coming to fruition. after a year of promises on the campaign trail and about ten months in office, president trump's moves to revive the coal industry may be paying off. look at the upward trend in coal prices over just the last year. this as u.s. coal miners are finally expected to report good earnings for the season. will they last?
ironically, we happen to have jeff flock at the will country generating station in romeoville, illinois, jeff, where i assume a lot of coal is floating around there. >> reporter: right behind me. maybe you see it. a big, black pile back there. and that's, you know, a plus for a plant like this because, you know, they've been on life support with the clean power plan. but the president getting rid of that and chunks of coal definitely envogue here at the moment. there's two sides to the story. some positives, obviously, the end of war on coal, but take a look at the one-year. they've still got a lot of a pit to dig out of if you look at the coal companies. one year, they're still all down pretty much, even the ones that have come out of bankruptcy that not done tremendously well. the oh negative piece, i guess, is the reason the president is so concerned about coal companies and fortunes of the coal companies and ending the war on coal is to create jobs. well, if you look at the reason for the profits for a lot of
these companies, it's prices. as you indicated there, last year about $55 for a ton of coal. this year about $88 for q3. so huge pricing increase there. that's helped profits. exports have been a plus though. in september double the exports that we had last year, so that's, obviously, part of the president's agenda as well. and lastly on this subject of the plant behind me, as i said, plants like this that are coal-fired had been on the way out. well, electric utilities, if you look at the numbers now -- and, of course, the trend is still away from coal and toward natural gas for electric generation -- but in 2010 the electric power-generating industry burned almost a billion tons of coal. 2016 that was down to 677 million tons. but this year they expect to stop that trend and actually pretty much flat or even maybe a little bit of an increase.
i don't think this is going to create a ton of new jobs in the coal industry, but it may bring some back, so that's a positive. long term, though, i think natural gas when you talk about generating power, cleaner, easier to get to, cheaper. liz: you know, that's the thing. there are some real experts in this field who say it was the free market that kind of killed coal. of course, president obama wasn't exactly standing to the sideline there, but you're right, natural gas is so cheap. in fact, let me just quickly check so that we can see exactly what natural gas is doing. >> reporter: oh, yeah. liz: it's per million british thermal units, that's cheap, $2.90. >> reporter: it is. you can't compete with that. and a whole lot easier to get. you don't have to be down in a mine inhaling coal dust to harvest your natural gas. liz: look at that. >> reporter: it's true. liz: good to see you, jeff, thank you very much. with the closing bell ringing in about 28 minutes, mylan finding itself in legal crosshairs once again. a big entanglement.
we at "countdown" brought you that epipen overcharging story more than a year ago. we kept pulling at every string and now a new thread is emerging. reports say mylan's president could be the target of a multi-state civil investigation into alleged generic drug price collusion. but mylan along with the ceo, heather bresch, standing by their man saying it has, quote, deep faith in mr. mall lick. -- mallic. excessive drug pricing is one of the many concerns that the white house has been tackling, but for the next 24 hours it's not health care, but tax reform. say it 12 times in a row, you can bet that health care's taking a backseat. it's now 401(k)s, state and local deductions, carried interest all on the line. can the gop finally deliver on its promise of fairer and simpler tax policies for all? that and more coming up, our
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♪ ♪ >> i want the house to pass a bill by thanksgiving. i want all of the people standing by my side, when we get ready to sign by christmas -- hopefully before christmas finish you'll all be in the room. liz: oh, really? congress might have to save that expedia page and get out of it and hold off on booking that holiday trip to acapulco or wherever. president trump urging lawmakers to pass what he calls the biggest tax cut in u.s. history
before 2018. you just heard him. put two points on the calendar, thanksgiving and christmas. while the exact legislative text of the gop's tax reform plan still remains unknown, by this time tomorrow house republicans will have released the exact details at least of the framework of the plan as concerns continue to mount over the plan's specific details including what's happening to taxpayers' 401(k)s. that's just the tip of it. let's bring in former aide to senator chuck schumer, chris hahn and boyd matheson. boyd, there's going to be the big unveil tomorrow. will any of it, what you're hearing, surprise us? >> no, i think you're going to see a pretty broad brush as they get started on the house side. there are going to be some heartburn moments when it comes to things like the 401(k), mortgage deductions. there's a lot of those that i think if they're not careful, it's really going to hit middle class, hard-working families in
particular. >> right. >> you've got some interesting things that senator mike lee and marco rubio from florida have been working with ivanka trump and the white house on in terms of the child tax credit. that may be the only thing standing between hard-working american families and some pretty brutal things inside of the bill, but we'll see tomorrow. liz: that distresses me because you are a republican and have worked for a republican senator. [laughter] you've been on the inside of -- chris hahn, i was expecting a fight here. [laughter] i'm guessing you agree. >> i mean, basically, he just said everything i was going to stay. [laughter] -- say. there are a lot of things in that bill that are going to have to come out of that bill before it passes. thanksgiving is three weeks and two days from today. i don't know why the president thinks that's going to happen if he wants to completely change tax policy in america in three weeks. he might be able to get it new the house in three weeks, but the senate tends to take some time, as i'm sure my colleague will tell you. >> yeah: >> they like to take it slow there, and there are a lot of people who still believe on the
republican side that the deficit needs to be considered. and from all i've seen about this tax bill, it's going to greatly increase the deficit which, you know, last year i recall them yelling at me about everything obama did to increase the deficit. now i guess they think it's okay. liz: you just talked about what people believe. here's what i and many of our viewers cannot believe, boyd, is that they're even talking about changing or manipulating our 401(k)s. what surprises me is they're doing that to find revenue to pay for this, of course, we do need the find a way to pay for at least some of it, but what about what the president talked about on the campaign trail, something that actually tends to benefit the private equity guys, very wealthy guys? here's what he said on the campaign trail. >> as part of this reform, we will eliminate the carried interest deduction, well known deduction can, and other special interest loopholes that have been so good for wall street investors and for people like
me. liz: okay. for people who don't know, carried interest allows very wealthy people in private equity to take their income as capital gains and taxed at only 15%. boyd, why has that not even been mentioned anywhere in the past three months of talking about tax reform? >> because the one thing that nobody is looking at right now, the real battle that's going on in washington is all of the lawyers and lobbyists who have descended on capitol hill -- liz: ban the lobbyists. >> they are, they're fighting for all of those loopholes for their clients who can pay for it. and no one's looking out for the little guy who can defend, hey, my 401(k) matters, my mortgage deduction, that's a big deal for me and my family. and chris gets this from the house side and chuck schumer's office. there's a lot in there that is being driven by the lobbyists. and the president, if the president doesn't step up on this -- and, i think, mitch mcconnell has the step up. that's where the battle's going to be. if they can't lead a way through
this thing, then they've got some really serious issues. they've messed up on immigration, health care and a host of other things, but this is for the american people's pocketbook, and if they can't get it right, there's not a whole lot they will get right. liz: chris? >> it's one of the things i agreed with president trump on when he was on the campaign trail, getting rid of the carried interest deduction, and now he's trying to get rid of 401(k)s -- liz: let's be fair here, that was something kevin brady brought out. >> well, you know, if that passes and the president signs it, he's signing his own death warrant politically. because there are too many people in this country that are relying upon that. and with pensions really not existing as much as they used to in this world and social security being on rocky ground, americans want to prepare for themselves, and the 401(k) plan is the way most americans now prepare for retirement. and it would be a shame if that went away. liz: great to have both of you. the reason we bring up carried interest is because it is also called welfare for the very rich. >> that's right.
liz: and nobody's even talking about it. it's off the table. that i don't get. boyd, chris, thank you so much. >> thanks, liz. liz: we're coming up on about 17 minutes before the closing bell rings, and the dow's gaining about 37 points. we're keeping our eye on the nasdaq in particular. we need to see the level of 60 to close above 6701. we're definitely above it right now, so we'll keep our eye there. charlie gasparino, we were just talking about taxes and what deductions are going to go and be left by the wayside? that s.a.l.t. one, state and local tax deduction, it's a big battle. exclusive details he is hearing about why house chairman kevin brady could be about to make congressman peter king his constituents' worst with nightmare. "countdown" is coming right back. whoooo.
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♪ ♪ liz: gary cohn and steven mnuchin holding a late night phone conference, that would be a conference call, with new york house -- [laughter] >> thanks for clarifying that. liz: -- to give them an opportunity to voice their concerns about possibly losing their coveted state and local tax deduction. so far doesn't seem their voices have been heard. charlie, you told us last night there was going to be that phone conference -- >> from what i understand, it lasted a half hour. it was nine members of the new york delegation including dan donovan -- this is gop congressional delegation. which is big, because the house has to vote on the tax plan. dan donovan, i believe -- not that i believe, that i know -- peter king was there. the members were not impressed. they got to say their two cents, why they think new york needs and other high income tax states need the state and local tax
deduction. they believe that new york, because of its wealth, contributes a lot more to the federal coffers -- liz: was anybody listening who had any power? >> yes, it was mnuchin and gary cohn. liz: beyond that, my point is the power lies with the voters, with the representatives. >> right. here's the thing, there's two, there's two ways of looking at this. you know, congress is putting together this plan, but they're doing it in concert with mnuchin and gary cohn. so they made their peace. they were unimpressed by the response which was we'll talk to you later. as you know, kevin brady came out today and said the house -- the deduction will not be in the plan that's unveiled, i guess, tomorrow. who knows what's going to happen in the future. so here's what we got from the congressional delegation from new york, is that they are still -- that's nine members -- still not sold on the tax reform efforts. they are worried, obviously, over the s.a.l.t. deduction, and what we understand is there is a growing consensus among those nine members to oppose the tax plan, to vote against it.
the question is, is this total buy cot from new york enough to kill -- boycott from new york enough to kill the deal, and will other high-tax states such as the republicans from california and maybe virginia that have this income tax issue, will they, will they vote against it. and the notion that they vote against it either kill the deal, or brady, ken brady -- kevin brady, the house gop leadership, paul ryan, come back with a compromise. we did get a quote from dan donovan exclusively. i would be outraged if the input was all for naught, which they gave to mnuchin and cohn. i believe chairman brady, but this would be outrageous for tax cuts to be paid for the rest of america on the backs of new yorkers. liz: and, again, you made the point yesterday that there are some people on long island, there are people in, you know, outside of sacramento in california, they're not wealthy. and these are people of who have depended on that deduction. you and i got some blowback on twitter saying that we're scoffing on poor people in the
southern states who use a lot of the -- >> listen, as much as -- liz: we're not. >> as much as people like to deride new yorkers for not understanding what's going on in middle america and the south, i went to school in middle america, university of missouri, spent a lot of time in the south in my journalism career. a lot of people don't understand it. not everybody is a gazillionaire. if you're a family of five and you live outside of l.a. or outside of new york city like in long island, a family of five with an annual income of $200,000 a year, that is not rich. it sounds rich for, you know, middle america which it would be -- liz: right. >> based on the taxes, the housing prices, the cost of living, that is firmly middle class. and that state and local tax deduction helps you. so i'm just telling you, you know, for flight -- i know new yorkers are very insular, and we like to think of the midwest as flyover country. not all of us do, but for people
that watch fox, and i know we have a huge audience in middle america and the south, in the middle -- in the midwest and the south, new york, california, these high-tax states is not all, you know, rich wall street guys. liz: yeah. >> construction workers, families that are scrimping. and, yes, they make some money, it sounds big there, but it's not big where they're living. liz: charlie, thank you very much. we do have breaking news right now. we want to take you to lower manhattan where police are investigating reports of a shooting. this according to the new york police department's twitter account. one person has been taken into custody. there were no other outstanding suspects or what they perceive to have been an active threat. this is the picture from downtown right now. when we come back, we are going to be looking at this last and final couple of minutes of the month of october session. hi, i'm the internet!
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little more serious than we had originally thought. yes, there's apparently a single shooting. one person is in custody, but it also involves a truck that went barreling down a street, hitting multiple bicyclists and then trashing a school bus. and again, the details are rather sketchy right now, but paramedics have removed some victims from the mangled school bus. this is outside -- for those of you who know the very famed santa high school. -- stuyvesant high school. the scene of the incident is lower manhattan, and now we are seeing that multiple people may have been injured, some run over as well. so we're going to keep you focused on this. it apparently happened around 3:21 p.m. reports of shots fired. again, now there's no active threat, but there are some victims. let us make somewhat of a hard-right turn here to tesla. the stock is up 1,800% since it
went public back this 2010. it has hit a record high of $385 on september 18th, just about a month and a half ago. the company is, though, expected to -- i can't even call them earnings. it's a loss for the third quarter tomorrow. can't be surprise. tesla's reported a lot of losses, but the bulls just keep kicking up the dust around tesla. ross gerber is one of them. they're expected to show a loss of more than $2 this time around tomorrow, ross. you still like them? >> yeah. i mean, this is maximum spend time for them as they ramp up for the model 3 launch. we do expect a lot of losses over the next since months but it's, you know, ramping up to seeing their revenue double over the next 12. we're bullish, you're just going to have to be patient for this story to play out. liz: you've got model 3 concerns, the less expensive version of it. so you've got, i guess, general motors is starting to look better as a stock for at least
some people who feel that they're ahead when it comes to autonomous vehicles, and yet tesla's trying to square that as well with their newer cars. >> i can't imagine who thinks gm's ahead at anything. i mean, gm is the least innovative company in american history. we're talking about tesla being way ahead of the competition in autonomous driving and in electric vehicles. who's not going to buy a car where you don't have to buy gas? i mean, this is a huge plus for the american consumer, saving thousands of dollars a year. liz: to that point, as we wrap up, somebody watching right now who says i like the idea of electric vehicles, i want to buy into that as a stock but i can't afford tesla stock, what should they buy? >> oh, you know, i would say that, you know, they're better off just sticking with a mutual fund or etf if they don't have a lot of money than buying an individual stock, you know? it's really hard to be an investor in stocks and not have diversification because tesla
does have a lot of risks. i would say you're best off with the tax fund in general. liz: this time tomorrow we'll be getting the tesla numbers, that's ross gerber of gerber kawasaki. yes, indeed, it is a record close for the nasdaq. see you tomorrow. melissa: it is treats all around for the market. the dow and the s&p are up for the seventh month in a row, and the nasdaq is ending the day with a new record close. i'm melissa francis. david: and i'm david asman. happy halloween. this is "after the bell." we've got a lot going on this hour. let's show you what we're going to be covering. it's what we have been waiting for. tomorrow house republicans are going to be unveiling their plan to overhaul the nation's tax code, and one senator says all hell is going to break loose. the latest details on the plan, what it means for you and how the swamp is responding. they are resisting change. melissa: they don't like it. david: not at all. new fallout from