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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  September 17, 2018 3:00pm-4:00pm EDT

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how thrilled james is, the kids, mom and dad. we are so happy. congratulations. all right. i will be joining "the five" on fox news channel tonight. hope you tune in, 5:00 p.m. eastern. liz, take us from here. down 71. liz: i know. mazel tov to your sister. breaking news. we are watching the market as we await president trump. he will hold his first official meeting of the national council for the american worker, the group he assembled to provide strategies and train workers specifically for the jobs of the future. we do expect he might make some comments on camera, maybe about trade talks with china. the trade wars continuing. the economy and perhaps on even the government's response to hurricane florence. we will take you to the white house as soon as we get that information. it's the latest $200 billion grenade about to be launched in the china trade war has the market colored red. dow jones industrials down 65,
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s&p down 12. the nasdaq down 84, as businesses fear the worst. markets hit session lows since larry kudlow said the president is not satisfied at all with the china trade talks, and tariffs are coming quote, soon. you get to define soon but it may come in this hour. we don't know. florence has exited stage left and has left 23 dead. the region submerged in trillions of gallons of water. some forecasts say the worst is actually yet to come as businesses struggle to reopen shop. could companies have avoided the damage? we will introduce you to a company that formulates a battle plan for businesses before the storm in order to dodge mother nature's worst punches. apple's latest disruption giving the medical device industry heart palpitations as the new watch comes with an fda-approved ekg. the chairman and ceo of stanley
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bergman distributes hospital quality ekgs and is here in a fox business exclusive. and news of a brand new generic for those who suffer from migraine headaches. i know a lot of you do. the ten-year now back above 3% while the s&p, it looks like it might miss a five-session win streak. less than an hour to the closing bell on this monday. let's start the "countdown." liz: we have this breaking news. the justice department has just granted clearance to cigna's $54 billion acquisition of express scripts. the deal is expected to close by the end of the year. shares of both companies are jumping on this. cigna getting a 2% gain but look at express scripts. this one is moving up 4.25% on trading volume of five million shares. there you go. megamerger going through. to the markets. the major averages are under
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pressure as uncertainty remains over when exactly president trump might implement that next round of tariffs he green-lit last week, on $200 billion worth of chinese goods coming into this country. take a look at the nasdaq specifically. that one's getting hit hard here. tech is one of the sectors that could be harmed the most by another round of tariffs, because everything from electronics to all kinds of circuit boards would be affected. the tech-heavy index is down more than 2% this month. right now it is lower by 83 points, on pace for the worst monthly and only decline since march for the nasdaq. not helping matters, amazon. can we look at that? the e-commerce giant falling on news it is investigating claims employees accepted bribes in exchange for confidential data and to delete negative product reviews. according to the "wall street journal" this practice is particularly pronounced in china, but the investigation does include employees here in
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the united states. shares are down 2.50%. the stock is at 1,119 per share. you can see that amazon is causing pressure on other tech names. facebook, alphabet and netflix all lower, with netflix down about 3% here. kind of a surprising move, raymond james has upgraded bed, bath & beyond, how about that, a plain vanilla brick and mortar company, to market perform from underperform. this comes one week before the retailer is set to report quarterly numbers. what does raymond james know that others don't? analysts see upside in bed, bath & beyond sales thanks to improved consumer spending. i just bought two king-sized wonderful pillows on their website. not in the store. but shares are jumping nearly 7% for bed, bath & beyond, bbby. did you see the dow the minute the president's economic chief said that new round of tariffs on china might be coming, as i said, quote, soon? let me show you. look at the intraday pictures.
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around half past noon eastern, larry kudlow prepped the market for the next salvo in the form of $200 billion on duties on hundreds of chinese products entering the u.s. if the past month has been any indication when these kinds of headlines hit, our indices will recover, if not today because right now they are kind of taking another look down but maybe tomorrow. across the pacific, though, different story. shanghai's composite index still sporting bruises in the shape of a bear, as in bear market. overnight, chinese stocks closed at their lowest level since 2014. we asked this question, will this pain push them to the trade talk table? in a fox business exclusive, derek scissors is the aei resident scholar and china global investment tracker author. welcome at the moment. i just want to let you know that we are getting news that the president is in this meeting and bloomberg is reporting the president will report that the
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latest china tariffs will kick in after the market close today. your reaction? let's mark the dow, down 64 right now, see if that moves anything. we will put it up on the screen at the moment. give me your reaction. >> well, i'm going to go against what i think the conventional wisdom is, and say the 10% tariffs themselves don't really mean very much. you look at china's currency, it was almost 10% stronger against the dollar five months ago. for a lot of products that the tariffs will apply to, it's just taking prices back to where they were in april. i think where the tariffs matter is if this means there's no further negotiation between the u.s. and china for the next few months. so the consumer part i don't think matters. the negotiation part is what matters. liz: okay. i have to say either china is ready to show some serious bravado or is whistling past the graveyard. one minute we have breaking news, call it 54 minutes after the market closes we will see another $200 billion, while a
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chinese tabloid is saying china will not be content to simply play defense in this war. the shanghai market's now in a bear market. will that be enough to make them come to the table and offer something the u.s. desires? >> i think the chinese want to offer us something. they just don't want to offer us what we actually want which is a change in the way they do business. the stock market does not matter as much in china as it does here. obviously it's a sentiment indicator. not as many businesses involved in the stock market, not as many people involved in the stock market. i think if you want pressure on china, you will have to see their growth slow or their surplus, trade surplus with the u.s., shrink. liz: which it's not doing at the moment. in fact, it's doing the opposite. let's listen to something else that larry kudlow, who is the chief economic adviser to the president, said today at the new york economic council. >> -- but not the only culprit. i will say right here on china,
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we are ready to negotiate and talk with china any time that they are ready for serious and substantive negotiations. liz: now this, we got a lot of breaking news. this is just hitting the tape. president trump is saying china quote, wants to make a deal. he says that announcement is still coming, though, after the market closes. can you maybe give us some insight into the strategy? on the one hand, it's almost like he's twinning $200 billion in tariffs with let's make a deal, let's talk. does that work? >> i think that's the president's normal approach to things. i want to bring you to the table, i want to be at the table with you, but i also want to put you under pressure. if you look at mexico, the president threatened them with tariffs, they came to the table on nafta. now the president seems very happy with what mexico promised on nafta. i think he's looking to do that again. it's a pattern we have seen
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before. i think he means both things. i do want to talk to you if you want to make a deal, but until then, you are getting tariffs. liz: okay. i do want to point out, we are looking at session lows. the nasdaq down 92. earlier when we first started, the nasdaq session low was a loss of about 90 -- well, yeah, we are right there again, 92. we are heading back down for all the major indices. i want to finish up with this. other trade wars. everything from nafta, canada and mexico, to europe. we still don't know, these are all three major allies here. europe, we don't have a deal yet specifically, but we also still are waiting for some clarity on that. it almost seems like some countries are moving on their own pace. romania, there's a company called startup usa run by the former business minister of romania, and in essence, what he's done is gotting intinge itn from romainian banks.
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they will be helping romanian banks to set up shop in the u.s. i can't imagine the president wouldn't like something like that. it looks like some of the european union countries are saying we're not getting involved in this. we are going to do our own thing. >> that's why the president believes pressure should go with the negotiation. you are going to get countries deciding hey, if the americas want us to invest and produce there, as long as we can sell to the american market, we're good with that. you don't just let the toughest partner hold you up. you move on forward with everyone. i think if the president is willing to negotiate with everyone, maybe focus on the worst offenders like china, that's going to be a successful strategy. at some point, you do need to be willing to negotiate as he has been willing on nafta. liz: all right. we will be watching all of this and we shall see. right now, the dow jones industrials, yes, at session lows, down about 72 points. in the grand scheme of things, not a huge percentage loss but we are certainly watching this. derek, thank you very much. so if we look at these markets, jittery, no doubt. it's a matter of how long the
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jitteriness lasts because oftentimes we will see these spasms, then the market recovers. but at the moment, as we wait now let's call it 50 minutes before the closing bell rings and the president says that announcement of $200 billion in tariffs on chinese goods will come after today's market close, let's bring in the floor show and look at what's going on when we talk about trade headlines versus other headlines that people are worried about. scott, worry is something that the markets feed upon. the markets climb that wall of worry every time. >> yes. they do until they don't. the market's done a great job actually discounting the china tariffs when every time you get close to some kind of threshold or some kind of big news like today, you get a little bit cautious. traders right now with the last week or two of september, that seasonality wise is typically weaker. you have a little weakness in tech. you have the tech sector trying to hold its 50-day and semiconductors trying to hold the 200 day. people are a little more
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cautious right now for the next few weeks. i think what your last guest said is very important. it's whether or not after he institutes the tariffs, does china say we are not coming to negotiate on september 27-28. that's the real news we are waiting to see. liz: does a day like this, todd, scare you at all? or do you just pile in? is this a buying opportunity? >> well, it has been a buying opportunity in the past. if you look across the hall at ten-years you see treasury yields peaking at 3%. that's the second time that's happened really going back to may. right now, i see the market kind of holding on the edge in the treasury side, likewise in the equities side, waiting for a catalyst moment. trade issues with china isn't that moment. i think it comes next week on the heels of f1c and forward guidance as where the fed sees this economy going in the fourth quarter and any kind of rate hikes coming in 2019. that's really, the market i think is on pause at least until then. liz: okay. it's kind of significant here, we have the ten-year at about 3%. it hit 3.022% earlier with the
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belief the fed will raise more. two-year hit a ten-year high, 30-year hits a four-month peak. luke, then we bring in commodities, which could very well be that first canary in the coal mine for raw materials getting more expensive if the trade war continues with china. what are you seeing on that front? >> it's really difficult to tell right now, because the emerging economies are really more commodity economies, and they need dollars now. so when you look at oil, when you look at some of these other things, some of them are under sanctions, some of them are not. the dollar has been really strong. i think as the prior guest said, next week is really important. what are they going to do with rates, what's the forward guidance and what's the dollar going to do. all commodities priced in dollars as we always say, and dollar funding right now around the world is really difficult. so next week will tell people what they should expect in
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emerging economies and commodities and that's what i'm looking at. liz: i want know if we can pull up an apple chart. apple is significant in the trade conversation, because tim cook, the ceo, has made it extraordinarily clear, guys, that we do have to believe that they expect the range of their products could be hit by trade. scott redler, talking about ear pods assembled in china, everything from the new iphones and i think that that concern bubbles up here. apple is one of the leaders, loss leaders, you could call it, on the s&p. >> you are exactly right. traders today were using apple as an indicator, as a trader you need points of reference and indicators. today we said can apple hold 222-ish and it couldn't. now it's below 220. remember last week, apple put a low in at 216.50. i think traders are watching that. if all of a sudden apple doesn't hold 216.50 with a hard close below it, sentiment will get a little sour on china and on tech and that could be a few little problems for the market in the next week or so until we deal
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with the fed that we have to figure out what they have to say. liz: todd, do you agree with that? >> yeah, i do agree with that. i also think what we heard from the president when it comes to apple, you know, i think is a blanket statement, build your things here, avoid the tariff. easier said than done. ultimately, i think apple, like many other tech companies set to do a lot of manufacturing overseas, could consider making their products here. it may be one of those 50% good, 50% bad things written into the stock. ultimately, i do think it's a good thing for apple here, some of the news with the apple watch being affected and whatnot. liz: here's the president. let's listen in. >> judge kavanaugh is one of the finest people i have ever known. he's an outstanding intellect, an outstanding judge, respected by everybody. never had even a little blemish on his record. the fbi has i think gone through a process six times with him over the years where he went to higher and higher positions.
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he is somebody very special. at the same time, we want to go through a process, we want to make sure everything is perfect, everything is just right. i wish the democrats could have done this a lot sooner because they had this information for many months, and they shouldn't have waited until literally the last days. they should have done it a lot sooner. but with all of that being said, we want to go through the process. one thing i will say is as i understand it, judge kavanaugh spent quite a bit of time with senator feinstein and it wasn't even brought up at that meeting and she had this information. so you would have thought certainly that she would have brought it up at the meeting, not wait until everything's finished, then have to start a process all over again. but with all of it being said, we want to go through a full process. i have great confidence in the u.s. senate and in their procedures whand what they're doing and i think that's probably what they are going to do. they will go through a process and hear everybody out.
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i think it's important. i believe they think it's important. but again, he is one of the great intellects and one of the finest people that anybody has known. you look at his references, i have never seen anything quite like it. so they will go through that process and we'll get it done. [ inaudible question ] >> i don't know. it depends on the process. i would like to see a complete process. i would like everybody to be very happy. most importantly, i want the american people to be happy, because they are getting somebody that is great. i want him to go in at the absolute highest level and i think to do that, you have to go through this. if it takes a little delay, it will take a little delay. it shouldn't certainly be very much. but again, this is something that should have been brought up long before this. they had the information in july, as i understand it. that's a long time ago. and nobody mentioned it until the other day. it's very, you know, it's very unfortunate they didn't mention it sooner. but with all of that being said,
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it will, i'm sure, work out very well. you're talking about an individual who is as high a quality individual as you will ever see. [ inaudible question ] i have not spoken to judge kavanaugh. reporter: has he offered to withdraw? >> next question. what a ridiculous question that is. say it? reporter: do you think his confirmation is on time? >> i think he's on track, yeah. i think he's very much on track. if they delay it a little bit to make sure everybody is happy, they want to be happy. i can tell you, the republican senators want to be 100% happy themselves. they are doing it very, very professionally. again, this should have been brought up a long time ago. thank you. thank you very much, everybody. you will see on china today right after close of business, we will be announcing something and it will be a lot of money
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coming into the coffers of the united states of america. you'll see what we're doing right after close of business today, the markets closing. thank you. liz: there you have it. president trump putting that fine point on when larry kudlow had earlier said soon, now the president is saying after the market close. dow jones industrials was down, what did i say, 67 points when that hit the tape. now we are down about 83 points. the president earlier tweeted quote, this strengthens our bargaining position, meaning when you add $200 billion on top of the $50 billion in tariffs that are already out there, and any cost increases that the american people might incur have so far been quote, almost unnoticeable. these intraday pictures, the reason we show these two, because they articulate best, are my traders still with us, exactly how the market moves on a particular announcement such as that. scott, you there? >> yeah, i'm right here. liz: what do you make of that?
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>> at least he's floating it out there so it won't be a surprise. sometimes you trade throughout the course of the day and boom, get some kind of trade bomb where this news comes out that no one was anticipating. at least he's saying he's going to be putting the tariffs out there so the traders have a little bit of time to maybe climb out some positions, get a little shorter or longer. it won't be new news. the question will be how does china respond. right now, president trump is putting his heel down now and pressing the iron to the fire. hopefully he pulls back and we get some kind of negotiation, not just a fight. liz: what about the belief that china could restrict, they could do something different than just do quid pro quo, tit for tat types of tariffs? instead, restricting raw materials on things only they have great access to like rare metals, rare earth, which we need for assembly of perhaps certain materials based industries here in the u.s. >> well, liz, they could do that
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and you know, we will go back to oil. we talked about the example before. they started to make investments in countries that the u.s. has some problems with, like the oil industry in venezuela. the question is do they have the guts or do they want to take it far enough to go make oil investments in mexico right on the border. but right now, the thing with china is they have a huge debt problem and there are stock markets and a bear market. the game they're playing right now is frankly to see if president trump gets re-elected. they are just trying to stave it off for the next two years, the next year, 18 months or whatever, see where it goes and see if they have to deal with this leadership again. remember, the president of china is basically an emperor now. he's president for life. he can withstand public discourse, et cetera, but there's limits to that. the debt problem is the biggest problem they have. liz: the people can always overthrow him. i know, highly unlikely. the volatility index is spiking
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a bit, up about 12% at the moment. gentlemen, thank you for standing by. we do appreciate it. with the closing bell ringing in 39 minutes, we talked about apple. shine off the apple? i'm not just talking about worries that the china tariffs might hurt the ear pod and apple watch assembly. apple is the biggest drag on the dow right now, down about $5.32. orders for the new iphone xs and xs max appear to be weaker compared to iphone x preorders. rosenblatt securities estimated millions of orders were placed in the first three days of availability. while apple's iphone orders may be lower, its heart-stopping unveil of the apple watches thrilled, particularly the new ekg function approved by the fda.
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might this watch disrupt the medical device world? henry shine distributes ekg equipment and gives his assessment on that. i want to ask, too, how bad will this flu season really get? so much to talk about next in a fox business exclusive. the dow down about 99 points.
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series iv watch can do? i liken it to slapping a doctor on your wrist. it has a built-in ekg scanner that's been cleared by the fda. the data collected on the watch can be directly shared with your doctor. the watch also does other things like track activity and nutrition. how might this disrupter change the world for ekg makers, hospital quality. henry shine, which distributes ekg machines to hospitals and doctors. the chairman and ceo of henry shine is here in a fox business exclusive. fda approved personal ekg machines have been out there for a long time, that are pretty reliable, but does this apple watch change the dynamic at all from where you sit as a big distributor of ekg machines? >> so liz, 18% of gdp is spent on health care. two-thirds of that or 12% of gdp is related to what's called the ncds, noncommunicable diseases.
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any form of measurement of these vital signs and sending that information in an intraoperable way to the physician's office so the physician can interpret is a good thing. whether the apple system does it or not, i will leave it up to the doctor to decide. liz: do you get a sense of any of the equipment makers with whom you deal might be threatened by this or do they look at it as positively as you do? >> at the end of the day, i think the physician will want to have an in-office ekg at some point. liz: to confirm a personal watch. >> of course. we also have to be careful people don't get neurotic about this. you have to listen to your physician at the end of the day. the physician should be the one that determines your treatment, not the patient. liz: medical device business. you are huge in this.
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also, as you distribute these pieces of medical device equipment, the house just recently voted in august to get rid of the 2.3% medical device tax that had been slapped on during obamacare. it hasn't all the way been passed with the senate, but what do you think about that? think it will happen? >> the tax on equipment was just a further expense in driving health care costs up. so with eliminating of that tax, we hope it eventually gets eliminated, i think it will have a positive impact on the cost of health care. liz: we love costs coming down. that's what generics are supposed to do. teva pharmaceuticals got yet another approved drug. first it got approved for an epipen alternative and now the fda has approved a migraine drug so many people need. how do you view the fda? it seems maybe i'm misinterpreting it, but seems like they are speeding up and getting rid of the red tape process of drug approval. >> obviously i don't want to
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comment on whether it's a good drug or not but generic drugs are good in general, because generic drugs are actually a copy of the branded or innovative drug or the fda wouldn't approve them. the same drugs are available lower price, why not? liz: how do you feel about scott gottleib's leadership so far? >> i don't want to comment on any one individual but obviously the fda has done an amazing job, especially in the last few decades, where they kept us healthy and made sure only effective products come to market. liz: we want to be healthy as flu season approaches. a lot of our viewers get flu shots. some don't. i don't. i always get a flu shot. tell me how this is shaping up -- the 2017 season was classified as a high severity, 180 pediatric deaths last year. where are you now as one of the biggest distributors of the flu shot? >> first, consult your physician whether you should use the vaccine or not. having said that, vaccines are good in general. the flu vaccine has proven to
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save lives so flu vaccine is very good. obviously from year to year there are shortages and we have a guarantee program for our physicians whereby if they order in time, place the order in january, say, for the following year, they will get their product on time. liz: wow. finally, you guys are a company with conscience. you are always rushing in to help during disasters. hurricane florence is a total disaster. you have a hotline? >> we have a hotline already going and will help any practitioner, any dental, medical, veterinary practitioner that may need support. we are helping on the front line. liz: good to see you. thank you very much. stan bergman. by the way, the stock having a very nice year. we will be looking at all of this and more as we talk about hurricane florence and preparing for the worst with the closing bell ringing in 27 minutes. businesses in the carolinas under water literally and figuratively, as flood waters could get even worse in the next few days.
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a little bit of water, it really- it rocked our world. i had no idea the amount of damage that water could do. we called usaa. and they greeted me as they always do. sergeant baker, how are you? they were on it. it was unbelievable. having insurance is something everyone needs, but having usaa- now that's a privilege. we're the baker's and we're usaa members for life. usaa. get your insurance quote today. liz: we need to take you down to north carolina right now, where news has just broken. duke energy, this is good news, says power has been successfully restored to 1.2 million customers hit by hurricane florence. the company is still working, though, to restore power to the remaining 300,000 who remain without electricity. duke says those customers are
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located in quote, difficult to access coastal areas suffering from historic flooding and significant structural damage. we will keep you updated with any further developments. concurrently, there is still fear of contamination of the water supply, as duke energy says heavy rains were so heavy and high that florence caused a slope to collapse at a coal ashlandfill power station outside wilmington, which could potentially make its way to cape fear river. this is coal ash that has all kinds of chemicals in it that was in a pit. we are in lumberton, north carolina, where there's widespread flooding still. christina, i guess you are engulfed in flood waters. what's beneath you, a street? reporter: yeah. exactly. i'm engulfed in flood waters not just anywhere. i'm on i-95. this is a giant highway you are seeing completely submerged. the water comes up to about your waist right now which is why we
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are in a rescue boat. they were so gracious to show me just the area here as well as a makeshift dam. this is lumberton. we have been all around speaking to people who have stayed. i want to introduce jerome, a volunteer. you came from where? >> here in lumberton. reporter: how many times have you been doing this? >> we were here for matthew. born and raised here. this is our second storm. reporter: this is a borrowed boat. you got packs of water you are bringing to people that want to be evacuated or people that want to stay. tell me a little about some of the people you met so far. >> a buddy of mine, there are a lo lot of folks trapped in their neighborhoods that don't want to leave for unknown reasons. we are just trying to get them supplies, snacks and food and whatever we can do to accommodate them. reporter: the people i have spoken to, the ones who have stayed, said i don't want to leave because i have survived hugo, i have been here 40 years but you are saying you have been here 40 years and what is this
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to you? >> i have never seen it before. it's never been this bad. matthew wasn't this bad. reporter: even matthew wasn't this bad. you can see right here from a local, local in lumberton, it hasn't been this bad and that's the concern, flood water. we have sunny skies but all sewage systems are blocked. that's why the water is so high and still creating damage. back to you. liz: please thank him and his buddy with the boat. that is unbelievable what they are doing. the pictures we were showing on the right-hand side of the screen showed upended cars, businesses swamped, entire roadways completely engulfed. with us now is a company called planalyt planalytics. the ceo, fred fox, is with us in a fox business exclusive. what you in essence do, sir, you put together for businesses both large and small, a battle plan well before an event like this, correct? tell us how you do what you do. >> sure. so what we do with all of our clients is we get them ready for
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the storms by making sure that we can anticipate where and when their stores and their sales will be hit in that cone of uncertainty that's put out by the national center. liz: okay. then you get a client such as -- i understand you help everyone from dunkin' donuts to ace hardware to subway. what's your process for chains like that down to small businesses, if they come to you and say okay, put something together for what may happen? >> well, it really depends if they are selling need-based products versus products that are not need-based. the difference is that if you are a home center, a mass merchant, a gas station, any of these types of stores, people need to be buying both before the storm and after the storm. so their sales are actually probably going to increase over time as a result of these storms.
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if you are a restaurant chain, especially casual, if you are selling clothing, you are probably not going to be selling much before and after the storm. so it's really preparing these types of businesses differently either to get ready and sell more around these storms, which is a logistics thing, or to really shut down and save on labor costs. liz: i'm looking at video of directv dishes that are submerged. i'm sure they have to get up and running once again for many of their customers. there's a so-called waffle house indicator and anybody who knows in hurricane alley how many waffle houses there really are, they have a battle plan constantly in place where they have a menu, in fact, our field producer shot it for us. he's down there. they have got a limited menu they immediately put out versus their entire menu because they know you have hungry people who can't get their stoves working
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and as soon as they get their fulmel menu back, that's sort o the indicator. when do you assess things will look certainly better in north carolina? >> well, you know, we don't know just like anyone else exactly when these stores and these shops are going to be able to reopen, just like we don't know exactly when people are going to be able to return. but what we can help is to make sure that the logistics are set up so a lot of these retailers today have trucks waiting outside of the area, waiting loaded, to rush goods in and to get these stores up and running and to have both the food and all the types of services that everyone is going to need. liz: have a nimble supply chain. good work you're doing. thank you, frederick. >> thank you. thank you, liz. liz: quick look at the markets right now. the dow jones industrials down
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103. we aren't really seeing any improvement, with the markets 15 minutes away from the closing bell. we know what's coming after. the president said, $200 billion in tariffs on chinese goods. stand by. we are coming right back.
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liz: at any moment we understand that republican senator susan collins of maine is set to come out of that office where you see a live picture of reporters gathered. she is set to discuss her position on brett kavanaugh and his nomination as supreme court justice, and whether in light of a sexual harassment claim by a woman who says kavanaugh attempted to assault her back when they were both in high school, whether there should be hearings. the president just commented about 35 minutes ago, you saw it on our show, on senate procedure to vote on judge brett kavanaugh, indicating, this is
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what the president said, everyone will be heard, which may indicate perhaps, if you want to interpret it that way, that the woman who recently came forward with this allegation against kavanaugh may be brought into hearings but we will bring you what's happening outside of susan collins' office as soon as it happens. in the meantime, elon musk taking to his favorite messaging tool once again. a customer complaining that her tesla car delivery had been delayed four times before being postponed indefinitely, got this direct reply from the tesla ceo himself. through twitter, sorry, we've gone from production hell to delivery logistics hell, but this problem is far more tractable. we are making rapid progress. should be solved shortly. that's consumer [ inaudible ] from the ceo. charlie has been digging into tesla. >> what's the stock doing today? he's being sued now for the thailand diver, suing him for
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libel. he just filed a suit for libel against him. i guess the upshot of this story is tesla may be financially a great company. elon musk may be a brilliant guy. all the wall street bankers that cover this, that talk to the company, are recommending that he desperately needs a sheryl sandberg-like person. desperately needs a number two, someone he can share operational control with and someone who can sort of level out -- level the sort of discord that's in that place that's been there for the last, i guess the last year but really, last six months. bizarre behavior, where you know, legitimately people were sitting around thinking that maybe he had had a nervous breakdown. liz: the model 3 that's cheaper, they were swamped with close to half a million preorders, where people put $100,000, i don't know, five grand down and he's sleeping at the plant. ceo shouldn't be sleeping at the plant. >> yeah. i think the bankers are saying this. now, does the board do it or
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not? the company has not gotten back to me. board members weren't talking to me. i don't know. it's such a weird place. almost a cult of personality. like he is so much of the place that can a board member say elon, bring in someone, you need help, we are going to make sure you do it. does he have the stroke to do that. and i can tell you that the people that -- liz: shareholder-owned business. he should listen to the board and shareholders. >> he should. you know, no one doubts his intelligence. liz: shareholders loved him but he needs some help. >> think about it. he's under all this pressure and all this scrutiny. he goes on a podcast, it's not like he did "face the nation" or bret baier's show. he did a joe rogan podcast to talk stuff and smoke a joint and -- liz: he didn't do it -- joe rogan prompted him.
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>> okay, but he did it. liz: yeah, he did it. wait, are you saying joe rogan is -- if the cameras are rolling -- >> no, my point is if you want to get your message across and you have a messaging problem, which he does, you don't do shows like this. you go on -- know what he should have done? get him on your show. you like him. liz: he is always invited. >> that would be a real interview. that would be like somebody that will ask you legitimate questions. you aren't putting a joint in his mouth. maybe you might, knowing you. liz: knowing me. because everybody who knows me, knows, right? >> anyway, you are a legitimate business, respected business journalist. he can get his message out there and -- liz: he still beat me on the most respected business journalist list. >> i saw that. liz: what did you get, 9? i got 29. >> you see some of the doozies -- now, i'm not saying,
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maria beat me but that's fine. liz: speaking of business journalists, bring in alan mulally to tesla. >> he knows the short sellers on this and here's the thing. i was talking to bob -- what's that? liz: get to the bird. >> i was talking to bob nardeli about this. elon made it known he didn't want any operational guys. liz: the point of this is? >> i think he should bring in the bird. liz: i don't even know what you mean by that. are you watching this? >> my name is donald trump. this bird sounds like trump. notice this? liz: we'll be right back. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95.
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♪ liz: 2 1/2 minutes to the close, president trump says when we hear the bell, certainly right
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after, 200 billion of tariffs on chinese goods will kick in. dow down 112. nasdaq down triple digits, 118. jack ablin. jack being we see downward move with the markets. does any of this worry you longer term for our investors? >> longer term yes. the long term the fundamentals certainly dominate. as long as we have growth and not much inflation, investors willing to look past these disturbing headlines for the most part. the problem is, the longer these tariffs remain in place the more likely we could see some inflation and i will say the one thing that both stock investors and bond investors don't want to see is inflation because that could take prices of both asset classes down at the same time.
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liz: the fed meets the 26th. we're going to see something apthere. i'm pretty sure we see a rate hike. what will that do to any inflation moves? >> i think the fed certainly hell-bent on proceeding with that program. the question is, does that then turn the yield curve into inversion? where the two-year yield is higher now than the 10-year yield. that's a possibility next week. and that could send a disturbing signal to ininvestors. i think a lot of it will be noise but i do think many investors believe that's a serious threat of recession around the corner so we'll see how the market reacts to that. liz: 10 seconds, i know that's not a lot of time but credit conditions, we're coming off the 10-year anniversary of lehman. people are saying are looking a little spiking right now. >> we're watching credit conditions and they're starting to deteriorate. liz, credit conditions broke down in the fourth quarter of 2007. four quarters before we had real
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problems we're starting to see the same indicator beginning to perhaps break down over the next several weeks. [closing bell rings] liz: jack is giving a little warning. jack ablin, thanks. we're watching for 200 billion in tariffs on chinese goods. stay tuned for "after the bell." melissa: tariff uncertainty hits wall street. stocks sliding deeper into the red during last minutes of trading on new trade threats between the u.s. and china. the dow ending the day down 91 points near session lows. s&p 500 snapping a five-day winning streak. selloff for the nasdaq, closing down nearly 1 1/2%. tough monday i'm melissa francis. david: look at the nasdaq, really that is the big story. the dow had been down triple digits. not so nasdaq. i'm david asman. glad you could join us. this is "after the bell." more on on the big market mover. first here is else what we're covering for you. we have a lot of live

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