tv Countdown to the Closing Bell With Liz Claman FOX Business January 10, 2019 3:00pm-4:01pm EST
all right, folks, we started this hour, the dow was relatively flat. the dow rallied 100 points, gave it all back and now we are starting to get momentum again. i will hand it over to lauren simonetti with a little bit of the c.p. effect. lauren: i will try to give it the l.s. effect. thank you very much. i will take it from here. breaking news that we are getting, president trump expected to wrap up his roundtable on immigration and border security at any moment now. he's in mcallen, texas, scheduled to move to a location right along the border at the rio grande in this hour to receive a briefing on border security. before he boarded air force one for his trip to the lone star state, the president made headlines by saying he is prepared to declare a crisis at the border and to declare that a national emergency but he's not ready to do it just yet. we will go to blake burman, he is live at the white house. he has the tick by tick. and we get fair and balanced reaction from both sides of the
aisle. two lawmakers representing border states. republican congresswoman debbie lesko of arizona and democratic congressman garimendi of california. they will tell us what they see as a solution to the border crisis and the shutdown. let's take a look at your money. markets slightly higher after dipping earlier in the session following comments from the federal reserve chair about a quote, substantially smaller balance sheet. utilities are up, retail stocks are down as the bulls and bears battle it out. this is how we stand at 3:01. final hour of trading. the dow is up 56 points, a quarter of one percent. the s&p is up five. the nasdaq gaining 12 as i speak. and the trade war, all the talk at ces in las vegas. liz claman talks exclusively with lg electronics president about how his company is dealing with tariffs. and we reveal lg's new, get this, 65 inch rollup television.
yeah. it rolls up. less than one hour to the closing bell. i'm lauren simonetti in for liz claman. let's start the "countdown." lauren: the markets have been see-sawing all day between shutdown concerns and federal reserve chairman jerome powell speaking earlier. the markets now on track, everything is higher, we are on track for five days of gains in a row. this is the longest winning streak for the dow since october 3rd and the longest winning streak for the s&p 500 since september 14th. we're watching the s&p closely right now. so the average must be up just 1.25 points, that's it, to officially exit correction territory. oil is eking out a slight gain, up nine days in a row. that's its longest winning streak in nine years. we'll take it. crude closing the session higher by 23 cents, settling at $52.59 a barrel, the second close above
$50 this year. let's take a look at the retail sector. the state of the consumer not looking so good today, folks. weak holiday sales dinging retail stocks. macy's cut its profit, sales, inventory and gross margin outlook. let's take a look at shares there, down significantly, down 18.25% at $25.92 a pop. macy's is on pace for its biggest one-day drop since it went public 27 years ago. take a look at this. nordstrom, kohl's, target, l brands, all down and down substantially today. but it's not all bad news for retail. moving in the other direction, shares of bed, bath & beyond are spiking after the company beat on third quarter and while it did miss on revenue it managed to provide investors are better than expected forecast for fiscal 2019. on the earnings call, the ceo talked up next gen stores that
will help reimagine the in-store experience for shoppers. shares are surging almost 15% today, $14.07 a pop. let's get to the shutdown in washington, d.c. and the battle over border security. at any moment, president donald trump is expected to make his way to the u.s./mexico border along the rio grande river. he's scheduled to receive a security briefing this hour as the government partial shutdown is in its 20th day. the commander in chief upping the stakes for congress before embarking on this trip, saying he might just have to declare a national emergency to help get money to fund his promised wall. blake burman is standing by live at the white house. blake, the president just moments ago participated in a roundtable on border security after this pretty fiery comment he made this morning. so the question is, how close are we to seeing a national emergency declaration? reporter: well, look, president trump said earlier today that
his attorneys have told him that he has the 100% ability to do it. the president says that the united states has the funds to do it, that there are several mechanisms from which that money can come from. he didn't get necessarily specific as to where but the president believes that he is absolutely able to do it, it is within his right. however, the president also said that he wants a deal first with congress that would be his ideal scenario, to sort of strike some deal out with congress, and if not, then he would go down that road but keep in mind, if the president were to declare a national emergency, which he has not done yet, but if he were to do it, it would immediately face legal challenges and from there, it would have to work its way through the court system. it is not a guarantee even though the president says that his in-house counsel has told him he can go down that route. want to show you some live pictures, actually got them up right now. left side of the screen, mcallen, texas, where the president has been for about an hour now. what you're looking at right now is a meeting with the president and law enforcement from that area, federal law enforcement,
local law enforcement, folks who are vouching for a border wall on the southern border. it is very clear that this is a complete and total stalemate politically here in washington, d.c., so today, the president has gone down to the border state of texas, to the border city of mcallen, texas, to pitch his message that a border wall is needed and at one point earlier today, as he was leaving the white house, the president suggested that it might indeed be easier to get a trade deal with china than it would be for democrats to give him money for a border wall. listen here. >> i find china frankly in many ways to be far more honorable than chuck and nancy, i really do. i think that china is actually much easier to deal with than the opposition party. reporter: when we say it's a stalemate, that kind of paints the picture. the president saying he thinks it's easier to deal with china than it is with democrats and
democratic leadership within his own country. by the way, speaking of countries, the president says today he will not be headed to switzerland later this month for the world economic forum in davos, the president citing the shutdown and that, too, might be a clue as to how much longer this could potentially go. lauren: it's also bad optics to be in a beautiful ski resort when the government is partially shut down. and you know, blake, he's in mcallen because that's an area that sees more illegal crossings, over 160,000 last year, than any other part along the southern border, so that adds to the seriousness of the situation. all right, blake, thank you very much. blake burman at the white house. just a few hours ago, federal reserve chair jay powell spoke at the economic club in washington. he discussed a range of topics from the shutdown to the president's criticisms to the fed's balance sheet runoff. here is his biggest concern, however, heading into 2019. >> you can ask me what am i worried about, i would say the u.s. economy is solid. as i mentioned, there's good momentum going into this year.
the principal worry i would have is really global growth. if you look at asia, look at europe, you're seeing slowing in growth and the question will be how much does that affect us. it's a tightly integrated global economy and global financial markets and we will feel that. lauren: how do investors prepare for the eventual impact of slowing global growth hitting the u.s. markets or is that not a huge concern? straight to the floor show. we have traders at the new york stock exchange as well as the cme group. stephen guilfoyle, let me begin with you. we are getting somewhat of conflicting signals between what the fed is watching, what the market is watching. how concerned do you think the fed really is about the slowing u.s. economy? >> i think it becomes -- actually, i'm going to agree with powell here which will probably shock a lot of folks. growth has long been my largest concern. i think, i mean, look at debt to gdp, what is it, 106%? in asia it's like 250. we're not going to get any help from abroad. the entire world is starting to slow down. now, they probably pushed us a
little further down the path than we should be with the $375 billion they already pulled out of the economy through the tightening program. that means your 2.5% fed funds rate is really 3.125 and you don't feel that until september because that's nine months behind. so we still have some slowdown to go here. i think they are finally wising up a little bit. not that i embrace any kind of debt-fueled expansion which is where we have to go, but we do have to liquefy this economy as we head into this danger. this is a troubled road we must travel. lauren: and powell intimated many times the fed will be flexible, the fed will be patient, but we could still see two interest rate increases this year. my question for you, scott, is we just heard the quantitative tightening that guilfoyle spoke about but do you think the fed would hike interest rates with what we have going on right now economically speaking, and continuing to tighten because if you look at the semantics of all
this, powell did say the size of the fed's balance sheet should be quote, substantially smaller. how much smaller? >> well, the chances obviously have been reduced significantly over the last couple weeks. in fact, here at the cme i think they're pricing in any possible rate increase for 2019, as low as about 15% or 20%. that being said, the one point that concerns me the most is when we got that ism manufacturing number a week ago thursday, last thursday, it was really weak, and what that shows to me is that the trouble that we see in the euro zone, the trouble we see in asia, may be starting to seep here in the u.s. maybe that's the numbers we saw coming out of these big retailers this morning, that might be, you know, just the foreshadowing of what is to come here. so i think there's very little chance at least in the near future of a fed rate hike, but i would absolutely be concerned about the slowing growth, seeping back here into the states and earnings coming up in the next couple weeks, we're
going to see that coming out of the big corporations and what they have to say about that. lauren: there's a small problem here, phil. the government is partially shut down which means we're not going to get the latest trade deficit numbers, we're not going to get retail sales, gdp. that could put blindfolds on a lot of investors. >> it really can, and it can put blindfolds on the federal reserve. i think they are a little bit concerned about trying to make decisions about the global economy, especially the very critical time, without that data. it's going to be a little more difficult. we will just go back to the way we used to do it with blackboards and tea leaves, trying to figure it out that way. but you know, one thing i will say, we did see, you know, to scott's point, a big drop in the ism last month but you have to remember, we were coming from a very high level. i see a lot of people trying to read too much into that drop, that one-month big drop. i think a lot of that had to do with the end of the year positioning, a lot of companies pulling back ahead of the new
sanctions, not knowing what's going to happen. but we don't see it as a continuing drop and we're looking for the manufacturing sector to bounce back. i know the data has been so dro mat i can and so volatile but i'm afraid it's scaring people too much. take a pause and be easy with it. >> phil, scott, stephen, thank you very much, gentlemen. >> thank you. lauren: pfizer is the biggest drag on the dow 30 today after announcing it is shutting down two manufacturing plants in india, merck as you can see also among the laggards. up next, lg's 65-inch rollup tv is one of the biggest hits at ces in las vegas but will the trade war drive the price of the new sensation up before it even comes off the assembly line? liz talks exclusively to the lg electronics president next on "countdown." with all that usaa offers
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out at ces in las vegas this week. liz claman got to talk exclusively with lg electronics preside president. he was a keynote speaker. they had to hike its washing machine prices in response to president trump's tariffs and she asked where the company stands now. liz: as we look at the tariff situation, i'm not talking about the chinese tariffs, i'm talking about the tariffs that president trump slapped on foreign-made washing machines and dryers and all the parts, these have been, i'm sure, affecting your sales. how have you been absorbing that and dealing with it? >> so we are also building factories in the u.s. so that we are not barriered by those kind of tariffs. liz: that's kind of what president trump was hoping would happen. >> but you know, we want our business growth globally so whether we do this here or do this elsewhere, we want to grow our business.
if a new condition arrives, we will overcome it with different type of efforts. liz: you have an operation in tennessee. you are employing a lot of americans. and you are opening a massive headquarters in engelwood cliffs, new jersey. i have seen it. there's something like 2,000 construction workers put to work there. does it bother you that you guys are employing americans and yet you are being slapped with these onerous tariffs on anything you import as far as washing machines are concerned. what would you say to the administration? >> well, at the end of the day, business is business and there are some times governments will be beneficial to us, sometimes it will provide hardship. we will overcome any difficulties. liz: apple warned last week, saying the chinese consumer from where apple stands is slowing down possibly as a byproduct of the tariffs and the trade wars and the tensions. are you seeing a slowdown with your chinese consumers who buy lg products? >> we have seen some slowdown in
recent years but hopefully we will catch up this year. liz: could you attribute it to trade tensions? >> there are some trade tensions that comes into play but as i said before, business is business. there's going to be hardship, there's going to be good days and bad days. we are going to overcome any bad days. liz: so tell people, tell viewe viewers, i see chloe over your shoulder here, what it means to them and their daily lives. what does artificial intelligence really end up meaning in the application of today's world? >> many people talk about a.i. and a.i. is still in my opinion, still in very infant stage. people think of smart speakers, you tell a command, it responds back. we want ultimately a.i. to really understand what you mean so that you don't have to just command it and it will do things for you, you say something, it will understand you because it knows about you.
so we want robots to really learn about people so it can really interact with people just like you and i are interacting, instead of piece of machine sitting there waiting for command. liz: you have five a.i. labs around the world? >> i believe so, yeah. liz: clearly, you guys are heavily invested in this. where do you see it eventually leading you? because no offense to chloe right behind you, but you have scientists like hawking and musk who are very concerned about how a.i. could eventually run away with the power that humans have right now. >> i believe we are still in control. as a consumer electronics manufacturer, we think this current state, we have a very big opportunity to really revolutionize helping our customers' lives with a.i. so no longer we'll just sell consumer electronic device so that people use them. we want to help their lives.
liz: we have already been to the booth to see the 65-inch tv that is retractible and rolls up almost like a poster. when is that going to be available, because there are a lot of people in manhattan with limited space who are dying to buy that, i am sure. >> we showcased this this morning which means it will come out this year. liz: this year? >> yes. liz: second half, perhaps? >> maybe. i cannot give you exact date. it will be out this year. liz: you're getting a lot of early bump on that tv which is a hard thing to do, considering there are thousands of products rolled out here. dr. park, thank you so much for giving us the time at fox business. lauren: thousands of products indeed. you can see more of the interview with dr. park online exclusively. find out what he thinks about the future of 5g, what everyone is talking about, by visiting lizclaman.com. if you missed even a second of claman's coverage from ces, you can see harley davidson's
electric motorcycle archived on her facebook page or bmw's autonomous motorcycle or harmon's connected car. liz tweeted about all of it. follow her. there you have it. turbulence in the skies. let's check the big board right now. dow's up 63 so still higher up five days in a row. the other markets are as well. american airlines grounding the airlines sector at this hour. shares nosediving all the way to the bottom of the s&p 500 after the carrier issued a disappointing fourth quarter forecast and it's stoking fears that slowing global demand may be hitting travel demand. delta, the only up arrow on the screen. cbs not just depending on reboots for its on-airlineup. coming up, charlie gasparino with the new exclusive details on the broadcast giant's search for a new leader in the wake of moonves' scandalous exit. that's next on "countdown." i can't tell you who i am or what i witnessed, but i can tell you liberty mutual customized
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lauren: cbs' casting call for a new chief executive not going as planned. the c-suite search seeing more twists than any reality show on any most-watched network's prime time lineup. charlie gasparino, who watches a lot of that reality tv, lot of prime time, you got some exclusive info? >> there have been reports that it's been postponed. we reported just having a hard time finding somebody but we are getting this from sources inside cbs telling the fox business network the ceo search is continuing full steam ahead, has not been postponed. but here's the thing. they are having a hard time finding someone that wants to get the job. what we do know is this. the cbs board has not interviewed candidates for a permanent ceo to replace les moonves to left amid sexual harassment allegations. the cbs board is scheduled to meet on january 31. i guess they are going to get some update on that. now, here's the other count countervailing issue with cbs
that's going on. they are clearly looking for a merger partner. what we know is as of now, what we understand is any potential merger either with an outside party or maybe with viacom, the other company under the umbrella of the holding company known as national amusements which runs both of them by the controlling redstone family, right now, any merger of any type is not on the agenda. it may change, they may discuss it, but that is not on the agenda. we should point out that amid a difficult ceo search, what sources are telling us is that the interim ceo, who was les moonves's right hand man, a very capable operating guy, emerges as the top ceo. when this is all said and done, they may stay with joe. we don't know. one thing we do know is that they are having a hard time finding -- lauren: why? >> for all the reasons i said. they will merge with somebody at some point. they will either merge with viacom, get bought by someone
else. whatever happens, that ceo might not be the ceo. if they get bought by a bigger player, clearly that ceo won't be the ceo who will be there. they merge with viacom, will sherri redstone like the current ceo of viacom, she may want him running it. there's a lot of let's say uncertainties and listen -- lauren: lot of plots. >> i can just tell you what my sources are telling me. they are having a hard time finding somebody. it doesn't look like they will have someone for awhile. for all i know, they got someone tomorrow if they are ready to say yes, i changed my mind, but as of right now, we are hearing no and that means joe ianello is in the pole position. lauren: what's the latest with moonves? >> he's counting his gazillions. i thought you would ask me about ice cube. lauren: he retweeted you. >> chuck d just retweeted me. let's go through this. i broke the story yesterday that said that ice cube was looking to buy the fox rsns, all 22 of them. lauren: regional sports
networks. >> after looking for financing, he had approached viacom, and had pretty extensive conversations with the ceo, as we just mentioned. right now, viacom is not interested and what's interesting -- lauren: disney has to offload the sports networks. >> they have to offload them. they are the fox ones, they got sold as part of the deal. why do they have to offload them? they don't need espn. i referred to ice cube in my tweet because i have a lot of characters as rapper and he took a little bit offense to that. i called him an entrepreneur which he is and everything else. chuck d chimed in. now he's just tweeting, chuck d is, wasn't an individual knock on you, charles, just an overall laziness of industrial tendency. his point was he wasn't really attacking me for calling ice cube just a rapper, just that we as journalists have a tendency of not appreciating their entrepreneurial side, which i think he's right about. but i will tell you -- lauren: he's also an actor. ice cube. >> yeah.
i will tell you, mr. chuck d and mr. cube, i went out of my way when i was presenting it to say you were an entrepreneur, actor, the whole thing, and i would say the same thing with mr. d. the twitter limits prevent me sometimes, because i have to explain this whole thing so i'm not denigrating these folks. listen, they make a lot of money. it's like sports. people denigrate athletes as being dumb jocks. they're not. most of them understand business and they understand markets. marcus allen is one of the best business guys i know out there. barry sanders is a guy i know. sports guys are smart. i know this. so are rappers. not saying they're not. lauren: so glad you clarified. charlie gasparino -- thank you very much. it's all about the twitter. all about the twitter. let's take a quick look at the markets. the dow up 79 so we are gaining with less than a half hour to go before the closing bell. the s&p out of correction
territory at this moment at 2592. it's up eight points. the nasdaq gaining 21. we are up five days in a row, folks. flying into the heart of the storm. president trump is taking his national security campaign right to the southern border, as the government shutdown now day 20. we are closing in on three weeks and perhaps a record. two congressmen with skin in the game, the texas republican -- arizona republican and california democrat are standing by. what they have to say about the president's latest comments that he might declare a national emergency over illegal immigration. "countdown" will be right back.
oh, wow. you two are going to have such a great trip. yeah, have fun! thanks to you, we will. aw, stop. this is why voya helps reach today's goals... all while helping you to and through retirement. um, you guys are just going for a week, right? yeah! that's right. can you help with these? oh... um, we're more of the plan, invest and protect kind of help... sorry, little paws, so. but have fun! send a postcard! voya. helping you to and through retirement. lauren: let's get you up to speed. president trump is on his way, as i speak, just minutes away
from the u.s./mexico border. he just wrapped up a roundtable at the u.s. border station in mcallen, texas. law enforcement officials displaying money, weapons, drugs captured, and shared stories of life and death on the border. it's a crisis that the president -- a manufactured crisis says the democrats. this shutdown might just be the longest ever. we are now in day 20 and if it continues beyond tomorrow, that's a record, folks. joining us from two border states, republican congresswoman from arizona debbie lesko and california democratic congressman, john garamendi. thank you for joining us. we really appreciate it. very timely today. i will start with you, congressman garamendi. i think we have had three recent meetings at the white house, democrats have sat down, tried to compromise with republicans. no deals in sight. what is the exit strategy? >> i think the first thing i need to do is to get nearly all of the government operations
back up and operating. we intend to do that on the democratic side. we moved legislation last week, the very first day of this congress, and yesterday and today and tomorrow, we will also move legislation over to the senate that would restart all of the government agencies except one, which would be the department of homeland security, in which this border issue revolves around that particular department. so we can get everybody going, up and going, and we can try to figure out how to deal with this wall business. lauren: representative lesko, do you expect the president to declare a national emergency at the border to get the wall built? do you expect him to do that and should he do that? >> you know, i hope it doesn't come to that. i really hope that the democrats will come to the negotiating table with a serious counteroffer. so far, i believe republicans have sat and have been willing to compromise. i supported a good immigration
bill that would have not only funded border security, but also would have allowed daca recipients to stay in the country legally. not one single democrat voted for it. we also on december 20th, the republican house members passed a bill that would have kept the government open again, not one single democrat voted for it. recently, when president trump had the negotiations with the democrats, he asked nancy pelosi okay, if we pass these other funding bills, will you then allow border security funding for a border fence and she said no. >> actually, what the president actually said was will you then support my wall. she said no. the democrats have been clearly in support of border security, many different kinds of border security. let me give you one that would push that border wall 1500 miles out to sea, and that is fund the coast guard so they can interdict those drugs out there
in the ocean and the caribbean and the pacific. >> if the democrats say they are for border security, i really think they are talking the talk but not walking the walk. >> that's just not true, debbie. >> the reason that i say that is because our border patrol agents and officials have clearly spelled out a plan on what they think is needed, and part of that is a border fence. i went down to the border in arizona and i met with customs and border patrol officials and the agents. i asked them straight out, do we need a border fence. they said yes. lauren: overwhelmingly. fox news is reporting that since new year's, there have been over 2,000 apprehensions at the border. so this is a problem, congressman. my question to you is what deal would you vote for to reopen the government and get us border security and get us a structure? >> i was just very, very clear a moment ago. that is, there is no reason to
hold the entire government operations from the national parks to department of agriculture to food safety, all those, you don't need to hold those hostage to deal with the issue of border security. the democrats have clearly over the last years voted for border security, including fences. let's be very clear. the president says he wants $5.7 billion for some sort of a wall or fence without specifying where it's going to be built, what it's going to cost, what exactly its purpose will be and how it will be effective in stopping people from coming in. i have been to mcallen, texas. that area, yes, there are places where there is a need for the fence. fine. but what we need to do here is reopen government, give time to finish these negotiations. a wall, where do you want to put the wall, mr. president? what's it going to cost per mile? >> actually, the plan is very clear. it says how many miles and where it will be built. >> that's never been presented
to congress. >> it certainly has, and the president has given it to me, he's given it to democrats, he's given it to democrat leaders -- >> he sent a letter that was vague and said 200 miles of fence. >> no, it's very specific. 27 miles is going to be built in yuma, arizona, in my state. >> that leaves about 170 miles. in any case, the reality is here, we should never appropriate money until we know precisely where it's going to be spent, to what effect and for what purpose. >> we do know. >> but why not open up the rest of government? why not leave this issue, we have been negotiating for months, until mid-february, where we can have the next month to figure out how we're going to resolve this issue. don't hold the entire nation as a hostage. lauren: would you support a structure at the southern border then? >> we have supported structures at the border. we have supported fences. those fences were built with democratic support. they need to be updated in many
places. they need to be augmented in places. we understand that. but what we're saying here is give us a specific plan but do not hold this entire nation hostage for this political promise that was made during the campaign. by the way, the american taxpayers are paying for this, not mexico. >> i really do hope we can open back up the government. that's what both of us want. >> support the bill this afternoon. lauren: i think most of the country want that to happen as well. i do hope we can come to terms here and reach some sort of deal. congresswoman lesko, congressman garamendi, thank you for coming on and for that discussion. let's show you what the markets were doing because i think they liked what they just heard. that back and forth between the congressmen has sent the dow up, nasdaq up 29, s&p up 10. if you look at the level on the dow, moments ago we were above 24,000. pretty close to being out of correction territory. forget white house
criticisms and the retail wars. there's a new fight that could have a major impact on amazon investors. hillary vaughn has been working on phones on what jeff bezos' divorce could mean for the online giant he created. you can catch me and cheryl casone every morning at 5:00 a.m. eastern time. we have all the news you need to start your day. join us tomorrow morning. shield℠ annuities from brighthouse financial
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points. and this. alexa, who gets what? jeff bezos' divorce could make mackenzie, his wife, one of the biggest shareholders of amazon, possibly the richest woman in the world. what does this mean for amazon shareholders and the future of the most valuable public traded company on planet earth? hillary vaughn is following the story. she joins us now live in los angeles. so investors are very concerned about this divorce, hillary. reporter: they are. and they may or may not have a reason to be. we have heard kind of two sides to this, but at the end of the day, no matter what, this divorce is going to go down as the most expensive divorce in history, because of how much money is involved. jeff bezos announcing his divorce on twitter from his wife mackenzie of 25 years and that means his net worth is about to be cut in half. tmz reporting bezos did not have a prenup and the couple will file for divorce in washington. that's a community property state, where assets are split
50/50 but it's not just bezos' personal wealth that's at stake. his majority holdings in his company amazon and his control of his own company could also be at stake. right now, bezos is worth about $137 billion and owns over 16% of amazon. mackenzie bezos could be entitled to more than $66 billion in a payout, making her the world's richest woman if that were to happen. but she may opt for a payout that requires bezos to sell or pledge some of his amazon shares which would dilute his ownership in amazon, but legal experts that we talked to say that's probably not likely. lauren: there's going to be very little impact on amazon stock. what's basically going to happen is they are going to transfer as many shares of stock as they can that will still put mr. bezos in the position that he will be able to maintain control so there will be probably maybe stocks that transfer to his wife but there will be probably non-voting shares so therefore,
he maintains all control. reporter: they also have millions of dollars invested in high end real estate around the country that will need to be divvied up and there are other companies involved with this. he owns "the washington post" and has blue origin and significant holdings in airbnb, twitter and next door. lauren? lauren: he also owns a lot of property. hillary vaughn, thank you very much. we do want to bring you live right now to the u.s./mexico border. president trump is at the border right along the rio grande. he's about 10, 11 miles from mcallen, where he was just moments ago. we will follow his trip and go back to him if he makes any comments from his location right there at the border. we'll be right back. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.
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we have been looking at the dow and looking at the s&p. they are exiting correction territory. good news for you, the dow up 121 points. it only had to be up 92.3 points to exit correction territory. the s&p only had to have 1.25 points. it's up 11.5 right now. good news for both indexes. let's take a look at the dow leaders. boeing, caterpillar, travelers, intel, couple analyst upgrades driving some of this. boeing up by morgan stanley to overweight, travelers raised to overweight by barclays. we have seen good news among companies that rely on china for sales. caterpillar and intel, higher there. s&p 500 leaders, constellation brands doing very well after such a lousy day yesterday. that stock was down 12%, all's forgiven today, up 6%. back to you. lauren: gerri willis on the floor of the new york stock exchange, thank you very much. this morning, we got the latest signals report that showed that 55% of chief
financial officers expect a recession in this country by the end of 2020. optimism about their own companies declining sharply, now at the lowest level in about three years. only 23% of cfos see favorable conditions in europe and 24% see favorable conditions in china. what's an investor to do? we bring in john, what is an investor to do? >> hey, lauren. lauren: good to see you. >> thank you. >> investor should take advantage of recent weakness in the market. we had great seven or eight days. we climbed out of contradiction territory. we have to be mindful of s&p 500. 2600, 2650 area. this is where the work starts, right? because when we broke through 2600 a couple weeks ago, we dropped like a rock. there was no technical resistance coming back. we have some resistance. i'm counting on market to power through that with pretty good
earnings beginning next week. lauren: we get a lot of bank earnings next week. they could be sensitive to interest rate increases. what did you make much what fed chair jerome powell said today? >> has to thread the needle so carefully, right? because he wants to make sure, his official mandates are keep a lid on inflation, insure full employment situation as possible. i think he accomplished both those objectives. he has to be mindful of the curve, currency and the markets. i think his comments today were very important. people might have gotten too giddy, relative to the meeting a week ago with former fed chairs. to the degree he is talking about balance sheet reduction. that has upward movement on market interest rates. i think that bodes well for net interest margins for the banks. lauren: washington affects all of this. think used to say gridlock in d.c. was good for wall street but maybe with the partial
shutdown on day 20 maybe that is not the case. how do you see the shutdown affecting wall street? >> historically the shut down see as flat market, we're up, 7, 8, 9, 10%, during this one. this is curious development. other factors we have to keep in mind. i'm focused and trying to get our investors focused on fundamentals of fiscal tailwinds, whether fiscal tailwinds suggesting 2.1% gdp this year, with taxes, regulation, repatriation, low inflation and a fed that won't be aggressive. we believe that will be positive for equities. melissa: what sectors do you like specifically? >> you mentioned financial earlier. we're still focused on financials. we continue to be overweight that sector. we're leaning towards value as well which was humbling endeavor last year as you know. but with financials and energy making up 40% of the value sector. i think you will see that sort of creeping returns higher and gaining ground on growth within financials. i think the asset managers may
have some difficult, because i still think money separator banks and regional banks should do well. lauren: what stocks do you like as well. i you had the tech sector what part of tech are you look liking? netflix looks like a star taking on hollywood and everything else? >> exactly. financials and industrials on overweight as well as tech. this is barbell strategy, with the growth names in tech but looking at technology, make the dell make dell
lynn eages, software group as air to grow and semiconductors from a business standpoint. [closing bell rings] lauren: john, thank you very much. we're out of correction territory. i will say take that to connell mcshane and melissa francis. connell: thank you, lauren. that is a nice close. green on wall street all three major averages ending in positive territory. five days in a row we've been positive on market. jay powell saying he sees no recession in sight as far as he sees, prolonged concerns about the government shutdown and impact on economy but overall seems like a positive. the dow closing higher, settle ising up 118 points. correction territory as lauren talked about, very nice. closing, doesn't look like it will settle above 24,000, but just about. good to be with you, i'm connell mcshane. >> i'm melissa francis this