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tv   Making Money With Charles Payne  FOX Business  March 12, 2019 2:00pm-3:00pm EDT

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>> thank you, neil. neil: 3:00 p.m. eastern time our time. another hour from now. it will be quick. >> i would say by 3:15 we'll know. neil: that would be after charles payne's show. that would be a shame. thank you for your hard work. good to see you, my friend. charles: neil, i appreciate it. good afternoon, i'm charles payne. this is "making money." coming up it has been bifurcated session with dow anchored by the shares of boeing. nasdaq in the green as technology stocks continue to reclaim their leadership role. i will go in depth with a clear buy signal i think you probably missed. another slide for boeing. that is weighing down the dow. more countries are saying you are not clear for takeoff. this is the boeing 737 max 8. those jets have been involved in two deadly crashes in the last five months but so far be nothing here in america. the faa saying they're okay. our friend david nelson is with us. as you may know he is commercial
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pilot and will weigh in. cpi report shows no inflation. in fact we saw surprising declines. ceo of wells fargo, first head of a major bank to face likes of maxine waters and aoc, one-two combination on capitol hill. we'll have latest on that hearing coming up. all that and making -- and more on "making money." ♪ charles: but we begin this hour, major breaking news with boeing. the company announcing a key change has been made to that max cockpit software, stall prevention system was implicated in last october's lyon air crash t used to rely on one sensor. boeing says the software will now use multiple values. that will make a quote, already safe aircraft safer. this as belgium, poland the latest to join, uk, ireland, germany, france, ever-growing list of companies and airlines by the way around the world
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either grounded or completely barring boeing 737 max 8 aircraft today. so far the united states is not joining the list. president trump issued a tweet about the complexities of airplanes these days. boeing lost 5% in yesterday's session. let's bring in bellpointe strategist david nelson who happens to be a commercial pilot. we went over this after the lyon aircraft crash disaster. i hate to use the word non-shall lant, i would like to get the word for boeing's public relations response. obviously they have a lot of answers. everyone is being look for answers. >> something had to be wrong. they were coming out with a software fix. if you didn't need a software fix, why are you doing this? this is pointing to the mcas system which seems to be responsible for the lyon air crash. we don't know all the details this was put in place after the
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original 737 because flight envelope of this aircraft is different. it was not designed to go on unless certain conditions were met. autopilot was off and designed to prevent a stall in the aircraft and push the nose forward. we don't know if the system failed or bad information from one of the sensors. like you just read or maybe the pilots turned out off or and they turned it off and it came back on. we'll not know until we get all the answers. neil: charles: the pilots are fighting the plane. they want to take the plane in one direction and the plane wants to go in another direction. >> that seems to be part of it. we won't know until we see all the data. the disturbing thing "forbes" is reporting that the copilot on the aircraft had just 200 hours of flight time. as commercial pilot that is simply not enough. nobody with 200 hours can sit in the right seat of an american aircraft.
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speaks to the training in this country. probably why southwest and american decided not to halt this particular plane. charles: there is article out from the journal after the lyon air crash. essentially it went on, i call it too much information. at the bottom part of this article saying that boeing marketed the max 8 partly by telling customers that it wouldn't need pilots to undergo additional simulation training beyond what was required with older versions. essentially saying that boeing decided against disclosing more details to the cockpit crew due to concern about inundating average pilots with too much information. that is appalling if true? >> i think it's a fair point for sure part of the appeal from the aircraft, move from one type or another, reduce amount of train something big cost. flight simulate tore time is very expensive. training around the world. >> some copilots don't have enough training this particular pilot was well-qualified, 8,000 hours.
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speaks of trying to reduce costs as part of the problem. charles: stay with me, david, part of boeing drag on the markets, we had new data out this morning, key inflation data that suggests goldilocks is alive and well. cpi for february ticked up by .2%. the only thing that was up outside of gas and stuff was airlines and tobacco. this is despite the labor market where we see wages are soaring. now there were actually surprises to the downside. new, used vehicleses are lower. medical commodities, drug prices were down big. hospital services, you know all of them down, if you take all those four alone that is 8% of all household expenses. with wages significantly higher and outpacing benign inflation what does it mean for the broader economy and the stock market? bring in courtney dominguez, prudential chief market strategist, quincy krosby. ladies thanks for joining us. quincy, i will ask you about
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boeing, investors from investment point of view, investors are wondering boeing has a great reputation, has an amazing order book. earnings per share estimates in the last three months soared 15%. >> right. >> so is it a stock that you keep in your portfolio? do you look to buy it in your portfolio? >> clearly what happens if you're going to make an investment decision you're going to depend on boeing to go out there and fix this, get this right, do the pr. more importantly work with airlines and pilot associations. as soon as that filters in, you will see long term investors go back in. share prices you pointed out, charles, moved up dramatically. whenever that happens it sets stage for negative headline to bring it down and down perhaps more. at some point long term investors will go in. under the assumption that boeing is going to do what it needs to
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do to get this fixed. charles: all of these countries saying you can't fly this plane add as greater sense of urgency to the story. courtney? >> completely. one thing you need to look out for boeing this is not the first time it happened with then. couple years ago they had issues with the dreamliner which wasn't as nearly as aggressive as have seen right now. that is something they came back from. charles: talk about the market, the dow would be up 150 points or so if it wasn't for boeing. cpi, no inflation, wages are soaring. wages up 3 1/2%. inflation up 1 1/2%. is this the goldilocks -- scenario. how can you argue against this as an investor? >> confirms chairman powell made the right decision. they obviously had a policy mistake last year. they have seen data. reversed course. gives me confidence as an investor these guys have good leadership.
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they're willing to admit they made a mistake and they fixed it at this point. we're not out of the woods. we have other issues out there, china, brexit, whole host of other things. charles: those are headline things. this gets to the crux, quincy, economy, economic backdrop, perhaps even longer term vision for investors? >> absolutely it does. in addition to the factors that you mentioned in that report, we also saw rental equivalent is 33% of the core, that has come down. people's rents starting to stablize which gives them more disposable income. however one thing, national federation of independent business survey come out today, it moved higher. that is good news but embedded is wages moving higher and that moves the small business owner. at some point in the economy continues to slow or moderate, i think labor costs as indicated in the cpi is going to moderate that would be helpful, not so
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much for main street but we're talking about wall street. charles: we did see adp's report that small group of one to 19 employees, they had decline in workers. they can't compete with the wages and other goodies offered by the big boys. with this economic backdrop, what do you think of this market and perhaps that we are poised maybe to retest the old highs? >> i i have to agree with that. we're seeing good data out of the economy. unemployment really low as you mentioned. inflation being low justifying the fact that fed won't have to reduce interest rates. people are nervous, as the markets are hitting almost the longest bull market in history that means they will end. markets just don't die of old age f we see good data coming out i don't see any reason the market -- charles: talk about leadership then. because the momentum names are back. we talked about this last week. we could see -- >> it was trickling up.
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>> sometimes people call them tech but it is not just tech. apple is in the tech part. amazon in consumer discretionary part. con communications services, you got netflix, google, alphabet. of course they all look really good. are those the names? if we do retest the old highs that take us there, david? >> i hope not. i hope everybody lifting together. i just don't want to focus on just the fangs. when the fangs are just performing it tells me the economy isn't performing because you're turning to secular growth. i want to see all the names, industrials, doing well. consumer discretionary. tech is very important and revisions and that's where it is. charles: quincy? >> that is one of the things we looked at when the market came off the christmas eve lows, the breadth, all sectors moving higher and then as we got to 2800 on the s&p 500 pulling back. what is interesting yesterday watch semiconductor names that had been beaten down, beaden down, move higher.
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perhaps on the back of sniffing out a deal with the u.s. and china. that the economy is picking up and because that is chips and data in everything. in everything. in auto and -- charles: that is your proxy? >> almost, yeah. because that was the one. if you remember that led us down back last year as the economy started to undergo a shift, as the portfolios and as the fed continued to be on pace for four rate hikes and perhaps two this year. suddenly we see a turnaround. >> you think there will be two hikes this year from the fed? >> i think -- >> i think chances of that are zero. zero. >> i'm saying they said that in december. charles: back then that was the assessment back then. >> i'm sorry i read that wrong. i apologize. charles: courtney, technology are you okay with that? do you like it where they had one point last week, 470 of the 500 s&p names higher for the year. you want to see it broaden out? >> i completely agree. having broad-based rally shows
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the strength of the economy. most investors tend to be overinvested in tech right now it has been the name of the game for 10 years but that could be to investors detriment. we're looking at recent bias, it has been the best for 10 years i want to have my money. there as a good investor spread it out elsewhere. charles: certainly a lot of value in other places. i will note folks, all the s&p sectors are higher except for industrials which is way down by boeing. thank you all very, very much. get this, two hollywood actresses, felicity huffman, lori laughlin have been charged in a bribery case. wait until you see the details on this. you will not believe it. it is next. ♪ with my friends to our annual
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charles: actresses felicity huffman and lori laughlin are among 50 people charged with nationwide college cheating scandal. it was aled to pay up to $6 million in bribes to have their children placed in prestigious universities. joining us is kristina partsinevelos. >> this is the largest admission scandal by the justice department. overall nine coaches, two actresses as well as 33 parents charged. two actresses, starting with felicity huffman who you may remember from "desperate housewives." she and her husband contributed roughly $500,000 so their daughter could get extra time on s.a.t. exam. they forged doctor's another through the third party
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organization. lori laughlin you're seeing on the screen as well. her and her husband are charged. her husband is the founder of masimo clothing line. they had two of their daughters make the usc, university of southern california rowing team, even though they're not even athletes. example of another coach that received $400,000 just for allowing a student to join their soccer team, even though the student was not even a soccer player. earlier today, not too long ago, a few hours ago there was a press conference about this 10-month investigation, dubbed operation varsity blues. here is what they had to say. >> these parents are a catalog of wealth and privilege. they include for example, ceos of private and public companies, successful securities and real estate investors, two well-known actresses, a famous fashion designer and co-chairman after global law firm. based on the charges unsealed today, all of them knowingly
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conspired. reporter: what we do know at this point you have some schools like stanford, yale,usc have been part of this. the schools are not involved themselves. soes he dish suppose he hadly te children didn't know but there was bribing of athletic coaches a lot of people involved. a lot of big names as well, charles. charles: it's a bombshell. kristina, thank you very much. reporter: thank you. charles: we have kristen tate and teen auna lowe. this is a salacious story that weaves in privilege and a whole lot of issues weighing on society right now. >> yeah, this is so infuriating, charles. if there was ever an example of just out of touch privilege this is it. it is also very sad, not just for the high-performing students
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who were denied a spot at top colleges but actually for the kids of these wealthy families who gamed the system. these rich parents, not only robbed their own children of the chance to succeed fairly, but also for the chance to fail. really i learned so much more from my personal failures than i have ever learned from my successes. when the kids get out in the real world, they may not have the kind of grit and determination they need to succeed because they haven't had to earn their own keep like other grads but we all know this kind of stuff goes on all the time. rich families paid a lot of money to circumvent the system for years. millionaire families make donations to get their kids through the door. jared kushner got into harvard after his dad made a $2.5 million donation. that is not illegally. it would be more fair if there was more meritocracy. charles: tiana, you went nuts on
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twitter and dumpster fire at usc and other things. you are really upset about this. what about this story has you so upset. >> so usc in a letter out to the student body, interim president because the last president had to resign in disgrace, said usc is the victim in all of this. i find it hard to believe, a senior associate athletic director took home more than one million dollars in bribes. how do you wind up with this? by having a culture of corruption. these universities have inculcated this. so even if the top president or even if the top administrators at the universities didn't directly know about it, they are the real villains in all of this. they have been siphoning money from taxpayers for decades via unlimited federal student loans and quite frank think ultimately just a disservice to society that this has been able, that this sort of corruption is able to go through for this long at the top universities, not just usc. at yale, at georgetown. these are top coaches at these
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schools. charles: and adding insult to injury from what i understand, most of these were tax write-offs also. not only they get the kids in, but they were able to write it off on their taxes. kristen, the trump administration actually in this budget released yesterday wants to take action to get these larger, multibillion-dollar institutions to have more skin in the game. it does not make sense that perhaps the ultimately the taxpayers in this country could be on the hook for someone who took out a gargantuan loan to go to harvard when they have $45 billion. do you think this is the right direction? >> yes. i would think very few people would not think this is the right direction. as you mentioned, the company that kind of facilitated this scheme laundered the bribe money through a charity so that they could, you know, circumvent taxes. so this is not just an insult to the education system but to the american taxpayers but you know
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the college admissions industry has just become so large and there is so much demand for it there is bound to be shady business in a black market. when i was in college i actually interned for a firm in boston that took tens of thousands of dollars from parents for counseling to help them get in competitive schools. some of the stuff that went on blurred the lines between good coaching and good business. like heavily editing essays. charles: people out there, saying like you did, going to college, i was in air force, went to school at night, i always had two or three jobs while i went to school. ladies, we'll see what happens. thank you both very much. appreciate night thank you, charles. charles: speaking of scandals, two years after wells fargo was caught creating fake customer accounts its ceo faces maxine waters. we have details on that contentious hearing next. >> all the changes that you said that you have made are not
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evident and you do not have the kind of customer satisfaction that you are alluding to. again is wells fargo too big to manage? ♪
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charles: wells fargo ceo timothy sloan in the hot seat today. the first bank executive to face house democrats after taking over the financial services committee in the new congress, a committee now led by maxine waters no less but it wasn't just democrats putting pressure on the ceo. >> this is the end of scandal at wells? are we going to see more headlines coming up? are we going to have another hearing about this? >> i can't control the media. >> are your customers going to hear more of bad actions taken
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by your company? >> there is nothing else that i'm aware of that we haven't disclosed. charles: deirdre bolton in our new york studios. newsroom, with the details. deirdre. reporter: charles, this company is really trying to clean up its image after a series of scandals started in the year 2016. brass tacks, the bank's sales force abused its customers. i will give you some statistics. part of the abuse found in wells fargo outlandish sales incentives. 1 1/2 million unauthorized accounts were opened. 565,000 unauthorized credit card accounts were opened. and in an unprecedented move at the time the fed even got involved, said listen, you can't add on or grow any part of your business until you have better corporate governance. that never happened before in the history of banking. here is wisconsin congressman, it was an interesting exchange, sean duffy. >> has wells fargo undertaken
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reforms to fix the problem? >> we have. >> is the problem fixed? >> it's fixed. >> it is okay? i'm surprised because as you come in and talk to congress i'm shocked that you're not in an orange suit and a little jail cell testifying today. reporter: there is the image there, charles. basically he is saying if any individual citizen did what wells fargo had done, that person would be in jail. ceo tim sloan saying the board is in place. he is is the only wells fargo insider. everybody else is from outside of the company. he says the company has been reorganized. risk and compliance have been taken out of the business units. there is a better system of checks and balances. he says all employees have gone through retraining with a focus on ethics. for the record senator elizabeth warren who was not in the room today previously called on wells fargo to kick out tim sloan. he is an insider. he has been with the bank the whole time. he took over the role of ceo once the scandals became public
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but senator warren written to fed chair jay powell advocating the idea of sloan's ouster. charles? charles: deirdre, thank you very much. always good to see bipartisan animosity to a bad actor. they have been certainly a bad actor. for more on this, bring in stephen guilfoyle, president of sarge 986. first of all, it is unusual to see this kind of, you know, bipartisan contempt for someone or an industry. in this particular case wells fargo. they did some bad things, didn't they. >> you know you are doing something wrong if you open an account without their permission, right? democrats and republicans have to defend their constituents. they have to pretend they're protecting average american. you have a bad guy and two sides usually opposing each other to pretend they're the good guy.
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charles: what do you make, sean duffy brought up interesting point, not the orange jumpsuit which made me laugh out loud, saying you were part of the problem. elizabeth warren said tim sloan should not be there. you are part of a bad administration. maybe you were the good guy there at the time. we don't know. can you trust they have gotten over the hump as long as tim sloan is at the helm? >> i would not trust my money with wells fargo even if tim sloan was removed it. went down to the retail level this. was systemic. charles: if you're management, guesting bonuses open up the accounts, if you're a low level person. >> true. some of those guys or gals were trying to keep their jobs. charles: sure. >> that does not excuse the misbehavior. you can always leave your job. if you're a banker you can go somewhere else. this is part of the reason why there is such a low multiple on entire banking system. charles: i was going to ask you,
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for the last year xlf, s&p financials. the worst performer in the entire market. it is down almost 12%. remember a year ago everyone said financials would outperform because the fed will raise rates. they raised them four times. this year everyone is saying financials outperform. is it lingering issues hurting them or much more? >> this is part of it. what the fed did kept increasing short-term rates, damage the yield curve. charles: is that what they wanted them to do? >> that is what they wanted them, operation twist in 2011 was a mistake. the yield curve has never been repaired since. you have a situation where lending isn't a good business to be in. so the banks are forced to fee you to death. charles: or some of these guys, they make their quarters by trading. >> trading, investment banking. >> do you have exposure? are you long any of these? >> this is my least-exposed
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group. i'm long jpmorgan because i think they're best in class. charles: right. >> i'm long keybanc. they pay a nice dividend. i think they have potential for growth. i'm looking at citigroup. other than that nothing. charles: jpmorgan. too. same thing. i gave up on regionals last year even though we may see consolidation. sarge, thank you very much. >> anytime. charles: new concerns out there being raised by prime minister theresa may's latest brexit idea. the vote is expected in the hour. we'll have preview for you after the break. ♪ am car. it turns out, they want me to start next month. she can stay with you to finish her senior year. things will be tight but, we can make this work. ♪ now... grandpa, what about your dream car?
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♪ charles: welcome back. the unfirst of the stock market for the most part largely higher. but there is boeing, which is pulling down the dow right now. technology stocks are biggest gainers on the street today,
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thanks by big moves in the big momentum names, right? amazon, apple, google, facebook. coming up our picks of the day. i want to go in depth on a buy signal that you can't miss out on. meanwhile, seems like theresa may was finally going to have a win with the eu agreeing to last-minute changes to update a brexit deal she presented last night. then poof. the optimism evaporated with the uk's ag saying the legal risk remains unchanged. with the vote on this deal expected any moment now, the deadline just 17 days away what should we expect? joining me former uk parliament member john brown and our own ashley webster. john, let me start with you. there was more optimism 24 hours ago. people were saying that england is simply flat-footed and that a no-deal brexit would be catastrophic? >> of course that is the side of the remainers or remoaners to
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pretend that would be catastrophic. in fact there would be huge opportunities for britain to trade with the rest of the world, free of overregulation, overbearing and laws of the european union but the reason there was optimism because people started to believe that there were changes, that managed to get changes. they didn't. it was full of typical vague euro speak which means almost nothing. it looked like it was drafted in germany, not in london. so people are still upset. the northern irish will be upset. brexit people will be upset. a lot of remainers will be upset, because what it leaves britain, transfers britain from being full paid-up voting member of the european union with vast sell state, with no vote, but still subject to european trading rules, european tariff barriers and of course european law. so it's a dead loss for britain and i think she is going to lose upwards by 100, maybe more votes. >> my goodness. that would be another major
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embarassment. ashley, i want to ask, what they're saying, what remainers are saying, what they're saying in brussels and germany, what uk will like to do is have its cake and eat it too. they would like to go ahead to have the independent trade be relationships around the world -- >> rightly so. charles: just defacto relationship without any of the strings attached. any of the regulations others are abiding by. >> of course they will make that they will make this hard as they can. they have been a real bully. i feel some sympathy for theresa may. she is in the position. she tried their best. they will not let the uk to get out of it easily. they don't want other countries say, that's what we want, we want to do what uk is going to do. john is absolutely right. get out. do a pure brexit. bumpy in the beginning i'm sure but ultimately the uk economy will prosper. charles: you say the e all. have been bullies but he would boldened by equivocation,
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theresa may, she wasn't on board. >> no, she was a remainder. charles: she never seemed to have her heart in this as warrior fighting for the voice of the people. >> i absolutely agree with that. john's right. maybe boris johnson would give it a lot better effort. charles: john? >> what she did, instead of going to the european with britain's huge assets, second largest economy in europe, fifth largest in the world, largest nuclear detent outside of russia and united states, with huge relationships around the world, instead of going to the european union, we're leaving 29th of march. what can we do to make it a smooth exit. she gave all the trump cards up front. she is remainder, globalist remainder at heart. i think either incompetence or much more worrying, total treachery. she has been negotiating on behalf of germany, not britain. and that is why she keeps visiting merkel in berlin, which runs the european union. charles: the clock is ticking, gentlemen. we'll know real soon.
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we'll know on this vote, couple weeks how the whole thing wraps up perhaps. john, ashley, thank you both very much. markets are range-bound. bias shifting back to the upside. there is money to be made. later in the show stock picks you need to hear. coming up is president trump's 2020 proposal really cruel for demanding work requirements for welfare? we'll be right back. ♪ each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs.
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charles: fox business has just learned president trump has talked to the boeing ceo, to their ceo this morning on the telephone, however it is unknown if the conversation came before or after the president's tweets about the complexity of airplanes. the u.s. is one of the few major countries not grounding or barring the 737 max from its airspace. just moments ago russia became the latest country to keep the aircraft grounded for now. meanwhile president trump's 2020 budget causing a big stir especially among critics who say his plan for stricter work requirements in order to receive welfare benefits like food
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stamps, medicaid, housing allowance is plain cruel. joining me to discuss is fox news contributor deroy murdoch. nancy pelosi says this is cruel, cruel approach to this what is wrong with making people, asking people to work 20 hours a week? >> nancy pelosi would have us believe this is some kind of evil, cold-hearted right-wing plot. we heard of work requirements signed by that famous fascist president william jefferson clinton this goes back to the clinton era. this is something democrats believed in the 1990s. basically idea if you get government assistance it is good idea to have some things go with it. skills to go back to work, reduce the incentive for people to stay home to go get checks, to cheat the system. charles: maine did this two years ago. 20 hours of work or enroll in school. they had extended welfare benefits from the great recession. i think their enrollment went to
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zero overnight. >> i go get a job now, thank you. charles: it did work under president clinton fantastically. some of the states started to bling. it rolled back. we're in the situation we got in right now. >> part of it under obama let's expand benefits. there was huge explosion in food stamp eligibility. they raised income threshold for that. the whole idea was, let's let more people -- charles: removed the stigma. at least through great lengths with commercials, there was for a long time, at least i was growing up, i thought it was funny, deroy, i would be in the store with food stamps. my neighbor be in the store with food stamps, i didn't want each other to see food stamps i hide until he paid but we there was stigma. >> there is card using like visa or mastercard. so the stigma is gone completely. another thing rudy giuliani did as mayor of new york city, if
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people wanted to stay on public benefits, come into an office, present through themselves, go through interview, issue, submit a fingerprint, thumbprint. this led to people, many people dropping off the rolls, people were collecting somewhere in new jersey, connecticut and new york. rolls for people cheating went way down. we have to do that on national basis. charles: in movie there was claudine, how invasive it was. that was too much. get your latest thoughts on aoc, saying she is not putting moderate dems in a tough position. also saying that the republican party, that the gop is enemy of the people. >> that is quite a statement. it is amazing. every time she opens her mouth the entire country talks about it. i will say she is compelling and in the news all the time. democrats may have their narrative, she has hers, and she always eclipses. charles: nancy pelosi suggests trying to impeach president trump would be waste of time. she is out there saying she doesn't agree.
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on every major issue she is butting heads with the speaker of the house. >> she is almost the defacto speaker of the house. charles: so do i. deroy, thanks a lot. market sent as you buy signal yesterday. it is pretty interesting. i will go in depth to explain it to you. plus the surprising stock pick as we head into the final hour of trading. we'll be right back. ♪ metastatic breast cancer is relentless, but i'm relentless too. mbc doesn't take a day off, and neither will i. i treat my mbc with everyday verzenio, the only one of its kind that can be taken every day. verzenio is the only cdk4 &
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(bird chirping) lots to do, hope you fuelled up. sure did. that storm sure ripped through. yep, we gotta fix that fence and herd the cattle back in. let's get at it. (whistle) (dog barking) (♪)
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>> yesterday's session was very special because any time the market climbs off the canvas and trades higher in the same day you are going to pay attention to that. what happened yesterday was even more specific because it was an outside reversal to the dow. and what that means is that the session, it moved below the prior session's low, so we went below friday's low point and then above the prior session's high. in other words we went higher.
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that kind of reversal is a big big buy signal. moreover, the low of the session was the first trade of the session when the dow opened at 25,208. at the very least i think we have a very important down side point where, you know, as an investor you can use it as a guide. it could be your support point. it could maybe if it doesn't hold, where do i lessen? i think yesterday was a huge huge signal. everyone should know how to recognize. joining me now to discuss is a chief strategist who is also an excellent technician. this outside day, this outside reversal, i mean, you don't have to be a technician to know if the dow can climb 400 plus points intraday, that's pretty big anyway. >> yeah, it is a really interesting signal too, charles, because it tells you that you've brought in some weak hands early and you cleared them out. charles: you flushed them out. >> yes, you flushed them out. in fairness, that was mostly boeing's doing because the s&p, nasdaq did not open lower yesterday morning, only the dow. but i think it's a really good
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sign, especially when we tack it on to the fact that we had five straight down days last week, you put that with that nice perfect reversal bar -- charles: i'm glad you mentioned that. friday was one of the worst sessions of the year. we were looking vulnerable. the breadth was ugly. we had more losers, more new lows on the new york and the nasdaq on friday. i mean, it was the proverbial snowball was becoming a boulder. >> yeah, what happens when you've got one narrative that's playing out that we have gone so far this year, right, or we go back to christmas eve, such a strong one and everybody is saying we need to pull back. we need to pull back. i think one of the best things that we've seen is in that five-day pullback, it was so shallow that it shows that the bears really couldn't get anything going, and that and our breadth didn't suffer the number of stocks participating didn't suffer last week, and we still have a lot of stocks pulling on the oars as we go back up. charles: by the same token, though, last week buying was met
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with some selling. >> yes, it was. charles: every morning we would get some economic data, some was good and we would bounce for a moment and give it all up. what is this market waiting for? >> it is waiting for several things. one of the things we will talk about for sure is the china u.s. trade talks. that's still an overhang because we don't know the nature of the deal. we're going to get a deal. but what kind of deal are we going to get? charles: the currency is going to be involved, currency manipulation, it sounds like getting smarter and better to you? >> sounds like it is getting smarter, talking about trying to do some boots on the ground, things for ip, if they can get something done there with some tariff relief on both sides, i think we could see a really big pop. charles: this morning the cpi report benign, no inflation. >> right. charles: you've got no inflation. inflation 1 1/2% year over year. wages up 3 1/2% year over year. that's a lot of wiggle room. the consumer has money, has disposable income. >> you said it well at top of the hour when you called it a
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nice goldilocks report. it shows the economy is doing what it should be without the fed saying we need to put some brakes on. charles: in this environment people are looking for stuff to buy. one of the consequences of everything being up, it feels more difficult. what do you like here? >> if you're a longer term investor, i like air products, best in class, a psp d i love w they are doing. as an engineer at dupont, a reliable supplier ever, well run company. if inflation starts to rear its head toward the end of the year, industrials are a good place to be. intermediate i like picks and shovels in the dental space. so you look at dentist supply x-ray, they provide products to dentists, really good. and google, short-term, they are going to play catch-up. they are only equal to the s&p since the december lows, while amazon, netflix have really taken off. in megatech i like google.
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charles: in times square there's a big air products thing, with nitrogen coming out of it. a million people are going to walk past that and never think to buy the stock. thank you very much. dow jones industrial average down 60 points. over to you liz claman. liz: it's 3:00 exactly, charles breaking news at any moment british parliament is set to hold that vote that could dramatically up end the u.k.'s economic future and possibly our markets. you are looking at a live picture inside the house of commons where prime minister theresa may's latest brexit deal just struck with the european union in the last 24 hours is front and center. you can see them yelling here, order. last night she secured legally binding assurances that britain will not be tied to eu rules and regulations indefinitely when it comes to its border with ireland, a so called irish backstop. we are watching this very closely. we're monitoring the live camera as former ambassadors


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