tv Countdown to the Closing Bell With Liz Claman FOX Business May 6, 2019 3:00pm-4:00pm EDT
more value abroad. i think our dollar's not going to go forever. i think tech got overvalued. but so far, that's been the wrong call. it's been the u.s. that's -- that came back the fastest. charles: we are near the highs of the session, folks. 26,443 on the dow. liz, back to you. liz: i know. but this is getting exciting in the last seven minutes of your show and now, top of the hour, breaking news. threats, fear and fire power sending global markets into multiple tailspins. president trump threatening new tariffs on china as he flexes u.s. military muscle against iran. escalating tensions between israel and gaza, plus north korea weekend missile firings, all piled on at the open of trade, where investors ran for the exits. can the bulls erase more of those morning losses in the final hour? companies with exposure to china getting hit the hardest. the early morning shock wiping 471 points off the dow, which was more than a dozen global giants who do business with
china. right now, the dow is down only 56 points. the nasdaq has miraculously vaporized more than 120 points off its losses. it's now down just 33. even though much of the drama hadn't even happened this weekend, we tackled it all during our weekend with warren at the berkshire hathaway annual shareholder meeting in omaha. the enduring trade war with china, just one of the topics i talked to warren buffett about as we walked the floor there. a full recap of our visit with the $90 billion man. plus, we caught up with apple's ceo tim cook first on a fox business interview. we took a chat with the man who would be buffett as well. and charlie looks into the cbs/viacom crystal ball. less than an hour to the closing bell. let's start the "countdown." the whole world is a
continued tinderbox. liz: the oryal of omaha telling us he's concerned about the beat of war drums around the world. we will hear from him coming up. we need to get to this breaking news right now. mexican authorities have just announced about 20 minutes ago that they have found the remains of a jet that disappeared an hour ago while traveling from las vegas to northern mexico. no word on whether any of the passengers survived. there were 14 people on board, including three crew members. we will keep you update order this story once we get more details. to the markets. now suddenly making a charge as we hit this final hour of trade. the dow has now clawed back, you can do the math, we had been down 471 points so about 410 points of losses after a knee-jerk reaction this morning to president trump's weekend threat to increase tariffs on chinese goods.
as china backed off its threat today to cancel this week's trip to d.c. for trade talks, the markets started to come back but at one point, the nasdaq plummeting a stomach-churning 182 points due to the exposure tech stocks have to china. right now, we're at the highs of the session, down just 37 points. but listen, you've got all kinds of tech stocks, particularly the semiconductor chips that really drag this index down. for totally different reasons, oil suffered a volatile session, first dropping to a one-month low on the tariff threat, then you can see from the intraday chart, bouncing back on rising tensions between the u.s. and iran. the president saying it's time to get some forces into the area of the persian gulf. oil is up a full percentage point in the after-market hours at $62.60 a barrel. the prospect of a prolonged trade war grounding shares of boeing and it's also a couple of other issues, too. but we've got boeing down 1.25% and this is an ugly one-week
picture here. what could cause retaliatory headaches for the plane maker which sells aircraft to air china, china airlines and china cargo. as boeing struggles to get its grounded 737 max jets up and running again, there are reports that the company was aware of problems with this particular design more than a year before two fatal air crashes, one in indonesia and one in ethiopia. despite that, warren buffett at the berkshire hathaway shareholder meeting saying he would be very comfortable, wouldn't hesitate for one second, to get on a boeing 737 max once, as he said, the faa recertified it to fly once again. let me get to this breaking news. we need to know the exact status of u.s./china trade talks. unknown at the moment but the man seen with president trump right here is chinese vice premier liu he. he was supposed to have landed in the u.s. for talks by now, but he decided not to board a washington, d.c.-bound plane yesterday. sources telling fox business
that chinese government decided to back away from some concessions that were previously agreed upon and that of course probably annoyed president trump enough that he put out those double tweets here. both pieces of news sparking this pair of tweets from the president where he has promised to raise tariffs on china from 10% to 25% starting this friday. sunday's tweet sending global markets into a nosedive as fear that a trade deal between the world's two biggest economies would collapse and never come to fruition. saturday, i asked warren buffett his thoughts on the trump trade war. >> trade benefits everybody generally and hurts people specifically. that is something i think the president as an educator in chief, any president, has an obligation to explain and i think congress has an obligation to take care of the people that are road kill. liz: yeah. what he's saying is u.s. workers are in some cases, road kill from these tariffs.
will there be more? edward lawrence, is this deal about to fall apart or come back together? reporter: you know, that is the question of the hour right now. but warren buffett made those comments to you before the twitter bomb, so to speak, the president lit off yesterday talking about china. about a month ago, the president said this week he would know if we could have a trade deal with china or not. this is where we stand right now. the president said that on friday, he will impose or add 25% tariff on $200 billion worth of chinese goods, up from 10%, then in addition, he would add a 25% tariff on an additional $325 billion worth of imports, in his words, shortly. this would be about everything china imports to the united states would be under tariff. in the second tweet that you had mentioned there, it's really at the heart of why this happened. i want to show you that tweet again. the tweet says the trade deal with china continues but too slowly. as they attempt to renegotiate, no, white house trade advisers
say china attempted to change the deal they had agreed to last week in beijing for this next round coming up in d.c. listen. >> you might say take back some of the concessions they made earlier. these talks are secret. the 150 pages or so has never been disclosed, not a single sentence hab s been revealed to the public. reporter: sources are saying that concessions were pulled back by the chinese that were agreed to yesterday in beijing, which is something the u.s. wanted to talk about going forward this week. now, the white house saying that they have no intention or they want to keep going, canceling this meeting, they believe that there is going to be some negotiation deal going on this week. they should gauge, though, if the delegation does come, if the voice p vice premier is in that delegation, that is the gauge on if something can be done this weekend. i should tell you that in about the next nine hours, they need to get on a plane if they are going to make a meeting on wednesday. they need to get on in beijing to here. liz: edward, thank you very much. edward lawrence.
i want to quickly bring your attention back to the markets. russell 2000, small and midcaps, folks, just turned positive in the last few minutes. this is a stunning move. we are hitting session highs right now. it's up only two points but the russell had been down 25. that is sort of outsized when it comes to percentage losses. that was green. let's see what can happen. the dow is down only 54. with the markets appearing to claw back, what are the traders on the floors around the nation hearing and what are they hearing from investors? scott, tell me what's driving this comeback. >> i tell you, we came in this morning and no one really knew what to expect because we were at all-time highs and we pretty much thought the deal was done so that little trade bomb put us all back on our heels. you came in and had a plan and you said hey, last week's flow was 2898, let's see if we can hold that. we held it early morning. some tech names got some flows. people bought the dip. we grinded off the lows. i would say we don't have to go positive and today was a very constructive day for the bulls. liz: luke, it was a wild day,
like riding a bull if you are talking about oil. much of that had to do with we had the weekend missile strike. missile test, i believe, by north korea. we had 600 rockets going from hamas into israel. just absolute drum beat from the war drums now at this point. so it's not a surprise to see oil doing what it's doing. you surprised it's not even higher? >> a little bit surprised that it's not higher. but you can go to the tape. we have said for the last couple of years, there's plenty of oil in the world. it's about refining space. and the saudis have extra capacity, so do the russians. if libya gets back online, they have extra capacity. there's always been enough oil. but if there's some tension in the middle east, especially in the persian gulf, that's a bottleneck for a lot of tankers, you will see oil go much higher. i want to point out the russians have made an investment in venezuela and they are backing
the current government there, and that's opposing the u.s. i wouldn't be surprised if the chinese also try to do something similar, a little more low key, but something similar and i don't think there's going to be any deal with china until we get closer after elections. any formidable deal that talks about all the stuff, especially intellectual property, not until after elections. liz: luke, scott, we have a long way to go before we see those elections. good to see both of you. china, if you talk about which sector was getting slammed, it's the chip sector. semiconductors. dow down 53, had been down 471, but with the closing bell ringing in 50 minutes, trade-sensitive stocks, particularly the semiconductor index, all these names in the red, taking it on the chin following president trump's threat to raise tariffs on china. semiconductors are still falling at this hour. in fact, all 30 really suffering losses here. you've got amd and microchip
technology, it's an ugly picture. nvidia, qualcomm following to the downside. next we take you to nebraska, right there in the thick of it for woodstock for capitalists. come along with me as i walk the floor of the berkshire hathaway annual shareholder meeting with the oracle of omaha. i peppered warren buffett on topics ranging from his investment in craft which i can't say he regrets but he ain't happy where it stands, to amazon, to the 2020 presidential race and more. that's next on "countdown."
this is the couple who wanted to get away who used expedia to book the vacation rental which led to the discovery that sometimes a little down time can lift you right up. expedia. everything you need to go. i'm workin♪ to make each day a little sweeter. to give every idea the perfect soundtrack. ♪ to make each journey more elegant. at adp we're designing a better way to work, so you can achieve what you're working for. morning. what are you doing? isn't it obvious? nah. we're delivering live market coverage and offering expert analysis completely free. we're helping you make sense of the markets without cable or a subscription from anywhere you are. i get that.
liz: i don't know, maybe investors are happy at least some of kraft heinz's bad news wasn't worse. take a look. it is moving higher as we can look at the stock chart. ticker symbol khc is up about two-thirds of one percent. really, not a bad picture at all today after the company had to admit it will have to restate its financials for the years 2016 and 2017 by approximately $181 million. this after an investigation revealed employee misconduct by several staffers in its procurement division. berkshire hathaway ceo warren
buffett made a huge investment in kraft back in 2010 with a $10.6 billion stake in the company. he was very clear that he's thrilled with the heinz part of the acquisition but said he paid too much for the kraft part. i asked mr. buffett saturday about kraft's $15.4 billion write-down last year and it may be changing tastes in america where they are looking for healthier names, where to blame for kraft's stumble. he didn't admit to that. >> if you look at unit sales for the top ten products of kraft heinz, they are quite steady. basically. that's true throughout the food industry. now, with the population growing 1% a year, the american public is going to eat 1% more food and some of them, sure, are experimenting with other things, but if you look at candy bars, you know, snickers has been number one for 40 years. it will probably stay that way. liz: you couldn't have been happy when you heard. how did you hear about the fact that there would be such a massive write-down?
>> i don't remember exactly when i heard, but the write-down is intangible. it isn't like money disappears or anything of the sort. it's because we paid, in my view, we paid too much for kraft. we didn't pay too much for heinz but we paid too much for kraft so you write it down. it doesn't change whether anybody uses ketchup. they don't care about the write-down. there are as many units selling heinz ketch jup or philadelphia cream cheese or whatever it may be around the world. but we paid a lot. we paid too much. you can always pay too much for anything. liz: did you know you were paying too much at the time? >> did i know i was paying too much? i'm not known for buying things where i know i'm paying too much. i have a history of blowing it, don't you? liz: is amazon taking away from any of your brick and mortar companies? >> sure. sure. liz: which ones? >> practically all of them. no, they will look at everything
and they have a tremendous customer base, and overwhelmingly, people like them. the delivery is really the key to it in a big way. i would have thought that would be very, very difficult to pull off. liz: i have to ask you about uber, because you just talked about autos. uber is about to go public. does it surprise you, what do you think of wall street giving $100 billion valuation to a company that lost $3 billion in the most recent quarter, isn't profitable, and doesn't have a foreseeable future where it is profitable? what does that say about wall street? >> well, i talked about innovation to some extent but i can't comment on uber. for one thing, we looked at it 18 months ago or so, but i wouldn't comment on any new issue. liz: we just drove along in a waymo ride-along which is autonomous, and it's a ride hailing service. fewer accidents, possibly. what is that going to mean for
geico? >> well, safer cars mean less accidents. they are more expensive to repair, like crazy. but basically, you want to get so that cars are safer. we do that every year. it's been remarkable. liz: do you see it infringing on some of the revenues? >> if nobody ever has an accident, there will be no auto insurance business. liz: would you hail an autonomous vehicle if you could? >> would i what? liz: hail an autonomous vehicle and ride in it? >> i would rather have somebody drive me. liz: you are still driving yourself, right? >> i drive sometimes during the day. i don't drive at night. i drive less during the day. my wife insists on that. liz: can i ask you about the federal reserve really quickly? donald trump just recently urged the fed last week to cut rates by around 1% saying the economy would go off like a rocket ship. yet we have 3.2% gdp, we have a very solid jobs labor market at the moment. what do you think of that idea
that the president puts forth as hey, cut 1%? >> well, presidents -- well, i guess the fed wasn't established until 1911 or something like that, but presidents have always wanted, particularly when election year's coming up. that's not unusual. in fact, paul voelker has a terrific book out that came out six months ago or so and he describes the meeting with reagan and jim baker, and it was suggested to voelker that it would be a good idea not to raise rates between then and election, and voelker didn't say anything, he just stood up and walked out of the room. and that is the proper relationship between the fed and the administration. liz: do we necessitateded a rat? >> we'll find out. i would say in my view, there's nobody better than jay powell to be running the fed. liz: i was going to ask you about odds. you run the odds all the time. you had liked mike bloomberg certainly if he were to run. he's not running. you would have supported him. he's not running. however, another billionaire
businessman is, howard schultz, who says he's run the numbers and he can get to 270 electoral votes as an independent. you run numbers all the time. can he get to 270 electoral votes? >> it's extraordinarily unlikely but that isn't a reflection of him. it's a reflection of the electoral system and political system in the country. it's really tough. liz: would he be a spoiler if he ran as an independent? >> well, if you run as an independent, you are going to take between the two major parties, you take more votes away from the people who more closely agree, the party who more closely agrees with you. by definition, you are probably going to hurt the one that you would vote for if you were voting. it's by nature, if you lean to the left, you are going to take people away from democrats. if you lean to the right, you will take it away from republicans. liz: biden of course is 76 years old. you are 88 and still going strong. you have said, though, succession at your company, age
is a factor. do you think age is a factor when running for president? what do you think of biden jumping in the race? >> it certainly can be. obviously, the older you get, the more likely you are to have something happen to you. biden appears, i mean, 76 is a kid to me. liz: i'm telling you, i have scratch and bite marks on my back from that crowd. absolutely crazy. that's warren buffett on a whole host of issues that we thought you would be interested in, really spanning the gamut. i have to say one thing about kraft. during the shareholder meeting, one of the shareholders got up and said warren, they are allowed to ask any question they want and he said warren, if you took a poll of everybody in this arena, 42,000 people, and asked them if they have eaten velveeta cheese in the past year, i believe, the guy said, very few people would say they have. keep in mind that warren did not agree with my assessment that american tastes were changing and kraft simply didn't get it. he didn't seem to believe people
are still eating as much of sort of not the healthiest food and the fact that 3g, the company with which he had of course come together with, look at this, it's an ugly stock price over the last year, they cut to the bone their research and development which could have spent time developing healthier, more interesting snacks for americans. he still thinks it's just retailers like amazon and walmart cutting a very tough deal for shelf space. when we come back, so much more. technology getting a punch to the gut at this hour. we told you about semiconductors. with the closing bell ringing in 37 minutes, let's drill down. you can see that apple is second to worst behind nike on the dow 30. it's a tough day right now as we look at that. cisco, ibm, microsoft dragging it down. the companies could get hurt if china trade talks collapsed. ibm just turned positive. but the way apple is looking today, down 1.5%, that can't really make tim cook happy, but apple's ceo was all smiles as
he, listen to this, ventured out on to the floor of the berkshire hathaway annual shareholder meeting saturday, right into the fray, taking a page out of warren's book. i got a first on fox business interview with the tech titan. hear the exact things he told me he learned from buffett this weekend. and an inside look at the man who would be buffett, perhaps. could berkshire vice chairman greg abel one day step into the shoes of the oracle of omaha? tim cook and greg abel, next on "countdown."
♪ ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. thank you. there is reward. beyond the classroom... there is inspiration. ♪ ♪ beyond work and life... who else could he be? that's what i say. there is the moment. (laughing) beyond despair... there is hope. ♪ ♪ stay safe. i love you mom. i love you too, sweetheart. ♪ ♪ beyond treatment... ♪ ♪
there is care. say hi to grandma and grandpa. ♪ ♪ beyond technology... there is human ingenuity. every day, comcast business is helping businesses big and small go beyond the expected, to do the extraordinary. take your business beyond. [spanish recording] so again, using "para", you're talking about something that is for someone. ♪ pretty good. could listening to audible inspire you to start something new? download audible and listen for a change.
was backstage but in a surprise move during a lunch break, he strolled out on to the convention center floor. he's taking selfies with anybody who asked and first on fox business, we jumped in there to ask what he gleaned from the experience. listen. what have you learned from warren buffett? >> warren to me, other than the obvious wisdom, integrity, humili humility, straight language, plain language, i don't think there's a better teacher. liz: do you feel happy that he's invested in apple? that's got to be great. >> i'm thrilled. i'm thrilled. liz: that took nerves of steel because that crowd began to descend the second they saw him. another rare sighting, berkshire vice chairman greg abel who is now in charge of all non-insurance companies of berkshire from dairy queen to fruit of the loom.
shareholders hung on his every word. they wanted selfies with him, too. the oracle of omaha gave his biggest indication yet that abel is the man who will eventually run the conglomerate but in a fox business exclusive, abel gave all the credit and limelight to warren buffett. >> no, no, no, we all want to hear from warren, ni know that. he's such a great man. liz: congratulations on everything that's happening. >> a great weekend. couldn't be more proud of berkshire, and obviously warren and charlie. liz: is he the next one? pat egan is the new ceo of berkshire-owned seas candy. >> he's just a tremendously bright person and i have learned so much but what i can tell you is what you would say about any of the berkshire businesses, we all operate with the highest level of integrity, take care of your customers, take care of your people.
liz: greg abel who runs berkshire hathaway energy and is now vice-chair is the man who will be buffett. >> that's the odds-on, sure. liz: are you comfortable with that? >> of course. why not? liz: okay. that's harvey eisen. go to lizclaman.com for one thing in particular havervey ein said during the meeting. i sort of heard it but when harvey explained it it all became clear. it is what harvey says is the secret of buffett's success. eisen says it is not that warren buffett is an investing genius. it's something else. i want you to go look at that clip. you can see actually all of our clips including the famed scrum with big crowds around it right there on lizclaman.com. keeping a close eye on cbs, we are doing that with the closing bell ringing in 29 minutes and the dow down 61.
by the way, we just hit session highs of near losses of 39 points for the dow. not bad. his company owns more than three million shares of cbs worth more than $158 million. what does mario gabelli say about a possible second marriage of cbs and viacom? he tells us and charlie gasparino lays the odds. charlie breaks it next on "countdown." my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it like it's supposed to. trulicity is for people with type 2 diabetes. it's not insulin. i take it once a week. it starts acting in my body from the first dose. trulicity isn't for people with type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you're allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2.
stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, or severe stomach pain. serious side effects may include pancreatitis. taking trulicity with a sulfonylurea or insulin increases low blood sugar risk. side effects include nausea, diarrhea, vomiting, belly pain and decreased appetite, which lead to dehydration and may worsen kidney problems. i have it within me to lower my a1c. ask your doctor about trulicity. ♪ can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you.
liz: yes or no? >> yes. liz: you think they will get back together? >> yes. liz: okay, then. will that be good for shareholders in the end? >> it will be good for my clients because you know, we have strong elbows. liz: you like bob bakish? >> bob is terrific. liz: he's from the bronx. it's okay. you got to understand mario gabelli. mario gabelli chair of the biggest independent holder of voting stock in cbs and viacom, confirmed what charlie gasparino broke last week but i need to quickly tell you, charlie, look at the markets. we are at session highs. even though there's red on the screen, we are the closest we have come to turning positive. s&p is down just nine. the dow is down just 41. had been down 471. the nasdaq which had been down 182 is down just 30. so it's how the markets close, not how they open. >> i will tell you this about gabelli. he knows what's going on because he owns the stock, viacom. he really wants it to happen. i will tell you this. at the milken conference, there
were a lot of major bankers, lot of people that are friends with sha shari redstone that said they are working on the deal. can't say it's definitely going to happen. they are clearly working towards it. that's why bob bakish, head of viacom, denied an interview with everybody, me included. we ran into bob, he didn't say anything on it, he won't comment. they are clearly working on it. he's clearly the frontrunner to run it. since we are talking about milken, i know you were there. both of us are going to the salt conference in vegas. you were in buffett land. i was at milken. the fox rsn sale took place. liz: regional sports network. >> sinclair bought it, as we were first to report, about $10 billion. the antitrust chief delrahim, here's what he had to say. >> whether or not if you own a station in a particular market as well as the rsn, are they competitors, do they really pose the same competitive harm as say owning two or three stations in
the same market, broadcast stations, i'm talking about, is a question for our investigation and analysis and every one of these will be fact-based. >> what he's basically saying is the thing is probably going to go through. he's not seeing any major antitrust implications at sinclair owning rsns where they own their local broadcasting. they are going to purchase it. another issue that was big at milken was fannie and freddie. lots of movement in these stocks. people think it's going to be reformed, released and recapped and released. liz: donald trump wants to get -- >> he wants to get rid of it. but we spoke to one of the experts, eric caplan. i asked him how long are people going to have to wait for this thing to happen because they think it's happening tomorrow. here's what he had to say. >> the white house now has issued last month in march, and for the first time in really the last ten years, it mandates action. there are some reforms that are required that only congress can
do. that action administratively and request to act on behalf of congress in order to effectuate the plan, that will be the landscape for the next couple of years. >> okay. guys, you are trading the stock like it's going to happen tomorrow but you are going to get all your shares, they are going to recap it, put money in it, release it as a public company to be sold like it was in the past, no longer under government control. one of the experts is saying two years. just remember that, if you buy this stock. this is a very volatile stock, lot of retail investors are getting in thinking that larry kudlow and donald trump, they are going to privatize these things and make them like they used to be. eric is saying no. he is one of the experts at that. now, i know you and i are going to be spending some time in las vegas together which -- liz: watch out, vegas. are you kidding me? >> one sip of a drink and she's not on the floor but -- liz: dancing on the ceiling. >> there are going to be a lot
of investors. i have people lined up to speak with us. it will be interesting because it will be a different conference but there will still be a lot of big-time investors. liz: we have huge interviews, starting wednesday and thursday. sam zell, arguably the most widely followed guy in real estate. we have mike novogratz on bitcoin. i will tell him what warren buffett said about bitcoin this time around. tim draper, the venture capitalist. one of the originals in silicon valley. what's he investing in now? by the way, he lost big money on theran theranos. and dow chemical, the brand new company. we will speak to these people and more. we need to tell you, it will be a big, big, big move. >> we will have an interview that will be taped but i will have an interview because i'm flying in tomorrow with the head of carlyle. david knows a lot about investing in emerging companies, private equity firms, and a big-time democrat. one of the questions i want to
ask him is what's going on in your party. he's not a socialist democrat. i think david used to work in the carter administration back in the day, he's the founder of carlyle. he's going to have a perspective on the democratic party, on finance. so i think this will be an interesting conference. remember, last year they skipped it because of lots of reasons, including -- liz: scaramucci, anthony scaramucci was trying to sell the company, that was put off. so he's back and so are we. you got to love gabelli barking at me. we got some people on twitterverse saying gabelli was rude to you. you got to know people from the bronx. >> gabelli came from the same neighborhood that i was born in, he grew up there. liz: what a shock. i don't see any similarity. >> i believe he went to the high school which my father got thrown out of. liz: can i tell you, people on the floor, the shareholders came up and said that charles gasperini -- >> thank you. liz: said he's a wiseguy, isn't
he? >> what do you mean? liz: now you're all shocked and docile. >> they're from the midwest. liz: the market is trying to pull off a remarkable reversal and it is happening. with the closing bell just 18 minutes away, investors in heavy equipment maker caterpillar fear it will be harder for them. they're not playing along. they are down nearly 4%. caterpillar down 1.5%. still being punished by threats of more tate tariffs on china. higher manufacturing costs will hurt profits. the two companies both say current tariffs cost them upwards of nearly half a billion dollars. but it will be more if new tariffs are added. next, the comeback is on. we pick it up when "countdown" comes right back with bob doll, the one, the only. this is my headquarters.
this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets. ok. i'm plugged into equities. trade confirmed. and i have global access 24/7. meaning, i can do what i need to do. then i can focus on what i want to do. visit your online broker today, to learn more.
at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.
liz: ah, they're small but mighty. the russell 2000 has managed to strike back and get above the flatline, now up about two points. everybody else is still down but the dow down 55 has really unbelievably clawed back from being down 471. the nasdaq deficit had been a loss of 182. we are down just 38. the s&p, down 12. russell 2000 i mentioned. dow transports down 54. you got to call this a comeback. 12 minutes left before the closing bell rings and look at oil. oil is spiking after hours. it had been lower before the market opened, but then you know, it managed to get higher. it closed up only half a percent but in the after-market session right now, we are at highs, at the moment, of $62.88 a barrel. up 1.5%. as we flip through some of the
energy names, we are going to go through sectors hoarere, everytg from big oil, chevron is now positive, up 1%. it has been positive much of the day but that has to do with the occidental/anadarko deal. looks like occidental may win that battle for anadarko. refiners are all down. we can switch to some of the drillers here. i want to bring our traders back in in this final 11 minutes of trade. jeff flock is also joining us from the cme. first to you, tim anderson. we also had a report come out from the federal reserve and it's sort of a report that tends to come out every once in awhile but in it, it said the largest u.s. banks are strongly capitalized. the risks for funding in the financial system are very low relative to what we saw back during the financial crisis. which one of these things, if any, has something to do, tim, with why we are seeing such a decent comeback albeit not with the financials? >> well, certainly oil reversing off the lows has helped, and
occidental raising the cash portion of their bid for anadarko, is holding up the valuations in that sector. i think there's probably also a consensus that's built throughout the day that both sides of the u.s./china trade negotiations are highly motivated to get a deal done when push comes to shove. liz: okay. occidental and anadarko, oxy and apc, let's make a quick mention of what happened there. warren buffett jumped in with $10 billion to help occidental. he sided with them for the anadarko petroleum deal. that looks like $76 per share. $56 of that in cash. that appears to outbid chevron, which would be about i want to say, well, if you do the math, $62 per share.
right now occidental while at $58, we need to look at anadarko. that stock is well above what the chevron price would be. jeff flock, oil is very much at the center of this, if you believe what tim's saying here. >> well, we came here today thinking oh, you've got hamas and israel, you've got the u.s. carrier to the per,sian gulf. that didn't help with fears about china because traders apparently began to think you know what, maybe not such a big deal but not only that, i'm down in the lean hogs pit. this would limit down at the start and limit down at the finish but most of the ags did come back. i know that's chris' bailiwick here. he knows it better than i do. the ags came back nicely and ag has charged back. liz: the volatility index, the vix, the fear index, we saw an interesting move there. it spiked to the highest in nearly six months. earlier it was up 28%. i'm looking at it right now. it's up 17%.
low of the session. last nine minutes of trade. fascinating. what should we learn as investors from this particular session? buy when things look scariest which is exactly what buffett does. >> yeah. i would say so. last night at 5:00, when the futures markets opened after the tweet storm, you know, we were sharply lower. we really overnight, i was up until 1:00 or 2:00, the dow was down over 5ed h e500 points. once we got in today, there was a bid and lot of people thought the worst is behind us and then two things happened. you had people step in that were looking for an opportunity to buy. everybody that missed the low at christmastime, stepped in to buy. and everybody that woke up 1:00 in the morning and sold things or got short, you know, they were chased out. so i'm looking at the s&p, we are only ten points lower on the day. the dow is only less than 50 points lower. if you are a bull, you've got to look at this and say that is a victory and again, we have seen
this time and time again. if you get too emotional, you can lose a lot of dough. liz: don't get emotional. buffett takes emotion out of everything and he specifically looks at price and value. good to see all of you, tim, jeff, chris. we are watching the closing bell tick down, now it's seven minutes, folks, seven minutes before we hear the bell ring and it's a stunning comeback and turnaround in this final hour of trade. i would say about the last nine minutes of charles payne's 2:00 p.m. show is when we started to see a really significant go for the flatline here. coming up, the $1 trillion man with his take on this afternoon's major reversal of fortunes in line for the bulls to maybe squeak out a win here. bob doll with the way only he can see the market. don't go away.
liz: market selloff mean a thing if investors got that swing. kristina, a swing is what we're seeing. this is quite an incredible come back here. reporter: i was thinking we would hit 500 point swing. we're about 400 points. what i'm hearing from a lot of traders, earlier this morning there was a lot of talk about the vix, the volatility index, so finally they can wake the guys up and come to the sidelines and buy the dip. which is what we saw today. someone told me what happened this morning read a lot to do with emotion. they started selling. so people got back in. that is part of the rebound you're seeing this morning. back to you. liz: down 75. let's bring in bob doll, chief equity strategist at nuveen with a lot of coin under the roof at princeton, new jersey. what is your gut reaction and emotion when you see a day like this from start to now three minutes away? >> pretty much amazing is the
right word, i think, liz. the bears started the day we're going to whack them here, bulls said just you wait. the bulls had the run the rest of the day. on a tweet like we saw as important as the trade issue is, the market only down a fraction, pretty amazing. the market is saying, i concur, we are going to get a trade deal. the u.s. needs one, china needs one, we don't know all the terms and timing and maybe that has pushed back a little bit. liz: what were the gang at nuveen doing just as the market opening bell rang? >> we were nibbling away. i wish i could say we put everything in. but you know, the china issue and trade is a big deal. we know the president, if you read the "art of the deal," his book, this is normal for him. to throw at the last minute another negotiating tactic in there, trying to get a little bit more.
look, whatever trade dale we get, liz, it will not be the whole thing. we'll not solve all our problems with china. if we can make some progress where both sides can declare victory it is a good thing for the planet. liz: tell me what you think about sectors at the moment. we saw semis get killed this morning, many of them might still be down they're looking pretty darn good and when you look at overall on the market since christmas eve we saw the massive selloff, look at nasdaq, 31% up since the 1,000 point selloff that day. what is the lesson to be learned here. >> the lesson to be learned unless there is actually a recession you have to buy the dips. 2350 on s&p. market was saying down earnings and recession in 2019. if you believe that had very low probability you have to be buying stocks. you get that every once in a while. the harder argument what do we do now at 2950, liz. my view if you were lucky enough
to buy some you can take a little bit off the table. the market will not go straight up from here in my judgment. with very to consolidate a little bit. [closing bell rings] liz: that was a nail-biter, but definitely not out. this is time for "after the bell." melissa: amazing the panic is over. shocker, stocks fighting back, major averages ending way off the session lows after president trump reignited trade tensions with beijing. threatening to hike tariffs when a top negotiator and dell pages of 100 fish officials were arrive in d.c. for new round of talks. look at that closing down 67 points. i'm melissa francis. ashley: hello, melissa. i'm ashley webster in for connell mcshake. this is "after the bell." now the s&p