tv The Claman Countdown FOX Business August 7, 2019 3:00pm-4:00pm EDT
value and growth stocks unaffected by this trade war. i'm in total agreement. charles: gentlemen, thank you both very much. now you know each other. the dow is off 19. liz, i tell you, my goal was to have us in the green when i handed it over to you. liz: no. this is what i want you to do. mark the time right now. we are exactly, see, he follows my rules, i like that, we're at the top of the hour, 59 minutes and change before the closing bell rings, and markets are launching a comeback of sorts. we've got multiple market buy signals flashing as we head into the final hour of trade. the nasdaq and s&p, as you see on the screen, have just turned positive in the last few minutes. this comes on a day filled with drama that saw bond yields crumble and the price of oil tumble earlier. crude right now still down about 4% but it had been down more than 5%. this as the after-market trying to stage a comeback but as the markets overall attempt a total
about-face, the dow is still off to its worst five-day start to a month of august since 2011. still down about 3.25%. we are only a few days into this month. no signs of a truce in the trump trade war with china. in fact, just the opposite. as the white house moves forward with its planned blacklist of smartphone maker huawei, in turn, a threat on twitter by a chinese newspaper. here's the threat. china is mobilizing internally to fight back against the u.s. the forbes shanghai bureau chief is here in a fox business exclusive on how much worse this trade war could get. meanwhile, the president is up in the air heading to el paso in the wake of the deadly weekend shooting there. he just left dayton, ohio after meeting with victims of that shooting, which came just hours after the el paso horror. the latest from the white house, we will get it for you. plus uber and lyft drivers just got some really bad news. why are their stocks spiking?
tesla's new problems and is it possible u.s. treasury yields could go to zero? really? less than an hour to the closing bell on a very busy day. glad you're with us. let's start "the claman countdown." liz: breaking news. when you see the dow down 66 points, you have to know how much uglier it was. we had been down 589 points, but at this hour, investors are slowly dipping their toes back into the water and pretty much the best indication of that is to show you where the selling is, where the buying is and what triggered it all. first, i want to look at an intraday of the s&p. while now down just slightly, about 1.5 points, just a second ago it had launched a bid to vault into the green and was successful on that. this morning, not a single stock of the s&p had hit a new 52-week high. things were terribly ugly. the sector's still getting
smacked with the ugly stick and suffering at the moment. let's get to interest rate sensitive banks. they are reaching for the tylenol. jpmorgan, bank of america, citigroup down anywhere from 2% to 3%. when you broaden that out to the subsector etf, take a look at the damage. earlier it was down 3.5%. it has indeed come back, but still down about 2% for the kbe. let's look at disney. this is a name that's hurting the dow, certainly. it's on pace for the largest percentage decrease since 2015. losing five full percentage points. okay, what happened there? it posted an earnings decline. revenue fell short and the company ceo, bob iger, absolutely came out, blamed charges related to the acquisition of 21st century fox's assets, saying you know what, they lost money, we expected them to do better. money pouring into the streaming media effort. disney is obviously ready to take a loss on that. they announced a streaming
bundle that would compete with netflix. netflix is down on that news, down about 2.33%. you can see where it was yesterday. this is not a great two-day picture. to the oil patch. it's firmly in bear market territory. oil prices getting crushed, down 4%. this is the after-market. not only on fears of slowing demand, because of the trade war and all of that, but also on a surprise build in both crude. anybody who went bullish on crude last week probably kicking themselves. crude down more than 20% from its april high but just last week it was at $58 a barrel. it's now at $51.47. let me get to the greenback. after breaking out to new highs just last week, the dollar is losing altitude fast, falling against global currencies. it is slightly higher against actually higher slightly against the uk pound but if you parse out how it's trading against individual currencies, that is a different picture from the u.s. dollar index, where it trades
against a basket of currencies. it is down on that. to the buying, though. make no mistake, early this morning rising bond prices and in turn, plummeting yields around the world spooked the horses in nearly every country that has a stock market to trade. we do have the ten-year yield at 1.68%, slightly higher because it was at 1.62% just about two hours ago. but when you compare the 1.68% to the shorter dated three-month yield, which as you see right now on the screen is trading higher than that of the ten-year, that's called the spread, the spread or gap between the two is at about 41 basis points. that's the most elevated or inverted as they call it since 2007. over the past 50 years, why does that matter, because over the past 50 years every inversion between those two maturities, the ten and the three-month, have preceded every u.s. recession. that's working in the psychology against what's happening here. let's get to gold bullion,
spiking through the $1500 an ounce ceiling to a six-year high. we are at $1504 right now per ounce. it's clearly a flashing winner in the rush to safe haven investments. so we have seen the table, we have set it for you right now but now we want to give you come context. with 54 minutes before the closing bell, why do falling yields cause people to sell stocks? well, the way government treasury, the way government debt is supposed to work is that you give the government your money with the promise, the guarantee that you will be paid back with interest. but a very odd thing is happening. government debt around the world is actually offering a negative return. $15 trillion in government debt that people are holding is now yielding a negative return. so actually, people are paying governments to hold their money. look at germany. german bund hit a record low of .6%, negative .6%, meaning if you put ten grand in a ten-year
german bund, you will get back $9,940. you could say 60 bucks, okay, whatever, but that's weird. you don't pay someone to hold your mone swiss bonds are even worse. they are yielding negative 1%. your return there on $10,000 is only $9,904. that couldn't happen here with u.s. treasuries, could it? to the floor show traders. guys, yesterday pimco's global economic adviser put this note out, saying it is quote, no longer absurd to think that the nominal yield on u.s. treasury securities could go negative. teddy, to you. how might that affect the stock market if it happens? >> i tell you what, an accommodative fed, i have always said is candy for the stock market. so if interest rates continue to go down and the fed stays in accommodative mode, if they can do that or will do that, i think overall, it is a big plus for the stock market, because by default, people are going to
start chasing a return on their money and it's going to be some form of dividends and they will get it in the stock market. liz: luke, there are other fundamentals at work with crude oil, including a glut that's building. but president trump's threat last week to impose new tariffs were cited as stoking more uncertainty and fear in the markets. that's not the only reason he said we could possibly go to zero but do you foresee u.s. yields going to zero? >> i don't know, liz. i mean, that's a barrier that the u.s. has never thought about or reached, but i guess anything is possible now. let's just remember for the last eight years, on this show, thanks for having me on, but i have been saying how about just cooling down the economy a little bit. how about having some arrows left, some bullets left when you've got to do something. now we have reached it. i also think, although i agree with the president about what he's doing with china, et cetera, all that, i think the way his economic team has gone about it has been wrong. they should have saved some of
the tax cuts. they should have saved some of the money that corporations could have brought back from overseas and forced them to put it into plants, into hiring people rather than just buying back stock and this is where we are now. is it possible, yes. liz: that's the thing, it's great to bring back, to repatriate dollars that are overseas but at least put in some type of requirement which it was sort of hey, do with it what you will and they did buy-backs and higher dividends. as we look at the ten-year yield and it's far from zero at the moment, i just think it's pretty significant that pimco is saying it's now not entirely out of the realm of possibility. >> it absolutely is significant. i cannot see it happen, though, as both luke and teddy said. stranger things have happened, right? we really have not witnessed a scenario like we're in right now. i can't imagine that happening. if it does, if we continue to see these rates go lower and go
lower, i'm in teddy's camp here. where else you going to put your money? besides the people that truly want to preserve their capital at all costs, where else you going to put your money? you have to put it into the stock market. you have to look for those dividend paying stocks. so if that is the scenario here, look for a stock market to actually go up from here. i know it almost seems counterintuitive because you would think if the government is lowering rates and things are so bad that we have to, you know, maybe get to this zero interest rate policy, you would think why would i want my money in the stock market but there are those people out there that do want to look for a return and look for yield. liz: well, i would say where else you going to put it. i have a sealy posturpedic if anyone wants to park their cash under it. >> that's just as good. >> only if it's one of those recliner ones. liz: no, no, i can't deal with that. no. teddy, scott, luke, thank you very much. beyond meat is taking a ride
on subway with the closing bell ringing in 50 minutes and the dow down just 66 points. long climb it's made back. the sandwich chain says it will test beyond meat's imitation marinara meatballs in its subway sandwiches starting next month. 685 subways will offer them. subway hoping to expand its vegetarian options. it's the world's biggest restaurant chain by locations. investors like it. beyond meat moving higher by 2.33%. china, its response, what it might be planning. the forbes shanghai bureau chief russell flannery is here. 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.
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companies, including telecom and phone company huawei. a few hours ago, the u.s. government had already telegraphed that in order to quote, defend the u.s. from foreign adversaries, it would ban government offices from purchasing telecom video surveillance equipment and services from five companies. well, that prompted the editor in chief of china's state-controlled global times to tweet washington's repeated bullying has made it meaningless to continue trade talks in the short run. china is mobilizing internally to fight firmly with the u.s. here in a fox business exclusive, the shanghai bureau chief for forbes magazine, russell flannery here with us now. thank you so much. give me what you think is happening. what are the chinese planning? >> well, i think the chinese have been mobilizing to succeed in trade and in investment and global economics in general for a long time, so to some extent what the editor you just
mentioned wrote today is not stunningly new. what is new, though, for sure is that the two biggest economies, u.s. and china, are both swinging at each other in a kind of dizzying pace right now. since i opened our bureau in 2003, certainly nothing as bad as what we are seeing today. liz: wow. that's a pretty significant statement. you have been in china for 25 years. we just showed the five company names. everybody knows huawei. a lot of people know zte but there are other names on here. a television company, i have seen their tvs i believe at costco, for example, they're lower priced. then there's a company called hytera. what strikes your gut when you hear that the u.s. government is going to ban doing business with hytera? >> hytera is in the security equipment business so to the best of my knowledge it's a
company supplying security agencies, police, things like that, with hardware here in the u.s. and doing pretty well. dahua is actually in the surveillance related business with hikvision. liz: hikvision, televisions or cctv, closed circuit? >> yeah. liz: okay. so you understand certainly from the american standpoint that some of this could be, the belief is some of it could be spyware installed in some of the hardware. i get that. let's get to what really roiled the markets monday and earlier today, the yuan being allowed to fall through this floor of seven yuan per u.s. dollar. today it's barely above it. that is certainly significant, is it not, and it's not something our markets expected. what other surprises could the chinese lob at us? yesterday we had reports from edward lawrence that maybe they
may cut down on allowing us to have rare earth metals. >> yeah. yeah. that's been out there for some time now. treasuries, they could sell some treasuries and create more havoc in the debt market. liz: would they? >> in this kind of environment, it's a little bit hard to say, because there is such a big demand for rhetoric on both sides. i think part of what's coming from president trump or currency manipulation, what does it really mean at this point because the currency manipulation story is a little bit like a cow out of the barn. the currency right now if really allowed to float, may depreciate on its own rather than appreciate. if the u.s. were talking to china about currency and currency manipulation several years ago it would have been the other direction. liz: after years of knowing how president xi jinping operates and runs his country, what do you think he's thinking now? >> well, that is kind of the
multi-trillion dollar question because we all know president trump's political thinking or understand his goals, faster economic growth, upcoming election, stock market. when we look at the chinese political leadership -- liz: he doesn't have to run for election. xi is the emperor now. >> so the transparency there is more limited. but what we can conclude is president xi cannot afford to lose the high profile international battle with the u.s. and president trump. so what are the calculations that will go into that are something that aren't reported and we don't ultimately know where things will lead. liz: russell flannery, the shanghai bureau chief for forbes. thank you for the insight. >> thanks for having us. liz: i think. we are hearing from russell, they have plans. they plan to dig their heels in against the united states. we will be watching it because
it affects your money and our markets. let's look at cvs earnings. success reveals which direction drug prices are moving and it might not make people happy. with the closing bell ringing in 41 minutes, cvs is among the s&p 500 leaders gaining 7% in this final hour. yes, they beat second quarter earnings estimates. they raised full year guidance but here's why. the health care giant says increased prescription drug prices are helping to funnel money to its pharmacies benefit business. cvs needs more vitamins to erase what is still an 11% loss year to date though. up next, new rules in new york city. you would think they hurt the ride hailing industry. our all-star panel here on whether it truly threatens to put a dent in lyft and uber profits down the road. "the claman countdown" is coming right back. the dow is down only 19. can we hit the green line?
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liz: some breaking news. look at the dow jones industrials. it is now down just 13 points. we also have this developing story. a measure was just passed in the last couple of hours by the very powerful new york city taxi and limousine commission. the new regulation calls for a vehicle cap that would in essence block thousands of lyft and uber drivers from licensing their own vehicles while instead forcing them to pay each year to rent cars. more than 80,000 uber and lyft drivers could be affected but it's not affecting the stock. lyft is up nearly 4%, uber higher by more than 1%. this is one of 2019's highly anticipated unicorn ipos, lyft, prepares to report earnings after the bell which is in 36 minutes. our next guest was the very first to issue a buy rating on lyft even before it went public. he believes that lyft is the clear winner in the ride hailing
race. we are also joined by d.a. davidson, senior vice president, tom white joins us along with barron's associate tech editor, eric savist. tom, as the first to issue this buy rating before lyft ipo'ed, explain your reasoning on how you think this new measure could affect lyft and why you are still so bullish on the stock. >> i think the measure today, first i'm not sure how widely disseminated it's been to the investor community. liz: i think we are the first network to report it. >> even though once it gets out, i think it maybe was also a bit anticipated. it's basically an extension of a cap that's been here in new york for quite some time. there were some additional elements to the change in the regulation. for example, they are going to further reduce the percentage of a typical new york city driver's time where they can drive around manhattan without any passengers in the vehicle. these are definitely a negative for lyft and also for uber, particularly if other states and other large metropolitan areas
follow suit. liz: it could have been worse is what you're saying. >> it could have been worse. i don't think people were expecting new york was going to undo the cap. liz: eric, i want to get to you. you've got to tell me what you think as a journalist who covered both of these stories. we are expecting numbers from lyft. they do have revenues expected and they are doing good business. what do you think about this new measure? >> well, look, i think new york is responding in part to the need to control what is a very bad traffic situation. there's the recent research paper that came out funded by lyft and uber that talks about how much of the car traffic in major metropolitan areas, including new york and san francisco, are lyft and uber traffic. it's an increasing percentage. in san francisco it's as high as 13% of daily traffic in the city. so i think that there is a need to figure out ways to reduce
unnecessary car traffic and try and prevent a lot of empty uber and lyfts from driving around looking for their next ride. that's what the new york taxi commission is trying to accomplish. liz: none of these issues really tackle the biggest one, and that is the amount of money that these companies have to pay their drivers. lyft is expected to report $800 million plus in revenues but still a loss of $1.74, 75. when are either of these names going to post a profit when they have to pay their drivers? >> it's a very important question. we personally think lyft is going to be probably on a shorter time frame for achieving profitability than uber. uber is just fighting a lot of very intense competitive battles not only in ride sharing but uber eats, online food delivery globally is probably more of a drag on profitability than core
ride sharing is. in lyft's case, this year they signaled that it's going to be a peak investment year so for tonight and early the next quarter or so, i'm not anticipating investors are really going to hold them much to making meaningful progress on the profitability line but i think revenue growth will be the main metrics. liz: what's your call on the stock? >> we have a buy rating. liz: eric, final thoughts before we get these numbers on lyft and uber. >> i just want to touch one thing on this cost of driver. there is a measure in the california legislature that would redefine, force the companies to define their drivers as employees rather than contractors which would substantially increase the costs. i don't think this issue is going to be settled for awhile if it gets passed in california. you can imagine copycats in other states. liz: it's an overhang on both names. we will be watching it. eric, tom, great to have both of
you. three's a charm. with the closing bell ringing in 32 minutes and by the way, the nasdaq solidly in the green, up 25 points, the s&p up one, spacex successfully launches the same rocket for a third time as elon musk's space company takes recycling to new heights. but it's the billionaire's auto company that could have new problems. what are they? that and more coming up in today's fox business brief when "the claman countdown" returns. how do you gauge the greatness of an suv? is it to carry cargo or to carry on a legacy? its show of strength or its sign of intelligence? in crossing harsh terrain or breaking new ground? this is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedes-benz summer event, going on now. lease the gla 250 suv for just $329 a month at the mercedes-benz summer event. mercedes-benz. the best or nothing.
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jackie: i'm jackie deangelis with your fox business brief. the dow briefly turning positive as the major indices trade near session highs. investors hungry for weight watchers. shares of the oprah-backed diet and lifestyle company surging after reporting a 1.5% uptick in subscriber numbers year over year in the second quarter. those gains, a big beat on the bottom line as well, listing weight watchers full year outlook. shares up currently more than 40%. and spring was certainly in the air for match group. the online dating leader feeling the love, hitting a new record high on a second quarter revenue surge and full year guidance boost. match's tinder brand attracting more users worldwide. its average subscriber base growing by over 40% in the quarter due to new launches in asia and south america. the company also upping its marketing for other key brands including cupid and hinge.
shares trading higher by almost 25%. tesla dodging not one, but two roadblocks intraday. the national highway traffic safety administration reportedly calling out tesla in a series of letters for making quote, misleading claims about the model 3's safety record, adding to the pile-up reuters this morning reporting that elon musk's ev giant is considering driving up prices in key growth markets like china this fall. tesla down much of the morning, now trading a little bit higher, little less than 1% at the close. up next, cbs and viacom merger talks going in slow mo. charlie gasparino is here with new exclusive details on the sticking points in this amazing race. charlie breaks it down next on "the claman countdown." fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer.
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in positive territory. dow's up 14, s&p better by 7, nasdaq up 41. folks, look at where the nasdaq was earlier. we were down 130 points. this intraday gives you the best indication of what a fight it's been and a successful one, too, where the bulls are making a major comeback here. down 130 to up 40 points at this moment for the nasdaq composite. cbs and viacom's sibling rivalry getting on investors' nerves at this hour. talks between the two media giants seemingly stalling out ahead of tomorrow's earnings reports from the respective redstone family backed titans. charlie is up in the fox business newsroom. what's the holdup here? what are your sources expecting to hear tomorrow when these sister c-suites start revealing numbers? >> as we reported yesterday, liz, there is growing unlikely hood we would see a deal announced tomorrow when both cbs and viacom, one before the bell, one after the bell, announced earnings. there were some media reports it
might come tomorrow or was definitely going to come. we have always been hedging that, you know, it's a possibly but from what we understand, it's increasingly unlikely, barring a last minute breakthrough. that could always happen but what we have been told, it's unlikely. here's why. number one, they are looking at price. number two, this is even a bigger issue, it's management structure. yes, bob bakish, the ceo of viacom, he's going to be the ceo, we have been, you know, the board has intimated to everybody, but it's the number two, joe ianniello's role. they definitely want to keep joe ianniello, the ceo of cbs, in the game for awhile beyond his contract termination which is 2019. remember, he just signed a new contract extension. it was a short-term extension. it was through 2019. by the way, when he signed that extension, that was the signal, we were among the first, we were definitely the first to report it, that those talks between cbs and viacom were back on in a
very serious way. the question now is can we keep joe involved in the company for longer than 2019. that's what we hear is the main sticking point. they are trying to work out some sort of lucrative package. if he leaves in 2019 apparently he gets a decent bonus. from what i understand, they want to make it worthwhile for him, if he stays beyond 2019, for a transitionary period for him -- for it to be made worth his while. so tomorrow, what we are likely to get again, unless something changes, and we don't have a lot of hours to change, earnings for both companies, one before, one after the bell. i understand they are not really going to address the merger at that time. it's very hard to address a merger given forward-looking guidance, something that's not signed, sealed and delivered. if you don't see them announce the merger, they are unlikely to talk about it during the earnings call. it's going to be about earnings. we should point out still, that being said, even though we are getting this little hiccup in the negotiations, or in the road, we expect this deal
imminently, meaning any day. could be friday, could be next week. but it's coming down the pike and the main thing is joe. now, why do they care so much about joe. it's what i have been saying on this broadcast a lot. the guy is good at his job. people, les moonves sucked a lot of wind out of the room, right. he was the guy, the programming guy. people didn't realize that the guy that dealt with wall street, the guy that made the trains run on time from a financial standpoint was mr. ianniello. they desperately want to keep him there for awhile, at least through a longer transitionary period because these companies need to be put together and there's going to be layoffs, obviously. it will be searching for economies of scale and obviously if they ever think about selling it, you kind of want him there. bob bakish obviously, both boards believe he deserves -- and shari redstone believes he should be the ceo. why is that? did a decent, more than decent, very good turnaround. viacom. he's well liked within the company, considered a good people person. he's got the attributes, the
boards think he should be the ceo. again, ianniello is, they would like to keep him. i understand that's what's holding them up. they are developing some package to keep him here beyond the transitionary period, maybe into 2020. but that's where we are right now. i keep hearing wrap. i know that. liz: i do want to show the ten-year yield. folks, we have now retraced nearly half the losses on the ten-year yield from earlier. we were at one point, 1.62%. we are now at 1.72%. >> i just wonder why following the ten-year, every day is like another story on the ten-year yield these days. you know, i would just say this to the average investor out there. this is, again, take a long-term view of this. the trump economy, for all the trade stuff, is better than anybody ever thought it would be at this point. obviously if there's a trade war going forward, if they don't fix the trade war, that is not a good sign for stocks. but just be careful with the
daily gyrations. look at the ten-year this minute. liz: but look at the dow. we might lose all of the gains. >> maybe because i started talking. liz: be quiet, charlie. when we come back, much more straight ahead. there's a company that's talked to even more real people than me: jd power. 448,134 to be exact. they answered 410 questions in 8 categories about vehicle quality. and when they were done, chevy earned more j.d. power quality awards across cars, trucks and suvs than any other brand over the last four years. so on behalf of chevrolet, i want to say "thank you, real people." you're welcome. we're gonna need a bigger room.
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liz: well, that was fun while it lasted. the dow is now negative. oh, actually, it's moving all over the place. we are at the flat line right now. it might be a little tough to laugh when you are concerned about your portfolio but you've got to check out the latest edition which just dropped this morning of my everyone talks to liz podcast. when you talk about the history of comedy, you've got to hear from caroline hirsch, the woman known as the queen of comedy. hear how she launched the standup careers of everyone from jerry seinfeld to jay leno by
giving them a shot onstage at caroline's that she founded. she shares her story of robin williams working the front desk, how she found kevin hart and that secret something every comic from don rickles to ellen degeneres must have to make it on her stage. all right. this morning, i can't remind you enough. we were down 589 points. right now, down just 10 for the dow jones industrials. fast-forward to right now and we have the s&p positive by five points, nasdaq better by 38 and the bulls are trying to pound their hooves back into positive territory. oil also bounding well off its lows. what is fueling this comeback? let's get to the floor show. our traders at the new york stock exchange, cme and nymex. teddy, round two. what happened between when i saw you at the top of the show and 47 minutes later? >> well, we were on our way to where we are now, and we have
been coming back, climbing out of that hole almost all day. under normal markets, but there is no such thing as normal markets anymore, this would be a pretty impressive day and i would say forget being on the plus side. the fact we climbed out of that almost 600 point negative hole is a pretty good sign. i'm not sure we're out of the woods yet. there's still a lot of uncertainty out there and the markets don't like all that uncertainty. but clearly today is a pretty impressive performance. liz: same with crude oil. we had been down much more. i'm looking right now at crude, it started to zip right through. brent, west texas intermediate, the entire oil patch, energy, too, everything has come off the lows. is there any headline that's making that happen? >> yes. the stock market turned higher. that's it. because listen, bottom line, the reason why oil was so bad overnight is everybody was pricing in a global recession
and really, what set the oil selling off overnight was all these countries cutting interest rates overnight. we had india, we had new zealand, for heaven's sake, all these taking aggressive, thailand, all cutting interest rates last night, and everybody got the feeling oh, my gosh, if they are starting to make aggressive moves on rates, something's really bad here. that's really bad for oil demand. the market just got hammered. then later in the day, we were trying to come back in oil, we get a key support, stocks were way down but they were holding and they were waiting for the report and that came out to be bearish. that really changed the mood quickly to negative. liz: yeah. bigger than expected. i do just want to mention, luke, let's not ignore some stocks that are doing absolutely brilliantly. weight watchers, for example, that is purely an earnings story. they not only beat on the top and bottom line, they raised their outlook, they raised the roof on earnings, obviously. but this is a $29 stock for ww and i think the annual high was
something like $88. as you're looking at these coming back, we are well off the highs. paon me? >> is there a reason you brought up weight watchers with me? liz: because you know stocks so well. >> yeah. they just had earnings, they were beaten down before so it's a little bit of retracement. but instead of kind of interpreting what's going on because it's a momentum market right now, not a lot of liquidity, small orders can move the market. this is what i'm looking for for the rest of the week. you know we have been consistent saying there's not going to be a deal with china. now we think there's going to be an ag deal with china before the end of the year but just on ag. secondly, huntsman, the ambassador to the soviet union, just quit today. i'm sorry, resigned. he didn't quit. he stepped down. he's the ex-ambassador to singapore and china. look for his voice, look for him to be around a little bit more.
also, look for what the democrats say about the china trade deal. that's going to let the chinese know who they have to cut a deal with. liz: we'll see. phil, i am seeing a headline here that oil prices are paring their losses in the after-market on the report that saudi arabia was considering options to halt the oil price drop. just the whiff that saudi arabia might maybe cut back on output just to try and stabilize these prices suddenly helped the oil market. >> it is. when saudi arabia talks about oil, the market always listens. it's kind of interesting because yesterday, oil prices actually sold off on a report that the energy minister of saudi arabia met with the u.s. energy secretary to discuss safety in the persian gulf and oil prices. maybe this is a sign that not only is saudi arabia concerned about falling oil prices but maybe the trump administration is changing their tune a bit and
looking at the oil price drop and seeing what that's saying about the economy. liz: guys, thank you very much. we now have nine minutes to go before the closing bell rings. the latest sign that scissor-happy central bankers are ready to bring out a bigger machete even here in the u.s. dow is now down 48 points. we are coming right back with a top fed watcher and top market player. managingaudrey's on it.s? eating right and staying active? on it! audrey thinks she's doing all she can to manage her type 2 diabetes and heart disease,
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♪ liz: this is a nail-biter of a session. we have five minutes to go before it comes to an end. investors are trading in and out of different indexes. look at the dow in the last 19 minutes, bounced between small gains and losses after a nearly 600 point intraday swing. nasdaq solidly in the green. look to consumer staples. they're the driving force in major indus sees right now.
coca-cola, big winners. kroger major mover on the s&p. kroger up nearly 6, 7% in the final minutes of trade. coke is up nearly 2%. wall street up 2%. breaking news. we are up odds of not just september rate cut, but the october rate cut, at the october meeting at 100%. bring in milkin institute chief economist bill lee who is a big-time fed watcher. former fed insider. jason cats ubs. that includes wall street. financial center of the universe might not be wall street this hour. it is the fed building in d.c. what will jay powell and company be forced to do at their september meeting next month? >> he at last meeting scared the hell out of everyone, thinking this was one and done, calling it a midcourse correction.
he needs to do what the mario draghi did when the ecb was falling apart. we stand ready to do whatever it takes to insure u.s. growth stays put. that is all he had to say. that would allow the market to continue on massive growth streak. he said maybe one and done. that messaging, became so muddled, the markets are confused on top of all the trump tweets and everything else. the correction, maybe during the jackson hole conference, they come out say do whatever it takes. that is what it takes to calm markets. liz: the old mario draghi, do whatever it takes. jason, central banks are scissor happy. this morning india, thailand, new zealand all sliced interest rates. as you look at the market. you have to talk from an investor standpoint what are people supposed to do? >> this morning the move or sprint to zero interest rates was palpable. we're paring some of that as we
head into the close. what are investors to do? frankly sometimes the best trade is no trade. i think you have a lot of central banks trying to get ahead of the fed to keep their currency competitive. liz: look at new zealand, 50 basis point cut. peter navarro who definitely has the president's ear, bill lee, cut 75 basis point by end of this year, make it an even 1%. do you think a, that is necessary and b it might happen? >> we don't have to do 100 basis point. what we have to do is make sure the markets believe we'll do whatever it takes. the brilliance of that statement, it could be another 25 basis points or 125 basis points. depends what the data show. that is what the fed is wanting to say, messages, reassures quite frankly, liz, i talked to you about channels of monetary policy, it has to work through confidence channel. it has to restore confidence, chair powell has done nothing to
restore confidence. liz: jason, if recession fears are flaring as the bond market signals, does that mean to stay away from everything, just hold on to cash? >> absolutely not. liz: no way? >> not a chance. look at earnings of s&p. dividend earnings of s&p. multiple, what you're getting in cash, cash alternatives. i'm not saying to go overboard, having a weighting in equities if you have a longer term horizon certainly makes sense, especially dislocations like we did earlier this week. liz: do you have have a favorite sector? >> without a doubt. you have to look at communications services. the ftc probe creates an entry point. consumer discretionary. think how strong the consumer is here? liz: bill lee, you're favorite sector. >> microsoft and global companies that include amazon and google. liz: great to have you both of you, jason katz, bill lee, what has to be one of the most
traumatic wild rides we had not just this year but past year-and-a-half. [closing bell rings] markets settling mixed. nasdaq up 32. the earnings parade continu, even with such a wild ride. that will do it for "the claman countdown." ashley: reversal on wall street. how about that? stocks rebounding sharply from steep losses earlier in the session as the market sees yet another volatile day of trading. the dow losing a little steam at the closing bell. we were down nearly 600 point earlier in the session. s&p 500, nasdaq both finishing the day in positive territory. how did that happen? i'm ashley webster, in for connell mcshane. melissa: we'll tell you how that happened. i'm melissa francis. this is "after the bell." we have more on the big market movers but first here is what is new at this hour. president trump about to arrive in el paso, texas. the president is expected to meet with victims,