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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  January 4, 2016 3:00pm-4:01pm EST

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and for other legitimate reasons, want to make sure that the wrong people don't have them for the wrong reasons. so i want to say how much i appreciate the outstanding work that the team has done. many of them work over the holidays to get this set of recommendations to me, and i'm looking forward to speaking to the american people over the next several days in more detail about them. okay? thank you very much, everyone. thank you, guys. >> that was the president speaking on gun control saying he plans to roll out several initiatives over the next several days. liz claman with, over to you liz: we have an acceleration to the downside right now for the s&p and the russell, particularly the nasdaq. this is the worst start for the dow jones industrials in 84 years. live from the floor of the new york stock exchange because we have a pretty significant selloff here. so much for the happy new year
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glow. forget that, the dow is on the biggest opening day loss since 1932. what have we got as we look at the s& s&p 500? down 44 points, the nasdaq at this hour is a stunner. down more than 130 points for the tech heavy index. remember the nasdaq had a pretty good year last year. up more than 7%. this is not a good start at all at the moment. when i arrived on the floor of the new york stock exchange, traders told me when you get negative news of a monday into the new year, investors head into the exit. the negative news, twofold. china manufacturing disappointed. okay. for the tenth month in a row, the central bank there artificially sticks to currency at a 4.5 year low. markets premeditated dramatically. some call the circuit breakers. which halt all trading, give a pause, and then let them start again. forget it. when they started again, it was still ugly. stop the bleeding with those
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new circuit breakers but the wound was ugly. lebanon at the shanghai closing down about 7%. shin jing about 8%, and it does not have circuit breakers so they may never stop trading. and the european markets continue to slide and as you see right now the markets have kept the fall in play. key u.s. manufacturing data. shows contraction again, the dow tanking at its worst point down 4050 points falling below 17,000 for the first time since october 15th. a weekend disaster out of the middle east. the world in oil markets, which initially spiked as saudi arabia and three other nations cut up, crack, break diplomatic ties with iran following the kingdom's execution of a iranian and attack on the american embassy in iran in response. bizarre behavior here. 36-76, once again in the
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aftermarket down about 30 cents. former nato commander james is going to be here first on fox business putting it into perspective. traders at the studio at the new york stock exchange right here at the cme all over the place. we are less than an hour from the closing bell. let's start the countdown. ♪ ♪ . liz: as we see the dow enduring a 411 point drop, we cannot just blame china and saudi arabia. the u.s. ism, this is a manufacturing index for december shows contraction. it missed estimates, fell to levels not seen since 2009. so how do you trade it? we have traders at the new york stock exchange. peter busy right now, but i'm pulling him in right here. we have ira from s&p capital iq. peter, these numbers look alarming that are on our lower ticker, major losses in the
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major impasses. what is going on? is it china? saudi arabia? start of the new year jitters. >> i think it's all of the above. i think the stage this morning, late last night when the numbers came out of china, that set the stage for the down this morning. even though oil disengaged this market because of what was going on in iran and saudi arabia, that ended up blowing over and catapulted us down into these levels. liz: i don't know it looks like a turtle on its back trying to roll over for the moment but the dow now accelerating losses. >> you described it to a t. it's all of these things going into the first year -- first day of the year. okay? it's just -- it's tense worldwide. i don't think there's that much negativity going on here except that this is the reaction for what's going on around the world. liz: online a seasonal trader would say 400 points down not too much negative. >> this is not what's going to happen the rest of the year. this is a day in the life of this market. anything could happen again tomorrow. but this is where -- last weekend i think this is catapulting.
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liz: peter's phone is ringing. he's got to go. so busy, he's, like, liz, i've got to be done by 3:03, it's 3:04. oil is the most interesting play and i get that a spike on the news of tension, massive oil tension between saudi and iran but now to be down? this oil market is unbelievable. what's going on? >> well, what's going on is why would the saudis even think now of talking to the irannians? any idea forget and they won't trust them for anything so they going to produce even more oil. so opec members broke away immediately from the iranian deal. this is bearish oil, not bullish. and this is what we've got a dream location of monies. reallegation is another term you can use. people at the beginning of the year move money from point a to point b back and forth and this is not unique. it's a phenomenon that goes on the first week or so of almost every year. so walking in today, seeing
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the markets down almost across the universe if you will last year, you're getting more of it today. let it work its way out. you drop enough, you'll probably have a reasonable look at next year right in the month of january. liz: well, as peter just said, a day in the life of these markets. except this is a day where you're feeling a little bit of anxiety. let me bring in sam -- >> nitrate. you've got to think fast. liz: exactly we're straddling the 3,000 level, just three points above it at the moment. and as we dip i in and out, is this reaction to china and another bad headline out of the middle east? and does it really matter? speak to our longer term investor audience at the moment. >> well, liz, i think that the first two items are what started the decline. but then also you had a lot of investors who want to sell stocks last year who had profits but did not want to incur the tax consequences for the up coming tax reporting season so they said let me
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wait until the first trading day of the new year and then i have to wait a full year before i have to pay taxes on those profits. so i think we had two negative, by the way, that was then pushed even further by this tax harvesting. so the real yes is what happens going forward? as the other guest said, typically seeing a decline is not a surprise. almost 90% of all year since world war ii traded in negative territory some point during that year. and one third of all of those occurrences were in january. so i think we don't panic and don't start becoming our own worst enemies because of one day's return. liz: well, then, sam, you talked to your strategist, were they saying get in here and buy at cheaper prices? >> not yet because when we look at the pe ratio on the s&p 500 and a forward 12-month earnings, now we're actually just getting back to the long-term average. usually you want to take
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advantage of opportunities after it overshoots to the downside. so maybe give us a couple more days, et cetera. but you don't want to get too aggressive either because this bull market is approaching its 7th birthday and only two bull markets since world war ii have celebrated year seven. liz: well, exactly. and ira, on a day like this, it is an interesting sort of flash in the pan so to speak. but gold is up about $14, you know the vicks is probably moving higher. so at this point when we show those charts you can argue and say treasuries always an interesting base to have in there. are we seeing that in the ten-year? >> well, yeah, there's no question there's safe haven moves going on. but on a day like today, i would have thought gold is up 30 or $40 not the 14 or 15 that it's basically up. and if you look silver is barrel up at all, corp. is down six points, oil is down. so you're getting a certain amount of safe haven but do you really think that that's
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what is going to put the market up later. i don't. i think gold is inflation and it's completely missing, nor do i think the world is going to end here. just as sam said. you're down in january and then take a fresh look for the rest of the year. liz: okay. great to see both of you, and it's not so thrilling few year start, but a happy new year to both of you. thank you and to peter who already ran away. >> thanks, liz. liz: liz, i've got to go, i've got to go, we have 51 minutes until the closing bell, the selloff continues and we're watching it. there's an all-out blazing diplomat fire going on right now between saudi arabia and iran. and that is no doubt adding to the turmoil here in wall street. saudi arabia and iran were in regard full blown cold war anyway which has now heated up. are we on the break of a sunni shi'a religious civil war? and the civility of the royal family now in question? first on fox business former nato commander on the most frightening thing about what's
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happening between these two countries. it matters to us. it matters to you. countdown coming right back ♪
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it is the worst open for the dow for 84 years. just straddling two points above the 17,000 level, down 421 points. really economically sensitive sectors everything from financial to technology to consumer discretionary that are getting harmed today. not a great day for any of these sectors but oil behaving very bizarrely, volatile trading first striking before crude but down even pensions between saudi arabia and iran reached a boiling point. we had oil falling before the end of the session, closing at 36.76 because guess what? there's too much of it floating around. so now there's this battle between saudi arabia and iran. forget it. tell us something new about the middle east. let's talk about oil engaging and disengaging. back and forth. but this is these worrisome headlines come out. the friction is splitting the middle east right now and spilling into a potential civil war. protesters outside the saudi
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arabiaian impasse in iran with molotov cocktails set it on fire after spoken out against the government. you don't do that in saudi arabia. they have secret police, they killed and now saudi arabia cleaning up. as they cut ties with iran. but we do have sedan and the united arab of emirates saying we're siding with saudi arabia. could web on the sunni, shi'a, two religious faxes of islam war? first on fox business we have a guy that we should be speaking to on a day like this. admiral, he's retired but also former nato commander, also the author and dean.
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tough when you have hot headed responses back and forth right now. but, admiral, how serious is this? the time i started thinking about it and the time i've looked at the news wires, saudi arabia has cut diplomatic ties with iran. >> this is very serious. i don't think we're going to see a move toward all out hostilities between iran and saudi arabia. but what are has a cold war and somewhat of a twilight war i think is going to become a much more active confrontation. not directly between the two nations but through surrogate situations. this is going to make saudi arabia immensely harder. this is going to make solving yemen immensely harder and also cyber. it's going to create real instability in the middle eas. liz: at a time we should say when saudi arabia needs to keep its focus on keeping isis out of its borders.
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does this battle with iran distract saudi arabia to the point where isis can now say -- they can only watch a couple of doors and windows at the same time. let's squeeze in the basement? >> i think it does raise the risk of destabilization within the kingdom itself. and i think that the execution of the claireic was a signal to the sunni world that it's time for you to take sides and i think you're going to see in the lead up to this interview, you're going to see the uae guitar, jordan, egypt, the saudi sunni allies are going to line up with saudi arabia at this moment. liz: is there a hope for diplomat solutions here? we're looking at this unbelievable video of big protesters, and you know how both of these countries -- well, not so much saudi arabia. but iran is probably loving this at the moment. >> well, you know, we've seen this movie before, liz in the
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christian faith. this was very much what occurred in the wars in reformation in europebetween catholics andthey lasted 150 years. i don't want to oversell that because the basis here is geopolitics. but when you put that together of fanaticism as well as other critics around the region, it's a volatile visc risk. liz: what should the role of the united states be here? they spoken out and said we are against the execution because arguably he was exercising free speech but we know saudi arabia that doesn't roll very well. but what should we do? saudi arabia is of course an ally. >> what the united states should do is sort of on two tracks, liz, one as a general proposition we would like to deescalate the situation.
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there's no positive i don't mean here for anybody in a collision between these two nations. but the second track is one of support for saudi arabia. they are our principle ally in the arab world. we're going to have to support them in this conflict. that doesn't mean sending troops and encouraging them to go to war. but it means we're going to put our diplomatic -- our weapons sales, training is going to be firmly with the saudi -- liz: of course. of course. admiral, great to have you. thank you so much and happy new year. >> same to you, liz. let's hope the dow hears that happy new year as well. liz: not right now. the dow is down 416 points, but it's really the russell and the nasdaq that are getting killed when it comes to percentages. russell down two and two-thirds, the nasdaq down two and three-quarters of a percent at any given second here. former nato commander. but president obama as you just saw in the hour before
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quickly moving this week to combat a wave of gun violence by working without congress to impose new rules. at the top of the hour president obama said any action on gun control will be well within his legal authority, and he will roll out the new initiatives in the next few days. this will include expanded background checks for any gun buyers and any gun seller will be asked to do that if they sell more than 50 guns a year. so let's look at gun stocks. they have been getting a boost like the name smit smith & wesson en, those companies had jumped after the paris terror attack for tighter gun control laws. you can see they're up about $2 and smith & wesson up 1.5 bucks right now. we are just about 40 minutes before the closing bell rings. what a day, and it's can interesting you can see behind me and relatively quiet on the floor because a lot of people figure figured, oh, the first day back, it's not going to be
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a big deal. it is a big deal, we're falling across the board. but less than 30 days until the iowa caucus and the candidates are pulling out all the stops. hillary clinton even putting president bill clinton out on the campaign trail in new hampshire. but who gets hurt the most the economy and the markets turn south from here today? two former governors top guys we're thrilled to have them. jim douglas for which candidates can take advantage. countdown coming right back
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liz: breaking news. 35, 35 minutes before the closing bell rings. you've got to stay with me. this will be crucial here because right now we are at 17,000. a second ago we were five points below it for dow. we were at 16,995. the weakness seems -- it feels like it's escalating a little bit here, and we do have the s&p down 49. low of the session it was down 57. low of the session for the dow
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down 467. i remind you we're down 422 right now. we've got and breaking news we need to get to you. new york giants head coach tom coughlin has stepped down following an end of season loss against the philadelphia eagles. coughlin you may know spent 15 years with the new york giants organization as both assistant and head coach. a part of three -- three winning super bowl teams. he calls his time with the giants quote an honor and privilege. the giants ended the season with a 6-10 record. a job well done, at least in the long term. tom cough lingle gone from the giants. we have the dow jones industrial down 423 points. we're about now 28 -- 28 days away from the iowa caucus. the first time it's not just about the polls. it's about actual votes from constituents. okay? i'm joined now by jim douglass who
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is former republican from vermont and former democrat of nevada bob miller. welcome to you both, and i guess i start with governor douglass because let's go back to 2004 i guess when howard dean was doing relatively well in iowa. so you know that what happens in iowa does not necessarily play out on the day that voters go to the polls. what do you think about the play right now considering we're having a real problem with the markets at the moment? and it could portend a weaker economy. >> you're certainly right. we've seen this movie before in vermont. we all remember president dean and the polls leading up to the caucuses and early primaries don't mean so much as the actual votes that people cast. so it's interesting to watch, very volatile right now, particularly on the republican side. but let's see what the actual voters have to say here in the coming months. liz: right now, governor miller, you have people worried about two things. terrorism and of course the economy.
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today the markets dropping as much as they are, does it change who might be best position to sit in the oval office and fix the economy? >> well, it might move us more into domestic issues, which i think especially secretary clinton has been focusing on for a long time on the republican side very difficult to focus on different candidates donald trump leading the field in some polls and coming up with such inflammatory-type statements that they have to react to. but i agree with governor douglass that historically those individuals that win the primaries in the early states don't necessarily win their own party nomination. in fact, on average it's a little over 50% of the time. . liz: yeah, i think at this stage vertically to watch it because what's happening now on our screen may start to grab the collective attention of voters. gentlemen, thank you so much. i'm sorry for the abbreviated
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session here but we do have a major market selloff happening right now governor douglass. appreciate you both coming with us. 31 minutes before the closing bell rings. we're going to take a break and then going all clear no commercial breaks because of this sell off. we will be right back. stay with me where to get in... where to get out. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. . . . .
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liz: breaking news on this monday. this first trading session of the entire year. it is an ugly day if you're a bull. investors having absolutely no time to nurse any kind of new year's hangover. we're off so seriously rocky start here in 2016 as you can see from the markets. it was a lot worse. dow down with 39points with --
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396 points with 27 minutes to go in the trading session. markets are digesting weak data. massive selloff in china from seven to 8% depending which markets you're talking about, real boiling up, bubbling over tensions in the middle east. so you see the volatility index jumping more than 22%. where are we seeing glitter? what a shocker, gold stocks showing a real sign today as investors see pressure from oil in the middle east. they would expect to see gold up about 40 bucks. it is up $13.70. another interesting bright spot today that is stock hammered down at the end of the year. gopro was one of the biggest losers in 2015, down 7 1/2%. today i can't quite see what gopro is doing, up 5% at the moment for go pro.
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so that is a good day. let me bring in different perspective, consumer stocks hitting lowest level in year. chipolte, nordstrom, ticker symbol jwm, and johnson controls. manufacture something tough out look where you don't have outlook. ashley webster down on the other part of the floor of the, what are investors saying. >> i heard walking by people talking about tom coughlin leaving the giants. perhaps a day they talk about sports rather than markets, with the dow off 400 points, it is broad-based selloff. all sectors in s&p 500 on the negative. certainly financials, citigroup, citi down 2%. we move to exxonmobil, exxon down 1% on the day. the oil sector as you mentioned liz, somewhat of a strange situation. we saw a spike in oil we expected given tensions this
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middle east but the price of oil started to do drop. i think there are bigger concerns about global demand despite what is going on in the middle east. as you mentioned oil settling lower today, down 28 cents. up in the air, pfizer, big pharma company down also nearly 2% on the day. you mentioned gopro moving higher in the tough environment. also lululemon, the yoga war e-retailer, based in canada, i didn't know that but they're based in canada, up 5%. gopro, lululemon, go hang-gliding to film yourself, today is day to today it. liz: where transparent leggings. i love lululemon. they suck you in. we long the giants or short the giants, traders tell me the same thing. coughlin is big news here in new york city. so the markets on new york stock exchange. leads us to ask when stocks do
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well in january, yes they tend to do well for the year. at least according to what is called the january effect. all this could be changing. is it still too early to ask this question. do they sell off? many people casting doubt whether stocks put out big, broadway exciting performance for the year. gerri willis is crunching numbers. she is looking past 45 minutes, i don't know, gerri, whether we can shake the january blues or not. >> listen, we have great numbers for you here. my question, what will this week mean by the end of the year? look at the dow first, that's what we've been looking at all day long. over last 10 years in eight instances, first weeks gained or loss in that index of 30 stocks was mirrored by the broader index over the course of the year. seven times january, the full month's performance on the dow, mirrored again by the index over the course of the year. so, it would seem that what happens in january matters and matters a lot. let's take a look at a broader
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index, s&p 500. when january ends lower, the average gain for the s&p just .7 of a percent, largely flat there. but let me tell you this. when january's on fire, when stocks end higher for january, the average gain for the s&p s&p 500, 11.5%. january critically important to what happens in the markets over the course of the year. we'll be following all of it as we continue to watch this all important move in the dow and other indexes this afternoon. liz, back to you. liz: what do you think would happen if we got the stock traders almanac guys and "farmers' almanac" guys together? >> that could be crazy. it could be a lot of fun. liz: you and i would think it was fun. i don't know about the guys here. gerri, thank you very much. so we come up a bit off the floor but the dow is still hurting at moment. so let's take a look at all 30 names on the dow.
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we have the funky thing called the heat map. guess what? it is all red on the screen. dupont is the biggest laggard. it is down 4%. we can see one sort of shining bright spot would be caterpillar. down the least. at the moment, walmart, everybody after that, apple, nasdaq and s&p are, quite frankly, the dow, heavily weighted to apple. so apple's pulling back because we have weakness and concern in china. does that mean the actual chinese consumer on the ground in china won't buy as many iphones? that is perhaps a sentiment turning apple red at the moment. let's bring in charlie gasparino. i see you're at the studio. i wish you were here. we have non-action action. >> this is ugly market. there are two ways to look at it. will it puke, get it out of the system and going back to normal? i don't think that is the case. i just saw john lonski in the green room.
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he will be able to tell you this, the fed is essentially raising rates into an environment. that is the path they're on. that is their stated path. it is information-driven. i can't remember exact terminology they used. but they don't have to raise rates. they will raise rates next year. doing it in the face of a slowdown in china which has to have impact on the u.s. economy. you know, that is what you're seeing now in the markets. it is kind of scary. usually, these sort of selloffs, first of the year after everybody comes back from vacation and digests everything they were thinking about while having a drink in their hand and eating, spending holidays with their family, usually is an indication what is going forward. i find it odd dupont is trading off so much. why any rationale from the traders, industrials, listen they're involved in a merger. they are going to cut costs. they would lay people off.
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you would think that is a stock you would buy. this is essentially across the board selling obviously that is going on here and you know i don't it portends very well. this is political story and this is the interesting thing. when you talk to traders now, talk to market people, they talk about the market but everyone of them, more interesting so than ever before about the political implications of this market. there women be winners and losers politically in this market. i think if the markets keep trading off and you, it is a sort of foreshadowing of potential recession sometime next year, got to be bad for democrats, extremely bad for hillary clinton. could help donald trump just because he is says he is a businessman. people generally turn to businessmen. interesting back in 2012, if you look, jobs numbers started to get a little better when romney was running with obama, people stood with obama. so the economy, we talk about terrorism, people don't feel safe. that hurts the democrats because
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they're in office. but real determining factor will be the markets and economy and that's what you're seeing right now, the debate on wall street who this helps and who this hurts. liz: we have wells fargo senior economist, mark center, he is here. mark, forget feel. we got evidence this morning, ism, the manufacturing index, it is showing contraction because it is below the 50 level. here the fed, it raised eyebrows that the fed was tightening into contracting manufacturing element. do we make too much of that? does this get worse, does it get better? should we be concerned? >> we should be concerned. i don't know the fed had much choice. they backed themselves into it. they said they would raise rates in 2015. the economy has been growing 2% a year since the recession ended. they were backed into doing that
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they have never begun raising interest rates when ism is below 50. that has never been done before. typically if you're above 50 and had expanding manufacturing sector and ism fell below 50 and they wound up cutting rates, usually immediately. the concern is, it is just a concern, it is not our forecast that the concern is the economy is losing momentum. most cyclical part of the economy is losing momentum. if you raise interest rates into that you risk causing deceleration to accelerate. liz: what is your forecast, mark? what is the actual forecast? >> well -- liz: if i'm stock buyer maybe wanting to go into housing names or who knows what, if i want to go into consumer discretionary coaches, tiffany's, is it a bad time? >> i'm kind of a long-term guy myself. i have the bulls and bears suspenders i've had for 25 years. i'm looking for the long term here.
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liz: right. >> in terms of whether it ace good time, i always think it's a good time, in terms the outlook for 2015 looking for somewhere between two, 2 1/2% growth. domestic portions of the economy are doing very well. things tied to domestic demand. homebuilding doing okay. consumer spending is doing okay. online retailing really crushed it. brick-and-mortar stores crushed it. my gut pullback in industrials may be a bit of an opportunity because i don't think this is start of a recession. we're somewhere either halfway through or 2/3 of the way through the significant slowing industrial side of the economy tied to a trough in energy prices. tied to slowdown in global economy. that may be opportunity but have to pick your places. liz: charlie is still with us. we have a analyst who is saying
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there is a lot of noise. some of it does signal global risk. point view wealth management and chief investment strategist david dietze. david, are you buying right now? we have the dow down 250. we could argue this is disaster or things were cheaper on thursday? >> liz, one day does not a trend make. the chinese story, this is a story that has been developing close to a year. we had a perfect drop in the yuan. drop in chinese stock market exacerbated by silly controls and bans they put on, one data point below expectation this is time to look at companies well-managed. great franchises returning money to shareholder and make your investments now. david: perennial opt -- liz: perennial optimist. you have to do your homework and pick great names. lululemon is up today. do you think this could portend worse global slowdown?
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>> was that directed at me, liz? liz: george, are you there. >> i am. there is a lot of concern about the global economy and rid fully so. there is reasons to be concerns how far china will fall on the downtrend it was on. market reaction in shanghai and some market reactions in europe and u.s. equity indices don't jive with that story. there are risks globally. we continue to see expanding u.s. economy. steady u.s. consumer and demand impulses that didn't exist two or three years ago. our view is much more modest than that we're poises for major -- >> liz i have to make this one point, then i've got to go. maybe i'm wrong on this and i hate predicting gloom and doom because never as bad, never as good except 2008. it was only time it was really bad. a lot of these gdp growth estimates that people throw out, listen i'm not saying they're wrong, i'm just they're not forward-looking, they're
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backward looking. almost static in the sense they take into account what's happening now. what they should be doing is taking into account what could happen in the future. if what is going on in china actually materializes, metastasizes into something worse, i should say, those gdp numbers will come down quickly and that will have an impact on stocks, particularly major averages. just the way the world works. i'm not saying it will happen. if you're an investor, tough remember these gdp forecasts these guys throw out they're almost backward looking. they're not taking into account real possibility of a -- >> charlie, since i through that one out there, let me come back to clarify about the outlook. it is forward-looking. if you look at domestic demand in the u.s., consumer spending and business investment it is growing better than 3%. growing better than 3% rate right now. >> but it might not grow. >> we have trade deficit, well, it might not grow.
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in any forecast you have to forecast one way or other way. >> i know. listen i'm not debating, that you're not doing your job right. this is very difficult. my only point to tell our investors one thing. a lot of these things, a lot of estimates based on what is happening now, very static, you don't know what will happen. this recovery, it looked like times growing 5% it would ratchet book down to 1% where we got average of 2%. this is crazy economy. >> i don't know if we ever have broken out. >> charlie is absolutely right hire. the real wildcard what is the fed's response? what are they doing in terms of two to four hikes in 2016, given what charlie is talking about. i think what investors have to be looking at is the fed speak. how quickly will it be we'll be hearing from the talking fed heads talk about a little slower pace. i think that is what we've got to be looking for. liz: nobody knows what is going to happen except we do know
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great companies that go through bad times, george are good opportunities for investor with a little fortitude, right? >> that is the whole point of investing. >> we could have asteroid drop tomorrow and wipe out human race. >> china is not exactly an asteroid. >> as can charlie point out, absolutely there is risks to everything out there. american economy is not as exposed as many other major global economy especially to chinese financial markets there. are risks from china. risks from emerging world. there are risks everywhere. that is what investors need to understand trying to make return in the market. liz: i think it is important to say this is the 10th month in a row that china's ism showed a fall. how anybody could be surprised
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by this, it could just be, i guess, mark, look into something like this, yeah, that's just it. it could be malaise going into the new year without a lost clarity where this this congos. >> that is a big part of it but on the other side, there are services purchasing managers index, hit highest level in 18 months. domestic demand in china seems to be holding up relatively well. the index that came out reflects a lot of what is going going with exporters. exporting demand is weaken. brazil, china, russia, they have all slowed. that imported their exporters. domestic demand in china picked up a little bit. i tell you the selloff in china seems to be more technical than triggered by the ism report. liz: right. >> there is moratorium on sales of lost positions that expires by end of the week.
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some folks might have wanted to get out of the way. liz: hold on, everybody, stay you are. we have pared more than 167 points off losses of the dow which are down 309 points. nine minutes to go, nine minutes to go before the closing bell rings. i need to get to ashley webster on other side of the floor. ashley, what what you got? >> we were saying same thing, liz. huge comeback, we are down 300 points. i'm being sarcastic but it is better than it was. look at pandora media. the stock is down 8%. it got a ratings downgrade from suntrust to neutral from buy. also cutting its price target to the $15 from $18. worried about expenses company has to say looking for new markets. liz, we dug very deep for winners on s&p. yes, we do have some in the energy sector even though oil
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finished lower. consol energy, southwestern, chesapeake and range resources. these are the companies that we managed to find actually work, winning on s&p today. there are some out there. not many but they're there. liz: remember, folks, if you're just joining us, and we have this big selloff, oil spiked more than a dollar earlier today on news that saudi arabia and iran were butting heads big-time. all air travel between the two companies have been shut down. diplomatic relations brought up. they brought in a big scissors, there is too much with the execution of iranian cleric in saudi arabia. we have david dietze and we have george perk. at the moment we have staged a comeback. sounds a little ridiculous. but the s&p was down 5points. we're down 35. david dietze, i'm thinking right now say for example, lulu lemons higher.
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what about netflix was too high and gotten too expensive but it is pulling back today. >> liz, people have kids to put into school and retirement to cover. if you look for blue chip stocks yielding 50%, almost double what the 10-year treasury is, which owned their market which had defensible shares that is the way to go. i would throw out walmart here. liz: art cashin is here. what do we have to sell? >> no. almost a billion to buy. liz: art cashin, come back from minus 400 million. more than a billion to buy on the close. what does that mean? that means that is the reason we're coming back. some real bottom-feeders are coming in, bottom pickers saying here is my opportunity. what do you think of that, george? i think that is pretty interesting. >> moment on close type orders are sometimes predictive what is going on in the market, sometimes they aren't. liz: billion to buy?
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that sounds good, right? >> definitely not bad. stocks down 3% first trading day of the year, there were people that went to cash late last year, didn't have anything to do with portfolios, i don't want too get kicked harder to the market. now they have capital to put to work. question whether that offsets what is going on elsewhere in the market. that large imbalance to buy on the close would not be definitely something to say that is pad news. liz: george encapsulated it, david, you tell me if i'm right on it, the reason we've come up 110 points off the dow, the smart money, faster, smarter money went to crash at end of the year waiting precisely for a day like this and loss of 300 plus points, david? the. >> i agree. there was a lot of tax-loss selling at end of the year. people sat in cash. awaiting their opportunity. in my view they're seeing it now. silver lining, you would think a
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day like today, commodities are worst performer because they're exposed to china. that is not what we're seeing. winners are being sold. there is second-guessing how bad the situation really necessary china. >> just to clarify -- liz: clarify quickly. >> just to clarify quickly. i wouldn't say smart money was holding back waiting for a day like this. often you see guys stopped out of the position. i can't go back even more. my risk budget is blown. new year, new day. new risk budget. that is more likely -- liz: look at a shot of heat map back in the studio, two names have turned positive. listen, we're grasping slightly at straws or apple slices. apple unchanged. walmart turned positive by a few cents. mark, we've got a friday jobs number comes out for month of december. what do you think happens and will this roil the markets or perhaps turn higher? >> after the ism report this
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morning that is the most important number we'll see this week. our forecast is for 195,000 non-farm jobs. looking for unemployment rate down to 4.9% that may be, this, sense that hey, too early to give up on 2016. we're a day into the business, business year, whatever. too soon to write off the year. i, this was a very odd opening to the start of the new year. of the typically stock market comes in with new year optimism. tough go back to the ''30s to find an opening like we did today. liz: worst start in a year for dow jones industrials. i can't stress that enough. traders telling us a day in the life of a long market. we have 350 more days. >> one day. >> a day is not a trend. don't let this knock you off your perch.
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what is odd, federal reserve hiking in december and fresh signs of global recession. with energy prices and low interest rates, pick your spots and hang in there. liz: you know what? i do want to mention, dow component general motors. while it is down at the moment did strike a verying deal with lyft, the competitor to uber, putting in $500 million. tough look at companies saying they're tuning out a day like this. they are continuing to do commerce. and continuing, david, to just roll ahead. when buffett says i like general motors, he is not looking today, tomorrow or one month from now or 2 1/2 minutes from now and dow industrials and rest of the markets close here at new york stock exchange. >> let's not forget by global recession led by china is already on everybody's mind. 32 central banks around the world are easing monetary conditions. just one is going in opposite direction. we'll see how long that last. liz: we have a comeback even
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though loss of 296 points is not necessarily a comeback to the naked eye. the we have two minutes left before the closing bell rings. mark, finals assessment what we have left? you said 2% growth. charlie gasparino pushed you on that. what do you think? >> we're look two, 2 1/2. two is the lowest. i tell you we get another big number on car sales. talked about gm we think you could see a shocker on number. our estimate is 19.7 million unit annual rate. 10 million unit of annual rate of trucks and suv. people are getting jacked about low gas prices and buying some nicer vehicles. i think year will be fairly decent year. it will not be a breakout that takes us to another level, mainly slower growth overseas will slice .7 of a percentage point off gdp. a lot of buildup of inventories last year. we'll destock a little bit. those two variables together in
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our forecast take off 1.2 points off the gdp numbers. without that we would be 3 1/2%. instead we're talk 2.3, 2.4. liz: i love the word stuck. not one i would pick on the first trading day. mark, david dietze, george perk, thank you very much on a crazy day. we're coming into the final close here. loss of 292 points for the dow. we were down 467. with that and the fact that the giants got rid of their head coach, i hand hand to david and melissa. david: i'm glad you didn't mention the jets. that is whole another story we'll get into later in the hour. 288-point loss believe it or not is better than it could have been. melissa: definitely. the dow fighting back after dropping over 460 points at one point. it was the worst start to the new year since 1932 but the dow adding 100 points in last hour. a little more than that. we have a team of experts with what you need to know he.
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david: we he have wild situation inside of beltway. president obama is widening political gulf as he finalizes details of new actions aimed at tightening america's gun laws, a move his critics are calling, quote, a dangerous level of executive overreach. melissa: chaos erupting in the middle east as conflict between saudi arabia and iran spills over into other muslim nations. [closing bell rings] david: markets deeply in the red. they got hammered today. when you look at 274 points to the downside, remember it was down 470 points. a big comeback for stocks even though it was terrible way to begin the new year. all of the stock indices are down significantly. everything over 1 1/2%. look at nasdaq. that was down hugely earlier. it was -- melissa: gold is higher. that tells you a little bit about the risk trade. david: look at oil again. just imagine the fact that all


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