tv Countdown to the Closing Bell With Liz Claman FOX Business April 7, 2016 3:00pm-4:01pm EDT
trish: we are up numb to 25 on the tao. maybe 3%, concern abobout corporate earnings, none of at will affect things. the conversation doesn't end here. go to my facebook page, my twitter account and tell me what you thought of today's show. liz: in the last eight make its -- minutes the market turned to a deeper shade of crimson. look at the dow jones industrial down 226oints, lower the session, 229, we are headed ck there again, look at the s&p 500 giving up its gains for the ye, dropping 32 points, 1.5%. markets are enduring at this moment, their worst day since february on jitters over what is next for the fed. check out the intraday picture of the nasdaq which riright nows at session lows. you can see we are dropping
precipitously, tech and telecom have been in trouble all day. verizon cut its rating on the stock, verizon was down, the others followed in sympathy but it is a tough day all around. we are on the story, why are markets moving? we will take you to the nice he -- nyse in a second. the next 14 days it will be the center of the political universe as the presidential candidates descend on n new york to make their case. hillary clininton in an empire state of mind, a l little t of trouble to use their metro card toto enter the subway, trying t be like the regular joes, turn the card o over and slide it through, she got it. she also blasts bernie sanders for thinking new yorkers still use tokens. they both had a little trtroubl with the subway but o ohio governor john kasich havining n trouble in the bronx, the
italian cuisine on arthur avenue. on an event in brooklyn this evening, ted cruz got out of the bronx yesterday, scheduled to visit brooklyn in the next hour. earlier hehe held a rally at a school in upstate new york blasting donald trump for 40 year long record of supporting democrats. big in new york, third behind john kasich, upcoming primariei, also leading in the polls, political panel on why new york could be a bigger game changer than wisconsin ever was. we wl introduce you to one entrepreneur who went to the mamassive trump ralllly, very excited, why not tururned off b trump's plan, and small businesses like his views. the formerato commander telling us four cyber security is the number onone threat to t nation. china is known to be the number
one offender. california congressman got on a plane and flew to china to get some action onon the issue, jus returned. what happened and what he learned. we are l less than an hour to t closing bell, markets dropping to session lows. we will start the countdown right now. breaking news, the tao facing its biggest drop since february, the s&p giving back all the gains it has seen so far this year. technology and telecom names are bringing markets down today, specifically names le amazon, apple, ebay, microsoft, yahoo, a lot of you h have in your portlio, they are coloring these screens but look at the nasdaq. a lot of stocks are traded on the nasd, it is down 86 points lower, we could be dropping
further, we will see if any of this turns around, verizon is slamming the tao down 2% but you can see it is a problem at the moment collectively. european central bank chief mario druggie spoke a few moments ago, issuing a big warning, worried we are not seeing enough inflatioion. he is also worried about the global situation as far as all economies are concerned. it wasas revealed yesterday in d minutes from the most recent meeting but it is what he said at he said a couple hours ago, it is causing major bearishness in the markets but the tao has just come up off of those lows, down 218 points. mcdonald's shares breaking upupo a lifetime high, second new lifetime high for mcdonald's this month, mcdonald's trading at 1 $27.87. the market drop atat the stock
exchange, laurie rothman grabbed a few of them. laura mack interesting to adaddo what you are saying, all eyes on the yen, the japanese yen surging against the dollar. this is the message about lack of confidence in the bank of japan. the doj went to negative interest rates and there is fear because that process is not working, those rates could be brought down further so trouble in japan, a ripple effect especially clobbering banks in the us across all sectors. you can see we are at session lows, the vicks, the measure of fear is a to 16.74. classic risk off day, the dollar stronger against other currencies, gold took a bid up today, treasury, yield on the 10 year came down from 1.76%, last
check it was 1.69%, folks seeking safe haven investments with all the global growth uncertainty.y. liz: you are so right. it may make people's eyes glaze over but it is, do not apologize, this is a big issue because the n is not behaving how currencies usually behave when governments and central banks say we will pile in more. usually currencies are weaker on that. we are not seeing that at all. we are seeing strength in the yen. we showed the dollar hitting fresh 17 month lows, but the yen is the only one hire against the dollar. japan may have slipped into its fourth recession in five years. tough times for japan, the nikkei, certainly not the yen but that makes it tougher for japanese stocks. we will check back with traders in a second. the politics, we have entered a
new phase of the gop presidential race. the runners have left eir starting position that charged full speed ahead to take a bite out of the big apple. ted cruz through thin crowds in the bronx and had to capture a school visit in the bronxnx aft kids threatened to walk out. dodonald trump had a crowd of 18,000 but trump has little margin for error in the remaining primary contest after losing wisconsin and uta he came out swinging in his home state, slamming ted cruz over his less than complement 3 comments about new york values. >> lying ted cruz came today. he couldn't draw num 100 people. remember during the debate when he started lecturing me on new york values like we are no good. the worst attack in the history of the united states, the bravery that was shown was incredible. we all lived through it, we all know people that died. i got this guy standing over there looking at me talking about new york values with scorn on his face, with hatred of n
york. liz: pretty big crowds for john kasich who drew two hours ago, look at these elbows and shoulders smashing together, the ohio governor confidently scschmoozing up a storm. connell mcshane, a bunch of other members in the bronx to get a one on one with the governor. >> we had a chance to talk as he was on his way to mike's delhi which is how you do retail politics in new york city. the campaign has certainly arrived here. you were talking about the ugliness of wisconsin has arrived in new yoras well. the point about senator ted cruz, he didn't exactly get great treatment in the new york city tabloids after that incident in the bronx yesterday, the run in we had with a heckler.
he went upstate outside new york city, coming back to the city this afternoon but the message did not change much, still going after donald trump. >> donald ump has been supporting liberal democratic politicians for 40 years. i have no experience with that. connell: as for donald trump we haven't seen him today, but your earlier point we saw plenty of them out there last night, bethpage covering the massive rally, the lion's head staying above all that, the aforementioned john kasich has not been getting down and dirty as much as the other two, he is trailing in the delegate race and trailing by a lot. when we caught up with him today he seemed to be building in confidence with recent polling, and in recent polls monmouth university and, when i spoke to him at mike's delhi, asked him about that.
>> everybody needs to give delegates. a lot of people question that, that is what is going to happen and it will be exciting. connell: you mentioned charlie black, the political operative, working on astrategy. the open convention, doesn't have any chance, in terms of delegates required, if you get to a second or thi ballot, john kasich claims delegates will jump s way. liz: he wants a contested convention all the way. connell mcshane, some russian dressing. catchup and yonnaise t together with a fancier name. connell mcshane.
what was once a mild face-off, republicans in the democratic race, has broken into all-out war. last night at a rally in philadelphiabernie sanders ticked off a list of reasons hillary clinton isn't qualified to be president. outside yankee stadium hillary clintoton refused to take i kno what you are but what am i on qualifications. >> i don't know why he is saying that but i will take bernie sanders over donald trp or ted cruz anytime. let's keep our eye on what is really at stake in this election. we have republicans whose values are so antithetical to what is right for new york or right for america. liz: very kind on that but a reminder, that response is a far cry from her complaint just a week ago. listen. >> money from people that work -- i am so sick of the sanders campaign lying about that. liz: what is the best strategy?
does bernie already have an upper hand? marianne marsh, democratic strategist and a republican strategist, hillary is changing tones, took the high road tod, is she flying high or flummoxed by bernie sanders? is she back on her heels? >> she knows she will be the nominee because she has the delegates to be the e nominee a the tone change with bernie sanders is he finally realized he has a math problem, he can't catch her in delegates or get the nomination level and that is in pleed delegates, that is not counting superdelegates. bernie sandeders trying to put shiny object out there by questioning whether she is qualified which is laughable frankly and pointing to that when he had a wiki can't catch her in delegates, had a bad editorial board of the new york daily news and top that off with his unfortunate positioning about the newtowown families an gun manufacturers and he wants the media and everyone else to focus on his criticism of hillary clinton, not the fact that he can never catch her in
delegates. liz: the s sanders campaign is gunning for a contested convention. doesn't it feel like that? >> feels m more like hillary clinton is not doing the right things to put bernie sanders away. she wasn't able to do it in 2008 against barack obama. bernie sanders, self-avowed democratic socialilist at athei is exposing hillary for what she is, a terrible candididate. she has never en good, she had trouble in 2000, trouble in 2008 against barack obama. liz: she won the senator position twice in the state of w w york. >> she had to work the first time around. in 2006 new york had gotten so blue it was a cakewalk especially in an anti-republican year. hillary clinton has never been a good c candida. liz: is she still the nominee if she loses to bernie in new york. not sayingng that would happen t you never know with this election. everything has changed. >> the difference between donald trump and hillary clinton and sanders and ted cruz, t trump
they have to get the same percentage of remaining delegates but the democrats don't haveve winner take all. the republicans do which is why donald trump can still hit 12.37. bebernie sanders can win every single delegate in everyththing remainincontest in every singngle state and still not cah hillary clinton. she is the nominee. it is wishful thinking because they wt the democrats to have a contested convention that won't happen because our math is different from their math. liz: wishful thinkinacross the board. he n needs a tap frothe fairy godmother but let me get to ted cruz. whatever great feeling and love felt in wisconsin is vaporized, i can't say the state of new york, he is doing well upstate but is ranking number 3 behind john kasich and donald trump. what is donald trump getting out of new york by being here? >> donald trump is putting down a bold exclamation point saying new york is my turf.
he needs to hammer ted cruz to come out of it. liz: the question is can jn kasich catch up? >> when you are eating pizza with a fork that makes it harder. liz: this is a touchy subject. i fold the piece in half and kept the grease from dripping. >> john kasich is outperforming ted cruz. despite that when ted cruz opposed sandy, that does not play well in new york even among new york republicans. liz: you saw the crowds john kasich is grabbing, they are not donald trump crowds but for the govern of ohio not bad. what do you think of his chances? >> he has no chance. he is a one hit wonder, he won ohio and that is it was only ted cruz and john kasich's game plan is to deny dald trump 1237 because even if he comes in at 1236 the republican convention is set up by wisconsin, and paul ryan to nominate paul ryan so donald trump has to get every -- to get every single delegate --
everything delegate he can. >> plan to nominate somebody and steal the election, now you sound like donald trump's people. >> donald trump can get 1237 still. >> you can get 1237 if he gets 58% of the remaining. >> i got you okay? the 3 last winne states, california, new jersey, montana, all they can do is deny him that. make no mistakabout it. liz: we have market moving maneuvers here but we will bring you back, thank you soso much. closing bell, we are 44 minutes aw. you can see the markets, we are dropping but we are well off the low, down 187. we will be right back with all the breaking news. there is a lot of it. don't move. >> what surprises look closer to
a contested convention? brett there joining me on the next kennedy. i'm mary ellen, and i quit smoking with chantix. i always came back to smoking. i was absotely frustrated, i did not think chantix would work as well as it did. along with support, chantix (varenicline) is proven to help people quit smoking. chantix reduced my urge to smoke. some pple had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. some had seizures while taking chant. if you have any of these, stop chantix and call your doctor right away. tell your doctor about any history ofental health problems, which could get worse or of seizures. don't take chantix iyou've had a serious allergic or skin reaction to it. don't take chantix iyou've and call your doctor right away as some can be life-threatening. tell your doctor if you have heart or blood vessel problems, or develop new or worse symptoms.
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downside if you look k at specific secto, major us investment brinks dragging down the rkets, at deutsche bank falling 5%, the worst performing sector today, from european ceral bank president mario draghi worried about too much global uncertainty, that is worrying world banks rit now. rt of the market jitters hav to do with wt all central bankers are doing and that appears toe confusing all of you, confusing people abouwhat they will donext, specifically the fed. not en the central bank know the answero that, the federal reserve was expected to raise interest rates threeimes in what was meant to the first step in winding down us economic stimulus but thaplan has been caed into major question with release of the fed minutes from the rcrch meeting, those ce
out sterday and indicated the fed pretty much ems heavily dided over what the ne policyove should be. currt said chair janet yellen is about to appe within hours of the three living former federal reserve cares. member naked, an greenspan and paul volcker on the influence the cenal bank, peter barnes is getting you an early ndow into what ey are thinking, just sat down with fed president john williams for an exclusive 1--1 interview that will air in the next hour oafter the billith david and melissa. peter is in san francio. i don want to steal your under but where do they stand on this? >> remembejanet yellen gave a speech last week saying the fed ould be cautious about raing rates again beuse of turmoil the global economy.
williams is watching that but says the us economy is doing well and if it continues to do well he could support two more rate hikes this year. >> obviously we have to take into accouount global developmes because these go back intoto th us economy, affect job growth, affect inflation so that has been a big topic for us because honestly the us economomy is dog pretty well but the global economy has been struggling. we see that in europe and asia. these are the important factors affecting us growth, important factors affectingg the uncertainty about the outlook, those are issues we will keep watching, some signs of improvement, uncertainty about global growth seems to have stepped down a bit but it is an important factor affecting the us economic outlook and monetary policy. >> williams downplayed possible rift on policy saying fed members hold a range of views on the us economic outlook but he did say while some members might see downside risks to the
outlook he sees risks as pretty well-balanced th upside potential for the us economy despite this global turmoil and we will air the rest of this interview at 4:40 with david and melissa and have an exclusive three or four minutes more on ththe global economic outlook a ththe situation with janet yell. he doesn't think we have a global recession. that wilill be on the website later today. liz: this is particularly timely. you can see what markets are doing on the lower part of the ticker. much of this is worry about what federal reserve members think, peter getting that exclusive interview, don't miss it in the next hour, we have 36 minutes will for the closing bell rings. a hopeful win in the empire state, donald trump talking new york values and bringing jobs back home in long island ahead
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liz: here we go. about 31 minutes before the closing bell rings. we're watching the markets very closely. it's interesting, they touched a very hot stove of a low of the session about two minutes before the top of the hour. back up off that, but it's hard to say it's positive when you have the dow down 186 points, the nasdaq down 75, the s&p down 26. we're watching i it, folks. > about new york, they say f you can make it here, you can make it anywhere. and last night donald trump made it here. the billionaire held quite a rally in bethpe, long island with nearly 18,000 tickets requested. new york is a state wherere over 50% of republicans say t they ae standing with donald trump. we're joined now by one of those supporters w who attended his rarally. meet ceo christopher be we
around rah. chs, first of all, what was it like at the rally for you? >> it was denitely something i've never seen before. i've had my fair share of political events and charity events. there was a good amount of people there. just the whole leadup. i had the pleasure of going in with cole from buffalo who actually spoke before trump came out -- li yeah, he's been a guest on the show. >> yes. and he was even, he even had to take a shuttle in. it wasn't like thereas preferential treatment for anybody. but i think it was all part of the plan for security and just toeep the flow, you know? there was a joke throughout the whole course of it like it was almost anmusement park ride. like are we at disney or or great adventure? but it w p pretty well thought out and planned, and it kept order. liz: well, that's good to know. but as we look at that from that perspective, but then to the real substance. what was it that hooked you in the beginning about donald trump?
you're a small businessman, but you've got a great business. you make antibacterial products for things like gyms and workout places, corrrrect? >> correct. we have a line of athletic cleansing products to prevent skin infections in athletes, whether they be professional -- liz: you're a founder, you've been workingt hard. >> that's correct. liz: what t about trump makes yu say he's your candidate for a presidency job which is not just about businessss, but everythin? >> for y years i've been feeling that we need a businessmanan at the helm, somebodydy that knows how to get us out t of this deficit, help balance the budget beer, somebody that's been there on the strtreet and brougt jobs and created their own money and brought money innd raised money and have also been on the other end where e things gotot h and, you know, everybody claims he's bankrupt a few times, but -- liz: here are some of the pictures that you took, by the way. >> yes. those were all 15,000 people behind us. liz: you got pretty close. >> i was right there, , yep. liz: one o of the things donald
trumump said he wants to do is slap some kind of a tariff on chinese and mexican imports because he said it's not fair trade. i know that you make your products in america. >> that's correct. liz: you get no raw materials fromverseas? >> no,e stand by that. our products are created here in the united states -- liz: maybe, though, somef your customers do get products in from china and other countries, and they -- the thinking is they might be hurt if you slap big tariffs on those products comi in from ore countries. you worried about that at all? >> i'm not really worried about that. i'm more worried about creating jobs here and not lettinbig or small companies leave and go to other places to manufacture. we need those jobs here, we need -- we can't he it be so cheap and easy to bring it in from other countries. and that's one of the major things thai am firmly behind with donald trump. liz: good to see you. thank you very much. >> thank you so much for having me. liz: businessman from long
island who's in it to win it for donald trump. see you next time, thank you. >> thank you. liz: what do we have here? 27 minutes before the closg bell ringings. we've got the congressman who went to the highest levels of china's government to attack the cybersecurity head on. california's john garamendi here, just back from china, next on "countdown."
♪ ♪ >> the thing that keeps me awake at night more than anything you mentioned is actually cyber. and the possibility of a significant cyber attack on our infrastructure, our electrical grid, our financial sector, our hospital and medical systems. liz: former nato commander that seed reese telling us on fox business t that's his biggest
worry, bigger than northorea, bigger than isis. when it comes to nation-states who are e active participants in the hacking problem d cybersecurity, china right there at the top. so congressman john garamendi of califoia went straight to the source to deal with it. he's just back i in a fox busins exclusive. welcome, representative. and what did you lrn, what happened, who'd you meet with, what'd they say? >> well, we met with the prime minister. there were 19 of us in the delegation. we met with him, and we raised five issues; cybersecurity issue was one of them. not only the issue that you just talked about which is a cyber attack on infrastructure, we made it very clear that we consider this to be a very serious problem x it could, indeed, be an act of war dependining on how it's carried out. also talked about cyber theft, the theft of copyright, the thefof materials coming out of our entertainment industry and the like. we covered those issues and four othehers. liz: hold on, i've got to jump in here. >> it was a sharp and good meeting.
liz: sir, that's pretty gutsy to tell the prime minister of china we see this as an act of war? >> well,l, we didn't use that wo exactly. we said we consider this to o ba very, very serious problem. he knows as we knonow at we're building up a cyber command within the department of defense specifically for the purpose of defending this nation, and it's no secret t that it's offense as well as defense. so this is, this is the world in which we live. and it can be extremely serious. not so concerned about china because they know that they're at risif they hold us at risk, we hold them at risk. but i'm concerned about non-state actors that are able to hack into our vulnerable systems. we saw this at the dam in new york. but our electrical systems, chemical plants and the like, we need to be sure that we protect them, and that's part of what we must do in congress, is make sure that the, that the laws are in place, that the programs are in place to protect us from
cyber attacks. liz: well, to that end, whwhen e we going to start to see some laws, some bills put forth, things that are proposed that can at least get these on the bookoks so we don't have the confusion with things like apple versus the fbi? >> well, there you go into a a very, very complex and very difficult thining. it has to do with privy, it has to do with freedom of speech as well as our personal and nationalal security. there's got to be a balance. the industry seems to be very, very effective at finding various encryption systems. can the government say ahead of it? probably not x it's probably not appropriate to do so. but what we do need to be able to do is to know who's talking to who, we need to identify those networks and then use the network identification to track people that are causing or potentially causing problems, attacks of various kinds here many america and across the nation..
within the united states we'e've got to remember that a court order is necessary before we go after the actual words that are being used. liz: right, right. >> but we can, nonetheless, do tracking certainly at the foreign level. liz: did you get the sense that the chinese are as worried as the amamericans are now about ts time of f hacking that is not driviven by nation-states? it's worrisome both ways, but -- >> i think that's very clear. in the conversation, i don't remember all t the details becae of the translation back and forth, but clearly we made our point that cyber attacks a are f utmost concern to us, and we consider thahat to be extremely serious. and similarly, cyberer piracy. and they arere blding their own movie industry, their own recordining industry and the li, and they're justifiably concerned about that kind of piracy on their side. and they know that we know how to deal with both defense and offense.
we're kind of at a stalemate, and that's okay. we've been there before. but this is serious stuff, and we need to be paying attention to it. liz: well, so much so you got on a plane and felt with it. congressman garamendi, we thank you very much. >> thank you. liz: closing bell 19, make that 18 minutes away. valeant shares, the drama ntntinues today moving h higher while the markets drop precipititously. investors actually buying bill ackman andnd the embattled drugmaker's promises to do better in the future. can ackman and valeant really find a happy ending? charlie gasparino crunches the numbers for you in this big wall reet drama. he breaking it next on "countdown." ♪ is it becoming a better professor by being a more adventurous student? is it one day giving your daughter the opportunity she deserves? is it finally witnessing all the artistic wonders of the natural world?
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look decent but comparatively we would show you intradays, and they are dropping today. as long as the s&p 500 is below 2045, we are in the red for the year. so right now at 2042 they've got three points to gain before the end d of the session to geabove that. how do the experts play a choppy day? traders at the new york stock exchange and the cme group, want to go to todd colvin at the cme the volatility index i is spikig here. lori rothman had mentioned it was up abo 17%. i'm looking now, up about 15%. fear caused by what in this last 45 minutes? >> well, i don't think it's necessarily the last 45 minutes. this has b been a risk-off trade all day. and if you look at the vix while itit is up, it is still historically lowow, and i think very much suggests that ththe market is not priceded in for a bibig move to the could be side. downside. since e fomc, we've seen stockso
nowhwhere but down, and the fed really had nothing to say but goodod about the economy. the stock market does not like a confused fed. liz: oh, isn't that true. peter barnes has an exclusive interview w with the head of the san francisco fed that's coming up in just a about 25 minutes on "after the bell" with melissa and david, and in it he reveals he feels there's still a couple more rate hikes that are in play here. dodo you agree, because it seems some say yes with the fed, some say no. ain, thahat confusion that todd was talking about. >> clearly, the gogood news yesterday was that the fed was giving the market a free pass on interest rate hikes s until jun. so you could have another hike maybe in october -- liz: okay, so why today this hysteria? >> well, i think that today we'r're one day closer to q1 earnings season wherere we're probably going to have the fifth consecutive quarter of declining revenunues for the s&p 500 and e second or third quarteof declining earnings for the s&p 500.
and even thohough many estimates for compananies have been, have come down, y've got about 90 companies reduce estimates, ththey're not going to maybe mi, but the trend is not going in the right direction. liz: todd, we'e've got about 11 minutetes to go before the closg bell rings. we blew out commercial breaks because we felt that things were extremely jittery here. what flows do you see on the trading floor right mow? >> i think you're seeing one of those end of the day rushes. i don't put a whole lot of credence in the last ten minutes of trade on a day like today especially after the week we've had with minutes and what not, so i think that it's a volatility trade. stocks should be lower here based on the fact that the fed is not giving you any direction. and let's face it, treasury starting to creep higher, gold volatilitythat's where the stock market's going to go until the fed can figure out a gamee plan. they worked without a playbook when they were cutting rates and
they are when they're trying to raise them, and i'll be honest, there's a 500 shots that they even raise rates one time this year. liz: if you look at the first-time jobless claims, folks, i believe this is the 57th week a row where we see these at relativellow numbers, below 300,000. that is a good data point, is it not, tim anderson? do you go into stocks here or not? >> well, sure it's a good data point, but i think -- i hate to just repeat myself. we're so close to earnings, and i think they're going to be ry important. people might be just saying it's only a week away, i'm going to wait andee how the first four or five days of earnings season plays out before i make a real strong commitment here. the other thing i'd add is the optic from 20,000 feet of the treasury killing the pfizer/allergan deal, the justice department killing the halliburton/schlumbeer deal -- liz: doesn't help. >> -- and other kind of fighting going back and forth is not
really a good optic. liz: g good to see you both. i'm checking both allergan and fiers, i'm not goingo look a lot into that, the whole market seems to be red at the moment. the volatility index and mcdonald's. good to see both of you, we appreciate it, guys. looking at valeant pharmaceuticals though, still making headlines after a volatile but days. here's some green on the screen, valeant is bucking the market trend, jumping by more than 3 percent. could it be ready to sell off some of its most well known assets to stop the bleeding and maybe, charlie, that's's why its moving higher? >> could be. we could tell you this, this is what we have from sources. investment bankers that are dealing with in this issue right now, valeant is eyeing asset sales to pay down some of its debt. it's got $32 billion in debt, and one of the assets we hear that they're actively discussing -- and this is a pretty big deal if it comes to fruition -- is its bausch and loam unit. lomb.
bankers are tellinthe fox business network that inside they're actively discussing a potential sale of that to pay down some of that debt. how much could they get for that? well, they bought it for $9 billion in 2013. i've seen to e estimates range from about $2030 billion you can get for this, and that's a big chunk of change. can they, you know, the question is, you know, how much do you sell and what type of assets do you sell? because there is a bullish case to this company. if you resucture the debt, which they did, they've reached agreement today,nd at some point you start making money based on the assets you have, can this -- well, what is it right now? a $20 stock? $30 stock? liz: again, with the annual high of $246. >> maybe it's $60 stock when all is said and done.liz: compa. >> the business model of the past, ramp uprices, that's gone. we can't make money that way. we can't make money by buying all these companies, it's already too much debt.
we have to basically make money off of the units that produce positive cash flow. bausch and lomb is one of those, but i do know from inside the company they are actively discussing selling this asas pat of this plan to ramp down the debt. liz: we've got this selloff here, and the traders were saying just watch earnings coming o out, broadening this discussion here. >> right. liz: this is what stocks shoul be trading on, earnings and the prospect of earnin. >> well, the problem is that you have politics playing such a big role right now in the maets. you have a fed tt, you know, is up clear about where it's going to go, is it going to eads or raise one more time? we don't, yoknow, most traders arsiding with the fact that ey wait another, you know, they're not going to raise in the near term. liz: and per's got the san ancisco fed saying at least two m but the markets y just december. >> yh, that's what they're saying. that's pretty far off. and the other thing is politics in termsscrewing -- you know, the markets like deals. what happens when two mpanies
come together? they create efficienes of scale, it's good for thetock. markets are here now that the obama administration's being very aggressive on a lot of these mergers -- liz: whichs just whathe traders said. don't help. >> you can't just trade off of earnings. getting back to valeant, there is a bull case here, i'm telling you. i know a lot of people. it's not going to be a $250 stock, whatever it was in the past, but this thing theoretically at least according to the bulls. i'm not saying by e stock, but there is a potential for doublinggoing to 60 maybe, who knows? one of the ways they dthat, sell off some of the asset bausch and lomb is a big cnk if thedo it. i do know they're talking out. liz: can you hang around? >> sure. liz: w we're going to bring in steve dudash, and he has about 700 million in assets under management, and i need to know right now what you do on an afternoon like this with about six minutes to go before the trading session is donesomee we're off the lows of the session, but we are negative for the year on the p 500.
>> we're not that negative though compared to where we were in january. i think you guys nailed it, by the way, when you were just talking about what's -- when can we start talking about earnings again? when can we get away from the fed, get away from the unclarity ththat's going on there, you kn, one side saying we're never going to raise rates, the other side two minutes later says we're raising them as many times as possible? can't we get back to earnings? can we get away from the political nonsense and get back to what the actual balance sheets say about these companies versus all the other nonsense that's been going on? diswhriz liz but as you see a day like today, and yet we are higher yesterday, makes it more challenging for our viewers. what's your secret, what's your trtrick on a couple of -- >> my trick? [laughter] my trick is when everyone' running away from something, we're running it. liz: yeah. >> right now the biotech sector's been getting crushed in the last six months. i personally think it's been oversold. yes, last year there was some really negative press about some
people putting up cancer drugs to $1,000 a pill, and that drove all the politicians -- liz: that acactually dovetails very well, i don't know if you heard what gasparino was saying -- >> so do you like valeant at these levels? [laughter] >> i didn't like it at 240. [laughter] yeah, i like where you're going -- >> can we put up a chart on valeant? yeah, it's up a little bit since our report. there is a bull case on n valeat that it's maybe not a $250 stock, but it mit be a $60 stock. laugh and part -- >> there's a bull case for the whole sector though. that whole sector's been destroyed and overly sold. there's definitely some bad companies in there, don't get me wrong. but you're telling me all these medical companies need to go out of business? thatat's what's being priced in right now. liz: at 12% yesterday on news about eli lilly and a drug it's acquiring. >> i don't't think it comes down to the individual drugs they're acquiring. a company like that, they are profitable, and they don't need
to worry about every single drug making it through the process because you guys both know, it's a very long process and not always -- >> so what do you think of val want? -- valeant? i hate to cut you off, we've only got a few minutes. >> it's a good company. >> do you like it at 35? >> i think it's a fun company to get into at this price because you're getting good value on your money. liliz: we're down 192 on the dow jones industrials here, and you like google alphabet. thatof course, is a name that has been very, very strong over the past s several years, , but there's news today that the european union may go after it like it went after mort on antitrust issues. you worried about that? >> they're the biggest kid on the block. of course people are going to come after them. there's going to be political reasons why they're going to put antitrust, and they're going to come after those companies. i like alphabet, and i know this is o off the beaten path here, i like them because of all the things besides the search
engine -- liz: did you hear, too, that tesla -- speaking of technology companies -- has 325,000 reservations over one week for its new model? >> i know. that's your baby, and i'm not going to knock tesla in front of you, but i will -- there is no chance that they come through with all 300 and howevever -- ty could say they got a billion orders, that doesn't mean anything. liz well, would agree -- >> do you know anybody that owns an electric car? >> well, that oar -that's the other part of this. liz z i saw six of them on the west side highway today, and they're all er california, charlie, hate to break it to you. >> you notice she's on the west side highway, the most liberal part of new york. [laughter] liz: that's the easiest way for people from connecticut to get to wall street. >> tesla is a good company, but they cannot produce what they're promising. liz: they need to be a better company. >> exactly. liz: the breaking news is that the markets are off the lows of the session. at one point we were down about, what was it, 200 -- anthe worst of the session, 232.
the s&p had been down 33, the nasdaq had been down 89. we are up off all of thosese floors, but when you see the vix spiking and gold jumping $18, what is thatat final message, steve? >> i think gold is the worst investment on the planet right now. [laughter] i don't know how else to put it. until they come up with a way to actually use gold for some sort of production value thing, it is a fear trade. people buy -- liz: i'm wearing production value my ears right now. >> how about pinky ringsgs? [laughter] >> yeah, exactly. right. >> you're buying something so to people out of fear. some inflation hedge. it hasn't been. gold standard is not coming back. >> making comment about -- liz: we can't to thanks steve. we appreciate you coming on. great job. nice to have you, picking google and picking insight. look at this, folks, down is 73 points. triple-digit loss on the dow.
s&p no longer positive for the year. there is the closing bell. [closing bell rings] david asman and melissa francis pick it up for "after the bell" with big interview from peter barnes coming up. melissa: stocks dropping in the final minutes. david: i'm david asman. this is "after the bell." san francisco fed presidentt sas wewe may see at least two more rate hikes this year. speaking in a fox business exclusive, we'll have more of the big interview coming up. of course we bring you right back to the markets. here is what else is happening at this hour. big apple getting blitzed. ted cruz hitting the trail inn brooklyn with new york values comment fresh in the minnds of new yorkers at this hour. he will visit a jewish matzah bakery. both candidates working hard to cut into donald trump's big lead in the state. phil