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tv   The Intelligence Report With Trish Regan  FOX Business  February 6, 2018 2:00pm-3:00pm EST

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out. as congress considers immigration reform it is essential we listen to the law enforcement professionals in this room today. i will turn it over to secretary nielsen. we'll begin a discussion. you folks might want to stay for a while. >> mr. president, thank you for hosting this roundtable on ms-13. this gang is first dangerous enough to be classified as transnational criminal organization. we talked at length of the devastating destruction and violence it causes in our communities. we're hear to hear from a variety of folk who every day combat this this is my privilege to be here. men and women of dhs, doj who make it their job every day to fight violence coming across our borders. also to be joined by members of congress that have shown great leadership. we thank you for that. always for your support of the doj. thank you for you all. in your recently-announced framework as you know you asked congress to close loopholes we talked about. when we talk about ms-13, we
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have two or three main loopholes. first we have inadmissibility problem. when they come to our border, i have to let them in. i can not keep them out by virtue of them being in a gang. once we detect them, can't remove them by being in a gang. >> this is unique to our country. no other country has this this is unique to our country. it has to change. >> framework you poeproposed will close these. remain hopeful to work with congress and and your administration to close these loopholes. so, without going into further detail i would like to turn it over to the john cronin, the acting attorney general for doj -- trish: we're watching the president speak with folks who are very interested in securing the borders. it's a roundtable he is having on law enforcement, specifically focusing on the violent gang ms-13. we're going to continue to monitor that. if the president comes in, says
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some more, we'll bring it to but we got quite a wild day here on wall street. ton of volatility. we're off 85 points right now. the dow bouncing back a little after having seen the largest single-day drop in history just yesterday. it may be bouncing back a little. but it is all over the place. so buckle up. it will be heck of an hour. i'm trish regan, welcome to the intelligence report. americans are making more money. wages are growing 2.9% in the most recent jobs report. and look, this market has been frothy for a while, right? isn't it natural it is due for a pullback after hitting all-time highs for 15 months straight
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almost every day? we want to talk about what is driving the fluctuations that we're seeing today and we have an all-star line-up for you. you're sitting there, do you buy, do you sell what do you do in this kind of environment? for the next hour we'll tell you. let's get straight down to the floor of the new york stock exchange where nicole petallides is standing by with more. hey, nicole. >> hey, trish. certainly there has been a lot of anxiety over last several days. i know traders that stepped in to buy. they bought the dips, right around 3:11 p.m. at the lows of the day, down about 1600 points, our biggest point drop ever in history. people were nervous. people who liked stocks and bought in and gotten value. this morning we anticipated there would be a selloff. we got exactly that, down 567 points right at opening bell many within a half hour we actually swung 934 points bottom to top, all by 10 a.m.
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we moved into positive territory, up 367 points. this is volatile, wild ride of a market. right now i'm excited going into the closing bell to see what we will see. i will tell you why we saw the vix jumping, jumping 115%, we may never see anything like that, the fear index. tell you a lot of people got squeezed on the fear index that it would fall. you know what? it surged. closed at highest level since 2015. right now up to 36.86. traders think we might retest the lows. they're not thinking that. more of a sense of calm. they expect volume and volatility in this type of market. we've seen some winners here today. we'll see what happens over next several hours. trish: they should feel calm, really. nicole, i have seen these things
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a time for two myself. you think back, i know you have as well, to the 2007, 2008, think back to 2000. 2000 was an asset bubble and we recovered just fine out of that. 2007 and 2008 -- >> to the fundamentals at the top of the show are doing great. trish: right. the fundamentals are really where it's at. last 10 years we had nothing in way of fundamentals. inching higher in the stock market. i would feel a whole lot better to see economic growth and some inflation. we need it. nicole, thank you so much. good to see you. joining me with more, lmtrc, ceo, brad and kimberly foss. kimberly, you know i've been telling everybody to take a deep breath because part of what is going on here the realization we'll get back to normal. by normal i mean an environment where the federal reserve has to raise rates. it should.
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it is the right thing to do. by the way you should expect in 10 years or 30 years, things will be better enough that you have a little bit more than 2% inflation. >> heck yeah, trish. i'm right there with you, and you remember back year-and-a-half ago, the feds did declare they wanted to get back to normalization by year 2019. that we have a long ways to go. yesterday and friday was spooked by the fed saying hey, we may raise this three times or more and that causes volatility in ad deck to high frequency trading algorithms, the whole thing. bottom lines like you said the fundamentals of this market are strong. earnings up 2. 9% from last year. jobs are increasing. this is good for the economy. that means the economy is strong underneath this is technical
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pullback. i was buying yesterday. i bought in my own accounts yesterday. i am telling my clients to buy in their own accounts as well. this is nothing to fear basically. >> i think you and i are in agreement but i have someone here on set, has been bearish eight months, now? >> that's right. trish: you missed a lot. >> we run a bear fund under symbol of bhge. trish: you have no choice you have to be bearish. >> in all fairness i started a sqzz, etf, that is long and short fund. trish: why are you, what is motivating you? how do you get out and sell your, other than being a hedge against a market that keeps going up, do you really believe we're heading for far lower ground? >> so, look, the market over, of long period of time like you were mentioning goes up. i think that everyone will agree to that. however, there are periods in
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time like 2,000, like 2006, 7, like now where the markets got way, way ahead of themselves. we know cash and mutual fund-managed -- >> i hate to throw 2007 into the mix, i will just say that that was a credit crisis. it was completely different animal than anything we're seeing right now. you don't want to make that comparison but i got you on the year 2000. >> so even, to go back to your point, the economy is strong, correct. trish: right. >> i agree with you. although in the crash of '87 we dropped 20% in a day there was no recession there after either. trish: right. you can have a correction in the market -- >> without destroying the economy. my point when you see the stock market trading at same price to sales it was in 2000, buckle up, you better be ready for minimum of consolidation. trish: i want to get kimberly back in. you're talking about price to sales ratio, what is it right
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now and why does it alarm you? >> the price to sales ratio, it is not calculated daily -- trish: people talk about pe, price to earnings. >> so our people has been, we're forensic accountants. we think the marketplace and the s&p 500 has been manipulating their earnings to a higher level by issuing cheap debt and buying back stock. that has been going on previous lantly all over the street. that helps the earnings. that is something they are not able to grab to going forward. higher interest rates are going to be a little more expensive to fund growth. while there is a better platform for better growth with better taxes, more stable economy, the stock market is the highest priced on price to sales basis it has been. normal price to sales ratio is maybe 1.5, 1, to 1.5. right now we're over 2 1/2 so we're very rich. trish: do people know because
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tax reform is coming, consumers will have more money to spend, that they will spend it and that will affect earnings? not just earnings but the fact the companies keep more than what they earned? >> no question about it, if we grow that quickly, interest rates you're looking 10-year of 3 1/2 to four and not 2.8 which will fight with the stock market. trish: kimberly, to get back to this sort of push pull, i look at it, say, i'm willing to give up a couple thousand points on the dow, provided there some so opportunity for savers out there, right? i think about retirees, and you know, they're chasing down puerto rican debt despite a bankruptcy because there is a hope of some yield. and wouldn't it be nice if we actually had yield out there so you didn't have to get into crazy, aggressive products? >> absolutely. trish, what i used to say to my clients in the last 10 years,
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looking for yield in all the wrong places to quote a phrase. it was a joke. but, the fact of the matter is, interest rates rising, interest rates are a good thing as well. because, yes, a lot of retirees do live off income off their portfolios. that is what i've been doing 10 years with my clients t has been very, very difficult. when they have extra income from that income off their investment, guess what, they put it back into the marketplace again. so that helps the economy as well. like you were saying too, the tax reform, this is repatriation. apple is bringing jobs back, bringing money back here. that will be back with dividends, increasing dividends and also increasing and buy back their own stock, but again this is all good for the economy. that is only, you know, goes to just reinforce the idea that the economy is growing stronger, earnings of companies are growing stronger. that is more money in people's pockets, that the pie is not
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finite. the pie is growing. this is what america is about, is growing our wealth, the stock market is the greatest wealth creation tool in the universe and people from the waitress to warren buffett have access to that. and that's what makes people more richer, better and have a better life. trish: kimberly, thank you so much. good to see you both. for more on the markets i want to bring into the conversation, ubs portfolio wealth manager. jim, what do you think here? it has been a wild run. >> it has been a wild run. we should expect a wild run. january was up 7%. that is a gigantic move in one month. the angle of ascent is straight up. you expect the market to pullback, given we haven't had five% pullback in 19 months. we had second longest run ever for a 3% pull back. the market was due for a pullback. a lot of money flying into the market in january.
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this is probably panicking buying and now we're probably seeing some panicky selling. brac to the economy, we're in pretty good shape. ism number was 10-year new high. new order at new high. manufacturing orders, three-year highs, not only in the u.s. but around the world. japan had good purchasing manage ires index numbers, so is china. we're seeing strong global economy. very strong u.s. economy. we expect gdp to be somewhere between 2.7 to 3% this year. trish: jamie, you're light on that. jamie dimon is saying 4%. fed is saying 5.4% in first three months of the year alone? >> i'm talking about after inflation. you add the inflation numbers here, you're talking north of 4%. we could see a very, very strong economy this year. getting back to the previous discussion. yes, maybe we're slightly high on historic basis on price to sales basis but profit march
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doctor margins are huge. price to free cash flow is pretty much in line what we've seen historically. the price earnings multiples, we're back down after the selloff to 16.8, that is where we were in november of '16. in december of 'six teen we had a pretty good run after this. we're seeing more volatility. of the it is long overdue. i expect to see more volatility. these things don't usually resolve themselves in three days. looking at correction, depending what time you picked you were down 8% to 10% top to bottom. you're probably closer to the bottom of a correction than anything else. you're probably closer to where you will want to be buying than selling. trish: okay. so let's start with that. we're now at 24,342. you know, we have been approaching 27,000 just a few days ago. >> right. trish: so it is a lot of loss for people to digest but, i
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guess the question is, you're saying we could see some more. any idea where this all settles out? dow 23,000 would be great, right? that is still a lot better than anything we have had. how do you think people should be thinking about this market right now and should they be getting more aggressive about other products, for example, fixed income? >> i know there is a lot of people, trish, that have sat out this market, watching it go up for the last two years say, hey this, then is too high for me to buy. they had a lot of money in cash, for those people, getting in, starting to nibble probably makes a lot of sense. for people that dollar-cost-average, accelerating that, buying more this time around makes sense. usually this volatility takes a few months to resolve. i don't think people should be in too much of a hurry. by the same token, 8% correction, a lot of people have been looking for, somewhere five to 10%, now we're here. it is probably a little late to be in there selling. it is probably good time to
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building your shopping list. see which kind of stocks you might want to buy, maybe even nibbling a little bit. trish: good advice from jim. good to see you. >> good to he he -- see you, trish. trish: how much is because of the algorthymic trading. they have been programmed to buy and sell at certain levels. what contribution are they making? we have the intel for you next. think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses.
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trish: losses on the dow right now. you can see off 115 on the big board. it was 24 hours ago right about this time, losses started accelerated, before you knew it we were down 1600 points at one point on the dow. then had a miserable day to close it out. at least not that bad. but you know, today's volatility is all over the place as well. we're down, more than 500. then up more than -- i mean, what a wild -- this is the one-week chart we wanted to show everyone. because you really get a sense how crazy it has been. you have the vix at a level upwards of 35 that we haven't seen in some time. i'll tell you, you probably wondering what is contributing to all of this right? why is it that there are such
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wild fluctuations? why is the vix so high? why are people getting in and out at such drastic rates? a lot has to do with none other than than computers. deirdre bolton is here with more on that. hey, deirdre. >> hi, trish. you and i have seen markets like this, this volatile. i don't mean to minimize what we're seeing on the screens at all, but this is not like 2008 where you had the 15-month downdraft, that was just down and down and down. i think we lost between 2008 and beginning of 2009, something like 50% this is not that. when you speak with people now, as you have been on your show, people say you know, the economic underpinnings for the economy, for the u.s. economy are pretty strong, right? with have unemployment at a 17-year low. we have wage growth showing certain amount of steadiness after almost a decade of nothing. there are a lot of positive points. corporate america are
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deliverying solidly on earnings. 80% of the companies reported so far exceeded estimates. so that is great. we haven't seen those levels since 2008, as far as the upside surprises with earnings. but as you're talking about these computers, yes, all selling and all buying is going to be exacerbated because we're in a new world with a lot more technology. people put in the formulas, the levels which they want to sell. once you put the formula in, it is executed. exactly, it goes. it es executed automatically. you are going to see more volatility in quote, unquote modern markets maybe we did even 10 years ago. but that does not change the economic underpinnings which as anyone will tell you are pretty strong right now. trish: in some ways you have to have a stronger stomach as investor nowadays than you might have had 10 or 20 years ago. >> i think so. no why you're vin esing in. if you use a company's products
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all the time, you like the company, you believe in its management maybe these are good days to pick up the stock a little cheaper. if you believe in the future of the u.s. economy, okay, 17-year low unemployment, that is pretty steady. wage growth, that is pretty steady. i think underpinnings are a few strong and these are days to test your gut. trish: at times like this, people need to take the deep breath. a few people said to me, oh, my goodness, what is going on with this market? hang on. our economy is doing better than it's done in a long, long time. sure the market may have gotten a little ahead of itself. maybe it is going to pull back but that is healthy. corrections in a bull market are good. >> that is a great contextual point, it is easy toker toforget past eight plus years, every single year we've been up and up and up. that happened twice post-world war ii. we're in one of those moments. eight-year plus bull market.
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you can't complain. never mind eight years ago, even if you bought a year ago, you're still up 19%. trish: great, deirdre bolton. thank you so much. is inflation the main reason why we're seeing this big swing in the markets? how fearful are investors of inflation and are they blowing that one out of proportion. we have a look what the fed is doing next. what it will mean for your portfolio after this. arents havn talking about you for years. sorry about that. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. have a seat. yeah. knowing that the most important goals are yours. with 15,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing.
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trish: we've been all over the place today. we were down, we were up, down, up. a few more of those in there. we're down right now, down 94 points t was right around this time things got really crazy yesterday. it has been really crazy today. we've had sings of around 900 points today. i can tell you telecom, health care, energy, all leading us lower right now and why are we lower right now? what has changed, right, in the last couple weeks that suddenly had made everyone more
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concerned? i'll tell you what it is. inflation. the fact that inflation might actually happen because we basically had none of it ever since the great recession, and the idea that that could come back, that's an adjustment for people. it means we would have higher interest rates. the fed would be raising rates. investors don't like that, in part because suddenly there is competition. people say, hey, maybe youi should put my money in fixed income bond instrument that would get me a guaranteed rate of return, plus my money back at the end of the coupon. and, or, i could put my money in the stock market and take a bit of a wild ride. so competition's good. joining me right now, economist doug holtz-eakin from the american action forum. i say, you know what? i love this idea of returning to normal here because it scares me when the 30-year is trading where it has been trading. it is as though people don't think thrill will be any
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inflation 30 years from now, that is rather pessimistic attitude if you ask me, doug? >> i think you have got this right. worldwide they switched from extraordinary monetary policies, with what they do. world no longer awash with cash, buying up all securities you have competition between fixed income and stocks again. that is business as usual in the big picture and people get used to that i think there is part of this inflation story people got wrong, however. the notion on friday we saw employment report that showed 2.9% average hourly earnings growth, scared everyone to death, doesn't fit the math. wage growth of 2.9%. productivity of 2.1. that is below the fed's target nothing to be afraid of. people are not figuring out what to react to. they certainly shouldn't be concerned about that. trish: that is interesting point. everybody is asking me, the fed
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will raise far more aggressively, do you think there is a chance that, they don't? >> i think, it is really kind of interesting. i'm, we've seen two things happen in the past three or four days. one is, a whole bunch of folks who said the tax cuts would never work are saying my god, they worked too well. we'll get all this inflation. the fed will have to move. tough be one or the other. you have to have a little consistency there. if the tax cuts work the way i expect them to with all the business tax reforms, that is pro-investment, pro-innovation, pro-productivity. as we said productivity takes inflation pressures out. i don't think there is anything to be concerned about on that front. it may be the case that the fed raises more aggressively. why would they do that? the new neutral fund rate is higher than they thought. that is good news. throw me in that brier patch. why the fed is raising rates is what matters. will grow more rapidly than average. trish: a second ago, why do you
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think fed would raise? not because of inflation but because of? >> because, neutral is higher. they have got to get to neutral. and that's a good thing. if neutral is higher because -- trish: in other words they need to set a new normal. >> if it grows the economy that would be great. trish: because you can't have interest rates at zero forever. we're not at zero now but we were at zero forever. what if you have a crisis you need to fight, doug? >> you have lots of room, the fed has extraordinary power still on the downside. downside risk they can take care of. i think the real question has been what is their upside room to manuever? looks like there is lot more than there was before. that is something you have to take that consideration. trish: interesting stuff. douglas holtz-eakin. >> thank you. trish: how much of this volatility in the markets is actually due to volatility in washington? could they be linked? we're on that story. see you here next.
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trish: we're watching what i keep calling a wild market. wild it is. right now we're at the flat line. we just crossed into positive territory. what do you know? this is turning out to be an exciting hour. general motors reporting positive earnings sales of crossovers and cost controls. it will spend $8 billion of expenditures this year and a billion dollars on self-driving cars. bitcoin dropping briefly before $6,000. the lowest since november. cryptocurrency market value dropped $500 million in just over a month. that has to hurt the winkelvoss twins. disney first earnings call since it purchased majority of twentieth century fox's media assets for $50 billion. get earnings after the bell on
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fox business. we're watching this market. which is straddling the flat line at this point. it makes you kind of wonder what is motivating all of this. , we talked about inflation at this hour. we talked about the fed. we talked about rotation into fixed income. we talked about the fact that maybe this market needs a correction because things have been going up, up, up, for too many days in a row. what we haven't talked about, is what kind of impact washington may be having on this market. president he has beens rather silent since the stock market took a dive yesterday. this as the white house says it has a classified memo prepared by democrats to counteract a republican document released last week showing corruption and buys at the fbi. well, now the president has five days to decide whether or not to allow the release of that democratic memo. meanwhile steve bannon he is
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expected to have testimony, was expected to give testimony today at the house intelligence committee. that has been now postponed until next week. delayed for the third time despite a bannon subpoena. so is all this chaos in washington translating into chaos on wall street. with a look at that ingle, shell did i holiday, "wall street journal" and our own charlie gasparino. starting with charlie the does the memo have anything to do with this in your view? >> i can't imagine. if there is silver lining what happened with the markets last couple days or the last week, most people started to think about, what is important in life. and, you know, the economy is important. whether the tax cuts are going to create jobs, good jobs, productive jobs. and whether, whether their 401(k)s are going to be okay, not whether donald trump, jr., may or may not have said hello to some russian dude back a couple years ago. i think this other stuff is such noise.
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listen, i'm all for transparency and i don't mind the nunez memo coming out. i don't mind the democratic memo countering that coming out but it is, i think most americans are putting it in the noise category primarily because after a year of this stuff, what is the worst that happened? i mean flynn said something wrong to an fbi agent, that had nothing to do with trump really. the other guy, manafort, had some business dealings that were crazy had nothing to do with trump. don, jr. met with a russian dude during the campaign. trish: a lady, right? >> excuse me a lady. trish: maybe there is something we don't know. >> maybe. trish: we digress. by the way i appreciate, you're getting very fill solve can on me here. people are returning to what matters. >> you know what it was? it was that music when you read, who picked that out? trish: i did! i did! careful what you see.
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that is my music! >> shocked by that. trish: shelby, i don't think the memo stuff helps but the reality is, you know i think charlie is making some good points. investors, they don't necessarily care about the, the minutia of drama happening in washington. they care about policy we still have those tax cuts. >> a lot is working. a lot is also not working. investors like calm, they like steady. not exactly getting that from washington these days. the memo is political noise at this point. there, people will throw out the word existential threat, the russian investigation is existential threat to donald trump's presidency. that is not what we're seeing now. trish: you actually could, carly, if you actually saw there was a chance that the president might be impeached or the president might resign or something like that -- >> he might be impeached if the democrats win the house. trish: nothing happening with
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this memo. >> look at past scandals why they were more existential, bill clinton lied under oath pretty clearly. the senate didn't vote to approve the impeach mane. that is how you say it. he was impeached by the house. the senate said no. trish: right. >> that was pretty bad. i don't think we, do we have a, we don't have trump lying under oath in any case that we know of. nixon, let's be real clear here, the watergate burglary was led by two guys a former cia agent, howard hunt, a former fbi agent, g g. gordon liddy, a bunch of cia operatives, a committee to reelect the president run by john mitchell who used to be his attorney general. that is high level stuff. what do we have here? we know trump apparently, may have fired comey over was protecting his son, who had sort of random meeting with that russian woman.
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trish: i don't know if you can call it random. >> it was kind of random. one meeting. trish: get him on obstruction of justice though if he wasn't -- >> that is where a lot of legal experts are going. >> i don't this so. >> amazing back to the market today, when investors are not so worried about the russian investigation, they were not worried about north, they were not worried about the government shutdown but inflation is certainly -- >> we have, i think you have a different argument going on in the market right now. this is the pertinent argument. what doug holtz-eakin mentioned to you. there is argument between, legitimate on boeing side. is, are the trump tax cuts going to lead to real, strong, productivity growth, economic growth, where the budget deficit may expand out a little bit but it's not going to expand out dramatically in the future that it will way for itself? interest rate spikes we got will subside or will it not lead to
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productivity growth? will it lead to higher deficits where interest rates will spike even more than they are now? i mean really, a real spike. and that will lead to declines in the markets, obviously a recession. that is the debate going on right now. i subscribe to the good part of that. i'm just telling you -- trish: i hope you're right. >> that is the debate. i hope tax cuts do enough to stimulate it economy. we certainly need it. good to see you both. thank you very much. i want to go to liz claman down at nyse as we approach the final hour of trading. as soon as we come back we're getting a live report from liz next.
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trish: we're actually up 120 right now. i'm laughing. one of our producers just said to me, trish, this is about 60 seconds ago. we're up 126 but who knows what is going to happen. indeed, that kind of day. who knows. we've been all over the place, with massive 900 point swings. i want to go down to liz claman, in the thick of it all down there at the new york stock exchange. hey, liz. >> you know, i'm talking to the traders. they were saying liz, the reason it feels orderly and calm here on the floor, i don't know if you see behind me, people are at their computers and talking, we almost feel like we don't have total control, because of the
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computer trading that has seemed to take over. it certainly did yesterday. but, as you see, green on the screen. but at the moment, with the dow up 146 points, look what else turned to the upside. bitcoin which had fallen earlier today, below 6,000. remember it was just two or three weeks ago it was at 19,000. but, you see bitcoin here at 7453, up about 277 bucks. and then you've got green on the screen for russell, s&p. we want to quickly check nasdaq. it looked like it was punching up to the green. there are bizarre and squirrely moves in the market. the most interesting one what we haven't seen. that is the flight to quality. oil and gold have not really been that area where people jumped all over it. you see gold at the moment. is down about $7, at 1329. that is a level that surprise as lot of gold bugs, certainly hoping they would see people pile into that.
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crude, not doing much. we're in the after-market session. as you look at crude right now at $63.38 a barrel. we were closer to 65 a couple days ago. there is not the opportunity to jump in, trish. the dollar index started to reverse and turn lower. so nobody knows. exactly how you began this toss to me, nobody really knows. a long-time trader said, liz, tune out anybody that is trying to guess what will happen. what we'll do at top of the hour, ten minutes exactly, we'll give you the feel of the floor. we have literally 25 top market voice, liz ann sonders, ward mccarthy, a ton of traders. anything could happen in the final hour. trish: we're up 178 right now. it was 120 as we began the discussion. it is a wild day, an exciting day. i would rather see it go up than down.
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hopefully the upside continues as we watch you into the last hour of trading. don't forget, everyone, tune in just ten minutes. we'll be right back. i have more on these markets. do not go anywhere or you could miss it. up 165.
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one . : . >> 90 see this. up 203 points.
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this was a wild day, while market. we had been down almost 600 points and we've just been going back and forth. now we are in positive territor territory. let's hope it stays this way. i'm back with shelby holliday and kimberly fox. what's going on? are people struggling with do i get in, do i get out? for every person selling, there seems to be someone saying all right, we've reached a level uncomfortable buying. >> this is normal. we have had almost eight years of upmarket so it's very normal that were having this pullback. when i tell my clients, 5 - 10%, five. or 10% pullback is absolutely normal so that we can move forward in a healthy direction. the volatility, the by and sell, it's high-frequency trading and that i think is the new normal in this machine driven world. there are not people on, i
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guess my question is we are up down, up down, and yesterday we were just down. so what is it that sparking this kind of up down action? is it still high-frequency trading? did people change the algorithms overnight. >> that absolutely could be a possibility. as fast as we go down with those algorithms, they will come back up. we know in a bull market, these pullbacks are very severe and very sharp but they also come back very quickly as well. people shouldn't panic predation that their portfolio and analyze where they are at and rebalance the portfolio and move forward in a positive way. >> it's important here because too often investors are watching this market, they see it trading down and they think of my goodness i have to get out and they picked the worst time to get out. now we are up nearly 300 points. you have to watch it almost
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second by second and i think the timing is difficult because a lot of investors at home may say all right, i want to go and buy shares of apple, but you don't know where apple will be trading when you buy it. >> great and you don't even know if it's a deal at this point if it's going up or down. i think the algorithms might explain because what is crazy is when i walked offset, i saw my phone present trump just said bring on a government shutdown in the markets going up. that is not a normal response to a president thing bring on a shutdown. >> as we were discussing, investors care about policy, as they should and the noise from washington is nothing but that. it's noise. so what you have to do, if you're investing, is cut through all that. that's what we do every day. that is why, if you been watching foxbusiness, you probably would've made a lot of money in this market starting right there on election night and prior to
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that because i think we've always taken these policies seriously. looking at the fundamentals, i think the people who are slamming the president today for the selloff are making the same mistake that they're accusing the president of making which is touting the market. it will go up and down and you ultimately eat your words but at the end of the day investors are focused on fundamental. >> i say this all the time, only because i think this is a president who can be polarizing at times and he has a special way with his words sometimes. that said, the policies that are getting enacted, these are growth oriented policies. you need to be able to focus on what's actually going to make you money. >> absolutely. the fact that we are, we basically reduced or eliminated. [inaudible]
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[inaudible] everyone is feeling better and have more money in their pocket, that's the big deal. this is the biggest wealth creation tool in the universe and it's available to everyone. >> i have something nice i want to show you. we may not be up to do it just now but when we come back we will because i am looking over here at the sideboard in my studio where i am looking at dow 30 and just about everything is in the green. you can see tech is helping lead things higher. there is just a few challenges, verizon, johnson & johnson, coca-cola, travelers, those are the only dow 30 stocks that are in the red right now. things are turning around. we are up 314 points right now.
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don't go away. we have liz coming up live from the floor of the new york stock exchange and she is taking us right into the final hour of trading, up 330 points. it could be a good one but you never know. ain't that the truth. liz, how does a look on the floor? >> well, this is the hour where that affect daylong tug-of-war between the berlin the bears will be won or lost, straight obligate. you can actuall absolutely tell they were yanking their side of the rope and then the bears put up a mighty fight and you've seen it toggle back and forth. live on the floor of the new york stock exchange, we are looking at the dow jones industrial average of 344 points and climbing. we've already seen a 934-point swing on the dow from a session low. that was pretty much the minute after the opening bell. that counts as a full correctio correction, at that point, when we open and then we call back

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