tv Countdown to the Closing Bell With Liz Claman FOX Business November 28, 2018 3:00pm-4:00pm EST
i'm just not committing to the end of 2018. i think it's too soon to say. charles: 13 months. >> maybe, yes. charles: gary b., melissa, you both made great points. we appreciate it. dow jones industrial average, giving some of it back. only up 489 points now. liz: what happened to the five handle? thank you, charles. breaking news, we're calling it the powell pop, aka the gigantic short skrequeeze smacking down bears, after that blockbuster speech by federal reserve chairman jerome powell at the economic club of new york, where he sounded so dovish, so calm about pulling the plug on interest rate hikes sooner rather than later, that investors grabbed the ball and ran with it. stocks took off like a rocket ship just as his comments hit the tape at high noon. you can see from the intraday picture that that's where the dow popped. you can see it also flattening out at the moment but we are
higher by 481 points. to the nasdaq, shift the screen here, popping even higher. powell added that there are no dangerous excesses in the stock market. tech, which many believed have gotten too frothy, flying higher. the nasdaq up 158 points. the s&p not far behind, up 44 points. harvard professor of economics martin feldstein had a front row seat. in fact, he was one of only two who got to ask powell questions. marty has left the luncheon and is heading straight to our "countdown" studio, in his only interview. he will read between the lines of the speech, find out what the bulls loved so much but we will also ask did chairman powell pull a 180 on rate hikes due to public pressure from president trump? the fed's moves have a huge effect on the housing market on any day. new home sales crumbling in october as mortgage rates have spiked over the past couple of months. the ceo of the first home
builder gutsy enough to go public during the financial crisis five years ago is here. tripoint ceo on whether powell's about-face will cure housing's ills. plus, will the border wall battle shut down the government? hot rides at the l.a. auto show and charlie breaks it on the dark horse gunning for disney's regional sports networks. less than an hour to the closing bell. let's start the "countdown." liz: we need to get to capitol hill. breaking news, house minority leader nancy pelosi has accepted the house speaker nomination, but the votes are still being counted. these are the democrats voting on it. the full house will vote on the speaker of the house position in january. as we see the transition from, of course, the gop now taking the minority status in the house, the democrats going to the majority. let's go to the markets right now. a majority of bulls are on the run here, sliding back just a
tiny bit from the highs but still a major move to the upside. the dow is up about 560 points at its high point, but you can still see it's up 467 at the moment, as the markets make major gains right now. can we hold on to them in this final hour? and part of the problem may be that we have a mixed picture for the retail sector. on the coattails of a really strong cybermonday, homeline goods wayfair spiking after reporting a 58% jump in direct retail growth sales during the five-day shopping period between black friday and cybermonday. they are calling it the turkey five, right? five days around thanksgiving? according to a breakdown in items purchased, wayfair says customers bought items for every aspect of their home. while wayfair may be down nearly 30% so far this quarter alone, you can see shares are jumping 14% so scratching back some of that. also moving to the upside, burlington coat factory stores
blowing past earnings estimates this morning. the discount chains saw sales surge this morning. burlington announced it's raising its full year adjusted earnings per share but also, sales are expected to grow 10.9%. we see shares up 13% right now, $167.96. here's where we start to see the duds move in. earnings dud for women's retail chain chico's, plummeting after disappointing results that saw total sales dropped 6% last quarter. the stock is down about 37% right now. it is on track for its lowest close since march of 2009 and the biggest one-day decline since it went public. that would be way back in march of 1993. at the moment it is just a $4.55 stock. diamonds were not this retailer's best friend last quarter. high end jewelry retailer tiffany and company reported
sales rose 3%. that actually misses wall street estimates for a 5.4% gain. one real particular worry sign for analysts, chinese tourists, flush with cash in the u.s., spent less at tiffany in the recent quarter. chinese shoppers make up about a third of the luxury goods market. they love the labels, right? we have shares tumbling about 12.25% for tif. that's near a one-year low, $92.08. out of all the things, got to get back to fed chair powell. out of every single thing he said today at his lunchtime speech, investors decided they were honing in with laser focus on two words. to give you perspective, back on october 3rd, fed chair jerome powell told pbs quote, we are a long way from neutral on interest rates, indicating more hikes are coming. flip to full screen, the markets hated that in october and it ended up as the most volatile month in 100 years. fast forward to two and a half hours ago, now chairman powell
says rates are just below neutral, just below. here in his own words was the drop mic moment. >> interest rates are still low by historical standards and they remain just below the range of estimates of that level that would be neutral for the economy. that is neither speeding up nor slowing down growth. liz: did the fed chair just do a complete reversal or is neil cavuto putting it, a 180. we bring in our floor show. teddy, give us a sense of why you think he made such a big turnaround in his comments and what it really means and whether he should have, if the economy is as strong as it is. >> well, reading the tea leaves and all the political pressures and rhetoric that come out of washington that -- a lot of which has been directed at him, one can only wonder if, in fact, he's gotten the message. maybe they have simply re-evaluated where they are. i think the overall direction
for interest rates is probably still higher, but clearly, he had sort of indicated that we're maybe on hold. i don't know. perhaps they see something that we don't see. clearly the market has been concerned. whether it's a slowing economy or it's been the direction of interest rates, but other than today, if we had had this conversation yesterday, i suspect we wouldn't have had so many smiles. liz: i'm looking at my sector stocks. there is so much green on the screen, there isn't one entire sector that's red. usually if everything's up, the utilities might be down. we're not even seeing that. while they are up, they're not certainly down, and that to me is significant, larry. you've got to wonder if everything is so strong, why did he signal it this way? i would love to know your opinion on that. because we know that president trump has been extraordinarily vocal about how furious he is at the prospect of the federal
preserpr reserve raising rates in this atmosphere, and this atmosphere is pretty strong, right? >> yeah, it absolutely is. really, it's policy making, taking a line from ben bernanke, really, when you look at history, it will tell you the story. march of 2014, yellen made the same mistake by saying the fed's going to probably raise rates in six months or that type of thing, the markets dropped 1% in ten minutes. how about bernanke in 2006, at a very private ceremony, told a news anchor or journalist if the markets think we're done raising rates, they're wrong. you know, unfortunately, the policy is being run by a [ inaudible ] as it were. the word greenspan used that the fed hated, they dropped that in 2004, i believe, and after that, we saw 17 rate hikes. i think right now, what's happening is the fed is being very deliberate, always has, and
he just made a rookie mistake and going back to the thesaurus and saying words that are true and will resonate with the investor. liz: we have an 82% chance that we will see a fed hike in december. it would be very bad, i think, if he shocked the market by saying we're not going to do it in december. what do you expect for january and shouldn't we at this point, if we're going to see a recession like so many people say in the next couple of years, and that's normal, right, we have had 11 recessions since 1945, they happen, doesn't the fed need that tool, the ability to drop rates enough to stimulate the economy and if we're still too low, they can't do that. >> you're right, liz. they absolutely do. come next year, i think all bets are off right now. the 80% that's priced in for december right now, i actually think it's about 98%, quite frankly. moving forward, though, we really have to see what comes out of the retail, out of the holiday season. let's see how strong the
consumer is. are they going to keep up what we've seen over the last week since black friday and cyber monday. is this holiday season really going to be as robust as everyone says. now, that moving forward, we also have to see what happens with china, what happens with tariffs, because as we have seen, and remove the fed out of it, as we've seen, some of these big multinationals are starting to take a little bit of a hit because of tariff talk and because of the impact that that may make. so all that is still baked in and i think that come january, all bets are off right now as to whether anybody can predict how the fed is going to react, whether they are going to raise one, two, three or even four times next year. liz: you mentioned tariffs. that is going to be the total focus at the g20. i'm leaving tonight foorj ter argentina. i will give you all the scoop. i will text you. good to see everybody. thank you very much. i do want to just mention because we showed gdp, this is the second revision for third quarter gdp, coming in at 3.5%.
consumer spending is two-thirds of gross domestic product. that came in, it wasn't a bad number, 3.6% rate. so the consumer actually does look strong, to scott's point. let us get to this. we have tension at our nation's borders. it's at an all-time high. it may not look like a fight over money, but it is. this after president trump reiterated his demand for a border wall in a new interview with politico saying he, quote, would be totally willing to shut down the government if he doesn't get the funding for the wall. hundreds of migrants from central america continue to attempt to forcibly enter the u.s., as tear gas and rock throwing now become a major factor, raising the stakes even higher for president trump and his strategy to get funding for a border wall. let me get to edward lawrence live at the white house. will we or won't we see a potential government shutdown because you still have the gop in charge of the house, if they can get it through, but can
they? reporter: well, that's the point of the president. he says he wants that funding in a bill this lame duck session which there's about ten days left in this congress. the president saying he would shut down the government if he doesn't get that funding in a bill. now, this would be a partial government shutdown, as most of the government is funded through next year or into next year, but on december 7th, the agency or one of the agencies that will run out of money is the department of homeland security, and that is the agency charged with protecting the border, and would pay for the money there would go towards a border wall. the department controls that border funding. the president saying he wants now $5 billion in a bill for the border wall to fund it. democrats saying that may be problematic. >> the $1.6 billion for border security negotiated by democrats and republicans is our position. we believe that is the right way to go. if there's any shutdown, it's on
president trump's back. reporter: now the funding needs 60 votes in the senate and democrats appear unwilling to move over, it would need democratic support. republicans, though, are on board. listen. >> the house has the president's -- obviously the house is there. we have never been the issue here. our bill contains the president's full request for the border but ultimately, the president and the senate democrats are going to have to come to agreement as well. reporter: so the bill may pass the house but will get a lot of pushback in the senate. we may be looking at a shutdown. liz: i have to wonder if the president's own words during the campaign in the early part of his presidency that mexico would pay for the wall, believe me, might end up really becoming a problem for the president himself, edward. reporter: well, you know, that stuff hasn't stuck to him as of now. he does make the case that by the better agreement we have with mexico, in essence that boosting our economy in essence, mexico is paying for the wall.
so that's kind of worked itself out with that. those kind of things haven't stuck to him. but we'll have to see how this plays out going forward. liz: edward, thank you. keep us posted. not so united, with the closing bell ringing in 47 minutes, united technologies shut out of the bulls party on wall street right now. the maker of otis elevators and carrier air conditioners, the biggest laggard on the dow 30, just one day, second biggest, actually, one day after announcing its breakup into three pieces. at least three brokerages cutting price targets to as low as $144 but even that's optimistic. the stock is at $122 right now. and he's the guy who shared the stage with federal reserve chair jerome powell, right next to maria bartiromo and two away from bob hormats. during that speech that's getting all the credit for this rally we are seeing, economic club of new york board member martin feldstein has come directly from that lunch to the set. he will be here, next. i am a family man.
benchmarks based on expected payoffs and current economic conditions. liz: federal reserve chair jerome powell refusing to bite on what many at the economic club luncheon two and a half hours ago really wanted to know about. is the market too bubblelicious? that was hardly the number one point of interest and the reason the market started jumping, well, economic club of new york board member martin feldstein was one of only two people in the room who got to question powell. he joins us now in a fox business exclusive. you battled the christmas tree lighting traffic. >> tough out there. liz: oh, my goodness. we're thrilled that you're here. wow, what is juicing the markets right now? what did he say? we had our opinion. what do you think it was? >> i think what he said was that the actual interest rates are very close to the neutral rate, and the market loved that because it meant no more increases in interest rates. liz: in fact, he said just
below. >> just below. but what does just below mean? the fed has said the last time they met, they said they are aiming for three plus for the federal funds interest rate, so it's now two and a bit so that sounds like just, just one percentage point. but that's a big move and so it's hard to believe that he's really calling that back and saying we're not going to 3% plus for the federal funds interest rate. liz: because it was october 3rd, he said we are a long way away from neutral and then suddenly, he switched. why do you think he switched? >> i have no idea. i don't think he really switched. i think the market is overinterpreting that phrase. remember, he also said in this speech that this so-called neutral rate is a very uncertain number, we're not sure where it is, it's not locked in concrete, so i think that they're not going to come out when they come
out with the next set of forecasts, i don't think they're going to come out saying that it's not three plus. liz: do you see any reason that jerome powell and the fed should not raise rates next month, in december? >> i mean, there are reasons, but i don't think they are persuasive. i think the fed should keep raising rates. i think the fed should have started raising rates, as you know from our conversations in the past, should have started raising rates several years ago so that they would have the ammunition when the economy turns down. i think that's what's driving the fed now. liz: we in the newsroom could not believe that no one asked him about president trump and the public excoriation the president has put out there about jerome powell. in fact, just yesterday, he gave "the washington post" an interview where he said so far, i'm not even a little bit happy with my selection of jay, not even a little bit. do you agree or disagree with the president's action and the
way he has criticized jerome powell? >> i don't think it has any effect on the behavior of the fed. i think that the president is making sure that when the economy turns down, he will be able to say well, that's what did it, the fed did it, i didn't do it. and so i think it's just looking for a scapegoat. liz: is it true? would that be true, that it would be the fed's fault? don't recessions happen every so often? >> yep, but you need to have a story, and the president i think wants a story, and he wants to tell his base that -- and they don't like rising interest rates. it hurts car sales, it hurts mortgages, it raises a lot of rates, a lot of mortgages are floating rate, so he's saying i'm on your side, i don't want rates to go up. liz: what do you think about that? do you roll your eyes and say really, you know, or do you say well, he's right, the fed
shouldn't raise? >> i think the fed should raise rates. i said that in the "wall street journal" on tuesday. i think that that's what the fed ought to be doing because i think when the economy turns down as it will, we need to be able to have a reduction in interest rates and only the fed can do it if they have a high enough rate. liz: marty, we have a trade war right now with china. we see a goods deficit with china widening, not shrinking as the president would have wanted. we have brexit and that big question. we've got the g20 coming up, all kinds of issues. which one of those, do me a favor, try and pick one, has the strongest potential to trigger a recession? >> rising long-term interest rates causing the stock market to turn down. liz: you just said the fed needs to raise rates. >> long-term rates, i said. long-term rates. so long rates are going to go up because we are seeing a little bit of increasing inflation
because we're seeing a massive fiscal deficit, and the fed is going to move up gradually at the short end. but i think right now, the ten-year treasury's a little over 3%. in real terms, that means it's about 1%. to normalize means it's got to get up to about 5%. so i think when that happens, i think the stock market's going to be unhappy. liz: okay. we have to run, marty. thank you very much. it's such a busy day. we appreciate you coming straight from the luncheon here. overall, good speech, grade it. >> oh, it was a good speech. he was very careful not to rock the boat, not to criticize the past, not to say the markets were overpriced. but i think they are overpriced. liz: a-ha! he saves the headline until the last second. martin, thank you very much. >> good being with you. liz: i've got my tickets in hand and i'm heading straight to the airport, off to argentina after
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liz: okay. we now have the breaking news. house minority leader nancy pelosi has overwhelmingly won the democratic nomination to be speaker of the house. the vote, 203-32. now, the full house will vote on the speaker of the house position in january. the news probably reverberating through the halls of the l.a. auto show louder than a maserati revving up. what news? president trump saying he's studying new auto tariffs after general motors announced layoffs and a plant closure, multiple plant closures, this week. the president has expressed fury and sources telling fox business he's ready to slap tariffs on all cars made in other countries. his logic? make foreign cars way more
expensive and that in turn will boost u.s. vehicle production and sales. that probably has foreign automakers really anxious. jeff flock is at the l.a. auto show with the sticker shocking news. jeff? reporter: in some ways, everybody hates it but nobody hates it worse than the germans. we are at bmw where they just unveiled the new bmw 8 series convertible. that's the coupe version alongside of it. you get some sense of what the tariffs would be if he really went through with this. a 25% tariff and it's now 2.5%, this car, msrp $121,000. if the tariff were to go through it would go up by $30,000. talk about sticker shock. incredible. the germans hit hardest. we talked to our old friend scott this morning about this, who used to run audi and now
runs vw. he says the secret is to make cars, they do make cars, vw does, in the u.s. he says if you do that, then maybe you have a chance at managing this. listen to how he put it. >> do i worry about tariffs? sure, i do. but i think we're well positioned to mitigate and manage what happens there. reporter: appropriate lastly for the president to be publicly jawboning an auto industry exec to not close a plant? >> look, i will not get in between trump and his tweets. that's one thing i will not do. reporter: as you can perhaps guess, nobody wants to really tick off the president. i'll tell you, volvo is willing to tick off the president. they say tafriffs are a bad ide. i talked to people at lincoln
who say tariffs aren't good for anybody, it just raises the price of cars and we will sell fewer cars. that's not good. liz: i just asked martin feldstein who was at jerome powell's luncheon what about tariffs, is that a tax on americans, is it going to derail the economy. he said liz, as it pertains to china, it's just 25%, depending on, some it's 10%, on $500 billion in imports. it's not that much. he doesn't see it as being a major issue although i don't -- i mean, i don't know what, you know, i didn't bring up bmws but a $30,000 added price tag, i would say you are going to see fewer bmw sales. reporter: well, no question. you know, to somebody who has a buyer in the house or if it's somebody down the house, they have a fire in the house. if it's your house, it's a
conflagration. liz: they may be manufactured in the u.s. bmw has plants that employ u.s. workers. thank you very much, jeff flock. more signs of a shaky foundation, with the closing bell ringing in 28 minutes. new home sales looking more like a tear-down than fixer-upper as it falls to a new near three-year low in the latest reading. coming up in a fox business exclusive, the first home builder to go public after the financial crisis and the subprime debacle is with us. tripoint group's ceo doug bower on how they not only survived that downturn but how he plans to survive this rough patch. why home should be where your financial heart is. (roger) being a good father
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liz: oh, look at bitcoin. is it here to stay? according to one of the most well-respected voices in economics, the answer to that question is yes. the allianz adviser says that crypto currencies will continue to exist and become more widespread but not necessarily more dominant due to their unpredictability. he went on to say basic mistrust of the economy that started during the financial crisis will continue to be the fuel that fires up digital currency investment. bitcoin is on track actually for the best day in four months. look at futures right now jumping 16% or $605, pushing it back up above $4,000. we are looking at $4,325 for bitcoin. all right, so what else has affected, which other assets have been affected by the financial crisis? if you're thinking of buying a
new home with a nice chimney for santa to come down this holiday season, take a look at this. sales of new homes tumbling 8.9% in the month of october, dropping to a near three-year low. but while home values might be rising, according to the september s&p shiler index, the gains have shrunk to the lowest level since january 2017 as rising mortgage rates cut into affordability. are there any bright spots in real estate and how are these companies surviving what appears to be a higher moving mortgage rate? our next guest company is a family of regional home builders and was founded -- not founded, but went public, went public well into the recession. it was also the first housing company to do so during the financial crisis. we welcome ceo of tripoint group, doug bower, in a fox business exclusive. yeah, you used to be a division of weirhauser, right?
>> we bought the division from them and it really put us on the map. liz: it let you get big enough to go public. you went public and came directly on this show and we thought that's a gutsy move. compare what was happening then to what's happening now. we just saw new home sales, they look three years ugly, right, then we also have rising mortgage rates at least for the moment. how do the two compare? >> yeah, i mean, the report today is consistent with what we reported in our last quarter. the consumer is definitely taking a pause due to higher interest rates and home prices have increased over the last four or five years since we went public, so it's a natural and very healthy phenomenon to be going on in the housing industry. liz: we have a phenomenon right now. the market is up 550 points for the dow jones industrials. we are very close to session highs. i just want to let our viewers know, earlier the dow had been up 560. we are 10, 12 points away. doug, much of that had to do with what happened just around the corner from us here at fox
business at the economic club of new york where jerome powell, the fed chair, said you know what, we're actually just below neutral rates, which indicated to the markets he'll soon be done hiking rates. you must love that. how did you respond to what jerome powell said? >> no, that's excellent news because the consumer just wants some clarity on where interest rates are. the real narrative on housing, i have gone through several cycles over 30 years, and i will be honest, i have never seen our industry, our company, our peers, and the way tripoint is positioned, to meet that unmet demand of the millenials and aging baby boomers. having that clarity around interest rates is definitely going to help the consumer make that buying decision, sort of get off the fence. that is welcome news, as we look forward to the future. but the bottom line, home builders really haven't met the housing needs since the great
recession. it's due to a lot of supply constraints, and actually, as i look out long-term for our company, i can't see -- i see a very bright future and a very clear picture of the demand picture, both in the millenials and baby boomers going forward. liz: why has the stock struggled so much every single year even though we have been in a ten-year expansion, if not ten years, you know, down 32% since you went public, and again, we're looking at not enough inventory, people are scrambling to buy these houses, and the 30-year fixed, while the last i saw was 4.94% for a mortgage, is still historically, unbelievably low. >> i think the death of the home builder by the investment community is, you know, very much overblown and as i mentioned earlier, as you look at the long-term narrative for housing, the picture's very clear. there's a ton of demand and
having more clarity on interest rates and where they stand going into 2019 and beyond will only clear that picture out further for tripointe and many of our peers in the industry. liz: all right. well, let's talk about your best sellers. what are people demanding? what are they dying for that you're giving them at the moment? >> well, tripointe group is made up of six home building brands. we build about 30% entry level, 50% move-up, and the balance active adult and luxury. to be honest, just recently down in san diego, we opened up some new communities in what we call pacific highlands ranch, and had instant success of over 40 sales over a couple weekend period, and those homes are selling for well over $1 million. so the death of the move-up buyer is greatly overblown. there's value in well-located real estate and great locations. that's something that tripointe group really prides itself in,
being in well-located locations for the consumer to purchase a home. liz: well, you could send a big gift-wrapped thank you to jerome powell. earlier your stock was flat on the session, and now it's moving higher by 1%. we're watching it all. happy anniversary. five years for you guys at tripointe. thanks so much. we are at highs of the session right now, up 571. we'll be right back.
go lower! liz: you know, i mean, i know. i try. game on, although you can't see this one on tv. fox business has learned exclusively that bidding has now advanced to the second round for 21st century fox's 21 regional sports networks. charlie gasparino, we can't see it on tv but you will give us the scoop. >> little background on this. disney bought fox's entertainment assets. as part of that it got 22 -- 21 regional sports networks, plus a majority stake in yes. that's the yankees entertainment network. there's now an auction going on for 21 of those. put yes to the side. why is the auction going on? they have to sell because it's doj antitrust rules. disney already owns espn -- too much overlap. here's what's going on. what we have learned is this exclusively. second round of bidding has begun this week. we understand from people close to the deal that the second round could end by the end of the year, early next year.
the latest potential bidder has not put in a bid yet, this is fascinating, it's major league baseball. people inside major league baseball are telling fox business they are what's known as kicking the tires on a potential bid. why would they care about this? well, remember, major league baseball licenses out its broadcasts. liz: 600, we're up 600 points for the dow. >> digital rights, it basically sells, licenses out to various players. it would lose that money but it would be in the middle of this thing where it would get subscription fees and they are looking for ways to monetize what they own which is digital and broadcasting rights to their games and i think there's 21 teams featured in the fox regional sports networks. we should point out some things that are interesting about this deal. lot of people say it's a $20 billion deal, worth $20 billion. probably not going to go that high. why is that? a lot of bidders thought at first, in the first round, they were getting ownership, ownership of the digital rights. no, they were not. it's a very complex issue. there are licensing agreements
but they don't own them so that could depress the bidding somewhat. we should also point out that a lot of people reported, including cnbc, that amazon put in a first round bid for everything, all 21 plus the yes network. liz: did they? >> two sources with direct knowledge of the matter telling fox business network they are kicking the tires on 21, they only are now dealing with the new york yankees to buy a stake in yes. they will be part of a consortium to buy yes. would would they do that? eventually they would probably want to stream -- liz: wait. let me just be clear. major league baseball and amazon are both kicking the tires? >> on 21. liz: they are going to give it a flat tire. that's funny m. >> by the way, they may give -- i think major league baseball is -- i think that's an overshoot. i don't think they're going to do it. that sounds so crazy. liz: look at this. >> that's because of me.
let me finish what i'm saying. amazon i think is a better chance to buy them all but i'm telling you, why would they want to buy them all? the yankees are a national broadcast. they make money. a lot of these other ones don't make -- aren't, you know, throwing off a lot of cash. i'm just saying, i can only tell you what i know. the first round, they did not bid on all 21. that report was wrong. they looked at them. they did not bid on them. what they did bid on, what they are working, it's more than a bid. they are in active negotiation. i think jeff bezos is in the middle of this, the ceo of amazon, is with the yes, to buy a stake in the yes. but the other thing i will point out is that digital rights stuff, we will have a full story on this on foxbusiness.com. the digital rights stuff got pretty interesting because bidders complained that they thought they were getting it. major league baseball had to step in and correct the record. bob manford, ceo of major league baseball, actually got directly involved in this, where he basically said listen, just want to be clear, when you're
pitching, you are pitching this, we own the rights. liz: they own the rights. >> so that could change the bids, too. so that's exclusive. no one knows that. that's going to be my story on foxbusiness.com. liz: we are calling this the powell pop here. >> not me? liz: not the gasparino crunch here. we do have the dow up 607 points. seven minutes to go. i need you to watch how this one ends. this is your money and fox means business. your insurance rates skyrocket after a scratch so small you could fix it with a pen. how about using that pen to sign up for new insurance instead? for drivers with accident forgiveness, liberty mutual won't raise their rates because of their first accident. ♪ liberty. liberty. liberty. liberty. ♪ . . nah. not gonna happen.
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♪ liz: okay, four minutes to go before the closing bell. all major indices except the russell 2000 are now positive for the year. the dow up 613. s&p better by 60. nasdaq up 204. big move there for the nasdaq. russell still jumping up 2 1/2%. 36 points. we have breaking news on altria group and jewel.
you guys know jewel. that is the e-cigarette maker, very controversial company. according to the dow jones newswires it looks like jewel and altria may have a deal. it could be several weeks away. but that altria group will take minority stake maybe in the e-cigarette giant. let me get to gerri willis on the floor of the new york stock exchange. altria jumps 2% right now. >> wow, liz, what a turnaround in sentiment today. you went over major indexes all turning positive for the year. everything was interpreted negatively when i was here last week. not so today. in fact we're talk about a jay powell fan club down here. i got to tell you. a lot of people crediting the president who offered criticism of powell, did he pressure powell to make a big change in what he was saying? got it tell you we're expecting a bit after pop minutes into the close. we're getting it. the dow up 613 points as you can
see right here. the nasdaq having a great day up 200 points. tell you quickly before i go, housing a major turn around had been negative. not now. all of those stocks higher, higher, higher. liz, back to you. liz: tripoint ceo says it is excellent news here on fox business. jerome powell decided just below neutral on the rates. everything back positive for the year except the little guys, small and big caps, struggling to keep up with the big siblings. eric marshall. comanager. hodges small-cap fund. when does it come along along with the rest, russell was. russell was ahead of market. the sell-off last couple months, small caps taken it on the chin the worst. we think it is probably areas of the market that is the most
oversold. sentiment had been very, very negative. and we see really good up side in individual stocks within the small caps right now. liz: we can put up ones you look, eagle materials, cypress semiconductor. cinemark. these are well-established names. i like when you pick up the names, people can see. they have been around. they're considered small and mid-caps. why do you say they're recession-proof? >> they're not recession-proof but what i would say, is that, they have already priced in a recession. meaning that these stocks have seen a 20, 30% correction. liz: i see. >> as people are concerned about that. so whether or not we have a recession or not, i think a lot of things like homebuilders that you guys mentioned earlier, have already priced that in. that leaves us with a margin of safety. liz: eric marshall, hodges fun, thanks for joining us. we called it the powell pop.
i think gerri willis is correct on this. president trump verbally and very publicly shoving jerome powell, federal reserve chief for better or worse, made him get up there today, say we are pretty close to neutral on rates. [closing bell rings] maybe we'll see a slowdown on the path of rate hikes. that is it for "the claman countdown." i'm heading to argentina. see you friday. connell: a lot to talk about, stocks surging after the jerome powell speech. he suggests that the federal reserve could close the pace of interest rate hikes. the benchmark rate is below neutral. different than the position last month. president trump is watching all of this closely before the fed chief spoke, the commander-in-chief glassed him, revealing not even a little bit happy with his performance. we'll see if he changed his mind after powell's performance today. we'll talk about it