tv Countdown to the Closing Bell With Liz Claman FOX Business February 26, 2019 3:00pm-4:00pm EST
juggernaut until someone breaks them up. david, ron, thank you both very much. dow jones industrial average, we are up 40 points, high of the session. it's been a see-saw day. liz claman, we are trying to edge higher into your hour again. liz: i know. we are trying. charles, instead of buying earrings on etsy i should have bought shares of etsy on your recommendation. big move today. charles: thanks a lot. liz: good to see you. breaking news. we have a big day on capitol hill, getting even bigger as we speak. you are looking at a live picture of the house of representatives. considering the resolution to overturn president trump's national emergency declaration on the southern border wall. the vote on the final bill could come at any minute. senate leader mitch mcconnell just said he will allow the senate to vote on it as well. if it were to pass, the white house says the president will veto it. fed chair jerome powell spending his day on the hill deflecting questions from a senate committee on whether the president tried to interfere with powell's decisions on
interest rates, but it was his exchange with senator elizabeth warren of massachusetts that grabbed our attention. it involved two stock names. you need to hear it. we will play it for you and let you decide. big pharma execs get the once-over by the senate this afternoon. skyrocketing drug prices, the main topic. the ceos said they were committed to work to lower list prices of drugs but we have the ceo of biotechnology innovation organization that represents 1,000 biotech companies. it's a fox business exclusive. are we asking the fox how to fix the henhouse? maybe. but we've got to hear what he has to say about bringing drug prices down. tesla's elon musk not backing down in his latest twitter war with the securities and exchange commission. what he tweeted today and why the s.e.c. thinks he needs to be held in contempt.
this could affect tesla in a big way. on wall street, bulls and bears fairly even in this classic tug-of-war. consumer stocks and telecom lagging, but the dow, s&p and nasdaq are not. they are all up. plus, what do today's housing starts say about the economy? beating to profits and charlie breaks it on at & t's very big win. less than an hour to the closing bell. let's start the "countdown." liz: breaking news. we just got this. the united nations security council meeting at this hour to discuss the continued crisis in venezuela. this meeting is coming at the request of the united states, following vice president mike pence's visit to bogota, that of course in colombia, where he met with venezuelan opposition leaders. the u.s. is renewing its effort to get the u.n. council to call for free elections in venezuela. we will bring you any updates as
the meeting continues, but it is a massive face-off with maduro, the authoritarian leader of venezuela. big decisions need to be made at the united nations, but it seems investors are indecisive today, having trouble making decisions in this dramatic back and forth trading session. the dow now hitting session highs. dow is up 54. s&p better by five. the nasdaq up 11. will the markets pull it off to close higher for a third straight session? we will be watching it very closely throughout this next 57 minutes. but you've got to figure that putting a damper at least on the dow would be home improvement giant home depot. shares down about 1% after missing on fourth quarter earnings, but also missed on sales. according to the ceo, wet and unfavorable weather nationwide during the quarter had a significant impact on sales numbers because of course, can you really do the work if it's raining outside? you can do it on the inside. i don't know if that really
floats. but at the moment, we do have home depot down $1.84. the weather not raining on macy's parade. after reporting better than expected fourth quarter numbers, the retail giant laid out its restructuring plan, and they say that plan will help save $100 million per year. it plans to streamline senior management and double down on its most popular merchandise to help boost profits following a disappointing holiday sales era. shares up today, but down 18% year-to-date so this gain of 2.5% is not quite erasing that. macy's, by the way, not the only retailer seeing gains. we are getting that tide lifting more boats. both etsy and dillard's rallying on better than expected earnings and sales numbers. by the way, etsy is on track for its second consecutive record trading day. dillards skyrocketing, up 21%. we are looking at both brick and mortar and online retail looking very healthy.
we need more breaking news to get to. you are looking at this live picture of the house floor. the house now considering this resolution to upend president trump's border national emergency declaration to build the wall. we expect the house to hold a final vote in possibly this hour but team trump has already said it will veto that bill. president trump has already arrived in vietnam, hanoi, to be specific, and will start his day later tonight with meetings with the leaders of vietnam ahead of the big summit, and with north korea's kim jong-un. blake burman is live at the white house. we are watching this unfold as the market continues to hit its highs. reporter: the president overseas in vietnam right now but over here, back stateside, the focus very much so is on this resolution of disapproval of the president's national emergency declaration as it relates to the southern border. the process already under way up on capitol hill, though a final vote isn't expected until later this evening. there's two-fold really what democrats are trying to accomplish here, and this is expected to make its way, sail
through the democratic-controlled house. they want to make sure president trump can't move around money within the federal government and put that money toward building more border wall, but also, secondly, they want to send a message that the president simply can't go around congress as it relates to his desires with building the border wall. here was chuck schumer, the top democrat in the senate, just moments ago. >> we do not want a president, no american, to be able to just do things by decree and get around congress. in short, the president unfortunately is defacing the constitution for his own personal gain. reporter: so after this goes through the house, it will then head over to the senate. likely at some point with the vote in the upcoming weeks with mitch mcconnell saying the senate will indeed take this up. that is really where the numbers game comes into play. if democrats band together which they are expected, republicans cannot lose four members against this vote of disapproval. already today, though, two
republicans have come out against the president's national security declaration, that being tom tillis, republican from north carolina and lisa murkowski, the alaska senator. mitch mcconnell wouldn't say just a little while ago whether or not he feels the national emergency declaration is legal. he said there was a quote unquote, fulsome discussion among republicans inside a meeting up on the hill of senate republicans earlier today. the white house, though, is saying if this resolution of disapproval does go forward, if the republican house matches up with the democrat-controlled senate, then the president will veto it. >> the president made it very clear that he will defend his national emergency. you know, we're looking at the realities of a humanitarian and security crisis at the border. reporter: bottom line here, there's a few different ways this could go but if this goes the route of eventually making its way to the president's desk, he will veto it and then at that
point, it's likely that congress doesn't have enough votes to override that veto, but keep in mind with all of this, the lawsuits have already been filed. there are several of them. so it is likely that this will eventually get settled out by the courts, potentially all the way up to the supreme court. liz: all you have to do is look at wall stocks. we call these wall stocks because those would be the materials in there, to see there doesn't seem to be too much worry this would be overturned at the moment. u.s. concrete is up just under a percent but look at martin marietta, big materials companies might play into building a longer wall here. they are moving higher. as the house votes on president trump's border emergency, we need to talk about what appears to be a growing housing emergency. we've got new numbers today and just days ahead of the fourth quarter gdp number that's coming out, a report shows construction on new houses sank 11% in
december from the month prior. a more than two-year low. then in more squishy and bad news for the housing sector, home prices were only 4.2% higher in december compared to a year ago. that's the slowest rate in four years. this according to the k.schiller home price index. since the end of world war ii, the u.s. has had 11 recessions. all but two were preceded by a big decline in the housing market. what kind of signal is this latest round of poor data giving us, giving the markets, and the overall economy? our traders never have blinders on. you guys are watching this. phil, what do you think? is this worrisome when you see housing starts down 11%, as we are heading into the spring selling season? >> no, i really don't. because basically, that was another world back in december. if you remember where we were in december, we were worried about the fed raising interest rates to 5%, 6%, 7%, 8%, who knew
where it would stop. we saw the bad stock market, people were pulling back a little. there was a government shutdown. there was so much uncertainty. but if you look beyond december, what we are hearing from the home builders, there is actually more confidence in the home building market than we have seen in a long time. home builders are saying hey, we are ready to get to work. even though the starts were down, the permits were up and that really suggests the slowdown in december was short-lived. liz: yeah, that was not a typo. hovnanian is just 69 cents a share. that's been a company that hasn't been able to gain from the past couple years, where home prices did of course find their footing. timothy, looking at that plus the fact we actually got a really good consumer confidence number for the month of february that turned the markets around, they had been down, then this number comes out and things look better, how do you square what's happening in the housing market? >> well, i agree with phil. i think we will look back at this period and keep in mind, these are december numbers.
we are almost into march. so we are going to look back at those numbers and think that that was probably the bottom in the housing market, and there is actually a very short supply of active houses on the market. really only about six months' worth. that doesn't mean -- that shows that there's not a big buildup of houses that are going unsold. that number would be much more than a year's worth. liz: yeah, i'm thinking that -- >> housing stocks report this week, it will be very interesting to see what kind of guidance we get from those ceos. most ceos in that industry are very hands-on and they really get what's going on right at the point of sale. liz: i don't want to hit this housing market situation too hard, but when rates are hitting one-year lows, everybody was so worried, what's the 30-year fixed going to be, it's going to
climb, it's going to climb. now that the fed has backed off for now and by the way, yes, we will talk a lot about what jay powell said about interest rates coming up, scott, you have to tell me, when you look at the 30-year fixed average, i think last week it was 4.35%. that is so low, why aren't we seeing a flurry of activity on mortgage origination? >> i think there is still just a level of uncertainty on the macro level of what's going to happen with china, what's going to happen with oil prices, what is happening quite frankly coming out of washington. but that gets offset by the fact that we saw those enormous consumer confidence numbers today. so i do not think what we are seeing in the housing market, just like the other two fellows just said, i do not think this is leading to a recession. because of the government shutdown, we haven't gotten these numbers for awhile. the world, the economy, the united states was in a different place three months ago than it is right now. so even though housing numbers are a forward-looking, leading indicator, i think everything else is pretty solid footing here. i'm not ready to call a bottom
in the housing market yet because i would have been wrong probably over the last 12 to 18 months already. that being said, i think we're all right moving forward. liz: we will leave the calling of the bottom to tim. i will say that that consumer confidence number for february did blow it out after four consecutive months of dropping. it finally reversed and moved higher and it was a good jump there. good to see all of you guys. thank you so much. caterpillar in a hole at the moment. closing bell 47 minutes away. the heavy equipment maker, the biggest laggard on the dow, down $2.67. here's what happened. ubs cut its rating to a sell, sell caterpillar, and slashed the price target from $154 to $125, citing macro economic pressures and an expected earnings decline. right now, we are at $138.73. you got a while to go before you hit that one. up next, president trump says pharma ceos get away with
murder. today, the senate got a crack at some of these guys in a drug price showdown on capitol hill. but can government, should government really tell big businesses how to price their products? we bring in former congressman jim greenwood, now the ceo of biotechnology innovation organization. how he says we can innovate a less expensive pricing system. it's a fox business exclusive. don't go away. now i'm thinking...i'd like to retire early. let's talk about this when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours. this is the all-new it's beautiful.. beefy and mean looking. it's the strongest, most advanced silverado ever.
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expensive alternative? they can't. because abdi protects the exclusiveity of humera like gollum with his ring. thick cobwebs of patents and legal tricks and shadowy deals with other drug makers. liz: democratic senator ron wyden blasting pharma execs, comparing them to that gollum character from "lord of the rings" for protecting patents on prescription drugs, hence there isn't enough competition to bring the price down. this afternoon, the senate finance committee continued part two of its hearing showdown against pharma ceos testifying over skyrocketing prescription drug prices. what are we talking about? well, ron wyden gave one example but take a look at this one. a drug sold by publicly traded malancrop, used to treat a potentially fatal condition. it used to cost $40.
today, it now costs more than $40,000 a vial. we know it costs a fortune to develop life-saving drugs. pharmaceutical companies and biotechs put out a lot of money just to develop them. but a 10,000% increase over a decade? our next guest crafted legislation to reform the painfully slow fda which today has markedly sped up the drug approval process. let's bring in biotechnology innovation organization ceo and former pennsylvania congressman jim greenwood who represents 1,000 biotech drug developers. he's here in a fox business exclusive. jim, you have a record of success in fixing ugly situations. i realize i might be asking a fox to fix the henhouse but what do we need to do to stop the price spikes? >> let's talk about the term skyrocketing drug prices. it's a misnomer. there are some outliers. there are some expensive drugs, no question about that. but last year, the increase in the prices of brand drugs was on average about .4%.
so that's not the problem. the problem is insurance companies and the federal medicare program are requiring patients to pay out of their pocket more than they can afford. i think that's immoral and that out to be fixed. liz: okay. bring in the insurance companies on this. when you talk about deductibles, don't we need to talk about insurance companies. >> we do. we need to talk about insurance companies. what really is skyrocketing is the number of americans who have high deductible plans now. about half of us do. if you have a $3,000 deductible, you are going to pay that at the drug counter, right? most of us don't have surgery so people are seeing that, they go to the drug counter, they see the deductible, they have to pull out of their wallet $800, they sometimes leave the drug on the counter. that needs to be fixed. but what congress should do, the members of congress who are interrogating the ceos should do, is fix the medicare program. the medicare program has 42 million people in it and about a million of them are paying upwards of $2,000 a year out of
pocket. some of them are paying 5,000, 10,000, 15,000. that could be fixed with a quick bill the congress could pass, cap the out of pocket expenses for seniors who are on fixed incomes and that would solve a huge part of the problem. liz: okay. you talked about insurance companies. you talked about the government and medicare. are you giving big pharma a pass in their role in all of this? because i have to tell you, we understand the free market. we are not on this show certainly, on "countdown," for the government telling any company how to price their products. however, when it's a life and death situation and you see the prices at least, no matter who is at fault here, the prices jumping well beyond the rate of inflation, don't try and tell my audience here that it's not the fact that the drug prices are moving higher. >> the rate of increase is going down. i will tell you that. and there are outliers. there's no question about that.
but if you want to solve the problem, and i'm not giving the drug companies a pass. by the way, we pay between medicaid rebates for the poor, medicare 70% deductions on the price that we give in the medicare part d program, $90 billion to low income people in hospitals and rural areas and so forth, about $90 billion a year, we give the federal government extracts from us already. we could do more and we will do more, and we are willing to contribute more to solve the problem. but it's not as easy as saying just get your prices down. that's not going to work. liz: we did have one of the pharma executives say the rebate issue is a big problem. now, why can't the pharma industry break itself of the rebate addiction like the auto industry broke itself of the incentives issue? because that was sort of a fake pricing model for a lot of people. now, who is to blame for that? is it the pharmacy benefit
managers or the actual pharma company? >> i think it's the pbms. the pharma companies don't have a choice. you would think that a pbm, if there were three drug makers making roughly the same drug, that they would say you each give me a bid and whoever is the lowest price, that's what i'm going to pass on to say the 50 million lives i've got covered behind me. that's not what they do. they say which one of you will give me the highest rebate and if you have to jack your price up so you can give me a rebate which i put in to my pocket as a pbm, i will buy your medicine and the patient is paying for that. it's a terrible system. the administration just ended that in the medicare program. we applaud that. as the secretary suggested, it's time for congress to apply that rule to the commercial industry as well. liz: jim greenwood, thank you so much. we don't want people breaking their pills in half to extend them because they can't afford them. we appreciate it. when we come back, much more ahead. we have the dow up 40 points. don't go away. a visual snapshot of your investments.
liz: we are just getting this breaking news. facebook cfo david wenner has just announced the social media site will introduce a clear history tool this year, meaning you can wipe away your history. he says that will affect the ability to do ad targeting. ceo mark zuckerberg suggested this clear history tool almost a year ago at its f-8 conference. right now the stock is up about a third of a percent to $165.16 but perhaps it addresses the big criticism that facebook has all your pictures from going all the way back and who knows what else. now there will be a clear history tool. then we are just getting this on ebay. dow jones news wire reporting that ebay is expected to launch a full strategic review as part of its settlement with activist investor fund elliott management. ebay is expected to give elliott board seats in the settlement and that of course could open
the door to what elliott was, you know, sort of agitating for and that was sell off stub hub, break itself up, cut costs, do all kinds of things, but the activist fund had taken a 4% stake or about $1.4 billion back in january, and they were complaining there were slowing sales. look at the price of the stock, $37.22. elliott has claimed they can get that price up to $55 a share if ebay were to follow their recommendations. right now the stock is down a quarter of a percent. a federal judge putting elon musk on the clock. the tesla ceo ordered to explain to the court by march 11th why he should not be held in contempt for what the securities and exchange commission says were violations of their prior deal. the always vocal musk firing off the stark criticism of the s.e.c. earlier this morning. of course, he did it in a tweet. exactly, this has now happened several times. something is broken with s.e.c.
oversight. well, this in response to a tweet that the s.e.c. are the ones moving the markets, not musk. this latest blow stemming from, what else, a pair of tweets that musk had sent out last week claiming that production for his cars would hit 500,000. well, that triggered a major blip on the s.e.c.'s radar which said, deirdre, are you not supposed to tweet without management's approval. tell us now what happens. >> that is right. the s.e.c. probably for all intents and purposes just wants to slap elon musk on the wrist because it's honestly rare for the s.e.c. to bring contempt proceedings against a corporate executive more than on average. that kind of behavior is reserved for somebody who is an illegal operator of an enterprise such as a ponzi scheme. let's face it, elon musk has aggravated the agency. judge andrew napolitano gave us his take earlier. >> the guy is a genius but he is out of control when it comes to
communicating. so if this were not the type of communication that could influence the market, the decisions of investors, the s.e.c. wouldn't have any jurisdiction over him. that's all they care about. is he uttering a material falsehood or something you would have to know if it's true or false to move the stock price. >> the story starts back in september. the s.e.c. sued elon musk alleging he made false and misleading statements about the possibility of taking the automaker private. that was in august. musk and the agency reached a settlement in september. he didn't deny or accept any of the allegations but did step down as tesla's board of directors for three years. he also paid a $20 million fine. that settlement required tesla to monitor elon musk's communications on all platforms but certainly including twitter. musk also caused a hubbub after that saying in a "60 minutes"
interview that he did not respect, quoting him, the s.e.c. last week, here are two tweets he tweeted out. this is what we are talking about about this vehicle production that viewers can see on the screen. tesla made zero cars in 2011 but will make around 500k in 2019. so he corrected it. you will see this in the second tweet. meant to say annualized production rate at the end of 2019 probably around 500k but deliveries still estimated to be around 400k. essentially, this is why the s.e.c. is asking a judge to hold musk in contempt of federal court. it's unlikely that he is going to be really hauled in. chances are he's probably jt going to have to pay another fine. as we know, communicating on twitter, social media, can be dangerous and in elon musk's case, costly. liz: forgot one word. probably. >> it's important. liz: not for sure. >> when you are the founder and leader of a company, it's important. liz: deirdre, thank you.
the stock of course has just turned positive by -- well, 12 pennies. 12 cents higher. but fed chair fireworks. did you see this? closing bell ringing in 26 minutes. when pointedly asked, federal reserve chairman jay powell refused to confirm or deny whether the white house has ever reached out to the fed to talk rate policy or pressure them on rate policy. the central bank's quarterback also taking a knee in front of the senate when asked about his predecessor but did you see massachusetts senator liz warren using powell's own words against him? >> if you say so. >> well, you said so. liz: come back. what that was about, and the two stocks that started it all. moving? that's harder now because of psoriatic arthritis.
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liz: federal reserve chair jay powell gingerly tip-toeing through the senate mine field this morning, managing to skirt nearly all the potential trip wires. powell assuring the senate banking committee that he will remain patient when it comes to raising interest rates and he wouldn't bite when asked whether the trump administration's trade policies are a positive or a negative on the economy, but did concede that the trade battles are not helping farm bankruptcies. however, when one senator used powell's own words as a weapon against him, it caused some fireworks. glenn hall watched it all and is here to help analyze what it means for stocks and the market. i guess you could say did pretty well overall. he really kept to his very careful script and said as far as the top interest point here, interest rates, he would remain patient. did you see any veering from that? >> not at all. he was totally on point, made
the comments that they are going to follow the data which is the code that the market is looking for, that they can remain patient and calm and there's no sign of a need for change right now. liz: there is a lot of talk about the two camps that the fed is splitting into, the mester camp who seems more hawkish. come on, if the economy isn't in a massive emergency and starts to strengthen even more, we should raise rates. then the john williams camp, who says of course, he's the san francisco fed, no, no, just keep waiting, keep waiting, stay calm, everybody. >> yeah, this is a complication, right, because there's the question about a lot of the inflation adjustments they are talking about making, whether they can allow the economy to run a little hot sometimes in anticipation and you know, as you are pointing out with the rate increases, they haven't gone as far as they thought they could by now. so they don't have as much dry powder so to speak for the next event that they might have to face. liz: that's a problem. >> it could be a problem. it's not a problem right now. because the way the chairman sees the economy, that inflation
is tame, he doesn't see any signs that that's going to change any time soon. even seeing some pressure external that could keep inflation under control. lot of signs point to that they have time to wait. liz: wayne gretzky always said you go to where the puck is going to be, not where it is right now. he's an expert at running the federal reserve. i get that. however, when liz warren, the massachusetts democratic senator, had her shot, she used it to talk about what is an upcoming suntrust/bb & t bank merger which would create a very large bank and she's been worried about too big to fail still existing. she had written him a letter and she had asked him for details on mergers, and here's where i want you guys to listen to this exchange and then i will get glenn to comment. >> earlier this month, two giant banks, suntrust and bb & t, announce thatted thd that they merge. how many mergers and acquisition applications for the banks had you received since 2006, do you
remember? >> no, i don't have the number. >> would 3,819 sound right? >> yes. >> good. okay. and do you remember how many of those 3,819 applications you denied? >> no, i don't. >> would zero sound right? >> if you say so. >> well, you said so. liz: she's quoting the letter that he had written to her in response to questions she had asked. what kind of blows did she land when it comes to what a lot of people are looking at right now, and that is big banks consistently getting a pass? >> yeah, a lot of times people kind of overlook the fed's regulatory authority over the banking industry, and she was making that point pretty loud and clear. obviously, she has remained concerned before and after the collapse of the banking industry during the 2007-2008 period, that the too big to fail is something that needs to be addressed. there's been a lot of people feeling like not enough was
done. she is certainly one of those. liz: now, janet yellen, the former federal reserve chair, took a swipe when asked about president trump's knowledge of what the fed does and how it does it, and he was asked about that today. let's listen to what yellen said. then we will talk about jay powell. >> do you think the president has a grasp of macro economic policy? >> no. i do not. >> tell me more. >> well, i get that he would even be able to say that the fed's goals are maximum employment and price stability, which is the goals that congress have assigned to the fed. liz: when asked about that, jay powell said no comment. >> absolutely. yeah, that was one of the many moments during the congressional testimony where he definitely avoided getting into the political side of his role, and didn't want to touch those things and stayed clear. liz: but it is important to note that as jay powell tries to do
his job, he was asked is the president interfering because we had the president tweet and say come on, fed, back off, and he would not confirm or deny. does that worry you? >> i think again, he's just trying not to comment at all because anything he says could be misinterpreted or could stoke even further kind of questions. so i think he was trying to dodge the bullet. liz: can you give him a grade today? >> i think he said what the market wanted to hear. liz: we'll see about tomorrow, because he does it all again tomorrow. >> that's right. liz: we will be watching it. thank you. great to see you, glenn. glenn hall, dow jones news wire. breaking news. the house is now officially debating the resolution to overturn the national emergency declaration by the president to build the border wall. we are watching this very closely. we will let you know what happens. and right now, the dow has lost nearly all of its gains. we are up 13 points. we are coming right back. want more from your entertainment experience?
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here's what we hear from inside the justice department. the spokesman for the justice department had no comment on this. my sources are telling me that they are bracing for an imminent ruling so this thing is coming down, you know, soon, days. they're prepared for a number of outcomes but i think based on what some of the appellate judges said during the last hearing, which seemed to me they were favoring at & t's position that this is not a monopoly, justice department is preparing for a loss. liz: my money is on at & t and time warner. i think the merger will go through. we already had one judge who is highly respected say not a problem, it's a horizontal situation, not a vertical. therefore, it should be fine. at & t does something different than what time warner does. >> yeah. liz: who are those two people who were right? >> they're very good-looking. very smart. liz: charlie and i, charlie and me, charlie and me -- charlie
and i? >> objective case. liz: that's right. i was talking five days ago. at & t, being on the precipice -- >> you went to berkeley. i went to pace. liz: yeah. but you know. >> um-hum. liz: they are both public. >> yeah, right. liz: doj, antitrust battle, at & t wins. >> they win. what our sources are saying inside the trump administration, it is highly unlikely they are going to appeal this to the supreme court. that doesn't mean donald trump doesn't wake up and say cnn, i'm appealing it to the supreme court. liz: wait. can he? >> yes, they can. they can. they can appeal this to the supreme court. we are hearing unlikely. we are getting this from our sources inside the justice department. by the way, the actual decision is made by the solicitor general's office. the white house has no comment on this right now. but we hear it's unlikely, particularly on this ruling. this was like a shutout, right? you know, the best chance they
had was with the appellate division, to get this merger broken up, because there are more democrats in the appellate division, you got some obama and clinton appointees who are more consumer-friendly and may be much more interested in the government's thesis here that this combining of at & t with its massive distribution, time warner with all its content, creates a situation where you could have a monopoly and essentially force rival distributors to pay up for your content, putting at & t in the driver's seat and creating an anticompetitive situation. that was the whole case. that's what they relitigated in appeal. they lost. so i guess the real question is, if they don't appeal this, and we are hearing unlikely. can never say never. you know, this is the trump administration. it is the trump administration. the one question is, does this change the way doj antitrust approaches media mergers. are they going to be less -- are they going to back off, they are
very strong consumer -- listen, you would think these are very conservative guys that let the free market reign. they have been very consumerist, you know. elizabeth warren agreed with them on this case. so i hear it's not. i hear there is still going to be -- for example, the t-mobile/sprint merger still going to get the proctology exam that they promised. i think comcast is still under the microscope of the trump administration. if they do anything anticompetitive going forward with their merger with nbcu, again, it's the same sort of thing as at & t/time warner. i think time warner and at & t will be scrutinized going forward. they're not going to change but they did lose on this thing and i don't think they are going to -- from what i understand, it's highly unlikely they will appeal. liz: anybody who thought that the government would rubber stamp mergers under this administration has been -- >> i think it's the media stuff. listen, say what you want about it. the head of the antitrust,
listen, he's showed -- i read his court papers. they make sense when you combine vertical and horizontal, how you can have a monopolistic situation. but it's always going to be held over them that they are doing this because trump hates nbcu, trump hates cnn, which is owned by time warner. they are never going to get that because donald is so nuts on twitter with this stuff. liz: charlie, see you next time. charlie gasparino. dow and s&p and nasdaq have just turned negative. we will blame charlie gasparino. we'll be right back. it's screening technology that helps you find a stock based on what's trending or an investing goal. it's real-time insights and information, in your own customized view of the market. it's smarter trading technology, for smarter trading decisions. and it's only from fidelity. open an account with no minimums today.
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liz: the dow had been down 125. yeah, we're now down 11, but, barely anything. don't freak out. closing bell, we're three minutes away. you are never done learning in life. you heard that before, right? today's "countdown" closer has a very specific type of stock. he is advising his clients to learn about and then invest in. joining us eric kuby, chief investment officer of north star investment management. eric, teach our viewers about something you say should be in people's portfolios. asset-rich, low beta stocks. describe what they are. >> sure, i mean, a lot of companies today don't have a lot of assets. so we go back to tangible book like the old benjamin graham, intelligent investor theory, look at companies trading at
reasonable multiples of value. that would be asset rich part. the low beta is correlation to the s&p 500. and if you believe like we do that we're about to hit a period where could you have renewed volatility, to have stocks to have stocks move less volatilely would be better in that time frame. liz: what do you see on the horizon that tell you get into names like escalade, speedway motorsports and douglas dynamic? >> you had three one-way market in a row. you had a market ran up all the way through september, based on strong corporate earnings. a market came down hard over concerns about the china and the fed. you had a rally when those concerns went out of the way. you ran out of steam. what is next, let's look forward to corporate earnings again. corporate earnings in the first quarter i think will be down which will create a difficult backdrop for the market.
to collect dividend on low volatility stocks would be a great strategy now. liz: i want to hear about the speedway stock, why you say it makes it asset rich. what makes it asset rich? >> eight auto racing facilities around the country which cost about a billion 8 to construct. they have been deappreciated a little bit. book value a little lower, this is trading still at 75% of book value. very handsome dividend yield of almost 4% but again, you know, the actual physical properties of those facilities seat 100,000 people per facility. those are significant stadiums with very significant asset. liz: eric, thanks for teaching us about asset rich, low beta, low volatility stocks. i like our viewers to understand the terminology. we do not assume anything about our very smart viewers.
thank you, eric kuby. this roller coaster of a session is ends in a nail-biter. okay? [closing bell rings] major averages fallen negative in the final hour of trade. the dow down 34. that will do it for "the claman countdown." don't move. it is "after the bell." connell: down day on wall street. so much news outside of markets today but we'll close up with the dow at the beginning of the day, then it was up, down, right now settle ising by 34 points lower. snaps a two-day winning streak. up and down, into positive territory. down two on s&p. five on nasdaq. i'm with you, i'm connell mcshane. melissa: i'm melissa francis this is "after the bell." more on big market movers. here is what is new at this hour. ♪ melissa: touching down in