tv Making Money With Charles Payne FOX Business March 7, 2019 2:00pm-3:00pm EST
again four to 5:00 eastern time. that is it for "coast to coast". in for neil. i will be here tomorrow to plan your day tomorrow. but now over to charles payne. charles: people change the calendar? connell: something to do between 12 and 2:00. >> they're calling family and friends. see, connell. i'm chairs payne. this is "making money." despite major reversal of monetary policy to prop up europe's economy. the bounce faded quickly. yes, recent market weakness continues to grow. meanwhile the debate over whether central bank money print something helping or hurting economies. that also continues to grow. we have more in a moment. more fallout from amazon's big announcement on our hour yesterday. it is shutting down all of the popup shops. they cite ad variety of reasons i tell you a big one, uncle sam.
"medicare for all" becoming a defining issue for 2020, not just democrats and republicans don't really have a health care message of their own. will simply saying democrats are wrong be enough. >> will strong burt in main street wages continue? we'll have the big jobs announcement tomorrow. all that and more on "making money." ♪ . charles: futures were lower this morning right before the start of trading. right before start of trading mario draghi head of ecb had a big change of heart. they announced new plans to spark europe's economy. that news sparked a reversal. like every rally this week, every rally attempt this week, it was short-lived. banks love money printing but economists think this has gone too far reviving a old age
chicken and egg debate. banks say weak economies need stimulus. experts saying the stimulus is making the economies weak. who is right? michael block, keith fitz-gerald, chief strategist for money map press, and jack ablin with us, cofounder and cio of crescent wealth advisors. jack, you've seen the central banks play out many number of years and the debate continues to brew. ecb, bank of japan, united states committed to accommodation forever where are we? is this ever going to truly help? >> it's a case of be careful what you wish for. the central banks collectively bottom together and kept interest rates artificially low in response to the financial crisis. they got what they wanted, a build-up in debt. now we have so much korb debt outstanding, a lot of is floating rate. what they have find now they are boxed in a corner.
we got a taste of that last quarter when they tried to raise rates and the market reacted pretty violently against it. so seems like they have gotten themselves in a box. they really can't raise rates without harming the economy to the downside. charles: michael, you manage money accordingly. to jack's point they're now admitting, i don't know that they did this as much, they're pretty candid how important the stock market is, the fed policy decisions. before it was dual mandate, had nothing to do with markets. >> you're preaching the to the choir. i've been talking about for many years the fed is market dependent. at very least, market activity pushes data. we saw that in december. we're seeing it right now. markets go down, it will push already weakening data lower. we're seeing effects of that. this is q1 gdp. this is half a percent. is head paying on hold going to help that. probably not?
where is loan demand? where is higher wages. phillips curve doesn't work. i don't care how many wonky economists or fed says, it will not to higher until increase in productivity. it is not happening. we're not getting fiscal policy all monetary policy does is keep things afloat. we saw with the december lows. now what, where is the real growth coming from? charles: bernanke fed, to a degree also janet yellen fed used to complain though that fiscal policy under the obama administration was not in lockstep with the monetary policy s higher rates, higher taxes was doing the exact opposite what they were trying to achieve the virtuous cycle. now you have a president who is cutting taxes and cutting regulations you're saying even those don't dovetail? >> regulation is helping but those tax cuts, when the tax cuts were made in 2017, charles, i've been on the network elsewhere how is this going to drive growth? everyone who support the president, supports party it will be trickle down, mike.
sure what happened? stock buybacks, malinvestment. i have not seen any trickle down. charles: 2.9, possibly 3% last year you don't attribute to the tax cuts? >> it help as bit. not enough. not helping now. runs out efficacy is gone and it is shot. charles: keith get back to the issue of central banks, paul volcker, ronald reagan. connell: they made tough decisions of the economy suffered for a moment. it was adjustment. people paid higher interest rates and made the adjustment and we had years of bountiful gdp growth. i'm not sure anyone can do that. i'm not sure any president can do that. certainly not this one against this media. i'm not sure any central bank has the wherewithal to make tough decisions that give near term pain for long-term gains? >> you know you're absolutely spot on. by very different anything success include failure.
history is littered with failed financial institutions. the fact they don't have guts make tough call means years of pain. central are way out of control on this issue. they are playing with flawed models that don't fit the economy we live in. you need to get all the zombie companies out of the existence so the economy will move on. it will stink, it will be tough, it will be hard. no politician wants to face that. charles: michael, we've got in the united states fed chair williams was asked about negative rates yesterday. he said we use every tool we have to get back on track. they are studying negative rates. we've hit that wall maybe, that terminal velocity, no matter how much more they go and are accommodative, will it help the economy, putting market aside for the moment, can it help the economy way they are going now or at this point there is no additional impact? >> welcome to japan, charles. negative rates done wonders stimulating that economy, haven't they?
it's a joke. it is a farce. unfortunately there needs to be a bit of heavier hand we need to reward companies for doing things that inspire real growth. look, easier said than done. the other half is fiscal party. i blame both parties here. charles: right. >> we're in situation where the parties need to work together. we need infrastructure stimulus and things that are going to increase productivity. we're not seeing that now. both parties, whatever you feel about the issue are fighting about a wall. charles: >> jack, final minute, your thoughts on this? >> i think fed created a environment of their moan making. you know, i do tend to agree with michael to some degree but i think the point is, that whole notion of trying to restock, have that dry prouder to address the next downturn, they just don't have the wherewithal to be able to do that right now. charles: although they did some magical thing with the tool box before. they invented a whole lot of perhaps. i'm sure with creative folks if they have to they can create
more. we have to leave it there. thank you all very, very much. go to president trump at the white house. >> thank you very much. it's a great honor to have the prime minister of the czech republic, and prime minister always been a safe country. strong military, strong people. we have a very good relationship with the czech republic in the united states. we do a lot of trade and lot just about everything you can imagine i want to say mr. prime minister, a great mon -- honor to have you. please. >> mr. president, mrs. trump, thank you very much. for your warm welcome to the white house. it is a great pleasure for me and my wife to be here.
our countries have been allied since the united states helped establish our czech republic 100 years ago. it is very symbolic day, today, mr. president. today is the birthday of our first president. and he, by the way was happily married to an american. >> ah. >> we are allies to nato. we commemorate our joining 20 years ago. we will, we will, celebrate next week on the 12th of march. and our soldiers are fighting alongside the u.s. soldiers against the international terrorists. >> that's right. >> czech republic is great country. small country and very beautiful and -- in the world. this year we celebrate 30 years since the revolution when when
the czech people finally gained their freedom. so the czech people are created, who are great people as you said in brussels. >> yes. that's true. >> with unlimited potential and our bilateral business relations are growing. >> right. >> our investors are investing in the u.s. and already created thousands of jobs. mr. president, i watch your 2019 state of the union address and i perfectly understand your plan how to make america great again. i have a similar plan to make the czech republic great again. so i look forward for a discussion about international trade and -- cyberattacks and immigration and of course the international terrorism. so thank you again for receiving
us here. >> thank you very much. it is really an honor and it is a great country and it is a very creative country. we're working on cyber and many other things together and they're working very well. i just want to thank you both for being with us. on behalf of the first lady, and you did a great job this morning. i understand the state department, melania was very well-received this morning by a lot of people. so thank you very much. thank you, everybody. thank you very much. >> thank you, press. [shouting questions] >> thank you all very much. [people shouting] >> thank you. thanks, guys, let's go.
thanks, guys. keep going. >> time to go. >> let's go. charles: there you have it, president trump and prime minister of the czech republic. prime minister of the czech republic we're longstanding allies, we're fighting terrorism together. touting our bilateral business relationships. although you could not make it out president trump saying he was disappointed with north korea. we've got breaking news for you now. american airlines announcing just moments ago it grounded 14, 737-800 aircrafts. problems with over head bins found in two of the planes. the company says it is working with their vendor and the faa to immediately address the issue and the issue has not jeopardized the safety of flights. how amazon boxed itself in by embracing $15 an hour minimum wage. the stock is hammered. now their employees are getting
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i decided to make shirts for the walk with custom ink. the shirts were so easy to design on the site. the custom ink team was super helpful and they just came out perfect. seeing my family wearing my shirts was such an amazing reminder of all the love and support that everyone has for my dad. - [narrator] check out our huge selection of custom t-shirts and more, for teams, businesses, and every occasion. you'll even get free shipping. get started today at customink.com. charles: amazon was unstoppable force until it ran into $15 minimum wage. now it is shutting down 788 pop up stores in the whole foods markets. many are saying they make less money that minimum wage has been inches stupid the because their
hours are cut. still not anywhere near it was before. the changes in fortunes coinciding to the move to 15-dollar minimum wage. it is for 250,000 people have been really negative. we're talking negative ramifications hurting employees, businesses, investors alike. leads us to the question should government dictate how much companies pay their employees? joining us "wall street journal" editorial page writer, jillian melchior, and veronique de rugy. let me start with you. we had this discussion over and over again, nevertheless, bill out, stop bezos. there was a lot of pressure coming from the progressives. and jeff bezos essentially blinked but i think they're paying a serious penalty now, everyone. >> i think, i think you're right. so they could be very good reasons for which a company may want to decide to pay their employees more. you know, they are growing really fast, and they want to
retain better employees and want to be more competitive and, but the problem is, when it is pandering effectively, to the political class, it runs the risk of actually being inadequate for the business. now all of the at that times that you, like the closing of the stores, i mean, i don't know if it is exclusively due to the increase in the minimum wage but, one thing that we know for a fact is when there is increased mandate of the minimum wage mandated by the government, usually it can have really bad consequences for employment. not necessarily for the. not necessarily for employees to be employed in the future but current employees losing some hours as we've seen. it is not a surprise. charles: it has happened. i want to read a statement from the company. they say the claims whole foods markets are reducing hours as a result of increased wages are false. in fact on average our full-time
store team members work the same number of hours in january and february 2019 as they did during the same period last year. i will say though that according to this article some had to do with christmastime. some had to do with part-time employees, not full-time employees. we'll see if they further add to the statement to cover both christmas period and part-time workers. your thoughts? >> at least amazon doing it voluntarily. charles: i don't know that they are with the jeff bezos -- >> it was a defensive move it. was a defensive move. charles: right. >> but at least it is not government coercing. in a situations where you have government come in to say minimum wage, we see the same effect. it is unfortunate because it hits most mull veriable workers. seattle, when they raised wage to $13 an hour employees had hours cut earning $125 less.
charles: if our on the outside looking in, large corporation like amazon, they can't afford this? this is what the public is saying. this company may buy back a few billion dollars of their own stock, they can't afford this? this is another avenue people are looking at now. corporations to your point, maybe being defensive and reacting to that. >> labor costs are huge part of business costs. particularly in the restaurant business where it is really painful. another example i point to in washington, d.c., you saw guys in the back of the house getting cut when they raised minimum wage at restaurants. dishwashers. bottom line here anytime you mess with those margins and it is not market-based they will make tough decisions. it will be employees with criminal records, least education, least skills. charles: right. >> they are the ones that really get hammered. charles: we have to leave it there. but i will also point out in the third and fourth quarter, amazon's physical store sales were down. third quarter down 1 1/2%. fourth quarter down 3%.
yesterday's adp number saw small business, one to 19 employees lose workers due to part increased wages. some market driven. some government driven. you two are are the best. wish we ha more time. we'll talk real soon. chinese tech giant huawei is suing our government over a law limiting its u.s. business. so how should the trump administration respond? we are following the selloff in the market right now, starting to accelerate here. what's the goldilocks number for tomorrow? we got the jobs report. what is the number wall street is going to love? i will ask my market watchers. by the way i have a thought or two on that as well. we'll be right back. ♪ ar. it turns out, they want me to start next month. she can stay with you to finish her senior year.
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week, proposing that, free medical care for all american citizens paid for by the u.s. government. in this crowded field of social justice issues in the political arena health care may be the true economic issue to emerge for the democrats in the 2020 race for the white house. joining me now, "washington examiner"'s kelly jane torrence. kelly, what is the gop alternative to this? >> well that is a good question, charles and this is something they really need to start thinking about it. it kind of reminds me of the bit of debacle with the obamacare. republicans campaigned for eight years saying they would get rid of obamacare. in all that time they did not come together on a plan to really fix the problems in the health care system and offer a replacement. and that is one of the reasons we never saw the repeal of obamacare because the republicans didn't quite have their act together having something to replace it. of course the u.s. health care system is one of the best in the
world. i'm from canada originally. i can tell you from experience the american system is superior. there are no question there is some props but obamacare tried to deal with some of those. did a terrible job i think. but there are problems and republicans have to face the fact and get together to do something. we're hearing a lot of talk, as you know, about "medicare for all" from a lot of the 2020 democratic presidential contenders. charles: the reason for that it was the top ranking issue in the midterm elections. we both know you can be against something, it can resonate, carry you to victory, political victory at some point too, when you have a chance to be in charge, people are going to ask. i'm just kind of concerned it will not be you have to say "medicare for all" is outlandish, upset what is everyone like. in fact most people appreciate the doctor. most people appreciate the health care system the employers are provide providing for them. there are folks that need help
but not enough to disrupt the whole thing but at some point they have to come up with a plan. >> you're right, charles. it is amazing they didn't learn anything from the obamacare disaster amount lot of think tanks around washington here have come up with various ideas, various plans but no one in the republican party is really gotten people together to coalesce around any of the ideas. of course i think a lot of the best ideas involve giving people more choice. for example, getting rid of barriers that make it impossible for people to buy health care across state lines. charles: right. >> while you have democrats complaining, wanting to get rid of private insurance, of course, it is private health insurance that is paying for medicare and medicaid. doctors and hospitals actually take a loss on those. they're paid by the private patient. so the fact that democrats want to get rid of that, republicans should be getting, attacking them on that but showing hey, we can actually use the parts of the health care system that are working well and expand that and give people more choice, more
options. charles: no doubt about it and to me that is lowest hanging fruit of it all, a slam-dunk. kelly jane, thank you very much. >> thanks, charles. charles: democrats divided over a resolution to condemn anti-semitism as part of rebuke of congresswoman ilhan omar's tweets questioning allegiance of israel supporters in congress. a closed-door meeting on the resolution apparently turned contentious yesterday. but the house is said to be considering a vote on the resolution in about an hour. yesterday i had the opportune to ask is former democratic vice-presidential nominee joe lieberman what he thought about all this? >> first thing words matter and when people say words that are biased, bigoted and hurtful to another group of people, father group of americans they have to be condemned quickly or else it takes hold and that not only, not only thinking about anti-semitism, thinking about racism, any kind of bigotry
towards any religious group or any other group. charles: we'll bring you the very latest on the resolution as soon as it is announced. we're off the lows of session. the dow in the red for the fourth day in a row. money is to be made with stock picks. coming up, how new ceos could be the malt mat buy signal. -- ultimate buy signal. how new blood into well-known establishments are creating new opportunities for shareholders. we'll be right back.
slumping after the supermarket operator reported earnings fell short of forecasts. people are not happy with the guidance as well. shares of facebook falling as well as investors learn more about ceo mark zuckerberg to shift into encrypted conversations that facebook cannot even read. that is major bet for the social network plagued by privacy issues right now, issues that helped to sink the stock. but the companies have all had their issues over the years, right? now some of these companies that in the -- we'll go in depth why the broken names can bring you money. we'll review the jobs report and have some stock picks of the day. i want to focus on this tailspin. an exten shun of selling i've been sensing talking about almost every a block we have had since last week. even a friendly ecb couldn't stem the tide now. what i'm talking about the
snowball becoming a boulder? on that note market breadth continues to get uglier. the tech-heavy nasdaq yesterday saw more new lows than new highs for the first time since january 24th. still tough to put a number on the exact reason. some people are just saying this is due. we had an amazing start to the year. either way we know one thing, selling begets selling. so do we start to get worried now? here to discuss, kingsview asset management cio scott martin, third seven advisors managing director michael block with us as well. michael, let me start with you. you went to gold as a cautionary move. i'm not sure if you're still. there you've been cautious for a while. we had a huge runup. it is starting to stall. i haven't seen the market sideways since 2015. it is going straight up or straight down which is why we pay attention when it starts to drift. >> we're happy with the gold position, charles. we put that in towards november,
december, last year, you are pursuant to your point we started to see market psychology change which think is happening again now. having things like gold that don't act like stocks or act like bonds is helpful for the portfolio in times like this. you made a point, charles, feeling market out, how we had a great start to the year. looking at other indicators. looking how quickly yields started to fall in the face of data. look at soxx index which broke real hard, showing that turned over transports, my friends, turned over two weeks ago. that is portending in my mind a little more of a pull back. not something we saw in december but something on the order of five to 7%, especially if we get a weak jobs number tomorrow. charles: critical part of the dow theory transportation must play a crucial role in market going up. it is experiencing one of the worst declines in a long time. what are some of the things you're concerned about here? >> look i think a lot of things have rallied pretty quickly. scott talked about tech.
talk about the transports and talk about real estate is some times seen as bond proxy. that was up around 17% am some point year-to-date although starting to pull back a little bit but holding better than some sectors like the transports and homebuilders and tech. it is a bit of a bond proxy. we have to watch to see what happens. i think we may have got own over our skis here. we needed bounce from december. now data is not backing it up. ism manufacturing was disappointing. charles: ism non-manufacturing number was a strong number? >> that is very late cycle. there is a bit of a disconnect here in terms of what happens here. charles: getting over our skis though is not the same as saying hey, we're ready to completely collapse, right? sort of two different things, aren't they. >> i don't think we're heading to recession. i'm not pricing that in. what i am pricing in, markets are very choppy. that move to the downside, everyone said in december, everyone said that is glitch. president said it was glitch. nobody called a glitch nearly
20% run off the lows. the fact we live in volatile times. why was the russell 2000 down 2% the other day? i will argue these models trading market, they miscalculate market depth. you get these crazy snowballing moves. charles: before we wrap up this segment, retest of the christmas eve low? >> i think it is possible. i don't think it is highly possible but certainly possible. charles: scott? >> no, i don't think we'll see it because i think that was glitchchy that day. i think we'll see 6% lower. real quick, charles, the dollar is rallying like crazy today. that is bad news for s&p earnings going forward if it hangs out with central banks overseas starting to stimulate. >> i said all year last year, outside of headline stuff no greater risk to the market than strong dollar. president trump talked about it again. people don't like when the president talks about the dollar but it is too strong right now. scott, michael. thank you both very much. appreciate it. >> see ya. charles: coming up reef reports of the denies of great companies creating great investment
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♪ charles: investors always looking for bargains in the stock market. statement they're naturally intrigued with shares of household names are hammered. this resulted in investors making big returns on certain beat-endown names over the years. it spawned investment theories like dogs of the dow. one approach is beginning to stand out. it focuses on broken household name companies that brought in new ceos. prime examples of late, microsoft bringing in satya nadella back in 2014. since then the shares are up 200%. mcdonald's appointed steve easterbrook, march of 2015. that stock up more than 80%. chipotle, that was in a tailspin. they tapped the taco bell guy, right, bryan nichols, march 5th. those shares are up almost 100% since the announcement. there is axe demic evidence that
this is not a coincidence. sent of last year the university of missouri released a study, companies where ceos were forced out over strategic disagreement with the board the for the most point they saw shares and operations outperform the market. new ceo outperformed from those outside of the company. the theory is working for several big names, well-known names, new management in the last year. ge, serious, mattel, jcpenney, coty. the question whether this is viable investment approach and what stocks will see the biggest rebound in the share price this year? we brought back jack ablin to help us hash it out. jack, i think this is an approach that really works. >> it is. not only does it work but actually gives individual investors an advantage over institutional investors. remember institutional investors have to print their portfolios out for their shareholders and for the public to see every
quarter and the last thing they want to see is any kind of stain or mud on that report. so if you held ge and you had some premise for owning it and it falls into a tailspin, first thing you will want to do get it out of the portfolio virtually at any cost just so you don't have it printed in your annual report. charles: so ge has done really well although, hit a speed bump recently. folks would be surprised to find out jcpenney, up more than 25% this year. they brought in the ceo. she has experience at old navy. she knows what she is doing. xerox has gone through the roof with the new ceo. these are names that many people simply had given up on? >> yeah. that's it. and you know, talked about chipotle and mattel and others. i think you're right. when investors own the widely-held shares, they are to the point where the ceo is
ushered out, arguably the premise for owning shares is gone, at least for those existing investors. they tend to dump shares, like we're dumping marlins tickets down here and buyers can get a bargain. so i think there's, you know, there are, you know opportunities for individual investors who really don't care that you know, a name that has some kind of a smudge on its record is in their portfolio. charles: are there some names like that you're looking at? >> i'm watching for example, papa john's pizza. we talked about it. there is a big discussion, you know. they have distanced themselves of course from their founder. however they have not changed their ceo. steve ritchie is still at the helm but they have gotten rid of virtually the entire senior management team. perhaps there is another shoe to drop there. i'm not a holder but i'm certainly watching that stock, given the perspective that you
have raised. charles: jack, i agree. that is on my watch list as well. it fits this scenario perfectly a hot name for a long time. the ceo forced out and now i watch it. thank you very much. always great tapping into your knowledge and go marlins i guess? >> i guess so. charles: all right. up next, our picks of the day. plus a look ahead at tomorrow's big jobs report. you don't want to go away. we'll be right back. ♪ termites, feasting on homes 24/7.
304,000 jobs were created in this economy, but you know, many are saying this is a late stage recovery, right, and we should be expecting that many numbers. what can we expect? is it possible to maintain this pace and what about the unemployment rate which actually ticked up slightly in january compared to previous months? will that continue to hold? both of these aspects of the labor market are looking strong but for me, i'm also looking at wages, right. total growth, wage growth, has come in over 3%, that's for the total number over the last three months. for non-supervisory workers, wages have had an even better run. white whi while the markets are skittish, tomorrow could be a proxy for investors. we will see what the goldilocks number will be that could stem the tide of wall street losing. we bring back two of our favorite folks. keith fitzgerald and scott martin. keith, first and foremost, what do you expect and what would the market reaction be to that news? >> you know, that's like asking
the magic 8 ball -- charles: that's why we brought you, my man. >> i don't know what the exact number is going to be but i think it's going to be a little weaker than expected to accommodate weather, the shutdown, a few other things. that said, anecdotally i'm keying in on lots of employers are bankrolling or stockpiling high skill employers. that tells me conditions are ripe for growth. they are looking for talent and actively going after it. charles: scott? >> i think he's right on most cases. i will say, though, the market's telling you i think it's going to be a weak number. the fact that interest rates have started to plummet again shows me, charles, that the market's anticipating maybe a weaker than expected number at the top line. we are thinking about 160,000. maybe with some weak job growth, too. i'm sorry, wage growth, that could help keep the fed on the sidelines. if we get the opposite, maybe a weak number and strong wage growth, that could be a problem because then it puts the fed back in that pickle where inflation concerns kick in, they
have to be more hawkish that will hurt the stock market. charles: that's interesting. i remind people of this all the time. we go back february 2nd last year, we get the jobs report, it's a pretty good number but one item scares wall street. wages up 2.9%. the dow dives 666 points because that was the thinking back then. here we are, three months in a row higher wages and jay powell is essentially saying he's not going to interfere this time, that they're not necessarily going to assume that these higher wages mean instant inflation. >> you're right. i don't think it does, either, but it's one of those situations, and great call about february last year, because the market got it kind of wrong, right? i mean, that selloff lasted a few weeks and then we kind of mingled around the bottom, then started retracing again only to have that selloff into the end of the year when the fed got involved again, and screwed things up. so it just is a psychological effect that data is starting to change. the fed may or may not be
offsides. as we talked about in the previous segment on the hour, this is one of those market psychological periods that i feel the market just feels like it wants reasons to sell. so tomorrow could be another good reason. charles: keith, with that in mind, you know, obviously we had the stall, we had the pullback. you know, i'm still okay with calling this a regular consolidation but the breadth has been ugly and gets uglier every single session. what are you looking at right now particularly when it comes to something to buy on this dip? >> well, tell you what, quality matters at times like this. i'm looking to a company like visa, for example, which has got potential to access yet another trillion dollar market in the form of inter-bank transfers. it's also a play on the war on cash, because we are going to a cashless society and increasingly one that's mobile and digital payments to me are very very attractive, win, lose or draw. i don't care very much what the stock market does because this is one of those companies that is not going to go out of business. charles: interesting.
i think philadelphia is going to have a vote on whether or not to outlaw cashless transactions. it's becoming a social justice and libertarian issue, too. i like my privacy, although i wish i could carry around as much cash as scott. scott, what are you looking at? >> yeah, sorry. i was just looking for the cash i might have dropped on the floor here. charles, i do like visa. that's a good one. square and paypal as well. that cashless transaction, too. i think somebody will buy square this year. we like kroeger. i saw the reaction this morning. i'm telling you, that was overdone. the reaction was overdone this morning because it was largely gap. the reason they missed on the top end had to do with gas prices which bounced back anyway. that should fix itself. they need to spend to compete with amazon and walmart and things like that. so that's fine. kroger was down big this morning. we picked some up. this is a chance if you want to get one of the lesser known grocery stores which is one of the bigger ones, by the way, kr is your bet. charles: the biggest organic grocery store in the country, right. i will say they survived the amazon scare. everyone said amazon would put
them out of business. they became a better business. sorry, the walmart scare years back. they survived that. now they are surviving amazon scare. keith, you were a little surprised by that one. >> well, i have the highest regard for scott but i got to tell you, that one did take me by surprise because i don't see the grocery industry playing out that way in the face of amazon. i think that they've got a much tougher road to hoe. that's a great pick. scott makes an eloquent argument but that one did catch me by surprise. charles: is there any number on the downside our viewers should be watching, guys? today we tickled that and broke the 200 day moving average, it exacerbates the downside pressure. is there any number you think has to hold before you start to get really worried? >> we are looking at -- >> not if i'm doing my job right. >> 2700 on the follow-through, below 2730 if we get there, which we could see tomorrow, actually, pre-market. charles: got to hold. i'm sorry, keith, go ahead. >> i'm absolutely almost neck and neck with scott on those
numbers there. charles: all right. tomorrow's a huge, huge day. glad you guys helped us to figure it all out. keith, scott, thank you both very, very much. the dow is off 257 points. as i hand it over to susan li, filling in for liz claman. susan: yes, let's get to breaking news first before we get to markets. global growth, yes, those concerns dragging down the markets today after the european central bank cut its gdp forecast. wall street off session lows, down as much as 320 points at the bottom and now we are down just about 258 or so with just an hour left in trade. the s&p 500 also lower by 1%. this is taking place with the tech-heavy nasdaq as well. the moves come as u.s. trade talks with the eu and china reach critical stages. president trump saying just moments ago in an oval office meeting with the prime minister of the czech republic that talks with china are going pretty well but t