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tv   Varney Company  FOX Business  August 5, 2024 11:00am-12:00pm EDT

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>> look at ism services and we get ppi and cpi next week. if they come in good, all calm on the western front. >> we're in a panic and there's nothing rational and all psychological. >> the economy is going in the wrong direction fast. we might need to make a change. >> the fed is behind the 8 ball here. there's no question they've
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waited too long. at the end of the day, you cannot have the big tech and big growth sector and largely a nasdaq collapse at those valuations. >> this morning i spoke to a lot of investors and they said, look, this selloff is more of a correction. you had, you still have sky high valuations when it comes to big tech. >> i don't like just trying to be a bottom buyer. i like trying to catch trends early. that's where a lot of money is to be made. >> we need somebody that looks like they know what they're doing. we don't have that in the white house. it would help if we had that. stuart: it is 1 # 1:00 a.m. on the east coast. it's monday, august 5 and market is down. way down. dow industrials off 1,000 points and we stabilized with a thousand point loss and now it's 1100 and that is down 2.7%. the nasdaq was down 5% and now come back a bit. you're down 3.7%.
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big tech taking it on the chin this morning and there's not a winner there at all. cal fade pattern bet down 2% -- alphabet down 2%, meta 4, apple 4.8%, microsoft 4% on the downside. check the 10-year treasury and yields are coming down and people pouring to the 10-year treasury and price goes up and yield goes down. and 3.73%. that's the harris plan. she would repeal trump's tax cuts. raise taxes on corporations and raise taxes on accumulated wealth and raise taxes on your estate. we don't know who controls the house and senate but investors are right to worry about the possibility of a democrat win.
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this was the american rescue plan passed in the first year of the harris administration and 1.9 trillion thrown into the economy and massive vote buying plan that kicked off inflation. now we need a rescue from the rescue plan. we're not going to get it. a tax hike and harris administration would make things worse. donald trump's economic plan rests on drill, baby drill. tariffs on chinese imports and possibly making social security benefits tax free and keeping his first term tax cuts in place. that's some reassurance for investors and not as threatening as harris and he'll get a more comprehensive plan if we do go into a recession. i want to bring in steve forbes that know as thing or two about money or pol politics and joinss this morning. who is economic policy working best, harris or trump? >> that's easy, trump trumps harris and her plan would put the economy into a severe recession and need investment to
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get the economy to grow and raise standards of living and she'd destroy capital, especially with that wealth tax. corporations, where do they get the money to pay their taxes from? from the consumer, from workers, from shareholders so all around would put the u.s. economy in a downturn. already the world chips act is weak. this is a global -- economy is weak and this is a global implication and would be a disaster. stuart: is this in part a kamala harris selloff? >> yes, in part. she could win the election. i don't think she will but the possibility exists and had a good ad on the oly olympics andt that into account and mark things down and huge selling on the yen and that's unwinding and that's why they're down 12% yesterday. editorial board of wall street
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journal ending on social security benefits would kill the chance of renewing his 2017 reforms and, steve, what do you think of killing taxes on social security benefits? >> it's a plus. right now social security punishes you if you work. and the formula they devise up to 85% of earnings going to be taxed with internal convoluted farm la and it is con vascularized luted and it's nonsense and -- convoluted and workers over their lifetime got a rotten return on the money they put in social security and had any kind of decent return and getting benefits 2-3 times what they are today. stuart: would vastly expand the deficit. >> help reduce the deficits and plus the economy would be better with more people working. plus, make people healthier too. stuart: reaching such a level
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that no amount of growth would get rid of it. >> don't get rid of debt by depressing the economy ask her tax increases would do and reducing taxes on people that wish to work and helps the economy and only way to do it is by growing out and done before by woo and 121% debt of gdp by the late 1960 before going on spending benders again and down to 35%. growth work ifs you let it have a chance. that's why we need a stable dollar, supply side tax cuts and by the way, deregulation. even if the republicans keep the house and the senate, regulatory agencies go their own ways and we see with student debt with the court and not going to do it anyway. stuart: got it. steve forbes on a very important day. thank you. >> thank you. stuart: back to the market, selloff and the dow is down 1,078 points and i'm going to look at treasury yields too. they're coming down and not that much on the -- wait a minute, one year treasury. the 10 year.
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that's what i want to see. below 3 and 3.75% and lower than that earlier today. chars, we need advice for the little guy. charles payne is here to give us that. welcome to the show. >> thank you. stuart: what can the little guy do? >> what i think is driving this and i've heard you ask a lot of people. not just one thing. i give 65% of jay powell and fomc. not just from friday but from the very beginning and that first rate hike should have been 75 basis points and growth, everyone is coming to grips and earnings not growing as fast and economy obviously is slowing a lot faster than anyone thought and experts and what steve talked about, 5% and geopolitical risk is 5% and look at hardest hit thing and they mentioned the nasdaq and small caps and russell and last say 72 hours and maybe four or five days since harris started going up in the polls, they have crashed. that was a hot trade.
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that was what everyone was saying and transition going from big tech to the russell 2,000 and domestic economy under a president trump. that all has gone away. stuart: look, we still have a selloff in progress. i'm showing you the fear gauge and it's the bit and going all about that and it briefly topped 60 for the first time since march of 2020. we're getting into the pandemic and now it's 3918 i see. that's the vicks right now. that's moderated just a little bit. but 23409 much. >> the rate of the move is important. this might be one of the biggest moves in history in terms of the late 48 hours and mind boggling and 176% overnight and 23 on friday and 65 on one point this morning and mind boggling stuff and cannot ignore it and they're an investor and coming to loss and you want to build cash and
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market oversold at some point soon and you want to have the cash to go in and buy it. a lot of times people come on our network and say you buy on the dip. real life people can't buy every dip. so you want to accumulate some cash here and coming to grips with it not going to work and not going to come back. in ragaini great bull market, sloppy stocks going up and getting saved by the market. in this case, very selective on the way back up i think. stuart: suppose the federal reserve came in with emergency rate cut and i don't care what it is. an emergency rate cut. that's good or bad for wall street? good for america and the economy and stock market. that's why i brought up a first rate hike and see the fed, jay powell so concerned about looks and everyone saying if the dead does that, everyone would panic. sometimes you have to panic and sometimes the theater is on fire. i mean, this whole notion in life you don't panic. sometimes in life you have to panic. sometimes you're caught off
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guard and have to take action. it's too cool for school thing, it's not working. didn't work in the very beginning thinking about innation being transitory and took a pedestrian stroll towards hiking rates and it's not working now. stuart: you want to get into this? lauren: maybe jay powell moves the goal post and banded 2% inpolice station target. sometimes -- inflation target. sometimes my kids want ice cream before dinner but the rule is ice cream after dinner. >> i've been saying that for a long time. lauren: if turnover margin go it before. >> where did 2% come from and why? in a ralistically, all the debt and you and steve talked about and the different financial economic conditions we're in, 2% maybe too low anyway. i really believe that the new normal will be closer to 3%. stuart: that would create panic, if the fed raised its okay inflation level. that wouldn't be stability, would it? >> what are you looking at after the last 48 hours and going to be panicked near term panic and
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talking about long term stability and something is wrong. let's not forget when the federal reserve is created. creating the central bank and 1913 and never going to have panic again and crazy business cycles. that's all we've had since then. stuart: that's true. >> maybe time to make adjustments and they should have congress take back the responsibility of full employment they gave to the fed in 1977 and our fed has one job and take away some of the other jobs weir giving them, they're too powerful and omnipotent and they move slow and make mistakes, we all pay a heavy price. stuart: today is the day to watch you at 2:00 p.m. eastern right here on fox business. making money with charles payne right here. thanks, charles. >> thank you. stuart: lauren is looking at movers and i want to see what's going on with toll brothers. lauren: down 5.25% and fear recession wipes out demand for
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housing and that cancels benefit of lower mortgage rates and imagine the fed cuts and lower mortgage rates go down and >> you don't need a marge. they sell houses to rich people and normally done even need a mortgage. we want rates to come down and boost the housing market and now saying sell the housing stocks. it's a weird thing. lauren: it's going to sell. stuart: selling off and likelihood of recession. apple, what's with this? lauren: mag 7. they're losing a combined over 1 trillion in value today alone and and take 300 million off nvidia as well as apple. google down about $200 billion today and 100 billion for amazon and microsoft and then meta and tesla down too. look at mag 7. they're down 900 billion in market cap as i speak.
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>> norwegian cruise linn and special problem and the hurricanes that's arriving in the area. lauren: in florida, the port of tampa is closed and recession worries so the cruise lines are down. stuart: everything is down. okay. hurricane debbie has made landfall and a report from florida as the state faces what really is a life threatening storm. recession fears fueling today's losses and is the fed to blame? could we see an emergency rate cut? steven moore will deal with that and keep following every minute of the selloff. more varney after this.
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reporter: good morning, stuart. long time fan. good to talk to you. they've downgraded debbie to a toppal storm but that's one of the worst terms they could use because the only reason it's downgraded is the winds have backed off but the rain is still coming down here in live oak, we're about an hour from where it came in with wind gusts up to 90 miles an hour. look at this picture, stuart. we've had nearly a foot of rain in this area and you'll see what's left of the eye, the blank area, but the thing slowed down from 10-8 miles an hour and we think at fox it's not even moving that fast and it's pouring down rain here heading towards georgia and the carolinas. also with the wind and rain combined, we've now had about
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300,000 customers without power and the big story in the next three to four days is the fact that debbie will head back towards the coast and georgia and south carolina and will stall out when a tropical system stalls out, a lot of rainfall and in fact, we're talking 20-2f the areas and maybe more. think florence. back in 2018 when they shut down parts of i-95 and many roadways and houses were flooded out and if you're in a flood prone area and eastern georgia and be on the lookout for tremendous amounts of rain and life threatening areas and between now and wednesday and thursday and there's no stirring flow to push it out of the way and result is what you see behind me. fortunately the guy in the car got out okay. stuart: start measuring rainfall in feet, you know you've got a
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problem. mike, thanks for joining us. see you again later. steve, are we headed towards a recession? >> i remember the 1987 selloff and turned out to be a flip and about a month later, we were back on our merry way to higher returns and i don't know if this is is start of something deep like a recession or a blip. i'll make a couple of comments and it is interesting to me and i'm not saying this is statistically significant. that as trump has dropped in the polls, as he has over the last ten days because of this kind of
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phenomena, the market has reacted in a negative way and because this is really bad for investment, should the fed meet now to cut rate s? i say yes. i think they should f. you're looking at what -- i like to look at commodity prices as you do, stuart. commodity prices are falling rapidly right now. we have a, we've moved from a problem with inflation stuart: we don't know if there's more selling on the stock market. >> right, if i knew the answer, i'd be in tahiti making a lot of money. we know that you've seen over the last month or so a pretty steady decline in commodity
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prices and that's an indication it's fall asking i think the fei haven't been so supportive of a rate cut and now one is needed and only question is synergy home. stuart: how will wall street react to a emergency rate cut. i have no idea. >> look, i guess -- my reaction is if you're going to do it, do it. why wait? why wait another four weeks to do something everyone knows it coming. but look, i'm not rooting for recession. remember, all the economists were wrong in 2023, remember, stuart, they were say ago recession is coming. it never came so i'm not -- i'm going to be on record, i'm not saying we're facing a recession, but i think it's a frightening time and look, i think it would be good if kamala harris came out saying i'm not going to raise taxes but she's not going to do that. stuart: i very much doubt it at least. steve moore, in the right place
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at the right time today. steve, thanks for being on the show. see you soon. >> thank you, stuart. stuart: steve was talking about falling commodity prices and check the price of oil, $73 a barrel and had been at $72 a little earlier. donald trump promised to make america energy dominant again. ashley, come back in again, please. what did he say? ashley: dbd, drill baby drill and making the u.s. energy independent once again. watch this. >> we have more energy and liquid gold than saudi arabia and russia and anybody and whether they're going to be energy dominant and make a fortune and supply it all over europe and the world and double and triple what they're doing and have tremendous energy and we're going to lower our prices
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of energy. ashley: liquid gold. texas tea. trump also vow that had he'd take steps to bring back the auto industry during the first two weeks if elected and message on energy is very, very clear as it always has been, stu. drill, baby drill. stuart: yeah, good slogan. thanks very much and see you again shortly. back toot markets, please. look at nasdaq for a moment. isn't there some stability in there? maybe some people jumping in to buy the dip in big tech because the nasdaq had been down 800 points and now it's down 400 points and the dow still down about 2.2% and it too coming back just a little. there's 30 stocks in the dow industrials. let me show you the biggest losers among the 30. all on the downside. every single one of them. there's no single winner of all the 30 stocks. intel is the biggest loser and down 5% right now. cisco, chevron, taveion lori harmons, all down.
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travelers all down, amazon down 3.2%. price of gold down $19 and i noticed earlier down $50 an ounce and now it's down 1 so gold coming back just a little there. there are reports that some brokerage accounts and places like fidelity and schwab and vanguard all suffering service outages on their platform. that's happening. coming up, how does the average investor play the selloff and how much do the markets affect the elections and cover it all. don't go anywhere. more varney after this. ♪ daughter: hey, dad. dad: hey, sweetheart.
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>> dow was down 1,000 and now down 900. lauren, tell me about amd. lauren: up by 3 -- up 2.5% now on semi and up over 3% even asml.
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stuart: barrick gold. lauren: they're down sharply down 4% and copper at 4.5 month low and that stock is down 3% and the oil companies is down. there's demand globally weakening. stuart: inflation will moderate at some point in the future. stuart: we're joined on the phone. heather, i'm see ago little stability returning to the nasdaq. i know it's down 400. but it was down 800 and now down 473. do you think there's some dip buyers beginning to jump in?
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>> oh, wait, i can't buy on the dip. at this point, the fact the nasdaq is down 2.5% here, the point is you don't sell on a down day. even if there are further decline and i think there will be missing update and you don't get back in. stuart: there's a lot of talk about emergency rate cut from the federal reserve. stuart: rate cut and good for wall street and is that good or bad? >> the fed should step in and emergency meeting and rate cut and i love steve moore and he was just on calling for a rate cut, but it is not the fed's job to prop up the markets. innation is still oturu at -- inflation not at 2% target and at about 2.5 and unemployment, friday was a bad report, it's
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still his correspondentically low, 4-point -- historically low and 4.3% and fed should not step in. if the broader market sees the fed coming in and cuts rates during the pan democrat and i can 2008. then the fed cutting rates is telling the market that there's something really bad on the horizon. stuart: 30 seconds to tell our viewers what they should be doing in a big selloff day like this. >> one day and at this point, they do not sell on a down day and they're throwing the baby out with the bath water and some stocks unjustly sold on days like today and consumer staples
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for example, if you do have cash on the sidelines, you look for opportunities to buy. i bet that's what warren buffett is doing with all that cash. stuart: 277 billion with cash and thanks for being with us on a important day. bill hemmer with me now. how much cash does he have? stuart: 277 billion, which is 4% of all outstanding treasury bills. can you imagine that? >> that's amazing. >> power too. >> what's happened? stuart: how does this selloff affect the election? >> i think it puts the focus on the economy. job number one independence vote on the economy. we know that for sure. the inflation that we've seen for the past three, three and a half years and people always complaining about it and i think gas prices have been relatively stable around getting the
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polling rolling for the next 90 days. stuart: lindsey graham stay on message and focus on the political record. listen to this. >> what i was saying to president trump, the problem i have with kamala harris is not her heritage, it's her judgment. she has been wrong about everything. when she tried to explain what to do about inflation and then up coming recession and there's gibberish.
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i push for more i did baits and i want that to happen. two, three, negotiate that the rest of the media and i would be challenging harris on where's your policies and what will you follow. are they protecting harris and ask those questions. >> i said joe biden basement strategy campaign without the basement and sticking with that so far and keeping her on telepromter as much as possible. >> can you do that?
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stuart: good stuff. thanks for being with us. >> thank you, stuart. endorsement from another former president. stuart: i think i know who this is endorsing kamala harris. ashley. ashley: that would be jimmy carter. at 99 years old, the oldest living president says he's hoping to vote for kamala harris during the novae lockerbie bomberses and carter by the way, set to turn 100 on october 1 entered hospice care last year after series of hospital stays he hopes to cast his vote in november. and he wouldn't bet against him, stu. >> that's a wonderful thing, i think. >> it is. stuart: it's not just the
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markets take ago beating today. cryptos gets hit as well. we have a full breakdown for you what's going on with the cryptos. bitcoin up 54,000. lauren: yeah. stuart: recession fears stocking today's selloff and following all the action and more varney for you after this. ♪(voya)♪ there are some things that work better together. like your workplace benefits and retirement savings. voya helps you choose the right amounts without over or under investing. so you can feel confident in your financial choices voya, well planned, well invested, well protected. did i read this? did i get eggs?
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stuart: chicago me big tech. are any winners this morning? no, they're all in the red. all down across the board. and 10-year treasury yield is falling and now it's rising. going to 3.79%.
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bitcoin. earlier at 48, $49,000 a coin and bounced back to 54, 7. two year treasury going through that. two year is now 390. the yield going up. the price of oil. that is being down at $72 a barrel as we speak. market analyst joining me on the phone now. kyle is calling in a minor correction. make the case, kyle. >> stuart i think it is a minor correction. i mean, even like you said, the numbers seem really big. 80 po point 0 points in -- 800 points in the dow jones, only 2% and the nasdaq going in today was up almost 10%. s&p 500 up 12.5%. i'm looking at opportunities right now. i mean, i lived through 2000, 2008 financial crisis and covid 2020, if you get the opportunity to buy america's greatest companies whether nvidia,
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microsoft, which i know you like, amazon, apple, when they're selling off, i would be using capital and i wont be spending all my capital. but using some to go out and layer in some buys right now and a lot of the smart money is doing that and from 9:30 this morning to where we are today, you're seeing things to stabilize as you just said. stuart: are you yourself buying any particular today, today i mean? >> i think the names i mentioned. those are the ones i'm looking at. looking at adding to nvidia and microsoft. i think it's a great buy right here. i like apple. i think amazon also if you look at amazon, it's 20% off the highs and it's in correction territory and i think it's oversold. i think these are big names that could be very comfortable and probably not chasing the bio-tech index and small cap on days like this but america's greatest companies are comfortable adding to this today. stuart: what would you do or say if the federal reserve would jump in with a emergency rate cut in a very near future? would that be a good or bad
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thing for wall street? >> i don't think they need a emergency rate cut. but they should cut rates recently. i do think that inflation is a little hot and ppi is hot and they cut rates and not drive inflation straight up. it's good for the market and cutting rates stocks don't perform well and pretty historic highs for the last 10 ten years and helping the market out quite a bit. stuart: kyle wall calls this -- kyle wool calling this a necrocorrection. thank you very much, kyle. lauren, talk cryptos and we just saw wit coin down to about -- up to 54,000 a coin as of now. had been at 48. what are the rest of the cryptos doing? lauren: they're down. investors are running from cryptocurrencies and considered a risk asset and either down 15e
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today of cryptos down 367 billion combined. overall, yes. they're worrying about the economy and potential recession in the economy and higher unemployment and all that. let's take a look at donald trump's position on cryptocurrency. he said he'd be a great president for the industry. kamala harris really haven't given her -- hasn't begin her position on cryptocurrency at all and i walk in and tell you every day. the real clear political average and trump is up in the average of polls by 0.8. this could be another sector thinking if she wins she won't be so positive for the industry. stuart: political influence in the election and on cryptos. fascinating. harris is not doing well in the investment stakes, is she? lauren: i would say despite the
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white dudes for kamala fundraiser trying to get wall street behind her, make just a few people behind her. stuart: thank yous, lauren. ai was the dar darling of the mt and fueled many recent gains. ashley, they're not doing quite so well now, are they? ashley: they are not. ray wong described as blood bath earlier in the show but the bleeding is slowing down just a little bit and certainly investors are booting risk out the window and ai share withs those high valuations are getting dumped. both nvidia and super micro compete plummeted as much as 14% earlier in the show but now has been tempting some buying as we've seen. nvidia now down, what, 5.5% and microsoft down 2.5 and alphabet down 2 and amazon down 3.5. so we are coming back and down
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40% and contagion spread to the border sector as we can see and to lauren's point earlier the loss is in the magnificent 7 set to wipe out nearly $900 billion from the combined market of the company and there's time before the closing bell and they could start swinging back a little bit, stu. stuart: we shall see. thanks issue ashley. it's time to take a look at dow 30. every single one of the stocks is down. mike lee repeatedly called himself a super bull. what does sur bull do in a selloff like this? we'll ask michael lee is next.
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stuart: big selloff on wall vote in progress and the nasdaq certainly has stabilized a little and double figures 500 there and had been down 800. look who's here. mike lee is back. and particularly good day for him heals been called the super bowl.
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welcome back, mike lee. >> i'm happy i deny sell all my gold and treasury and tnt and get rid of all my cash. it looks good on days like this and afraid to buy microsoft because it was too high. google or nvidia, today is your day. if you've been seeing cash, this is an excellent opportunity and breakup of central bank raising rates last year and all the currency traders and hedge funds all over the world borrowing again no fundamental kick which i think changes in the last three weeks to cause this selloff. stuart: so, a rebound at some point in the near future. >> i believe so. it could i deally happening quickly and typically the way down is much quicker and either the stairs or the escalators up.
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that's because when the volatility spikes and market goes down and measure of correlation and market starts selling off, people start panicking and the market rallies and i don't know anybody that panics except for short sellers. jacqui: true. >> it's a lot more orderly on the way up than down. it takes time to come back and i think what we saw today is a short lived. may be some more washout, but need a large financial institution or something structural to break to get this emergency rate cut, many i don't know that we'll see and 50 pay sis points and bigger probability in september. stuart: you're comfortable with that. >> if nothing else breaks, something breaks and then yes, the fed should come out but we haven't seen a large credit event and nothing is only crypto funds getting -- breaking right now and they're not worthy of a fed cut and we get 50 basis
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points in six weeks versus a week. it's not that big of a difference and 25 before the election and before this in 25 after the election what different does it make and move the puzzle piece just a bit and today is a opportunity to buy. stuart: harris is looking reasonably strong in the election. does the politics have anything to do with this selloff on wall street? >> yeah, look, as soon as we got hype of harris and all this is historically a very good month for democrats and polling and likely to answer the phone and big news happening for the candidate and massive response bias in the poll and people like kamala harris are super pumped to an polls and stuart: start
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with dow losers and topping that list is probably intel, down 6% right now and down 4% and amazon 4, cisco 3, travelers down 3.26%. nasdaq lose eric intel, walgreens, margo db. lauren: margo db. stuart: that's what it is. okay. apple down $9, 4% lower. s&p losers and long list. nvidia down 6% and cesars entertainment and bath and body works all down. all right. time to take a pause from the market selloff and time for the monday trivia question. how many lobes or parts of the brain, are in the cerebral cortex? 2, 4, 6, or 8. answer when we come back. ♪
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♪ i have type 2 diabetes, but i manage it well ♪ ♪ it's a little pill with a big story to tell ♪ ♪ i take once-daily jardiance ♪ ♪ at each day's staaart ♪ ♪ as time went on, it was easy to seeee ♪ ♪ i'm lowering my a1c ♪ jardiance works 24/7 in your body to flush out some sugar. and for adults with type two diabetes and known heart disease, jardiance can lower the risk of cardiovascular death, too. serious side effects may include ketoacidosis that may be fatal, dehydration that can lead to sudden worsening of kidney function, and genital, yeast, or urinary tract infections. a rare, life threatening bacterial infection in the skin of the perineum could occur. stop jardiance and call your doctor right away. if you have symptoms of this infection, ketoacidosis, or an allergic reaction. you may have an increased risk for lower limb loss. call your doctor right away if you have symptoms of infection in your legs or feet. taking jardiance with a sulfonylurea or insulin may
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stuart: before the break we asked how many lobes are in the cerebral cortex, ashley, what do you got? >> two, four, six, eight, this makes my brain ache, i'm getting
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going number four which is number two. stuart: four lobes read how many lobes do you think. >> two, four, six, eight let's go with six. i'm to go with eight, the answer is for, the front parietal, occipital and temporal lows, the cerebral cortex is outermost part of your brain and also the largest. now you know, going to a quick check of markets before we close out in particular look at the nasdaq, it is now down 473 points, it was down over 800 earlier, the dow is down 800 and it was down 1200 earlier, actually a thousand during the trading session, there you have it were looking at a market selloff and you're going to be guided with the neil, neil it is yours. neil: the best we can do. it is interesting we are grateful for whate

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