you should be accumulating and when you see volatility, you should up what you're putting into your 401(k) >> i do like the semis >> we talked about it last time. was it 197 after the terrible print? apple at 140 i like it at 140 >> thank you, everybody. i'm melissa lee. countdown to shutdown. president trump said he is prepared for a long one if he doesn't get his wall and right here cnbc saying the central bank may reassess its balance sheet reduction if the economy slows. could a late year-end rally still be in the cards? and investors still getting more and more anti-facial facebook dropping big time today.

down more than 3%. all this as more tech for next year we're live in the valley, straight ahead power lunch starts right now >> welcome to "power lunch," everybody. a 600-point swing. it was down 400, now dropping 200. the nasdaq, 60 points is the place to watch nike getting the biggest boost to the dow the dow looks okay relative to the other outages. nike had an upbeat earnings report we're keeping an eye on. talking about whether it does have significance and a couple other stocks to watch. all about per go getting downgraded and facing a

$2 billion bill of back taxes in ireland. and snap is below $5 today >> thank you very much let's get straight to the news elon on capitol hill tracking the minute by minute scramble to avoid a shutdown and steve on his big interviews. and at the white house with the latest on developments there let's begin with elon on capitol hill >> thank you senate republicans are in the middle of a procedural vote to move forward to attach that $5 billion in spending to the short term spending bill top republicans have been at the white house this morning they met with president trump. the majority leader mitch mcconnell came back to that meeting, he took to the senate floor and he says he has full support for the house measure. >> i support the additional

border security and disaster aid and i'm proud to vote for the bill >> to pass this bill, republicans will need 60 votes in the senate. that means they will need some democrats to come along. >> there is only one way we'll have a trump shutdown. if president trump clings to his position for an unnecessary, ineffective, taxpayer funded bored he wall that he promised mexico would pay for >> there has been a lot of chatter including from the oval office about the possibility of using the so-called nuke option. that would allow republicans to pass a bill with only 51 votes now, what you're seeing here, however, is regular order. the regular process in the senate underway. that's because mitch mcconnell does not want to go down that road he does not support this nuclear

option that means this bill the senate will vote on soon is likely to fail bottom line, we are barreling toward a government shutdown in just a few hours >> all right thank you. the showdown comes as the president deals with another big departure from his administration this times it is defense secretary james mattis the markets aren't too happy about this either. >> reporter: there's a lot going on you heard her talking about it from the oval office the president is at an oval office at an sclaenl has been going on for about an hour he's been talking report theers about the prospect of a government shutdown. he said we will probably have a government shutdown. he said the republicans want to see something on border security but we're very prepared for a long government shutdown this will only be a partial shutdown if it happens, which seems likely this evening.

a number of government agencies have been funded for next year through the regular process. we now have an open question who will serve as defense secretary in the wake of the departure last night of general james mattis the retired four star marine corps general. issuing a blistering letter in effect criticizing the president last night for his approach and respect for america's allies, and also, his wariness or level of wariness about america's potential enemies including russia and china the president today has been issuing a series of defensive tweets, insisting that he is tougher on russia and china than anyone, since it issing he's been tougher on isis than anybody, and he is taking the right course of action with syria. another point of departure that

he had so the defense secretary agrees on his views not clear who will top the list. he has until the end of february when james mattis will leave his position >> the president was scheduled to go to mar-a-lago this afternoon. will he still? >> reporter: we don't believe the president will go if there is a government shutdown they're saying if there's a shutdown, the president will stay here. how long if we are bracing for a long shutdown, as the president says, is he going to cancel his entire mar-a-lago christmas vacation? that seems unlikely. but he might have to stay here for some period of time to deal with the political and legislative fallout. >> and just crossing the wires, lindsey graham is calling for immediate hearings on trump's military moves on iran and afghanistan. and what was happening if syria is one of the reasons general mattis is leaving.

>> reporter: right the lindsey graham-donald trump relationship is one of the most fascinating in washington. sometimes foes, sometimes friends. a recent ally of the president and now blasting the president's decision to pull troops out of syria, suggesting it is an obama-like mistake and suggesting it will make isis more likely to reconstitute itself in syria. those are tough criticisms and that's part of why you see the president tweeting that he's done more to defeat isis than any president this history >> the markets are reacting to all this news in washington while digesting comments that it boosts its stocks for a little while. now heading back to recession lows all of this has resulted in almost a 3% range on the s&p 500 today. >> yes, he said further rate

hikes were not a commitment for a promise. they sold right into it. >> take a look a terrible week for them communication services, you see that down. big twitter, netflix, google, all in that sector big, big volume. big at the open, big at the close. options are expiring here. we'll get a reduced waiting. buying back stock through the year so they'll lower the weighting. a lot of volume. hopefully no big change in the prices here. i've been talking about these buybacks but it is really big. they're trying to reduce the numbers in these big stocks out there. apple has had a 6.5% reduction oracle, 12, this makes earnings look a littler and a big source

of money for these, a big source of where the money is going from these corporations on the tax cuts end of year trading. we'll be in a bit of news and liquidity vacuum there is been no buying interest and we keep drifting lower the risk level from the zped particular when i mattis resigning. >> thank you with the government shutdown looming in hours and a key member of the president's meeting, meaning mattis, set to depart, what does it mean for the new year let's ask the former white house press secretary under president bush welcome to you both. streets not often we get this. what do you think is the significance >> it definitely contributes to

the sense of chaos if you're looking for stability from the policy makers in washington they're leaving and they're not as important mattis is in a really different category when tillerson left, wasn't clear if he was right guy for the job and didn't get i know what the president mcmasters was an accidental nsc director mattis comes with decades of experience and he is respected across the aisle, respected across the world as a sound leader on these issues what he said in his letter was kind of breath taking. i had to read it a couple times. he was saying that he was giving a lesson to the proceeds the importance of our international alliances and who are our friends and who are our allies that's really a breath taking thing to put in a resignation letter it causes a lot of concern >> and the takeaway was

interesting. they emphasize, one of the things the trump supporters liked. one of the reason he got elected. yes, i'm coming into washington. i'm getting more done many two years than people could get done in four. but now this volatility is different. what makes this one bad volatility out of washington instead of the good kind >> yeah. the great economyists in the 1920s talked about the difference between uncertainty and risk and markets like risk. you can factor it in uncertainty is what the hell is going on and how do i play this? we're in that terrain right now. with mattis going, i think tony is right the issue, this is about lingss and adversaries. and the secretary of defense is saying, i am not in alignment with the commander in chief on these would issues the last time we had a member of the cabinet step down on national security issues with

this sort of resignation was cyrus vance under president carter over the hostage crisis and carter's decision to go in and try to rescue them which didn't work out. that was a single event. here he's talking about the president's entire world view that he's not in line with then you have to ask, how much does that fair tow choices for who will take this job see will be in alignment with the president's world view i think that's becoming the big question going forward as president trump becomes more and more confident of his own instincts and gut as he faces more challenges from mueller and from democrats in congress >> he seems concerned not only of our posture with respect to allies but about the administration's posture with respect to authoritarian regimes. russia, china, and i think as well, turkey where apparently the administration was warned by

erdogan that they plan to attacks the kurds imminently and the president then a day or two later pulls u.s. troops from syria. >> yeah. i think it is very, very upsetting. you see his comments from authoritarian companies. i would put even his comments on north korea. some kind of affection for these countries. i think it has disturbed people we talked on in the defense and security it is confusing who we're standing with and what our principles are there was a belief as long as you have people like mattis and even pompeo at state that you can control the kinds of gut decisions that a president might make that might impact our allies

and the kurds who wave long and complicated history with and what we saw this week is that the president could cut those advisers out of the way. disregard their advice and counsel and just make these decisions on his own which he is constitutionally allowed to do but it is not the prunlt thing to do and it doesn't give much comfort to our friends or those who rely on our consistency of our decision making >> who needs enemies when you have allies? that seems to be the motto of the president. if the successor to mattis is likely to be someone more ideologically alined with trump, should we assume our relationship with allies could be threatened? which relationships would you be most concerned about at this point? >> well, he has always questioned nato and he has a particularly difficult relationship with germany, particularly on trade issues i think secretary mattis going to last summer's nato summit was

able to pull a rabbit out of the hat. if the president were left to his own devices, i'm not sure that would have happened nothing is wrong wanting to demand more of allies. great presidents do that the issue is who do you stand with when you have to face down your adversaries they're saying, we just want a little more something going forward. respective allies and then working with allies in a number of difficult areas of the world. >> that's a terrific point that presidents, great presidents do do deals with adversaries. and you can think back in our life times of the ones who have done that. a good thing to remember on a day like this. >> appreciate it good holiday wild swings for stocks is there any other way these

days the dow going up as much as 394 points the fed is listening, folks. those gains have melted. right now the down is down 142 we'll have more on what mr. williams said. we'll try to figure out why it faded so quickly are markets really wriored about a government shutdown? ♪ not long ago, ronda started here.

and then, more jobs began to appear. these techs in a lab. this builder in a hardhat... ...the welders and electricians who do all of that. the diner staffed up 'cause they all needed lunch. teachers... doctors... jobs grew a bunch. what started with one job spread all around. because each job in energy creates many more in this town. energy lives here.

president trump on the looming government shutdown. let's listen to what he said >> thank you very much for being here we've had a very busy two or three days been very positive things are happening that haven't happened in our government for a long time the other night as you know, we had a vote on border security. we want to discuss this just for a second but the house of representatives voted 217-185, approving strong border security and the money necessary to take care of the barrier wall or steel slats. whatever you want to call it all the same and it was a tremendous evening for the republicans, to be

honest with you. because the level of spirit, the level of happiness, a lot of people came out. they said they've never seen one man in particular, he's been there 20 years he said i've never seen spirit or enthusiasm like this. they came from all parts of the country. a couple of them came from other parts outside. so i say all parts of the world in order to vote and they voted and it was an incredible vote. we were told you would never get house to vote. we were able to get the house to vote and wasn't that we did it, they did it so i want to thank in this case, house republicans. what they did was rather incredible and now the senate is looking at it we just had a meeting with some of our great senator republicans. and it lasted for a long time. tremendous enthusiasm for border security i think i can speak for them very strongly when i say they

want to see something happen on border security. they want safety for our country. drugs pouring in and we've done an incredible job considering we have no barrier. human trafficking is at the all-time worst in history because of the internet. the human trafficking problem has gone on through the ages all over the world, not just the united states. so we need border security the republicans and snats, totally up to the democrats whether or not we have a shutdown i would stay chances are good because i don't think democrats care so much about maybe this

issue. this is an issue of safety, least importantly, dollars spend $285 billion a year on immigration. the world will pay for itself on a daily basis. every month it pays for itself we're talking about small amounts of money think of it. we approved and we got good democrat support military last year $7 billion and now we're talking about $5 billion. a tiny fraction. unfortunately. they've devote their lives to making sure it doesn't happen. that was for political reasons so we are going to be working very hard to get something passed in the senate there's a very good chance it won't get passed

it is really the democrat shutdown we've done our thing when nancy pelosi said you'll never get the votes in the house and we got them by a big margin. 217-185. so now it's up to the democrats as to whether or not we have a shutdown tonight i hope we don't. but we're totally prepared for a very long shutdown this is the only chance we'll ever have in our opinion because of the world and the way it breaks out to get great border security ronald reagan tried many years ago. got a note from a member of his family he was never able to get a wall. and i consider him to be a great president. he knew what he was doing. we're going to get a wall, a barrier. you can name it anything you

want but we cannot let what's been going on, we can't let it happen now to a very positive note. criminal justice -- >> all right criminal justice reform which was passed earlier this week, the very positive note president ends his remarks on there about the wall, or the barrier or whatever he says you want to call it. he says one way or the other we'll get a barrier. he harkened back to president reagan's efforts that were in vain, as it turned out, to build a border along the southern border as well he does not have the votes in the senate the senate would admit that he doesn't have the votes needed to pass the house by the 217-185 vote margin last evening the president is preparing for a long government shutdown he said it is up to the

democrats. if it happens, it will be their shutdown >> the dow is right now down by 123 points it was down about 400 points earlier in the session right now we're down by half a percent. it is the nasdaq feeling the brunt of the pain. down 107 points. we were at our highs the markets liked what they heard from president john williams, new york fed president john williams. steve? >> yeah. the markets rallied strongly but briefly. at least a couple things they wanted to hear one that the fed hears the negative message and that it is not locked into a policy path of rates? we are listening very carefully to what's happening in markets one is financial conditions have importance on the economic outlook. we take into account and think

seriously about that secondly, we are hearing about that the risks to the economy a potential slowdown >> and maybe more important than that, whims serves as the vice chairman said there's flexibility in the fed's plan to reduce the balance sheet currently reducing by $600 billion next year. >> we do view it is our primary instrument to address policy if there is a material deterioration in the outlook, obviously we would reconsider our path for the short term and would address it in our goals. we said we would reconsider the balance sheet normalization and may even end that process. >> just for the record, powell had said it pretty much on auto pilot. the question is whether soothing words will be enough for a

market that wants to be lower no matter what the fed says and whether something more drastic is necessary to break the fever. i was interested that it could hear something and then unhear it >> you bring up a good point powell did say it was on auto pilot. for him to all of a sudden say two days later say this is something we will a assess, you're getting two different messages >> the way i have thought about normalization is that it is a process. the fed goes forward, the market jumps back the market threw a fit when the fwoed stop qe. start to wind down balance sheet. the fed backed off came back later. and it did it and it worked over a period of time but not just at the base that the market was willing to accept it i think there's been hubris.

i began asking yellen about this i said you mean to tell me if the market crashes, you won't change the policy. she said no. others asked powell about this and he stepped back. maybe today is the beginning of a process of walking back that auto pilot could not accept. >> i just wonder if powell is the next to go a very short tenure for the chief. >> for that to happen, the president has to fire him. >> i understand that >> so you know what you're saying three days before christmas. >> i'm just saying, if he decides. we know what the main thing has been is the economy and the stock market and people who might have been uncomfortable would point to those successes. if they can't point to them anymore, does he cue up his whipping boy powell. >> we have to go i am writing down, what is the date september 20 according to the clock

>> that's right. the winter solstice. >> when kell thinks -- >> it's not me they wrote it in the "wall street journal." you wonder if he's saying, i'm still here i'm still available in case -- >> and you back up the idea. >> all we know is anything is possible >> let'sably the bill, gentlemen, welcome let me start with you. as you look at what the market has been doing over the next couple months. how far along are we in this sell-off how near are we to the end of it >> well, we believe you have a bifurcated market. this is the first leg down on the technology bubble getting

unwound which will have multiple legs over multiple years the 150 pe ratios of the glam techs will turn into misery and already are turning into misery. the second thing is the wall of worry for the main street stock market is being reestablished. it is kind of funny. trump is trying to build a wall and the fed and trump and the market action is building the wall of worry which you must have to do well. so we really like the main street part of the economy those stocks are going down, too. but very attractive bargaining >> then let me put it a different way. an artful answer there can the overall market move higher if technology is moving in stair steps and dramatically lower? which is what i think i heard you say? >> tyler, that's a brilliant point. we were just looking at a series of statistics. three quarters of statistics

show the market is massively oversold the prices are cheaper we have a ton of 3% there dividend yielders. yet the five-year and ten-year expected returns are likely. that's because tech got to be 30 efforts that index a glorified growth index until those become a swear word, that's probably going on reduce the overall results of the indecks and make it really hard on people have been sold on the idea that you want to sit there for ten years and own it facebook is now trading 18 times forward earnings does that get bill smead's attention? >> warren buffett in his annual report puts what he is looking for. he gave a list of things he was

looking for. his number three or number four criteria was, i don't want to invest in someone subject to regulation so we call amazon, facebook and google, are three identical strangers. because all three of them gave something away for free. >> so the answer is. i don't want to touch them until regulators decide to do something. >> $20 million worth of a-shares, are you comfortable getting in the market alongside him? >> i think from a macro fundamentalist perspective, what we're seeing is a big economy between what markets are saying and how the economy is actually faring and i think this morning's

speech was very interesting. he highlighted the economy we're not in a recession the markets are priced for a recession but the economy is still growing at a solid 3% pace that should overall be supportive of markets. i think the key point was that there should be clear communication. >> do you believe what he said today or two days ago? >> that's a conundrum. if you're emerging from a period of a bout of selling that was on the heels, we were saying, does the fed have the market's trust, i would put forward that the trust of the fed is even less today because of the two different messages that we're getting from these two fed officials. >> i would say they were fairly

similar. he did get a little comfortable toward the end of the press conference >> but he left out the bottom line so he miscommunicated. >> yes >> how do the markets think about that miscommunication? >> well. i think the statement that it will proceed aspect through 2019 was a miscommunication element of his speech. i think williams made it cheer to know as most of us have understood it can be used if it is faster than expected. you have to remember that the main objective is to tighten conditions

if that's being opportunity by the markets, the fed needs to tighten less i think that will be the key message. >> thank you both. to your cnbc headlines >> here's what's happening at this hour. supreme court justice ruth bader ginsburg has undergone surgery to remove cancerous growths from her left lung. the high court said two malignant modules were discovered during tests to treat rib fractures that she sustained in a fall last month they said she is resting comfortably in a new york hospital a midnight deadline looms as senators get ready to vote for a house approved bill that would fund president trump's border wall and keep the government open because of democratic opposition, they may invoke the nuclear option senator mitch mcconnell has shot that down. but did he call on his fellow

senators to approve the spending bill saying he is in his words, proud to vote for it and believe it or not, flights at london's gatwick airport have been suspended again because of a suspected drone sighting it was shut down wednesday evening and all day thursday due to those drone flights hit resumed but it is a day on theic situation right in the middle of the holidays >> again >> and they have deployed the police again to see whether or not it was a sighting. it was a suspected sighting so they had to shut it down >> and i'm fraeafraid of copy c here too up next, much more from james mattis our reporter spent a lot of time with mattis. and we're all over the markets

the stocks are having the worst week in nine months. the nasdaq is down 7% this week. the nasdaq is down 7% this week. much more coming up. it's the perfect holiday upgrade. i know what i'm asking santa for this year. you still write letters to santa? no. please. i send him emails. can i get his email address? oh... i don't feel comfortable sharing it. get the iphone 10 s and our unlimited plan with your choice of the best in tv, movies, or music. more for your thing. that's our thing.

let's get a check on the

markets. it's been a wild session a 600-point swing. it sank more than 200 points at its low. we're down by 91 points. the s&p 500 also saw a wild swing. no surprise. a swing before 3% from top to bottom the nasdaq as you see, getting hit the hardest. having its biggest weekly drop in nine months in a bear market. >> thank you fallout following the resignation of james mattis, continuing in the markets today. in his resignation letter, the general signaled differences in the treatment over america's allies here to break it down, the report here spent time with secretary mattis >> reporter: hi. something to know about secretary mattis' character. i was at the pentagon this morning at 6:15 he was at his desk of the third floor of the defense department so by all accounts, this is another day and a very demanding

schedule for defense secretary mattis >> what did you see traveling with him that gives insight about the significance of his decision to resign and to send the letter as sharply worded as it was >> reporter: right, the key point baltimore he was not willing to abandon allies. when secretary mattis was welcoming his counter parts at the white house, despite the president's america first policies so i had the opportunity to travel with secretary mattis we went around the globe to give you a little color of our last day on a week long trip with mattis, we began in new delhi, india it started around 4:30 in the morning. in a shroud of secrecy, we were taken to afghanistan we spent a couple hours on the ground there and by dinner time we were on uae

a 22-hour flight to washington, d.c. it was the morning of his 68th birthday the next step at 5:00 a.m. was to go to the pentagon and get some work done >> so i'm going to step it up a little over here after hearing those stories. the pleasant a little while ago referred to him as a democrat in terms of of his politics and maybe some of the differences. he just broke with the president when it comes to what america's role should be in the world right now? >> right we've been watching the dissolving relationship. when trump attempted mattis to become his secretary of defense, he referred to him as mad dog and general mattis so he is very much enamored with mattis but we watched a couple things happen in the white house that didn't necessarily match policy

in the pentagon. a lot of times my pentagon press reporters that i often consult with, it seemed as though pentagon was caught off guard on a lot of policies. from suspending exercises in north korea. now with the withdrawal in syria, now we're looking at afghanistan. a possible withdrawal of 7,000 troops the alignment wasn't necessarily there and secretary mattis made it clear by saying you deserve to find a secretary of defense that's more in line with your world view >> a pointed statement and the straw that broke the camel's back maybe more than a straw. referring to her time she spent with defense secretary mattis. hi, rick >> it's been such an interesting week you all know that. the last couple days, as we digest fed policy and some of the data points, mixed bag

maybe two-thirds okay. one-third a bit weaker than expected yields are a little soft today down about 3, 3 1/4 base points. you see the 10 minus 2 here. and this is only a two-day chart. going from 9 to 15 is not huge but it does mean something and it gives us a look at the aftermath after the fed originally deemed, didn't give enough of a tip of the hat think john williams this morning. if you look at it from early is he, it has been a big drop if you look at the high yields securities comparison. if i go to the his, toal chart, it doesn't look so bad if you look at the one-month chart, treasuries have paid attention. they definitely notice the weakness in other sectors. and finally, if you look at the dollar index, what a day it's

having up about three quarters of a cent on the week, now down only about half a cent. considering 20 hours ago we were looking at 96, it is a nice bounce >> thank you take a look at facebook shares getting unliked again the stock down more than 10% and it is a really tough year for tech overall so what is ahead for technology? that story is next

the 2019 tech market is heating up with uber and lyft already on the docket. could the recent market volatility dump cold water on

these unioncorns? great to see you we're seeing tech particularly really get hammered. so how does this impact if at all the valuations of the unicorns coming up >> could it certainly impact the valuations i think they're ready to go out. they've tapped the private markets. whether it is uber, lyft, maybe air bnb. we'll see a big year next year >> ready to go out it almost sounds from what you're saying that they need to do it. they've already tapped the private market they need another source of funds because they're not that comfortable if they are at all >> take uber, which is scheduled to be the mammoth ipo of next year losing a lot of money. even at $10.1 billion in revenue. already raised $70 billion so in some cases, the private

markets are drying up as options. i will stay private markets are still robust west haven't seen the pullback but companies are starting to look at the public markets this year already was a record year for tech ipos we saw 14 tech ipos that raised more than $1 billion which i think is a record. despite what's happening, a lot of companies are looking at and it saying now may be the time. >> of these companies at the top of the list, air bnb or lyft or pinterest or whatever, if they do go public, what percentage of their ownership will they give to the public markets? >> it will vary by market. so air bnb doesn't need to raise the money.

we saw spotify do the direct lifting. you will see some pretty big allocations. for coils like uber and lyft, they do need money >> in terms of tech regulations, that's sector when it comes to privacy issues, can those issues touch any of the ones in the pipeline awaiting ipo >> less on the privacy side. i think the facebook and google issues are really online ad issues and we'll certainly see movement on the regulatory front there. for ride sharing, there is always regulation as an overhang cities are always pushing back but in general i think the ride sharing companies have worked through the bulk of their regulatory problems. at least in the u.s. >> thanks so much for joining us and have the wild market swings got you nervous have you checked your 401(k) balance lately we'll talk to a financial planner about what his clients

planner about what his clients are calling him about. ♪ ♪ the ibm cloud. the cloud for smarter business.

we have heard plenty about this market from wall street, but what about main street how do every day investors like you feel about the recent volatilitile and what should ordinary investors do as we head into the new year to protect their 401(k)s and other accounts to provide insight is ivory johnson, founderdelancey

management what are you telling your clients? >> i was proactive in the beginning of the summer and fall because i thought that we had nine straight quarters of gdp growth i thought inflation had peaked and i thought that those things as they decelerate, we'd have volatility in the back half of the year so the people who are calling me, they really want to know do you have a plan in large measure because they lost money in 2000, the 2008 crisis hit them, and now they are ten years closer to retirement or in retirement and now they want to make sure that i have a plan going forward so they don't experience -- >> and what is your plan for them >> anytime you have growth and inflation decelerating on a rate of change basis, you want to have bonds, you want to have bond proxies such as utilities, real estate investment trust consumer staples is a place to be anything that doesn't involve growth stocks like tech stocks and certainly industrials. >> so you have been moving out

of those high growth areas and into much more defensive areas >> yes, i have >> this is in a way a wonderful time for 401(k) investors. stick with me. and dollar cost averagers. because these are the kinds of investments that you make month after month in roughly equal - installments so you are accumulating more shares at lower prie declines, right? >> absolutely. is this a tremendous opportunity to buy things when they are cheap. you accumulate more share as they preeshlgts. t appreciate the big question with 401(k)s, buying it beyond large cap you may have a reels staal esta investment trust offer so regardless of your 401(k) plan, you can execute a plan that makes you more defensive. >> a great point about getting more for your money. and also bone to pick with the

value versus growth. it depends on the price. is that the case with some of the tech names like a facebook i don't know if netflix is there yet, but does it come down to these companies that themselves being great franchises and seeing a buying opportunity as opposed to painting it with a broad brush? >> there will always be companies that exceed the norm but look at a company like micron trading at three or four times earnings, they are cheap for a reason and it is because the expectation for growth isn't there. even when the economy is slowing down people will pay their light bill, they will buy toothpaste but that is not the same case for a silicon chip >> but if i have ahorizo horizon, that makes my purchase very different than if i'm much

closer to retirement >> i don't mean to say that you time the market. i think the reason people are cold now is nobody told them that the weather was changing. and so my sense is we've had a gdp growth of i think in the first quarter of 2.2, it jumped to 4.2, it has now decelerated to 3.4 my sense is this will be the case for the next two or three months and i think that we can get back to growth stocks probably the middle of 2019. >> all right thanks very much have a good holiday. >> thanks for having me. a wild day for stocks as we head into a holiday week the markets for getting about kind words from a fed official focusing on brinksmanship in washington instead the president saying there will most likely an shutdown. is it stcoing you money? second hour of "power lunch" seconduncan just protected " his family

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welcome back to "power lunch. countdown to a shutdown, that is the headline of the hour and a bombshell white house departure, that was the big news last night that everybody is talking about today. we have team coverage on all the d.c. opera and what it means for your money eamon javers and ylan mui are in washington bob pisani is live from the new york stock exchange. ylan, the shutdown deadline fast approaching.

what is the latest >> republicans and senate are still in the middle of that procedural vote that would tie border wall funding to government funding we don't know how long this vote is going to last last i checked, numbers were 43 to 45 with more nays than yeas so we dough know th know that tl be very close. jeff flake has already voted against it bob corker says that he is withholding his vote until he sees which senators come back in town, when they come back in town he wants to chat with all of his colleagues and kind of see where the landscape lies now, the reality here though is that this is all just a political exercise because whether this bill fails on the procedural vote or whether it fails on the actual vote, it is still going to fail. and so that means that there is no real plan in place for owe vefrti averting a government shutdown and senator scott was very straight with reporters, he said

it is either money for the wall or a government shutdown it is that simple. gop leadership says that they will remain in session in the event of a government shutdown if they believe that there is a path forward to compromise but guys, goodwill has been in short supply here on capitol hill >> just to make sure i follow what you're saying, the reason why it will fail no matter what is because they don't have the 60 votes to pass this bill even if they get to the point of voting on it >> absolutely. they only need 50 votes to move forward to the actual vote we don't know if they have 50, 51 votes in order to make that happen but even if they get to the actual vote, they need help from democrats and democrats won't do it >> so why does this even matter? if it is a -- is there any possibility that we get a surprise here? >> not really. right now all signs point to a government shutdown. why this is important is because it tells you where the republican party is. how many senators are going to

fall in line and support this border wall that many senators have said previously they are not fans of, they thought they had a deal with the president, he pulled the rug out from under them and now they are forced to come in and take this. so what this vote really tells you is where the republican party stands and how much division there might be within it as we look forward to a new year of even more division within government. >> exactly all right. thank you very much. ylan mui on capitol hill and eamon javers is at the white house and he has more on the resignation ever defense secretary jim mattis what do you have >> that's right, it was an extraordinary resignation letter from jim mattis last night resigning as secretary of defense saying that he will stay on until february to give the president an opportunity to name a successor and get that person confirmed as secretary of defense. but secretary laid out in essence key disagreements that he has with the president's approach to just about the entire world friends and allies and also

enemies and combatants here's what he said in his letter criticizing the trump administration, he says our strength is linked to alliances and partnerships he says he wants to treat allies with respect he says we must be resolute and unambiguous toward china and russia and signaling that he thinks that the president needs a defense secretary who is more in line with his views which is not what defense secretary mattis values. so the president has spent part of the morning this morning rebutting in effect mattis' resignation letter a couple tweets pushing back on some point from the president he says there has never been a president who has been tougher but fair on china or russia. never. just look at the facts the fake news tries so hard to paint t opposite picture he says i've done more damage to isis than all recent presidents, not even close that appears to be an implied response to jim mattis' criticism of the president for his decision to withdraw from syria.

the president of course has the constitutional authority to do that there are a number though of foreign policy and defense establishment figures who don't agree with that decision the president ultimately saying it is his call and he is ready to pull out of sear are i can't a syria and so he will do it the president will have to pick a new defense secretary. not clear who is at the top of the list the white house not even sharing a short list with us at this point. >> interior secretary as well. there is a lot of cabinet moves and mulvaney, the white house chief of staff, is only the acting as well >> that's right. >> thank you very much, and i monday jabbers and from the departure of mattis to the possible government shutdown, a lot forjabbers and from the departure of mattis to the possible government shutdown, a lot for investors to digest brian gardner with kbw is joining us good to have you with us >> thanks for having me. >> obviously a government shutdown is a serious inconvenience for the employees who will be furloughed and not

have a paycheck. it is an inconvenience for people who want to go to government and do business with government offices but if you broaden iout, does it matter to the equity and bond markets, does it matter to the overall economy? >> certainly in the short term no because you are just really delaying economic activity that is coming out of the government that is not happening due to a shut down. but the overall spending levels of the government will stay as is and so if you just shift it from the last week of december to the first week ever january, it doesn't matter in the grand scheme of things i will say it can have greater impact later on if it is a row longed shutdown. and the president did say that it could be a long shutdown. if we get into january and the treasury department is not fully funded, the irs is not fully funded and many people cheer about that jokingly, but there

are employees at the treasury department and irs who have to start processing tax returns tax refunds. and to the extent that tax refunds start getting delayed in 2019, that starts to become a problem. but we're not there yet. overall i think that it is just a wash >> so spin this forward for e. if a shutdown continues into the new year when a democrat majority will run the house of representatives, the gop will still control the senate, and let's say it is still going on the second, third week ever january, is the president courting a situation where he basically invites a veto override if the senate finally says we've got to get the government reopened because the pressure on our members in their home states is so great, we can't endure it anymore, is he inviting that? >> i coops of doubt it we'll have to see how the environment evolves. i think that it is a little early to be forecasting what the

environment will look like in january. but there is tremendous pressure from -- on republican lawmakers from their base. less so from the general electorate, but from the base to fund the wall. >> and the base today is happy because he is standing up for one of his principles. and if he can then go back to the base, whether it is in three weeks or four weeks and say i did everything i could to drive through this barrier, these metal slats, he still has the base with him. even if congress overrides it. >> each base is happy right now. the democratic base is happy with miss pelosi and senator schumer standing up to the president. the president's republican base is happy because he is seen to be fighting and standing up to the democrats. everybody is getting a bit of what they wanted we may get to a point in january where the base is satisfied that republicans have fought hard enough, maybe there is a little bit of a fig leaf of a compromise that they can walk

away from. a veto of the president, you know, the more i think about it, because i think it is a really interesting question, tyler, i have a tough time seeing it at this point i just don't think that there are enough republicans to bolt on that. >> so if the trump base is happy with all of this, why do you think that your readings as to whether or not trump will run again in 2020 have actually shown that the chances are higher that he will not now versus several months ago? you wrote in your mote that it is up to 25% that he will not run. >> so before i answer the question, let me just clarify. i still think that he is going to run i don't want to leave the impression -- the message coming out of the last couple weeks culminating with secretary mattis' resignation last night is i think that the chances have gone up. i think his political standing with the general electorate is weakened i think we saw that in the

midterm elections. i think that the way that mattis has left has driven the wedge between trump and the establishment and establishment type voters in suburban districts that are key to him winning. i think that wedge has been driven deeper. and so we've gone back and looked at quotes from him over the years and we found some interesting things that he said before becoming president about the fun that he gets out of the chase. the art of the deal and chasing some objective and once he gets it, i gets a little bored with it and when you look today, is he going to really enjoy the job over the next two years and does he want to go through that and go into a re-election campaign, you put that all together, and i think you start to see a scenario where he may not run. again with the caveat i still think that you will run. >> all right fair enough. brian, thank you >> thanks for having me. merry christmas. want to give you a check of

markets. dow down 181 points, but the real damage is in the nasdaq which may close in bear territory for the first time since 2009 bob pisani has more. >> 50 point move in the s&p, of course we moved up when steve interviewed mr. williams talking about further rate hikes was not a commitment, so calm down everybody. but they sold and it was sitting right near the lows of the day a defensive tone again here. nike had good earning overall. proctor and gram beamble is up. goldman has tried to rally apple, huge volume in some of these stocks today and if you want, take a look at communication services you mentioned the nasdaq we've had a tough day with netflix andgoogle, all down andi why the nasdaq is having a difficult time if you want to sell or buy towards the end of the year, this is the moment to do it. huge volume today. probably the biggest volume dy e

of the year. we're getting rebalances they will be for saline at the close. microsoft is increasing their weighting. either way, you will see big volume >> a wild ride on wall street today. nasdaq getting beaten up, down about 2% having its biggest weekly drop in nine months it is in a bear market right now. investors dealing with an impending government shutdown. let's bring in our cnbc contributors ronlg, ron, i want to start with you and take an apolitical look at this >> good luck >> i know. that is why i wanted to put that up front as a caveat the shutdown when it comes to

mattis and others leaving from the administration, what is it that this time around has captured the attention of the markets? >> if i were to translate it, i would say it was the triumph of bannonism and that economic nationalism will be more pronounced going forward >> america first. >> america first and even in a more dramatic fashion than we've seen. so as a consequence, some of that is good for wall street tax cuts, deregulation have helped corporate profits but not the stock market rather ironically so i think longer term risk is that the breaking of ally answers which is the kind of ultimate goal of steve bannon and others shows much bigger political and geopolitical risks than we've seen in a while.goals shows much bigger political and geopolitical risks than we've seen in a while. so the level of uncertainty has the market on its heels.

>> silg ve sylvia, you point out is the inverse etfs that are seeing the most successful performances no surprise. of course sectors that have been beaten up the most are seeing the most success in terms of the inverse etfs what are you seeing in terms of the flows? >> we're seeing continued flows, buts it not all bad news anything nat gas, energy bear, oil exploration have performed really well. low double digits. but on the bull side, we've seen some flow too. a lot are looking where to allocate and we just saw bob pisani put up the top two performers. you have discretionary and staples there. so we see investors kind of transitioning to a sector like

consumer staples for example >> they are buying the bunker. >> they are. >> but in terms of the signs that you might identify in terms of fund flows and other things in your business that might point you to capitulation, what would those be and have you seen any whiff of them so far >> the flows are telling us that the market is bearish on growth and becoming more bullish on defense and value types of plays and also names like emerging markets. so basically anything that is sort of crushed and might look like a value trade with some positive up side like emerging markets, for example we see flows into the bull funds. and again, that is like country specific china potentially easing fiscal policy, you know, brazil a stable president so we're seeing flows into emerging markets and consumer staples again consistent demand, persistent yield and we're seeing flows into the

bear funds again on the growth side so it is the big names pulling the market back. >> so in the middle of this segment, there has been a baby crying in the newsroom i think she looked at her 529. >> or somebody who just came up from washington. >> so what should i do if i'm nervous right now? i've got five days basically trading -- five trading days left >> that is not the type of advice i would ever again, but this is a bear market until proven otherwise in a bear market, rallies are short, sharp and alluring. and so raising cash to this point has been a good idea we're probably getting closer to the end and i think the averages catch down to the individual stock which is down much more than the market itself rather than the other way around. and so there will be some value names -- >> did powell's october comments the trigger? >> they were part of it. but we've had 28% profit growth in the third quarter and the

market sold off during that period we've had deregulation, tax cut, all of that happening this year and we have high single digit declines for the major averages. big double digit declines in some sectors the only two sectors that we look at that are up for the year, utilities and phrma. that is as defensive as you can get. so it looks like a bear market until you get the needed catalyst to turn things around >> have a good holiday thank you very much. coming up, congressman on the d.c. dysfunction and another issue that he has made a top priority tech regulation. he says congress needs to act now and he will join us live next plus when jim cramer says it is time to buy gold, it gets your attention. so should you add to your portfolio and if you haven't bought all your christmas gifts, you are running out of time. we look at the potential winners and losers this holiday season

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and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome. what a week in washington. a showdown between the president and republicans, a looming government shutdown and the resignation of jim mattis. joining us from capitol hill is representative from colorado welcome to you, sir. >> thank you for having me on.

>> what is going on? the senate is now taking you up a revised spending bill after the one you passed last night? what should we expect here >> it is embarrassing when i talk to friends and family this should be really simple we should be able to agree on passing a resolution that keeps the government open through christmas. we all thought we had that deal. and then the president listened to laura ingraham, rush limbaugh and a number of the commentators on fox news and insisted that we have a $5 billion border wall added to a clean continuing resolution and this has blown up the negotiation. there is a majority who would vote just to keep government open until next year and there is no reason to add the border wall debate to this. >> we're kind of pass that had though the house did pass that last night with the border wall funding, so we're all trying to figure out if the senate can come up with something to avoid a shutdown when are you leaving town? >> i'm here. i'm not leaving until this is

resolved and the senate doesn't have the votes. they don't have the republican votes to pass a $5 billion -- >> what would it take for there to be some kind of bill that had both some republican and some democrat support >> i think it is what frankly mitch mcconnell proposed let's just keep the government opened through the holidays. we can rebdebate the bigger issues when we come back the bill would have extended the government until february 8. we haven't had a border wall for two years. wong month longer is not going to create any crisis it is a manufactured crisis. and most people realize that to protect our borders, there is a lot of electronic sensors that are required you don't build a wall which is a 15th century concept in silicon valley, we're working on a lot of things about sensors that can protect our borders in a much more thoughtful way >> but he's saying border security that could be a wall or some other type of structure.

but that border security is the idea but putting that aside for just a second, we're talking about a maybe 10% of the government shutting down tonight because there is a lot of other parts of it that will be funded already so the shutdown itself probably won't have any impact at all so what happens come january >> well, the shutdown is going to affect hundreds of thousands of federal workers who won't get their paycheck for christmas and it creates further sense ever a dysfunctioning government which isn't helpful at a time where the markets are already taking a hit, where investors are losing confidence in the stock market we need to be assuring folks that there will be competent government to stabilize the market so it is in everyone's interests to get something done and keep government open as we head into the holidays >> congressman, a lot of people have pointed to the extreme weakness of big tech stock we have netflix and facebook done 40% from their recent highs and there is so much talk about regulation is big tech the new wall street

frankly? maybe it doesn't drive us into an economic crisis, but the stock market declines have been pretty breath taking what do you think the message is >> i'm still a tech optimist and technology companies still have strong approval ratings. that said, they have made huge breaches and we have to have smart regulation i mean, it was appalling to read about how they are allowing third parties to read our private messages on facebook i believe that we need an internet bill of rights. americans need to know what is happening to their data. and they need to concept before their data is being used and this will help restore public trust and make sure that tech isn't viewed negatively as some industries are. >> i think that it will enshrine them even more this will make it harder for there to be competition, isn't it >> it will if the reports in the "new york times" are true, that is

stifling competition they basically have these partnership agreements where they are sharing data with other big companies. and it is not allowing new entrants to emerge that is not healthy for growth or innovation. >> other places to go, other things to pick from. congressman, thank you so much and i was going to say merry christmas and all that, but i don't know when you guys are leaving. >> well, i appreciate that merry christmas to you but we have to figure out this mess people think why can't you get your act together and keep government open. and it is really frustrating to people and i know that there are a lot of people who want to do the right thing to keep government open >> all right congressman row can in a oig, thank you so much. coming up, jim cramer says now is the time to add gold to your portfolio is he right? stay with us

slowdown in the housing market has been a boon for apartment rentals because people still need a place to live diana olick is live in washington >> reporter: barely a year ago

analysts were warning that the apartment market was overheated and overbuilt. millennials were finally buying homes so demand would weaken right? wrong. new apartment units are being rented out now at the fastest pace in three years, that according to the u.s. census apartment construction took off in 2012 and reached a 20 year high in 2017 it stayed elevated this year, but occupancy is still very strong and represents still rising why? because home prices overheated and mortgage rates jumped this year making home buying even less affordable. that will likely make are more renters stay renters longer than they might have anticipated in order to save for a larger down payment. >> demand has been better than expected it has been a stickier tenant basis. and pricing power at that tenant base again has simply surprised us >> reporter: this could present investors with a relatively safe bet in a volatile stock market namely the multifamily reits

green street has an overweight on all the sectors even single family which have been beat up baitly, lately but could have strong earnings in 2019. bank to back to you. >> have a great holiday weekend. >> you too >> people will have something to celebrate. i tried to bridge that >> i don't know why, but we'll go to mike santoli at the nyse what have you got? >> who ever knows why. thank you very much. let's talk gold. it is lower today. has been offering some shelter against the stock selloff this month though precious metals resilience even drawing praise from jim krarm last night so will the traditional safety play continue to outperform? craig johnson and erin gibbs craig, does the move have legs or no? >> you know, i look at this

chart and i think cramer is spot on correct it looks like we're putting in a bottom here and it looks like we'll see this maybe 9% to 10% higher to get back to the old highs. cramer talked about it being a bit of a fear trade. i think that we could see some weakness in the dollar her given that the fed might be less hawkish going forward. and that might be really the underlining driver as to why we'll see the gold prices go higher and it should be certainly very good for stocks like abx, the value side of the world at this point. >> and i guess it comes do unto whether you think this is the moment perhaps to play a little bit for safety >> so as cramer was saying this was a fear trade, but they tend to be short lived rallies. and this has been going on since about september. so for me this seems a little long lived for the amount of fear now, i don't see it ending just yet. perhaps not before the end of the year but certainly as we get into 2019, a lot of the concerns that

we have, tariffs, brexit, so on, as those dissipate and we start looking at the fundamentals again, this can be very swiftly undone so i don't recommend invest are tors getting in here now particularly when it has been going on all of september.are tors getting in here now particularly when it has been going on all of september. so i say this is a better time to look at equities. >> i guess gold rallies sometimes run out of chaos erin, craig, thanks a lot for your thoughts on this. for more trading nation, head to our website or follow us on twitter. over to sue herera for a news update >> thank you so much here is what is it happening supreme court justice ruth bader ginsburg is recovering after surgery. doctors removed two cancerous tumors from her left lung. fortunately there is no sign of further complications. video released by the israeli army today shows the idf destroying four tunnels that reach into israel, they were dug

by hezbollah israel announced that they discovered the tunnels earlier this month the second biggest airport in the united kingdom is closed again. london's gatwick has been hit again by drones flying close to air traffic. this is just 11 hours after a 24 hour closure for the same reason and the nhl's bruins are in the holiday spirit look at that several players arrived for last night's game against the anaheim ducks decked out in holiday themes the bruins won by the way 3-1. that is the news update this hour back to you. >> anyone? on the suits >> i'm not wearing that suit >> "fast money" new year's eve >> i'll tune in for that coming up, you have four days to get your christmas shopping done. stores are gearing up for the last minute rush and courtney reagan is right in the middle of it all courtney >> reporter: hi, kelly if you are not done where your shopping yet, you are far from

alone. i have the expectations for super saturday and the season's scorecard so far coming up on "power lunch."

take a check of the markets. it looks like the dow is making a bit of a comeback. we had seen losses twice as bad as what we're seeing right now the dow down 194, s&p 500 down by 25. nasdaq though is still down the most, down by 127 points or almost 2%. eight out 1of the 11 sectors, o pace for its worst week since

j jan 2009 there is the countdown to the shutdown and then the countdown to christmas time is running out on both. so if you haven't done your holiday shopping yet, you better get going. courtney reagan is in the middle of all the last minute shopping madness. courtney >> reporter: hi there. you know, this mall has only gotten busier as the day has gotten on and tomorrow is super saturday, expected to be the second busiest shopping day of the year behind black friday a quarter of americans still have things to check off their list, 134 million are expected to shop tomorrow, that is up from 126 million last super saturday and target ceo expects tomorrow will once again be one of the retailer's busiest days of the year kohl's staying on open for 83 straight hours and unless you pay for rush shipping you are out on time online, but pick up in store orders are expected to surge in

these final days before christmas. click and collect is up 47% so far. dick's sporting goods expects percentage of online orders for in store pickup to triple. and during the year about half of all target's digital orders are either picked up our fulfilled by the store, but in the final days before christmas, it surges to about 80% and new mastercard spending data for the season to date through yesterday shows sales are up about 5% compared to last year so the recent stock market selloff is not deterring shoppers from cashing in at those registers. back over to you >> courtney, thank you and so is this a make or break weekend for retail and whole w be the biggest winners and losers jerry, good to have you back >> good afternoon. >> and so if sales are as good as lots of us think, why aren't the stocks doing etter

>> i think there is a bunch of reasons. first of all, it is not the consumer they are spending like crazy they have been all year. and that has continued based on everything that i've heard and all the data that you have seen. i think first and foremost, people are worried that it won't continue and that there will be problems in the future and stocks are always forward looking. also secondly, there is a lot of margin compression taking place. so sales are one thing, but profits are another. and a big part of that is that sales shift from bricks and mortar to line oig, mon line il crushed. and there is a concern over the trade wars there is a lot of pressure looking forward on retail. but it is not about holidays it is not about consumer or christmas. they are flush with cash they are employed and wages are up >> as you look at the landscape of retail companies, which ones seem to shine brightest to you and which ones have more trouble

ahead? >> well, a few categories are well positioned. firstly with all the pressure on retail, those that offer real value, deliver low prices every day. so walmart, amazon of course, costco, t.j. maxx and the dollar store. so i think those are all good bets a second category of winners are those who offer truly differentiated products. something you cannot buy everywhere else. if you can buy it somewhere else, then the price will get crushed. so who is like that? nike and we saw their results today you knew that was coming because they have done a brilliant job and it is very vertical. they control the pipeline and their distribution lululemon is in the same category and a bunch of retailers where the products they sell are their own products who are the losers by definition who sell undifferentiated product that you can get everywhere their prices will come crashing

down and if it is not a special product, they won't get the consumer so people like sears i think penney's is this big trouble. i think the traditional grocery stores are in the same position. they are offering product that are available everywhere else. if it is not special, it is not going to work. and finally anyone who is highly lefr leveraged is not going to play out well because there is so much capital spending to grow both the internet and to make the stores more beautiful. those with a weak balance sheet are going bankrupt >> you made a really good point there, the stores that stand out are the ones that offer an experience, a differentiated product and a place you want to go in other words, one that looks fresh and good and that costs money >> it costs a lot of money it used to be that retail was a cash machine because it is

really hard not to generate cash from physical stores but then the internet came along and forward looking retailers knew they had to invest in the internet that meant their margins would be under pressure and a lot of capital spending would need to go towards those systems but then the stores couldn't deteriorate, they had to be better than ever in the internet era or else customers wouldn't come at all. so now you have two pillars requiring significant investment and only those large enough and well capitalized enough and well positioned enough competitively will be able to make it work in the end amazon will have bricks and mortar but only the big winning guys will survive. >> thanks so much. appreciate it. and i was in a store in minneapolis last week called martin patrick, it was a men's store that had home furnishings as well. and it had everything. and it was one of the best shopping experiences i've ever had. they handed out champagne.

they had a piano player. it was really good and the selection of merchandise was -- >> expensive >> yes, expensive. but it had all kinds of stuff. you wanted a light fixture, they had it it was a design and fashion store. really a different kind of experience >> interesting. >> martin patrick. >> and we'll check out shares of jd.com we're seeing the stock spike by almost 4% right now. minnesota prosecutors have been weighing charges against its founder richard liu. he was accused of rape by a college student back in august apparently they will not go ahead with the charges so richard liu will not be charged with anything in connection to that case so the stock up by 4% right now nasdaq in a bear market, two-thirds are in correction

territory. pore portfolios are way down. so could there be a recession? we'll take a look at the wealth effect next. doctors and surgeons and all the life savers. the world is alive as you can see, this time of the year is so much more than a bow and a tree. (morgan vo) those who give their best, he

. welcome back

want to draw your attention to shares of goldman sachs. they are down more than 4% we also have a statement from the ceo on the company's website where he defends the firm's culture over the 1 mdb accusations. goldman in general has been down about twice as much as the overall banking sector saying they have a culture of compliance that is strong and posting a message saying while we understand the anger and skepticism, we do not believe the criticism directed at us accurately reflects who we were then or who we are now again, those shares still having a tough session down more than 4% the selloff in the markets in general has plenty of people rattled and when the wealthy pull back on spending, it couldy >> and the concern is that the wall street worries could become a self-fulfilling prove prophec. for every dollar you gain in

wealth, you are likely to gain an additional two to three cents. but it is stronger in the reverse. so every dollar in wealth that you lose results in a five cent decline in spending. as of the third quarter u.s. households had a record net worth of $109 trillion the previous two peaks in household wealth, they were right before recessions. so not a good sign there the stock market has lost $2.5 trillion in market cap just this month. that could reduce consumer spending according to the wealth effect map by $125 billion now, mark zandi said december's fall alone could shave 0.4% off gdp in 2019 if the losses hold one big caveat, real estate has not fallen so that could offset the negative wealth effect there are three sectors that would likely be hit the hardest.

first of all, airlines, then home improvement, building and hardware, all the home improvement stuff and hotels it turns out when people lose investment wealth, vacations are the first thing to go. >> makes sense >> especially in the day where experiences are everything. day experiences are everything >> and if you think one thing you need is a vacation >> capital gains could be a problem for the budget next year and for the whole government >> absolutely. one reason is a lot of people for the first time can declare some losses on some stocks they are selling this month to get losses to offset other gains. it's the first time you have had that in a few years. it could add to some of the selling pressure >> thank you very much. the dow was up about 400 points they are now near session lows yet again with the dow off 201

points s&p and dow dropping about 6% this week. more for the nasdaq and yes a government shutdown seems to be 'lfast approaching 'lfast approaching wel get the traders take next. what do you look for when you trade? 'lfast approaching wel get the traders take next. i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ air velocity is reading at fifteen fpm. why would you need to learn every detail about a company?

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>> it has been a wild day on wall street. it isn't a bare market territory. joinings now is gor dan. good to see you. >> nice to be here >> on a technical level we are searching down here a little bit. gravity is taking over i think today what people are focused on is the fact that this is probably the last major volume day we'll see this year. it's rebalanced and institutions will be that is in new york it

will light up down here. i think there's a little bit of anxiety and we are going to have to have our seat belts buckled >> why couldn't be market hold its gain this morning? >> look, they were looking for some sort of posztive territory they indicated it was sort of a compromise and to what's going to happen down the road going into next year what do we have to hang our hat on what will reverse this thing the trend is the downside. the risk is the downside we are looking for infrastructure spending and some sort of deal coming out of china. in light of what's happening here it doesn't seem like the tea leaves are lining up for

anything being to the downside the growth seems to be stagnating we are having a hard time it's like we are peddling in quick sand [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarilyed. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today.

we would be remissed not to mention shares of snap below $5 in a long time it was as high as $21 in the last 52 weeks. it is now trading at $4.92 >> i'm watching shares of facebook they are down 20%. it has been a rough ride it is down 5% today. a german bank cut it the price target from 215 siting the impact that regulation might have on the companiment they might have to increase spending. even though most of wall street is rated as a buy we are starting to see it sort of creep in i think it's an important thing to start seeing that there's

knowledgement, that there are headwinds that will cost this company money. >> i have 20 seconds to talk about the return of volatility now you have all of the volatility you need. a 600 point swing today followed by multiple swings recently. it has been one of the big stories of 2018. >> thanks for watching power >> have a great weekend everybody. what we will be doing coming into next year is reassessing our views, listening to not only markets but everybody that we talk to. >> those words earlier from new york fed president boosting stock but the gains quickly faded. coming up on the closing bell, we'll discuss whether the fed's new tone can turn the direction of stocks in the final stretch of 2018. nike shares soaring today. we'll take a broader look at the