stuart: i never said pathetic. i said disappointing. i never said pathetic, i said i'm disappointed we didn't go up to 600. dagen mcdowell in for neil cavuto. >> say it with me, i want it, and i want it now. >> ahhhh! you better explain to our viewers who varuka is? >> the biggest spoiled brat on planet earth, she was on willy wonka and the chocolate factory. that is what we have this day, what a difference a day makes, green across the board. 340 gain after the 588-point loss yesterday. the dow lost more than a thousand points last week, trying make a comeback here. oil heading higher this day. take a look at the cost of

crude, $40 a barrel mark is critical. i know phil flynn is looking for it as a sign of positivity in oil. we'll hear from him later on. one reason for today's big rally. china is cutting interest rates and trying to do more to juice its economy. connell mcshane has the latest. hey, connell. >> interesting, dagen. what the chinese did, we were waiting throughout the trading session last night our time, into the middle of the day, into the afternoon, into their close, nothing would they intervene, get involved. then after the chinese stock market closed for the day and had fallen again. the chinese did step in and cut interest rates, fifth time since november as they cut the one year lending rate to 4.6% there. was action taken by the chinese. they didn't see it in their markets, because it came before the open in the u.s., we're seeing it here. the futures are up before the chinese acted. the chinese stock futures,

they're up. maybe it helps them in tomorrow's session, and they could use the help. now the target economic growth rate in china, coming from, of course, the government and the premiere there, that's still at 7%. so they feel like they can get there. that's what they're saying, nothing is fundamentally changed with the declines in the market and the economic trouble we've been talking about for the last few days. the rate cut, an intervention, dagen, the government getting involved. maybe more acceptable to say a currency devaluation which they've already done. they cut rates and you could argue it's helping with our markets bouncing back so far. >> we complain about central banks and cheap and easy money. >> green on the stock scene. you are right. new case-shiller prices on home prices for the month of june. up 5% from a year ago, but is housing overvalued? what about stocks? bonds?

bob shiller saw this weakness in stocks months ago. he's joining us and he's a nobel laureate. you know more than we do, bob. good to see you. >> i don't know about that, dagen. >> yes, you do, i'm going quote from an interview that you gave i think in early june, late may, and you were talking about the market environment. this time is different because bonds, and increasingly real estate and stocks all look overvalued, which even going back to 1929, stocks were overvalued but the bond and housing markets weren't. do you see -- let's focus on stocks, are all the markets overvalued right now? >> well, you can't say all markets everywhere, but there seems to be a tendency around much of the world for high-priced assets. like a general phenomenon, and at the same time, when we talk about secular stagnation. maybe they're related. something about the psychology right now. >> talk about that, because i wonder about the psychology of

the individual in this country that has been through so much in terms of losses and financial assets, going back to 2000 and 2008, people lost their homes. could you see increased volatility because today the psychology is different than it was in 08? >> yeah, well, the psychology is very hard to judge it because there's so many different people. i do questionnaire surveys to try to figure it out. >> i know you do. >> i think that people are generally anxious about their future, and then on top of, that we have the turmoil in the market over the last ten days or so. and that turmoil has a different edge to it. it isn't over yet, though we saw the big rally today. when you see a big market drop, it scares people for a while. >> so when you say it's not

over, how long is a while in your view? >> depends on what happens next. after a year, if it's good, this will be pretty much forgotten. this was not, you know, a historic move that would be remembered like 1929. but we know, we still remember in 1929, we weren't even born then. >> and we remember 1987 and i was wearing jeans and a ripped t-shirt and had bad hair. >> i still remember a long walk, i took that day trying to get my head together. what's happening? in 1987. >> put this market in historical perspective. do you think that stocks are still overvalued here? do you think that bonds are overvalued? and what about real estate? talk about all three of the major asset classes. >> yeah, they're all overvalued. the case index at close it was 24. it's a little above. that historical average of only 17.

so the housing market has gone up quite a bit since the bottom in 2012. it's been a rapid ascent. it looks bubbly there, and, if the bond market. people attribute that to fed policy, but there's something else deeper going on because it's not just this country. >> what is it, then? >> well, i like to speculate about that. >> go ahead! you can speculate all you want around here. >> i have a third edition in my book irrational exuberance where i talk about his. i think there is seer of secular stagnation, seer of jobs, people looking ahead to their own future are more insecure, this is all over the world because of rapidly changing economy. information technology, dazzling new technology, and it has people feeling edgy. what will i be doing in 20 years?

what will my children be doing in 40 years? encourages people to buy things and bid up their prices generally. >> bob, looking at those asset classes. which one of those do you think, stock markets, bonds or housing, has the most downside risk? >> not sure they know the answer. right now i think of stocks, but you know i don't have a good solid -- stock market has been more volatile historically, and we've seen the volatility in recent days. i don't know whether it's going to dissipate. i'm more worried about stocks right now. >> what's the last investment you made? have you bought a new home recently? >> money market. >> for real, and you're getting paid nothing, almost nothing. >> yeah, right? >> do you think the fed then does need to raise interest rates. that would help savers, wouldn't it? >> yeah, they should have raised interest rates somewhat

before. we have a bubbly situation. on the other hand, there isn't much inflation happening, and the fed is, you know, sees no immediate reason to raise them. they're likely to postpone it, if the stock market doesn't improve. >> bob, it was great to see you, as always. thank you so much. bob shiller joining us from new haven at yale. see you soon. >> my pleasure, dagen. look at markets, stocks bouncing back in a big way today. bob shiller is worried about the direction of stocks. looking at three major asset classes, and jim lecamp says we're not out of the woods yet. we could face another big drop. good to see you. how much of a drop? >> i think the capitulation we saw yesterday. i think we saw several signs of capitulation was the beginning of the end of this sell-off. but we're in the time frame of year between late july and early october where we tend to get a lot of volatility.

we're going to see more skittish investors are more fear about the fed, but i don't think the federal reserve board is going to raise interest rates, and i think most of the damage in the sell-off has been done. at the end of the day, the u.s. economy is still growing. i don't disagree with anything with what robert shiller said, the u.s. economy is growing better than most parts of the world. we're going to benefit from global money flows because people are worried about china and japan and europe, i think that means money comes to the u.s. and many parts of corporate america are doing well. not all. particularly the energy sector isn't doing very well, but many parts are. so i think the stock market will get a bid from here, and be higher by the end of the year, i just think that the volatility isn't necessarily over, and we could see up to 10% drop. so a 10% drop, but what about the end of the year from here? higher? >> i think the end of the year is higher, and i would be

surprised if we got the 10% drop from here, but certainly at this point, you can't rule it out. i want to point out one other thing. >> sure. >> this market is very unloved. this stock market is more unpopular than donald trump in mexico. nobody has liked this stock market. retail investors have been bearish all the way through, lately newsletter writers are bearish. a lot of cash on the sidelines, you've exhausted a lot of sellers, i think we exhausted a lot of sellers over the last few days. that's a constructive way to look at market, and we're 5, 6% higher from here. >> let me raise an issue with you. you talk about the healthy economy coming here because of that. what about the psychology of the investor already worried about investing in the stock market, but maybe does this volatility change their behavior to the point that you have an economic slowdown? >> i think it does change their behavior. people are very worried. they're worried about everything, they're worried

about jobs, worried about the energy sector, now worried about china and what's going on there. >> people are not worried about energy, they just want gas prices to go down and can't figure out why oil is below $40 a barrel and paying $2.50, $2.60 a gallon. >> that's true. in texas people are worried about energy prices, i can assure that you. >> fair enough. >> and investors are worried about energy prices. that could mean default in the high-yield sector, there's a lot of debt attached to the energy sector. will it change their behavior? i don't know that it changes it that much, dagen, because this has been a very unloved, underowned stock market to begin with. it does change it some to the negative side but by the end of the year when they see stocks moving again, i think you'll see money come back into the market. >> jim, good to see you, thank you, sir, we would never know you are in texas. never could tell by the accent. you might as well be up the

street in the bronx somewhere. jim, thank you. >> thank you. >> to nicole petallides at the corner of wall and broad at the new york stock exchange with comeback stocks. nicole? >> looking at the stocks that were beaten down over the last few days. right now the dow up 357 points on good volume. not quite as heavy as yesterday, but above average volume. apple, for example, hit a low of $92 yesterday, and finished to the downside of 2.5%. right now is up 5.7%. so a $109. jpmorgan chase, goldman sachs, disney, you see goldman up 3.9%. microsoft,ing procter & gamble, nike, johnson & johnson, bouncing back. procter & gamble yesterday down 3.7%. right now up 2.4%. hasn't quite recouped the losses from yesterday. we're not tacking in the losses from thursday and friday also. you got to remember this was a big sell-off. across the board, plenty of

green arrows on decent volume as well. back to you. >> thank you so much nicole. great to see. >> you you, too. >> he was an aide to former treasury secretary tim geithner during the 2008 financial crisis. why he says this is not 2008. that's an option?

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but it does beg the question, the kind of volatility we're seeing, the wild swings, what about 2008? is this 2008 all over again. former tim geithner aide, aaron klein is here. he says don't panic, it's not the same. i guess when we were talking before the show about this, i thought this is an option that this is 2008 all over again that the entire banking system around the globe is going to collapse? that's not possible. >> it's not. thank you for having me here. i was there in 2008. i remember when the stock market fell 1,000 points in an hour when congress unexpectedly voted down tarp. that was a financial panic. this isn't. there is a lot of volatility, huge swings in the market. this isn't the beginning of house of cards collapsing that threatens our financial system. dagen: my guest in the last block was talking about the leverage within the energy sector, within a lot of the energy companies.

i do worry about the financial exposure of banks and other lenders to that. is that worrisome to you? if you want to talk about shaky financial underpinnings? >> sure, there are a lot of areas to be worried about, energy is one, usually when there are huge booms and busts in the energy cycle. energy banks and the oil patch and fracking areas in north dakota, they could definitely suffer. banks with exposure to companies that do a lot of business in china or asia could potentially suffer. nothing endemic going through the system here, this isn't a moment to worry about financial stability, and the price of oil may continue to fall. it's not clear that's a bottom. dagen: what does this look like to you, aaron? what time period? >> reminds me of the market volatility swings during the accounting scandals of 2002. people forget during the enron scandal, the market fell almost half in value on the equity side and reminds me of the

temper tantrum in 2013. the markets freaked out and the fed backed off. i think that's going to happen again. dagen: do you think the sell-off, because we talk about china, you have the commodity bubble bursting. do you think some of the sell-off, if not a large part of it is directly related to people worried about the federal reserve raising rates one quarter of a point next month? >> absolutely, not just the quarter point, the signal that 0% interest rate is over. and how much are rate going to raise? how fast are they going to raise in the fed keeps saying they're going to be raised gradually. what does that mean? investors are certain. historically when the federal reserve raises interest rates, the recession happens a couple of years later. that will be bucking history. dagen: when are we going to get off the sauce? you have people talking about wanting the fed come back in not only raise interest rates but start buying bonds again.

when is this going to end? at least tarp and that bailout, that's kind of over, that's in the past, but this bailout of everybody, and particularly speculators has been going on since then. >> well, speculators ought to lose, if you haven't made an investment and didn't work out for you, you ought to lose. tarp is mostly over and i think history will look back on it kindly and stabilize the financial system, turned a profit to u.s. taxpayers with regard to investment bankers and banks. with the fed in 0% interest rates, they're in a quandary, they need to raise rates to get us off the sauce. it triggers the very recession they're trying to avoid. they're trying to put bullets in the gun to begin to fire next time there is an economic slowdown. in the process of reloading, they may cause the problem they're trying to solve. >> the thing that is irritating, they haven't raised rates yet, they indicated that they might sometime between now

and the end of the year and you haven't seen economic weakness because of that. talking about a slowdown or recession. we see market gyrations and people start losing their minds? >> you have seen market gyrations, they're not sure. the fed had 0% interest rates for a long time. liftoff is very tricky for the fed. but you've seen commodity price collapse and there's no inflation, so people are asking why are you raising interest rates if there's no inflation? >> right, the fed doesn't like bubbles, and that burst, one less they have to take care of. i suppose. aaron, great to talk with you, aaron klein. >> pleasure is mine, thank you. dagen: next, if china's problems have been around for a few months, why is our market reacting so violently? our next guest says this is not a good time.

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dagen: markets to the upside, bigtime today. not quite a 180 from yesterday's panic global sell-off, but pretty close. investors might have been caught offguard yesterday, but bob says he saw this coming. bob, prove it! [ laughter ]. >> well, i can't say i can prove it exactly. i would say i expected this to come sunday. you had three big downdays in a row. i'm not surprised we get a rebound, one day rebound doesn't change a trend. this trend's been down, i think that trend will continue, even if the trade is up a bit. dagen: how did you see this coming, though? >> i saw the downturn coming, i think the dow will come down 20% before the fed pumps it back up. the rebound is not unexpected. markets don't go straight down, and we're certainly, it could

be a while before we hit 20% and the fed has to come in. i think the fed will come in and pump it back up. dagen: but why? why? i raised this question in the last block with the last guest, why does the fed feel excelled to rescue financial markets? >> great question, but i say because they've gotten into, it it's like, a once you're on, it it's hard to get off, as the last guest was talking about. it's very, very difficult to get off the medicine, and i think the fed is committed and has committed itself to maintaining these markets. well above what's going to be a long-term market equilibrium. if the market goes down, it can set off a financial panic, down 30, 40%, the dow will feel compelled to get back in, with money printed. dagen: people point to the downdraft in commodities as evidence there is deflation out there, what if it's just the popping of bubble inflated in

the first place by the ocean of cheap money around the globe. that's the thing i don't understand and don't get that a quarter point hike and then a stay would be disaster for the u.s. economy and the stock market? >> exactly. used to be a quarter point was nothing, and we would do that periodally and no big deal. it's not a disaster for the stock market. the stock market is fragile. commodities have been going down for a while. not a big deal. all the downturn in the markets in the last couple of weeks, i think again it's a market that doesn't have a lot of buyers in it, and when the buyers walk away, and aren't too interested, it's vulnerable, and no fed helping to juice the market, stock buybacks, the other big buyer, they're not going up, not necessarily going down, vulnerable to a decline. you are absolutely right. a lot of other things are changing like commodities, but i don't think that's necessarily popping the stock market bubble right now.

might be making people worried about china, china is one element affecting our economy, and i think people are nervous. it's a faith based stock market, and people are losing faith. dagen: janet yellen better stock up on aspirin, she's going to be a target in the coming months. good to see you. >> thank you, dagen. dagen: presidential candidates speaking of them weighing in on the market turmoil. donald trump saying we need to decouple from china. more d.c. reaction next. these two oil rigs look the same. can you tell what makes them so different? did you hear that sound? of course you didn't. you're not using ge software like the rig on the right. it's listening and learning how to prevent equipment failures,

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. dagen: the 2016 presidential candidates weighing in on this market volatility, blake burman in d.c. with the details. they can't help themselves, blake? >> they were all out, there a lot of them were yesterday, in the middle of the volatility, the volume certainly turned up by many of the presidential hopefuls. scott walker called on president obama to cancel the upcoming state visit by china's president. donald trump continued his month long warning about china calling for an uncoupling from that country. >> we're tying ourselves so closely to asia, and in particular to china that this is going to be trouble for our country. not only now have they taken our jobs and base and manufacturing, but now they're pulling us down with them, i

said we can't do this. >> others set criticism on the government and the administration at home. mike huckabee blamed the federal reserve saying the stock market is artificially sugared up. the former h-p ceo carly fiorina has been pointing to the economy. >> i've been pointing to a correction because the underlying fundamentals are lacking growth, 2% is lackluster. >> bernie sanders criticized the institution, he's done so today as well. jim webb posted on his facebook page that china needs to be more transparent. notably absent from the conversation, hillary clinton, she did not have public event bus hasn't used social media platforms to address the state of the market. dagen, back to you. dagen: thank you very much, blake burman from washington. and to jerry stein from the "wall street journal" why business leader notes have the

best record at running for the highest office in the land. jerry, great to see you. talk about trump and carly fiorina, is trump ross perot or neither? >> well, we'll find out, won't we? at a minimum what donald trump and carly fiorina are trying to do is buck a historical trend, the business people tend not to do all that well in presidential politics. every four year a clamoring for let's get a successful business person in the presidential race and the white house, they know how to get things done. the reality is they don't do well, often they shy away from presidential politics, understandable, it can be a tough and unpleasant business, and i'm not sure the skill sets are the say. we didn't have a president mitt romney, president herman cain or lee iacocca or president

ross perot tried in the 90s, he didn't get over the hump either. it's not an arena business people do as well as if they engaged in it more. dagen: why is it, jerry? they have the ability to connect with the crowd, you see that with donald trump but with carly fiorina, she knows how to speak with large masses and choose words carefully. what is it about the jump for running an economy to running for office? >> maybe one of the two people will be the exception that proves the review. a couple of reasons. skill setter are not the same. anybody who watched a presidential campaign up close will tell you it requires suffering fools gladly month after month, you have to hear from a lot of voters, you have to be patient withlet haves and cajole your supporters to persuade what you want.

a ceo wants to give an order and have it followed, different dynamic entirely. there is also the reality that people underestimate how hard it is to run for president. and having experience in the political realm, to see around corner and how things reverberate in the political world, is a skill set, and hard to pick it up on the flight. the third thing i would say, one of the ironies of this, if you've been a successful business leader, you've made a fair amount of money, that puts you in the category of people seen as too rich to connect with the average voter. the symbol of your success which is the financial rewards you get for succeeding in business is a handicap in the political environment. dagen: we found out from donald trump, the one area that he's decided to target in terms of trying to appeal to the middle class are hedge fund managers. so i want you to listen to another piece of sound from donald trump on o'reilly last night. listen to this.

>> this is the greatest theft in the history of america, with the money they've taken out. we have rebuilt china, now it's gotten to a point, they've devalued their currency, to take more from us, and we have nobody that's competent. nobody that knows what's happening. we have nobody that knows how to handle china. believe me, we have all the cards. dagen: jerry, people who like him listen to that and go yeah. we're going to take down china. but anybody, if you think about it for more than five seconds, you think well, we get a lot of our goods from china, they're inexpensive. our greatest companies, one of the big growth markets, selling into the emerging nation. they're the largest or second largest owner of our debt. we don't want to poke them and make them mad, do we? i want to get your reaction to that because he's doing what a lot of bigger -- >> more than the points you just made, there's the reality

if you run as the champion of free enterprise, you have to believe that people who run businesses make investment decisions and choose to invest in operations in chinan what they're doing, if it doesn't work out, it's their responsibility to adjust. i don't think you can necessarily say you need to take on china in a way two economies of the two countries are way more linked than in the case of the u.s. and soviet union because people in the business community made decisions that say that's a good thing for us, not a bad thing. they're capable of making the decision it's not a good thing any longer. dagen: i'm waiting for him to propose building a big dome over the u.s. and we keep everybody out. you don't need a wall, maybe a big net. a net between us and china and japan and the rest of asia. a wall and a net. that's my proposal. hey, jerry, thank you. >> thanks, dagen. dagen: good to see you. there weren't many winners during yesterday's sell-off.

stocks are rallying today. adam shapiro with some of today's winners and losers. >> let's start with some of the winners after yesterday, i think people would enjoy that. we can show you right now. best buy is enjoying a rally today. let's go to the best buy. there you go. best buy is leading as percent gainers in the s&p 500 up 15%. console energy up 11%. netflix, who doesn't netflix? and going into china. maybe the chinese economy will get fixed in time. up 8%. and a few others doing well. let's talk about some of the losers, one turned into a winner, but let's take a look at them. newmont mining corporation, down a little over 2.5%. merck is down today, over on the dow, the only component that's down today. and discovery communications had been down, but they are up a small bit, but green arrow is

a lot nicer to see than a red one. dagen: much easier day, thank you so much. adam shapiro in the newsroom. next, we head to the cme to check on oil and gasoline prices and good news out of indiana. stay with us. technology empowers us to achieve more. it pushes us to go further. special olympics has almost five million athletes in 170 countries. the microsoft cloud allows us to immediately be able to access information, wherever we are.

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. dagen: not everything is up today. metal prices falling as stocks rally. gold and silver both down about 1, 1.5%. you can see that glittering gold there. silver off .75%. below the $40 a barrel mark, but a rebound we have. jeff flock at the cme with more, hey, jeff. >> big gains but stuck where we are, between $1 and $1.25. i don't think we're going to get above 40 today. good news on gas prices, want to get to that in a second. the reason there is good news

on gas prices, the refinery in whiting, that bp refinery has been restart. what they call pipe still 12, back on, that's part of the refinery that refines the western canadian heavy tar sands crude has been down, sparked prices in the u.s. hurt the national average. take a look at chicago prices versus the national average. we complained about nationally gas prices not coming down as much as oil. in chicago, much worse than that, almost a dollar difference, if you look a year ago this time, it's about 40 cents difference. costs more in the major cities but much more right now, i just talked to phil, and we'll have him next hour, he said that already wholesale gas in chicago as a result of the refineries starting spiking down, that's not a down, what do you call that? a dip. dagen: flattened. where i come from. >> it's going down. dagen: dropped a g, it's critical. thank you, jeff. see you next hour.

onto gerri willis what financial advisers are telling their clients. gerri, tricky market. >> it is for individual investors. people are superexcited about the gain, i see it as more volatility. the financial advisers see it the same way, and not saying buy everything, they're saying you might want to wait this out a little bit and see how this shakes out instead of getting involved in the middle. you don't know if tomorrow is another sell-off. you don't know what's going to happen. people are telling individual investors to keep powder dry. dagen: have there been online problems with access? >> td ameritrade had problems, they have two front doors to log. in one shut down yesterday amid the heavy trading, and they eventually got it back up. they had to take phone calls from people, get their orders in by phone instead of online. that was frustrating to a lot of people.

they got flamed on social media. i take a look at some of the widely held stocks, right? what's going on with them? i hope you have the hot boards here. apple, i know you talked about, hit a low of 92 bucks yesterday. it's now up and up dramatically, $108.98. dagen: apple was in a bear market from recent high, down 20%. >> they're like a test for every theory anybody has about tech stocks. cellular phones are done, sell apple. technology is over, sell apple. it depends. mcdonald's widely held stock hit a low of $87.50. now up $93.79. netflix, look at this, low of $85. $85.50. goes to $108.39. up 8.7%. amazon now at $483 and facebook

higher, a low of $72. there were opportunities for people not that quick and maybe not using td ameritrade that day. dagen: assuming you didn't own them on the way down. netflix was a darling and individuals tend to gravitate to the names they know. old peter lynch adage of buy the legg's panty hose. >> people are focused on the u.s. markets. the smaller companies do better when the u.s. market is doing better. dagen: strategists have been talking about that very thing, trying to focus the portfolio on companies with less exposure to asia. gerri, thank you so much. good to see you. the attention might have been on the dow but we'll tell you why etfs. this is how individual investors got the shaft yesterday. televisi etfs, you thought off 1,000 was

bad? what if you saw 7,000? that's what was seen in widely held etfs. when we come back.

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remember, medicare doesn't cover everything. the rest is up to you. call now, request your free [decision guide] and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ . dagen: you thought the thousand-point loss on the dow was rough yesterday? well, if you owned some etfs, try equivalent loss that would have been 7,000 points on the dow. that's what i'm talking about. a massive mispricing among many exchange traded funds, ones owned by individual investors supposed to be saved a pricing so off, you saw losses of 20,

30, 40% on multibillion dollar funds. liz mcdonald has done a lot of digging and found out what the he double hockey sticks went wrong. >> we know nearly 1100 points down. there is nearly 1200 trading halts in stocks and etfs. etfs, wow, you should have seen the price action, widely held etfs, like the core s&p 500 that tracks that index there. down a big 26%. the vig, vanguard dividend appreciation, the spyder etf, what the heck happened? we're talking to traders, what the heck happened in the invocation of the rule 48, that's supposed to have for orderly market open. it gives the stock market makers on the floor the

discretion to indicate prices when they choose to. they don't indicate prices for the futures market or even at the open. if they see high volatility. this rule is only invoked during times of high market stress and turbulence. they invoked it. work the etfs went haywire, no transparency into what the underlying stock prices are doing in the basket of stocks. dagen: it is safe to say, some people, individual investors possibly got sold out at the low prices. >> that's the key right now, we're trying to nail down whether they settled the whopping low prices. deep hair cuts and some of the etfs that people thought this is a great way to play the market, have the etf managers pick and put the stocks in there. rule 48 was invoked. they couldn't price the overall net asset valuation, they were floating, ricochetting around bigtime. dagen: and just full

disclosure, my husband is a contributor at fox and wrote about this, he was writing about it, and by his estimate that one in four etfs, one in four fell over 20% briefly, that is not in line with what was going on in the market, despite the dramatic downturn. one in four fell over 20%, and some fell more than 50%. >> that shows you how disorderly and momentous and unforgettable yesterday was, to have the price declines so dramatic and such dramatic price swings in very popular funds that we'll own, this does not add to the confidence in the markets, so rule 48 again was invoked today and was invoked yesterday before the open. and been around since 2007. it was invoked during the flash crash period as well. dagen: and does shine a light, the etfs are sold, you can trade all day long, and alternatives to regular mutual

funds for individual investors, if you sell during the day you get the closing price at the end of the day. you're asking and getting volatility that nobody expected with the exchange traded funds. >> exactly right. you saw the market crescendo toward the morning, it was because the etf money managers were trying to get a solid grip what the actual prices were on the stocks. we were talking microsoft and johnson & johnson. dagen: low volatility dividends. >> yes. dagen: liz mcdonald, watch this, this is charlie, my dog, his take on what happened yesterday. >> hey, charlie, what do you do when the market fall and go boom? yeah. that's sad. dagen: i only played that because liz loves my dog. >> i love your dog. dagen: and it makes a lot more sense than what i hearded.

>> don't trade to stand down. dagen: just let me lay down. >> and go to bed. dagen: go get me like a chewy stick, lady. thank you, liz. >> sure. dagen: liz mcdonald all over the story. next hour, starbucks ceo asking employees to be nice to customers because the stock market is volatile. and protesters taking to jackson hole to voice their concerns over a rate hike later this year. maybe. details straight ahead.

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>> this is coast to coast cavuto is not here but i am at least for today. we have a market rally, stocks take a look at how the dow is fairing this day after that major loss yesterday. almost 600 points. 334 point gain on the dow industrials. but again, you're talking about a market after a falling nearly 600 points yesterday. you had more than 1,000 points

of losses just last week. you still have the dow and the nasdaq in correction territory that is a loss of 10% on both of those major market gauges from the recent highs. and many people are wondering if this means with this volatility, with these selloffs that the federal reserve still plans to raise interest rates next month, later this year, did the fed even tell graffing that actually cause this market downdraft? we attack you we're talking about coast to coast how about the wild west. peter barnes is at the federal rerves annual trip to jackson hole, wyoming later this week and the protests that are planned for it. he will be there, but he's here right now. hey, poort. >> that's right despite the problem with the chinese economy. downturn and its devaluation of its currency all of which might hurt the u.s. economy. we have a course of fed officials calling for starting

to increase interest rates this year which also could hurt the economy. just yesterday, dennis locke heart said while china and other factors could be head we understand to growth he says the economy growing moderately this year. he said, quote, consistent with this picture, i expect the normalization of monetary policy that is interest rates to begin some time this year. another fed bank president of the st. louis fed said friday he thinks it is increase rates at the policy meeting next month, and on friday jeffrey lacker announced he'll give a speech next week titled the case against further delay. what do you think he's going to say? well many -- analysts now think that because of all of this economic turmoil the fed will likely delay an increase in interest rates until things start to settle down and that's what those protesters who are going to be out in jackson want the fed to do.

they're back at the conference for the second time this year -- for the second year. they are union members, minimum wage workers and progressives who want the fed to hold off on raising interest rates for now. until the labor markets improve and especially until wages start to climb faster. >> peter, peter barnes for us peter, you know, some people are calling for more and a more bond buying. they don't want the market down -- >> they are, but i think that it would be pretty high for them at this point. but it is in reserve. right it is in the tool box. tool box. >> i owe you 20 dollars because you called that josh earnest would say that we need infrastructure spending and it was the last thing that had said when initially asked about the market. but dog gone if it didn't say infrastructure spepgding so there you go. i'll sending you $20 while protesters are set to well,

fight an interest hike jeff macken tire thinks there could be upside to raising rates. good news for savers for sure. >> yeal welcome it would be. the area of the society that would do well. but you know, i don't think they really should tighten. only reason i think they could is because they telegraphed it so much if they don't do it, you might get a credibility issue. >> also jack sorry i was choking like a -- crazy person. also send the signal to the markets for sure that the economy might be a great deal weaker than some people thought even with the downturn in the market. >> yeah, that is the risk, because you just went through a litany of fed speakers saying i want to tighten, ipts i want to tighten and markets are like what is the fed see that we don't see. as a reminder this three inputs

into the fed decision, you know two are official mandates employment, that's the one area that certainly gives them the cover to actually tighten, but then inflation i think that's mia and now other part that is a little bit more is financial market stability, and i doubt when i think, you know, normally in this kind of stressed environment they wouldn't want to tighten. >> i just can't even imagine what this market is going to look like when a lot of this monetary stimulus goes away. because we don't, this is unpresentation dented territory because we have been liquored up on this since 2008. and we've forgotten what an environment of higher rates look like or raising interest rates. now longer interest rates that would be good news. for that is -- this is history making. >> right, well i think you raise an excellent point because we have been weaned on monetary

stimulus since the global financial crisis, and the reason we are is because there hasn't been really strong growth. my biggest concern is that one day, that even if the fed doesn't tighten or we get more global monetary stimulus and send a message that we need real growth. we're tired of just the monetary policy stimulus. we need real growth, and that's something which we haven't seen yet. >> jack good to see you thank you so much for being here. jack macken tire take care of yourself. some 2016 presidential hopefuls blaming unstable markets on you name it, they've blamed it on president obama, and democrats, on china, on the federal reserve, on fat cap on wall street what to make of all of this and katy who on whether candidate can use these market swings to their advantage on the campaign trail. katy good to see you. i start with you first. did anything resonate from what you heard from on the gop side

yesterday? >> i don't think so. i think that, you know, i think obl the thousand point drop was jarred to everyone was paying attention but it wasn't, you know, something that lasted for a long time. i think that's hard for candidates to really capitalize on that swing. considering it is basically over now and markets are up today. so in general gop candidates can talk about the economy and talk about how the obama economy over the past sen years hasn't grown at a rate that is substantial. you know, talking about how there are more people on food stamps than there were before unemployment rate is 12 to 15% when you talk about people who are out of work force. those are not relate to one thousand dim in the market over the course of a day. later down the road in the campaign trail -- >> karen, hillary clinton surprisingly salt on this. bernie sanders did talk about wealth redistribution blaming the big money guys on the street. but hillary clinton very quiet,

why? >> well i think it's because we're really focused on what katy was talking about the bigger economic issues and not just this blip on the radar. that's a long time to election day, so people are kind of focused on the bigger picture talking about economic solutions that will help to grow the economy versus, you know, what we're seeing. although there are like you said bernie sanders touched on issues and they're going to keep coming up. and ting they will. but i think it is important they sort of focus on larger picture and what will help long-term. >> taryn, hillary clinton is in a tricky situation if she talks about a market reacting to a poor or weakening economy here in the united states, then she's throwing the blame on president obama. >> well, yes and no. like you said everybody can point of point their fingers at the market fluctuation and i think yesterday's market dropped and i think both sides of the aisle can use this to their advantage when you're talking about bigger fir solutions because you come

out as a candidate and that strong or idea here is that as a leader you want to come out as a candidate with solutions not finger pointing or blame l or looking backwards but forward looking candidates. but i think she's kind of positioning herself to do that. >> katy do you want to go ahead katy. >> well, i mean, hillary clinton hasn't necessarily laid out any specifics on when it comes to what she wants to do. she's simply talking about the no class and doesn't give details about how she's going to make the middle-class better and is a sticky situation for her to be in because she talks about how middle-class has shrunk and she's, of course, adding her reflection of barack obama, and her problem with wall street is that it is hard for her to criticize wall street because she's supported by wall street, her son-in-law is a hedge fund manager, and so difficult for her to attack wall street from maybe doing things that aren't neglectionly going to help the palace when she's vod with them an they're her supporters. >> she came out with that capital gains tax proposal that was con with raising stocks.

>> one last thing donald trump man that market fell off played and one of his two -- >> china. yeah, i know. but she's -- you know increasingly sounded like he's ready to start a trade war with china. and we were talking about this earlier. but why is that in favor of free market? >> right that's free trade makes us richer in this country and hass over the past 100 years. look, i think when you look at the poll that came out today showing that donald trump can just say whatever he wants and his supporters will never question him. really shows where his support is coming from. i don't think that is a blanket statement of where conservatives are supporting him. there are 17 people in the gop primaries so just because donald trump is out front of 17 people, doesn't mean he has a majority support.

so i think it is important to keep that in mind and those founded in principle and willing to look at substance rather than select or slogan will find that free trade makes us richer and working with china in an ethical way, obviously, makes us richer as well. >> great to see you as always. katy and taryn both ladies thank you so much. >> thank you. >> take care. still ahead, oil making a comeback. but is this rebound worth celebrating? and go live to the c measuring to tell you all about it.

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>> oil is up today, trading not yet at 40 dollars barrel but

still making some gains. to jeff flocking and mr. phil flynn at the cme. hi gentleman. >> he wants 40 dollars barrel is what this guy wants but i don't know if america wants $40 a barrel because i think 40. because oil above $40 a barrel shows that the economy is healing. we want low gas prices, though. >> well we're going to have low gasoline prices you're going to see a discrepancy between more oil prices than gas prices because of the high quality of oil that this country is consuming. but when we see oil below 40 a barrel any time for the last 15 years, it is shoin that the economies around world are contracting an that's bad. >> we have the news on the refinery back in business. >> hallelujah our nightmare is over for heavens sakes people celebrating around chicago area. we talk about wholesale gasoline prices. >> they have dropped to the peak of the refinery over o $1.10 a gallon.

>> here's what they want to know every time oil prices go up, the gas prices sphiek up. and then they come down real slow, even though oil prices fall. why is -- >> a term for this ppg it is called roberts and feathers, gas prices go up like roberts -- rockets and fall like feathers we saw the wholesale prices spike up a dollar immediately overnight. but we didn't see that all translate to the pump. a lot of gas stations raise 30, 50 cents gallon they were losing money on the way up. so when prices come back down, they have to keep those prices relatively high to make that -- >> stocks because, obviously, everybody is focused on stock market today but oil stocks, are you a buyer of oil refining stocks today? >> i would say that i would rather look towards the major refineries have had an incredible run. they're probably overpriced right now in relationship to the rest. they're the most expensive part i would look at the beaten down

names on the production side. >> okay. there you go i don't know if i got your answer on why gas prices go up so high, and so fast and don't come down. but -- he had a good answer on top. >> thank you, i would say that we don't want $40 we want 30 or 20. but then all of the people who live in texas and other oil producing regions in the country starts sending us hate mail. >> well, you know one thing i will say is you know what we we saw oil prices over the 2000 you know when they qengt from 10 to 20, to 30 a barrel people weren't complaining about those prices because it reflected strong economic growth and sometimes you know high prices in oil, you know, reflect economic -- >> hundred oil -- >> we're worried about inflation and lack of economic affect that is reflected to the extent. >> gentleman thank you so much mr. flynn, mr. flock. and on to mr. schultz starbucks

ceo howard schultz giving advice an how to handle the shaky markets. connell is here to ask on how to host this program you'll be doing it tomorrow. [laughter] and on friday potential ferlg taking notes here. need a pen. >> need guidance on what to wear? >> flock and -- >> wear short. higher the heel the better. >> you really are disturbed. >> you can't even see the shoes you can see connell shoes you can't see mine. that's a sad day. >> not as cute as flock and flin but close. this memo a lot of people are talking about it amidst of the market yesterday. howard shuttle ceo of starbucks sands memo essentially telling the baristas at starbucks you should be nice to people. market volatility and uncertainty both at home and abroad and reflect on consumer confidence. let's be very sensitive to the pressures our customers may be feeling and do everything we can

to individually and collectively exceed their expectations. be nice the markets tanking. >> why do that? necessary? >> no, of course, not but that's the way he is. you know people tab that he was thinking about a run for president. he said he wasn't. but do gooder he likes to say things like this i was reading washington post piece they pointed out a 60 minutes quote they said we're not in the business of filling bellies but souls that's howard schultz. so you and i are cynical so we say why do that? others say well welcome nice to be nice. >> make me my coffee. and hurry up. >> fewer words the better. i don't care if you scowl at me if it is hot and quick, that's all that matters. dong -- you think mention that he might run for office. what -- for president? >> democratic side people assume i think. from ceo to president if trump can do that. >> he's denied that left and right said he wasn't.

but i'm saying it has been speculated about, and he likes to -- this kind of thing that he likes to do, and i mean who are we to criticize? >> well that's why we're here to criticize. >> i forgot. >> but the race -- the whole race campaign that they orchestrated that was such a disperp you would think -- >> their pr maybe needs a little bit -- more tune it up a little bit. >> starbucks today? >> i haven't been there yet. >> going to get you one? >> across the street that would be nice. >> low energy today. >> yeah, you nied -- >> do the 4:00 show so melissa will carry it. >> but you can get starbucks. i will ask you, but to that point, i did think could people at starbucks they're not connected with the markets. if you have -- >> morning tv but kelly ripa and michael strahan. >> people had no idea what was going on until you get out in the street and then walking around yesterday people talking

about it. to me doesn't happen as often as it used to be. talking about the stock market takes day like yesterday we saw the market down 1,000 points but something to psychology even if this is other. you and bob schiller talking about that that there's something to the way that people feel about themselves. >> i love him. he's a nerd. it is the heart. [laughter] >> okay. a love for bob. thank you connell. so you have a day, roughly you have 23 hours to get your stuff together. pick out a nice outfit. >> thanks. get a manicure. still ahead -- the mine owner caught up in the colorado river disaster. >> the epa in 2002 was asked to join my lawsuit against sunny side gold corporation. they not only refused. they threatened me. >> that man joins us after the break with u new information on what the epa may have known, a

full year before that toxic film.

>> to ashley webster on the floor at the new york stocks exchange looking attic winners. ashley. >> listen we started off today with a future saying we were going to be up 600 points. stuart varney beside himself and never really materialized up 286 points with any normal day that would be terrific. but after what happened yesterday, it is okay. it stabilized as you can see s&p and nasdaq moving high. you mentioned tech that is leading the way after getting hammered yesterday looking at stocks google up -- about 3.4% up google apple, of course, following apple very closely, down to 92 at one point yesterday up nicely now. up another four and a half percent. apple lost two and a half percent in yesterday trade and

facebook also up 5% losing 4.6% and netflix glad you got that in there up 8% with 104.44 so a lot of stocks rebounding but maybe not as much as we thought when we began this session. >> we'll give you the opportunity to do your best for the imitation. would you like -- >> the funny thing is i've never heard of the persons when it came up. i thought it was a misspelling. >> where did you grow up? >> apparently in a cave in greenland. >> no childhood? >> sheltered life as a child but i have to go ahead and watch willy wonka chocolate factory. >> playing businessman you are toying with a fruit cake. [laughter] nawnl [inaudible] , i can see it. maybe. ashley thank you. ashley webster at the new york

stocks exchange epa niewf a risk of a blowout at a california mine along the animas river at least one year before that massive toxic spill. todd is the goal king mine owner, and he said that the epa has no one to blame but itself. but what other repercussions, todd? >> repercussionings are fairly large because we have a threat of a much larger blowout potential that exist than the adjoining sunny side gold mine property that epa has ignored for 14 years. >> tell me todd what, you know, about because there has been this revelation that the epa knew of danger at this -- these are according to a document that came out that were released late last week. but how did -- so begs the question and maybe it is unanswerable if they knew, then why did it happen? >> it happened because it was a

disaster waiting to happen. ifed it not occurred on my property, it would have occurred on another property adjoining the main problem mind. epa i believe was short of funds on this project. and it shows up. we had a disaster. >> todd do you have any sense of what the epa is doing now to prevent this from happening at other mines in the region? >> the epa is doing a canvas of other potential mine blowouts. but again, they ignore larger issue that exists on a federal land owned by the u.s. government. which has an order of magnitude 1,000 times worse potential disaster. and that's the sunny side gold mine. : do you have any confidence in the management that is the epa? >> no. actually, they have a few good people on the line, but the

management of epa is paralyzed by this instance and still appears to be paralyzed. >> what about the toixic levels in the river? we've heard positive things, but what about longer term damage have they been communicating anything look that to you? >> no, i have heard very, very little from the epa, i've requested to be able l to talk to either jeena mcarkansas and chief of staff and have been steadfastly ignore. >> todd keep us up to date and let us know if anything changes. todd he. >> thank you. >> you heard it on this show one of scott walker top fundraisers anthony not switching sides to support mr. trump. charlie gasparino weighs in.

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dagen: still a comeback. not quite as strong earlier. 200 point gain on dow industrials after that almost 600 point loss yesterday. we'll keep you posted. oil still rebounding today. gold selling off. a little bit less of love for treasurys this day. skybridge capital founder and, scott walker, major fund-raiser, expressed his loyalty to mr. walker on this show yesterday.

>> that's another politician -- >> called donald trump a hack? >> will probably make elizabeth warren his vice-presidential nominee. >> i'm supporting governor walker. he is obviously my choice. dagen: that is mr. anthony scaramucci and mr. charlie gasparino was there yesterday. >> the way this whole thing played out between anthony and donald trump is fascinating. we should point out that last week, i kept my mouth shut. very hard to keep my mouth shut about it. anthony told me to keep my mouth shut. we have this thing with italians keeping our mouth shut. anthony said, listen, this is what anthony said. donald called me. i will meet with him next monday, coming monday, yesterday, around 11:00. he called me up because he said to me, this is what anthony said, donald told him, you say a lot of good things about scott walker.

why don't you, i'm paraphrasing now, why don't you say nice things about me? why don't we get together? why don't we talk about you supporting me? i'm paraphrasing. not exact words. anthony expressed his frustration at some of donald's position on immigration, building a wall which anthony believe never works. sending people back including children of illegal immigrants, potential violation of the 14th amendment. anthony who likes donald agreed to go see him. that's either thursday or friday. fast forward to monday. donald getting on, i guess "fox & friends" someplace. dagen: did it on sunday, going after hedge fund managers. >> going after hedge fund managers. anthony lost it as you saw. dagen: that was a tiny little snippet of his rage. >> he basically attacked donald pretty tough, right? and they still met at 11:00. and according to anthony, i haven't talked to donald about this, according to anthony they

met at 11:00. anthony, they had a nice conversation. anthony expressed what he thought was wrong about donald's attack hedge fund managers. according to anthony, donald said reason he is attacking hedge fund managers because a lot support jeb bush. hard to get any movement to come to him, jeb bush has a lot of hedge fund managers locked down except for anthony, and a few others supporting both walker and to some extent rubio. they apparently had a nice conversation. so then, somewhere along the line, some reporter, "politico" calls up donald -- dagen: it was in the journal today. >> "politico," did you hear what anthony and you guys said about you, you guys met. donald at that point, anthony called me up because he wants jump from walker to me. now, i haven't sorted this out with either donald or anthony -- dagen: that is not the story you heard. >> that is not the story anthony told me. it was other way around. donald wanted him, not that he

wanted to jump the other way around. donald made it sound like anthony wants it out of the walker campaign. dagen: that is exactly the way he made it sound. we talked about importance of loyalty here yesterday and loyalty particularly in the italian community, both you and anthony know very well. loyalty means that wouldn't have happened. >> one of them is not telling the truth. dagen: that's correct. >> probably -- i could just tell you that anthony's story has not waivered throughout this whole thing. he told me donald called him. he said he would meet with him. anthony is a no bs guy. i find it hard to believe anthony calling up, to looking to blow off scott walker right now. that doesn't ring true. dagen: that doesn't ring try. >> i haven't talked to donald or spoken to donald about this. anthony is at walker fund-raiser which seems odd. dagen: he is in wisconsin. >> he is there to do a fund raise irout in the hamptons this weekend. dagen: nice.

>> i find it hard he is looking to bail right now. does that sound like a guy look to bail. dagen: add irony, trump attacks hedge fund managers, carl icahn wants him to be treasury secretary. he is hedge fund manager. >> i think carl, donald's attack on hedge fund managers less substantive, i mean this from, policy related than it is the fact that the hedge fund managers are backing jeb bush to a major -- he is opponent of donald. and, to some extend walker but mostly jeb bush. he wants to get, he does anything he can to get at jeb bush including attacking his fund-raisers and people that are backing him up. that is what i think is going on here. got to hear from donald. have to hear from anthony. some of this is formed through speculation but informed speaking to anthony and others. dagen: i will go to the mattresses for both of you.

i mean that in "the godfather" sense. >> you make a good gangster, lady, i make a good sauce. >> clyde is the guy, right? dagen: thank you. i don't have vowels in my name. i have to be bonnie. i can't be corleone. thank you, charlie. >> anytime. dagen: stocks continuing to bounce back. we head back to floor of new york stock exchange to check in with liz claman to see if the rally will hold until the closing bell

>> i'm ashley webster with this fox business brief. markets recovering after yesterday's big selloff. the dow is up 235 points. s&p, nasdaq up about 27 on s&p. 100 on nasdaq. take a look at dow winners today. these stocks bouncing back from the selloff yesterday. apple up 4%. jpmorgan up 3. walt disney gaining 3%. exxon and unitedhealth both moving higher by about 2 1/2%. one stock moving quite high today is the electronics retailer best buy after issuing earnings that beat the street estimates. shares of best buy up to 33.63. that is a gain of nearly 15% in the session. quickly oil gaining a dollar but

still under $40 a barrel. that is the latest from the new york stock exchange. more "coast to coast" with dagen mcdowell coming up.

dagen: stocks continue to rebound after yesterday's tough losses but will we end this day in green? really own one hour that matters, the hour before the closing bell. that is when liz claman is on

live for 60 minutes at the new york stock exchange. that is where we find her. hi, liz. >> interesting you say that, dagen. i had a trader run up and say i can't give you color how the markets will move until we see what happens in the final hour. a couple triggers they will look for. what will piling on effect of big program trades that come in from big institutions like vanguard or for example, fidel. the big mutual fund companies and program trades that may or may not kick in in that final hour. that tends to start moving markets in one direction or another. will it be beamier rang effect? -- boomerang effect. my producer and i doing the math. we pretty much cut in half what gains we did see earlier. don't tell stuart varney. he is very upset. i will explain with you what we see with green on the screen is a little resilience. i wouldn't call it a roaring bull at the moment.

even though on any other gain a 202 points on the dow would look pretty healthy. people are looking for much bigger push in the final hour. if we see more news out of china, overnight the people's bank of china gave its version of stimulus, cutting reserve requirements for certain banks. that actually did not help too much. they also cut their interest rate by about 25 basis points. didn't help the markets. the chinese markets fell another 7%. so they really have had a pile-on effect. a big, big move for the chinese markets to the downside. they don't seem to get relief. that final hour, dagen we'll be here. we're blowing out owl commercial breaks to see what happens every second and people can watch their money here on fox business. dagen: we were talking about it last hour. there is a massive mispricing with exchange traded funds yesterday. one out of four exchange traded funds were down anywhere from 20 to even 50%. some time at the open.

when you really put it to individual investors that way and screw up the pricing of these multibillion-dollar fund like that, you know what? you burn people. they don't come back. >> isn't it interesting that you make that point because that does frighten the retail investor. tend not to call them anymore, mom-and-pop. that is sort of a negative tone. as if they're slower and less intelligent about it. one thing is for sure though, the landscape is not even for the retail investor. we saw a lot of, you know, online brokerages had a lot of trouble betting trades through. even big guys, jeff green, investor who is a billionaire, he tried to put in 100,000 share trade for facebook. he didn't catch the low when he first put in the trade. he was, liz, unfortunately i didn't catch the low. i'm happy with the price i got but average investor didn't get the low if they were gutsy enough to get in the market.

bart chilton, formerly of the commodities future trading commission, said in the last hour yesterday, no doubt people will look what exactly went wrong and why trades in so-called era of the machine as a trader mike put to me didn't effectuate as quickly as it could have or should have. dagen: liz, "countdown to the closing bell," 3:00 p.m. wall-to-wall live from the corner of wall and broad. thank you, liz. >> you're welcome. dagen: still ahead, is housing one of the better stories in this economy? we got the latest read on the housing market. it was a bright spot. what do our panel think of it coming up?

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dagen: take a look at the 215-point gain on dow industrials. well off highs of the session. a gain nonetheless after that market down 700 points through one week through yesterday. oil back up to $39 a barrel. you have a little bit of a move to the upside. conviction not there in terms of buying crude at these levels. want good news on u.s. economy, lower interest rates, lower gas prices. lower long-term interest rates showing up in the housing market. new home sales were up 5.4% in july. that is an indication the

housing market is recovering. we have two people here to join us about this. katrina is in miami rushing to get to the studio. i know where that studio is. traffic is horrible around there. katrina, do you think this run in housing can continue just based on what you see in miami? >> well, the reason i think that it is doing so well is because the inventory is so low, which is driving up prices. mortgage rates are still low. then the job market is bringing a lot more confidence to the american population. i think that it is completely different than what we saw years and years ago, people were buying foreign investment. people are currently buying for primary residence. given what is happening with the stock market past few days. you would think some people would be fearful entering the real estate market. what i'm persons is completely the opposite. they are fearful of the stock

market. they want to basically place their cash in the real estate market and miami is becoming more and more of an international destination. so i'm sighing that on day-to-day basis. interest rates are still low. people are very bullish. i think biggest obstacle means low amount of inventory in the market which is making prices go up and wage growth is not keeping up with that that is the only downside. dagen: david, would you agree? we had case-shiller home prices from june came out 9:00 a.m. this morning, 5% gain in 20 major cities overall in this country. solid, yeah? >> yeah, that's solid. in fact that is sustainable. what concerned me when we were having double-digit appreciation in home values. that is the number that sets up for a bubble. i'm thrilled at these numbers. the fact they're at single digits, that's healthy. i agree with katrina, we'll see this market continue. when you look at shortage of

housing inventory across many markets in the nation, we'll see builders doing well. builder stocks should do well. this is opportunity, as you said at the opening, bright spot in the economy. keep it going and move out of the stock market and move out of the housing market. dagen: katrina, i worry about, i don't know about down in miami but a lot of your buying activity here in new york city, even commercial real estate has been chinese investor. and the chinese buyer. actually building that live in was bought by a large chunk of the apartments were bought by a chinese company of the does that worry you about miami? because they have really been targeting your major american cities? >> well, you know, as far as the chinese buyers in the miami market we began to see a little bit of that but that is definitely not the majority of buyers here. the majority of buyers believe it or not i see more and more coming from new york. with the crazy winter you're having up north, more and more

new yorkers are moving to miami. i'm continuing to see buyers from colombia, from venezuela, from argentina. all the people are trying to bring their money into the u.s. mexicans as well. i'm not too concerned about the chinese but definitely the state of the overall economy in the world is definitely going, we've is such affect the stock market international market in particular. i think that overall the united states continues to be very safe ground for a lot of these people wanting to bring their money to the united states. dagen: right. david, there are a lot of these housing markets, we always focus on big cities, a lot of them where wage gains have not been there, job market is still struggling. these areas, these markets are barely budging. they're still weak. are you worried though, that we could see greater weakness in these areas? >> i think that is the big issue. job growth is one thing. but income growth has really been lagging. that is as we watch fast appreciation, especially

double-digit appreciation. you will find millenials we badly want in the market really challenging it. when you look at new york and chinese investors don't blame them, that is great place to be investing and if you're china is a great place to go. however what it does, it impacts millenials. single-digit appreciation it is acceptable. if we see double-digit appreciation will be unacceptable. who is impacted millenials here in the america that we want badly to get back in the market. dagen: i can't wait for mom and dad say get out, we're not cooking for you anymore. we're not doing your laundry. katrina, is that a necklace? >> yes. what does it look like? dagen: i'm kind of blind so i'm not, i'm really blind i can't tell if it is part of the dress or necklace. >> it is miami style. dagen: yes it is. miami style, is also topless but we can't go there on television. i'm not joking actually.

on any beach, that is why miami it popular. women are beautiful and they're half naked. thank you so much. >> thanks for having me. dagen: david is up down in austin, texas. we'll have more on "kos to coast" after this. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. at&t has the tools and the network you need, to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most.

dagen: two hours one minute left in this trading day. we're hoping for a rally. just makes life easier, doesn't it? after 588-point loss on the dow industrials. when all three major market gauges in correction territory, down 10% from the recent highs. you had rebound in s&p 500, managing to move out of the correction territory sometime during trading day. will any of this last? can it? instead of selling will we see buying pick up as we head into the closing bell. trish regan takes over right now with her show,

"the intelligence report". trish: hey. dagen: you have governor pataki and carly fiorina. trish: we have big day, and really big market. thank you so much, dagen. welcome, everyone, to "the intelligence report." what a difference 24 hours makes. absolutely postively insane week, come on heels of volatile market. it is all over the place. trimming loss as bit here. nonetheless up 2:45. some recovery. amid news that china's central bank cut interest rates to support the world's largest, second largest economy. actually i believe in december 2014. overtook the united states of america. not on per capita basis but on overall basis to become the largest economy in the world. exactly what does this mean. china is out there, lowering rates, it depresses yuan their currency, on one hand, all pay a little less for chrima