weapon. we don't prevent all traffic accidents but we take steps to try to reduce traffic accidents. as ronald reagan once said, if mandatory background checks could save more lives it would be well worth making it the law of the land. the bill before congress three years ago met that test. unfortunately too many senators failed there's irs c. failed there's irs cs. internal reno background checks make a difference. connecticut did it in gun deaths decrease by 40%, 40%.

[applause] >> since missouri repealed a law requiring comprehensive background checks and purchase permits gun deaths have increased to and almost 50% higher than the national average. one study found that criminals in missouri now have easier access to guns, and the evidence tells us states that require background checks, americans don't find it any harder to purchase guns what the letter. their guns have not been confiscated, their rights have not been infringed. and that is just the information we have access to. with more research we could further improve gun safety just as with more research we reduce traffic fatalities enormously over the last 30 years.

we do research, when cars, food medicine, even toys, harm people so we can make unsafe for. research science, those are good things, they work. [applause] >> they do. think about this. when it comes to an inherently deadly weapon, nobody argues guns are potentially deadly, weapons that kill tens of thousands of americans every year, congress voted to make it harder for public health experts to conduct research into gun violence, made it harder to collect data and facts and develop strategies to reduce gun violence, eastern after stan bernardine of the refuse to make

it harder for terror suspects who can't get on a plane to buy semi-automatic weapons. that is not right. that can't be right. the gun lobby may be holding congress hostage but they cannot hold america hostage. we do not have to accept the carnage. [applause] [applause]

>> i want to be clear. congress needs to act. the folks in this room will not rest until congress does. [applause] >> because once congress gets on board with common-sense gun safety measures, we can reduce gun violence a whole lot more. we also can't wait. until we have a congress that is in line with the majority of americans, there are actions within my legal authorities that we can take to help reduce gun violence and save more lives, actions that protect our rights and our kids. after sandy hook joe and i worked together with our team is

and we put forward a whole series of executive actions to tighten up the existing rules we have in place but today we want to take a step further. let me outline what we are going to be doing. number one. anybody in the business of selling firearms must get a license and conduct background checks or be subject to criminal prosecution. [applause] >> it doesn't matter whether you are doing it over the internet or gun show, is not where you do it but what you do. we are also expanding background checks to cover violent criminals and try to buy some of

the most dangerous fire arms by hiding behind trusts and corporations and various cutouts. we are also taking steps to make the background check system more efficient. under the guidance of jim comey, the fbi, deputy director, atf, we are going to hire more folks to process applications faster and we are going to bring an outdated background check system into the 21st century. [applause] >> these steps will leave a smooth process for law-abiding gun owners, smoother process for responsible gun dealers, stronger process for protecting people from, the public from dangerous people. that is number one. number 2. you are going to do everything we can to ensure the smart and

effective enforcement of gun safety laws that are already on the books which means we will at 200 more atf agents and investigators, require firearms dealers to report more lost or stolen guns on up timely basis, working with advocates to protect victims of domestic abuse from gun violence. [applause] >> too often people are not getting the protection that they need. number 3, we are going to do more to help those suffering from mental illness get the help that they need. [applause] >> high-profile mass shootings shine light on those few mentally unstable people who inflict harm on others but the truth is near the two in three gun deaths are from suicides.

a lot of our work is to prevent people from hurting themselves. that is why we made sure the affordable care act, also known as obamacare finally -- [applause] -- that law made sure that and for mental health was covered like any other illness. we will's expand access across the country. [applause] >> is why we are going to ensure federal mental health records are submitted to the background check system and remove barriers that prevent states from reporting relevant information. if we can continue to be stigmatized mental health issues and get folks proper care and fill gaps in the background check system we can spare more families the pain of losing a

loved one to suicide. for those in congress who so often rush to blame mental illness for mass shootings as a way of avoiding action on guns, here is your chance to support these efforts, put your money where your mouth is. [applause] >> number 4. we are going to boost gun safety technology. today many gun injuries and deaths are the result of legal guns that were stolen or misused or discharged accidentally. in 2013 alone, more than 500 people lost their lives did then accidents and that includes 30 children younger than 5 years old. the greatest, most technologically advanced nation on earth, there is no reason for this. we need to develop new technologies that make guns seeker. if we can set it up so you can't unlock your phone unless you got

right fingerprint, why can't we do the same for our guns? [applause] >> if there is an apps that can help us find the missing tablets which happens to me often, the older i get. [applause] >> if we can do it for your ipad there is no reason we can't do it with a stolen gun. if a child can't open a bottle of aspirin we should make sure they can't pull a trigger on a gun. right? [applause] >> we will advance research, work with the private sector to

update firearms technology and some gun retailers are stepping up by refusing to finalize the purchase without a complete background check or by refraining from selling semi-automatic weapons or high-capacity magazines and i hope more retailers and more manufacturers joined them. they should carries much as anybody about products that now kills almost as many americans as car accidents. i make this point because none of us can do in this alone. mark made that point earlier. all of us should be able to work together to find a balance that declares the rest of our rights are also important. second amendment rights are important. there are other rights we care about as well. we have to be able to balance.

our right to worship freely and safely was denied christians in -- muslims and jews. [applause] >> they had rights too. [applause] >> our right to peaceful assembly. that right was robbed from moviegoers in our rock, in lafayette. hour and a legal right to life, liberty and the pursuit of happiness, those rights were stripped from college kids.

in santa barbara. schoolers in columbine and preschoolers in newtown. first graders. from every family who never imagined their loved one would be taken from our lives by a bullet from a gun. every time i think about those kids it gets me mad. and by the way it happens on the streets of chicago everyday. [applause] >> so all of us need to demand congress brave enough to stand

up to the gun lobby's lives. all of us need to stand up and protect citizens. all of us need to demand governors and legislators and businesses do their part to make our communities safer. we need the wide majority of responsible gun owners to grieve with us every time this happens and feel like your views are not being properly represented to join with us, to demand something better. [applause] and we need voters who want safer gun laws, disappointed in leaders who stand in their way to remember come election time. [applause]

>> some of this is just simple math. if the gun lobby is loud and organized in defense of making it effortless for guns to be available for anybody any time, you know what? the rest of us? we all have to be just as passionate. we have to be just as organized in defense of our kids. this is not that complicated. the reason congress blocks laws is because they want to win elections. if you make it hard for them to win an election, if they -- they will change course, a promise you. [applause]

>> yes, it will be hard. and it won't happen overnight. it won't happen during this congress. it won't happen during my presidency. but a lot of things don't happen overnight. a woman's right to vote didn't happen overnight. the liberation of african-americans didn't happen overnight. lgbt rights was decades' worth of work. just because it is hard is no excuse not to try. if you have any doubts as to why

you should feel that fierce urgency of now, think about what happened three weeks ago. xavion dobson was a sophomore at fulton high school in knoxville, tenn.. he played football, beloved by his classmates and his teachers, his own mayor called him one of their city's success stories. the week before christmas he headed to a friend's house to play video games. he was not in the wrong place or the wrong time or made a bad decision. exactly where any other kid would be, or kid, my kids, and gunman started firing. and he was in high school. hadn't even gotten started in life.

dove on top of three girls to shield them from the bullets and he was shot in the head and the girls were scared. and an act of heroism bigger than anyone you should expect from a 15-year-old. greater love has no man than this than a man laying down his life for his friends. we are not asked to do what dobson did. we are not asked to have shoulders that big, a hard that strong, reaction that quick. i am not asking people to have that same level of courage or sacrifice or law, if we love our kids or care about their

prospects of this country and care about its future, lot we could find the courage to vote, find the courage to get mobilized and organized, we can find the courage to cut through all the lawyers and do what a sensible country could do, we should do more and we should do more the day after that. and leaving behind a nation that is stronger in than the one we inherited and worthy of the sacrifice of a young man like a xavi xavion. thank you very much. thank you. neil: you were listening to the president of the united states saying congress, you won't do it then i will on my own. the president outlining a series of executive actions he is taking, some that will require bigger actions down the road and

likely not pass this congress for this presidency. but he is laying down the gauntlet indicating, and the government can be processing these 24 hours a day, 7 days a week, upwards of half a billion dollars, access to mental health care, some republicans have been saying they agree with them on. he wants to clarify people who sell guns on the internet as subject to the same laws, professionally and sell guns. every gun sale in the country, a criminal background check, some of those internet sales are not. the devil is in the details. how many are not? he echoed again something, ban on gun sales to people on terrorists no fly list and a gun on large capacity magazines that

hold lots of. indicating something he said prior, just how much ammunition do you need? reaction from all of this to former new york police department officer, what do you think of what was iron out here? >> some of the measures make sense from a law enforcement perspective. officers our challenge when they are confronted, mentally challenged person who has a gun or domestic violence situation that is typically highly charged and confront a person with a gun, or person charged to commit suicide armed with a gun. so i think some of those are reasonable. trying to keep guns away from people like that but the issue is at the end of the day that affects a small segment, as the president conceded of gun violence in america. the bigger issue, bigger violence comes from guns that are obtained illegally. denis hughes in the streets, in cities across the country, to

create a very unsafe environment, killing a large number of people. neil: do you think at the margin, prevents one shooting or large shooting it will have done its job. there are many in the direct lobbies and republicans on but hill whose say you are attending the second amendment itself. >> we need to balance our rights with public safety. in light of recent acts not only of criminal violence in inner cities but also terrorism. we have to take steps, most americans agree, look closely at who is carrying guns and how to prevent even one incident but we have to balance that. the majority of americans would favor actions that would prevent or at least address the more significant segment of gun violence. guns that are acquired

illegally. neil: you say the counter argument, i wish we had more time, i want to get your perspective on this. if you take guns away or do something to make them harder to get caught people who really need and deserve them are going to be unarmed. what do you say? >> that is correct. a lot of the restrictions in gun possession come from state law. different states with varying degrees of restrictions. if a person is eligible to have a gun, their second amendment rights should be protected. i don't think disarming, america is a way of moving forward in terms of increasing our safety of our families and our country. we need to regulate who put their hands on guns particularly those who are challenged or have criminal histories, suspected

terrorists and the like. neil: thank you very much and thank you for your service to try to cut down on this sort of thing the president is talking about today. we are getting from republicans on the including paul ryan who is out with a statement saying no matter what president obama says his word does not from the second amendment. we will conduct vigilant oversight, this executive order will be challenged in courts, everything the president has done can be overturned by a republican president which is another reason we must win in november. i want to get the take from the fellow who knows a thing or two about laws and how far anyone can go on this issue. michael mccasey, former u.s. attorney general. what do you think? >> yesterday the stock market went into the tank. there was only one sector of stock that went up, gun

companies. because a statement by the president that appears to impose greater restrictions on gun ownership makes people think i don't know whether i want a gun or not, but if i am going to get what i better get one now because at some point it may be more difficult or impossible. we are talking about law-abiding people. i understand that he plays a very good rhetorical game, some of it was a good rhetorical game. talking about the rights the people have been denied by being shot. those rights are against the government and rights, people who commit violence. the fact is if you go through many incidents the guns in question were obtained by people who either did or could have passed a background check. the gun in newtown was purchased by the mother of the kid who committed the crime. he got the gun from her and

killed her with it. if you are solving a problem that is different from the one that -- you may be doing something counterproductive. neil: there are too many guns out there. we have 350, after the 5 million people, 300 million. >> i am not one to say whether there are too many or not enough. there are some proposals that appear to make sense. like background checks for people who are purchasing weapons over the internet. neil: what about at gun shows? >> if it is feasible but they have to be done quickly and efficiently for every story about somebody being shot with a gun that was -- obtained without a background check you have another story about someone waiting for a background check being insulted by the person

they were buying guns to protect themselves against. you need a decent mechanism. for example, the proposal about fingerprint activated guns is a big mistake. i have a phone that works only when my fingerprint touches the button. if i don't touch it right, sometimes it is hard. i have to do it two three times. if i have a gun and be to protect myself against an assault i don't want to fiddle with it two or three times in order to get it to work. neil: i get a sense that the president outside -- gone too far by doing clever if things to make devices treat you to utilize other people, i am not interested in getting in the middle of that but he is taking existing laws, creating new ones, has thrown back at the gun lobby to say what are you wining about? he wants to tighten these

background checks, make sure the right and qualified people are selling these guns, laws that are already on the books. >> there are laws already on the books that gun dealers have to conduct background checks but the question becomes who is the gun dealer and if you goes through -- neil: does background checks, the shooter in charleston too, his background check apparently wasn't complete but he got a gun. >> a porche of 45% of denialss of background checks come because someone has been an unlawful -- to 20 the president says something this will rattle folks but we have to look at the greater good.

too many guns and a gun lobby the skiers congress the >> somebody wants to stop a discussion, you stop a discussion by saying the other side is scaring people, you say the other side is using fear. neil: there is common ground, the idea of tighter requirements, background checks. even that feature -- >> what is in the details of the mental health program? neil: that gets exposed, privacy rights are violated. >> there is that and the question of how effective is it going to be? he talks in very broad brush but the question is which been taken he point to, that is going to stop or detect those details. neil: really wants to get his or her hands on guns, he or she will. >> not necessarily.

bernard: 1 about a little bit so that it is more -- >> it makes sense to toughen it up. the question is in all of the steps that he outlined what kinds of efforts are going to be devoted to weeding out people who should not own guns and which kinds steps will be devoted to making it more difficult for people generally to own guns. neil: it is legal review. what is the one -- i never saw a sight of, all the violent movies. you could extended to violent games. even passing reference to that. >> i don't make much of it. i suppose a lot of his support comes from hollywood. people who manufacture those games. that is a cynical -- explanation. neil: the few who might be bound to do something based on violent games of silent movies, small percentage though it may be. >> that has to be part of it. look. we had a culture that we have a

history, our history in the west includes guns because we had a front year, at different kind of country from other countries and a different history. neil: through all of that. more violent than ever. >> not sure that is true. not sure that is true at all. there was an enormous amount of violence in the 20s. not sure it is more violent. it is reported more widely. neil: a lot of it has been headline grabbers. pretty big. i am not trying that. i am saying all those guns, all the protection did little to protect. >> there is certainly going to be a lot more guns now because as the stock market indicated you can go out and buy them.

neil: thank you very much. it is the one group that is up sharply. gun stocks rising yesterday and again today. gun ownership has increased 10fold under this president. almost the same amount -- worthless. in no time at all. there was no stress. it was in and out. if i buy a car through usaa, i know i'm getting a fair price. we realized, okay, this not only could be convenient, we could save a lot of money. i was like, wow, if i could save this much, then i could actually maybe upgrade a little bit. and it was just easy. usaa, they just really make sure that you're well taken care of. usaa car buying service. powered by truecar. online and on the usaa app. dsenators came together for a top-secret briefing on the terrorist threat... marco rubio was missing - fundraising in california instead. two weeks later, terrorists struck again in san bernardino... and where was marco?

fundraising again in new orleans. over the last 3 years, rubio has missed important national security hearings and missed more total votes than any other senator. politics first: that's the rubio way. right to rise usa is responsible for the content of this message. .... we live in a pick and choose world.

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neil: all right. we were down north of 100 points. it has not been a great couple

of days. joe link kent with what is going on. gerri: we are watching what is happening out of china. that is in part thanks to $20 billion. the people's bank of china. in jesting into short-term funds in beijing. it ended up .3% on the day. our markets are a little less rattle he said that closed. that does not change the fact that there has been 10 straight months of factory contraction in china. you have to remember, the chinese government jumped in to save the market back last summer. now they are trying to undo that with that circuit breaker measure. the government wants to evaluate that because it caught so much panic on monday.

a security break it later is looking at new rules for restrict inc. stock sales. the chinese government was planning on lifting the ban entirely late this week. part of the larger story. the consumer led economy is the goal. there is still so much in this export mode. neil: take you very much. the president is executive action. the amount of guns out there. how easily accessible they are. distinctions between these gun events and professional gun sellers. just being able to hand you a gun without a background check. sometimes on the internet, a check is not needed. a big scene for the state of union address. fox will be covering that. what do you think of this? how big of an issue does this

get to be? >> i think that it is a side issue. the president, everything else was falling apart. talking about one of the core issues. a bigger issue is kind of what joe link hit dawn. why do we care about what is going on in china? if there is an economic downturn, that -- neil: a week from now. he will make this push. tried to push republicans into a corner. paul ryan has indicated that nothing he sees out of the president is common ground. where does this go? >> yes and no. the president is a smart man. he knows exactly how this will play out.

we are approaching voting season. he is talking to women. he is talking to african americans. neil: no way to verify what he said. even gun owners believe the better background checks. republicans on that view, two. there is no way to verify that. let's say, in a general election, past the primaries, republicans have their nominee. they look tone deaf on this issue. >> that is exactly it, neil. you may like the second amendment. i am not a gun lover. not a gun lover. >> yes, you are. the american people care more about the economy than they care about this side issue. >> i agree.

i absolutely agree. wedge issues when. postelection, they went. >> if the economy falls out, you sit there and you talk about guns and background checks. you do not mention the word radical islam. you have a huge tone deaf problem. >> the economy was stumbling four years ago. compared to today. what did everyone remember from that election? mitt romney's 47% from marks. it was a huge distraction. you could also pay attention to what romney was saying. 47% of americans were not paying taxes. i think that this is being underappreciated by republicans who do not know how good the left is.

>> i actually agree with you on this. one of the challenges that we have right now is because the economy is still shaky, we usually do agree, because we have seen this increase in a threat of terror, i think that people are feeling much less certain. they will feel more inclined. i think that they have to be more prepared. >> i really believe that the american people, a lot of the voters are out there sitting there saying, 2012, the economy is better than what it is today. the economy, we have problems with our economy. people getting shot. the president's main focus is background check. neil: he is the one that looks tone deaf. there are bigger problems out there. bigger fish to fry.

the challenge, though, he strikes order of a personal connection with people like myself. that is where i think republicans cannot just dismiss it. >> sabrina, you just read my mind. a political skill missing the point. not good. >> my money is your up. we will see. do not dismiss the potential of this. charlie rightly brings up. all right. in the meantime, this will come up no doubt. we will be covering that live for you. we will be in charleston south carolina. that is the site of the next fox business debate. the 14th. we're there. eating them out of house and

home. join you soon. ♪

connell: i am connell mcshane. one is from the airline industry where spirit airlines is out. the guy named robert is in. looking at this kind of character. a lot of odd commercials over the years. i guess we will not be able to see this kind of thing anymore. he is out. the second business alert is from tech college you. this is kind of interesting. fit that is looking to take on apple. announcing out in vegas. coming out with a full-fledged watch. investors, apparently, do not like this. the stock is down today.

apple is also moving lower by 2%. >> thank you, my friend. all the flooding that is still going on. jeff: oh, boy. i have seen a lot of these. this in the wintertime is the worst that it has ever been. back on the illinois river. boats. pontoon boats that they are using. it is not just the mississippi river that has been flooding. look out there. that is the channel as you look well beyond the trees in the homes. that is where the illinois flows. about a 55-mile flow that is now shut. all of the coal and the fertilizer in the grains. everything that gets shipped up and down the river also coming to a screeching halt. almost a frozen hall. floodwaters will receive.

they do not receive if they are frozen. look at this. this is a fun time. floodwaters. not going away anytime soon. neil: incredible. jeff flock. the dow down about 92 points. seeing what is testing this. a lot of folks art focusing on these increment levels. it is important to hold 17,000. i actually think that they just made that up. the equivalent of reading. now just hold 17,000. really. i'm just passing it along. i do not buy it. i am sharing it with you. more after this. ♪ we live in a pick and choose world.

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neil: do you ever get one of those odd bulletins that just do not make sense? i know that airlines have saved a ton of money with oil prices. major u.s. airlines plan to up their affairs. wide hikes across the entire sector. we do not know how soon it will take effect. they are operating with oil and energy the biggest part of that. it does not seem right. that is just me. we're getting indications that

iran, they are planning a lot more missile tests. my next guest, seems to violate agreements with the united nations. maybe our own iran deal is near. what are they doing? >> this is exactly what a lot of people predict it. you cannot trust iran. they are laughing at us. every week something else comes out. a w missile depot. ballistic missiles. they shot off to ballistic missiles violating the united nations resolutions. the united nations is a big joke. who takes them seriously? taking note of this and speaking out. >> members, russia and iran are included foods. they are working together.

some of the other countries have their own interests. this deal that obama, our president, this was the most important thing in the little world. falling apart. the president of the united states. his administration does not want to admit it. it violates every single part of the agreement. ballistic missiles. instead of america's standing strong, this is the problem, when america is weak, the entire middle east is destabilize. the saudis do not trust america. that is what this is all about. saudi arabia has been a great friend to the united states. neil: look at that. they are overproducing. fracking and oil-producing. >> there are friends and there are friends.

>> they are not as evil as iran. saudi arabia has been a great friend to the united states. we know some of the things that may have been involved. the bottom line is, there is one country in the world that spreads terrorism everywhere. that country is iran. neil: where is vladimir putin and all of this? >> vladimir putin is having the time of his life. he is laughing at all of this. he sees america as weak. he is pursuing the interest of russia. america is really the laughing stock. >> the iranians are not getting a benefit. oil prices have gone down. >> saudi arabia is keeping the price of oil down.

this is an incredibly dangerous situation. an american president with no one in the middle east trusting him. our enemies laugh and see the weakness of the united states. it creates an incredibly dangerous situation for us. it is not about the middle east. let them fight each other. it is about how it affects us. it is very, very dangerous. neil: good to see you again. let us take a look at the dow right now. 17,000 level. in excuse for them. say what you will, though. not off to a great start. after the first two days of training, not even going to go there. not even going to go there. more after this. ♪

neil: i do not think this is what the president was planning on. cracking down on gun sales. connell: this is a pattern. smith & wesson. one of the stocks you are showing there. the best well-known oil company. now they are saying it could be as high as 180. that is kind of the difference that we have seen here. another all-time high. you look at the intraday chart. it is not just smith & wesson. it is not just today. take a look at those two stocks over the last year. they are both up huge.

those are sizable gains. even yesterday we pointed out. we take it even a step further. president obama has been in office now for seven years. those two companies have done so well under president obama. 900%. better at need at making these things simple. $10,000 back when obama took office, you have more than $100,000 today. that is amazing. >> charlie's education as well. >> that is amazing. thank you very, very much. a lot of folks that say not so fast. ideas that may be acceptable to both parties. if you are getting your justice department involved, if you try to bite you think it is fiat

change the way things are going, well, you may block the funding for this. you may block the funding for a lot of other things. congressman, good to see you. the president has already laid out what he wants to do. playing a crucial role in this. what do you want to do? congress was given probably the most powerful tool possible by the founding fathers. i am responsible for the sub committee that funds all federal law enforcement. your viewers need to know that as a texan, as a good steward of our hard-earned tax dollars, i will not permit them to spend any of our hard-earned tax dollars to interfere with our second amendment rights. i have the ability to do ongoing

aggressive oversight. to put pressure on these agencies so they stay within the boundaries of the law and constitution as i did earlier this year. in march, neil, i was successful in blocking the attempt to ban ammunition by using the power of the purse entrusted in congress. >> is that the sort of thing that would be part of a budget process that the president has to write off on? >> this is ongoing oversight authority. >> actually, ongoing oversight. the genius of the founding fathers. the constitution says that no money may be drawn from the treasury except by appropriations. the chairman of the subcommittee responsible. i have ongoing oversight over here. the way they move money around.

last march, attempting to ban ammunition, i called the head of the atf. we had a heart to heart talk. explain to him the problems that he was about to have. three working days, they dropped the animal band because of pressure i applied on them through this ongoing oversight. i just want to reassure your listeners. they have a defender of the second amendment. i will not permit the administration to interfere with our bright to keep them bear arms. this week, next week, next month. as long as i represent texas. this administration and no other administration will violate the constitution. neil: do you have a lot of support in doing that? >> absolutely. this does not require the approval of congress.

this does not require a new bill. i was hired by my constituents to be a good steward of their hard-earned tax dollars and to protect their rights under the constitution. it is part of the genius of america that election officials have no right, only the duty to enforce the law and to preserve, protect and defend the constitution. this is authority that i have individually as subcommittee chairman. my constituents trusted me with it. i am going over these roles very carefully. if any of them interfere, i will cut off their access to our hard-earned tax dollars and do it immediately. >> what the founding fathers intended. a check and balance on an out-of-control objective which is what we certainly have in this administration. neil: thank you very much.

good seeing you. in the meantime, you obviously heard the president today talking about this. on the ground with republicans. he just has not found it. a certain democratic predecessor was better at reading the landscape. does this guy ring a bell? >> if we agree on nothing else tonight, we must agree that the american people certainly voted for change in 1992 and in 1994. [applause] i must say that in both years we did not hear america singing. we heard america shouting. now, all of us, republicans and democrats alike must say we hear you. we will work together to earn the jobs you have given us. [applause] neil: all right. that was president bill clinton

after a bit term shellacking. reading what was going on and trying to work with republicans. calling together some of the biggest reforms we have ever seen. bat was the president responding to the political reality of an election. not this particular president. he is doubling down. >> this is the way he has been. he responds to political crisis or political misfortune on his part. the truth is, it has just kind of worked for him a little bit. he is positioning hillary clinton pretty well. bill clinton did not have a democratic successor. keeping these executive actions in place where republican comes in signs away all of his games.

i do not think you can really call him a successful president. that is the test we are looking at, i think, going forward. >> barack obama. keeping this in the spotlight in talking about it. it is the way he can do it. >> it is ultimately about obama. i did not mean to suggest that. how will a judge whether it is successful or not. ironically enough, if obama really cared about gun control and that was his top priority, that should have been the first thing he proposed during the first two years. instead, he went with obamacare. should have done gun control rather than obamacare. your first two years is when you can get the most things done. he chose obamacare.

>> charlie gasparino here earlier brazing a very good point. a lot of americans are less disposed to talk about guns when they are worried about the bad guys with all the guns and not the good guys. in a way, it flipped around. a powerful exception. able to do what they do. obviously giving all of these folks arming themselves. the president is missing something. >> there is a reason a lot of people went to the gun store after san bernardino. it is because they thought it could happen anyplace. even remote nondescriptive office buildings. i better be prepared. he is not addressing those fears at all. he is addressing something completely different.

it could be that this backfires on him entirely. they are not able to address these very real fears that a lot of americans face. that they are not adjusting them. we have to work on these background checks. because of all of these increase gun sales that you pointed out, look at how many more background checks we are doing. now that there are so many gun sales, we can expect to see so many more background checks and he will be able to call that itself a success. neil: another twisted way of saying. arguing for fewer guns. more guns, fewer background checks. thank you very much. happy new year. >> we are to know what the president is going to make of his state of the union address. you can bet that this will be a main thing.

how many of policy gets. the republican chamber. it could be interesting. we will be monitoring that. charleston south carolina. the state site of the next presidential debate. be there. i have a feeling it will get very, very interesting for all of the candidates. ♪

neil: the star wars movie and how well it was going to just keep disney going on and on and on. it was downgraded. apparently, star wars, the whole hoopla has come and gone. neil cavuto was so right. whatever you are going to get, a lot of it you have already cotton. there are some real problems going on at espn. the stock is down more than 2%.

the same analyst said that alvin and the chipmunks single-handedly saved christmas. no they didn't. i made that up. shares are down. apparently, a lot of people reading much into the fact that apple is expected to reduce much of the output. around dirty percent. interpreting that is the sign they're getting ready for the iphone seven. you cut back. the street reads into that. there is not much demand for that. apple continues to slip away. this is over $30 a share for a little while. losing a good amount of ground. what does any of this mean? are you piecing any of this together. some of the markets follow very, very closely. not necessarily these items.

a recession is in the office. good to have you. what do you see? >> thank you for having me. and economy that is going down. some countries already in a recession. we have to agree on how we make this gdp. a country like australia, canada, the euro zone, they have all had a declining currency. depressing global gdp. as a result of that, by definition, the world is actually an recession already. we have also in industrial production for a recession. it will go over into the service

there. >> we had a bumpy start to the year. china gets a lot of the blame for that market. it was a slight uptick. >> i like a bumpy start. a drop on the first day of trading. it will be horrible. anyway. the market has become a little bit oversold. i think what has happened is we have massive inflation. commodities. this is now over. >> what happens now? >> so many hedge funds have closed down or are closing down. because they cannot make any money. these are the smart people.

i am not as smart as they are. if they cannot make any money, typically, they will not make much money in the years to come. in my view, it will become a stock tip of the market. you'll have to be very select it. i could say russia is cheap in the u.s. market is very expensive. it is relatively inexpensive. the u.s. is expensive. in general, the u.s. goes down, it is likely that the other markets will not go up. >> a lot of people will see their 401(k)s and they are buying indexes. the dow, the nasdaq. how would you describe it? >> i would not value and index right now.

certainly not in the u.s. >> what about gold? >> i think the only set their. and upside potential for gold. three-10 times. the downside is 600%. the upside out outweighs the downside. the s&p 500. >> the eighth year of a presidential term. recent examples proven problematic. we all know what happens during george bush. starting in the implosion of the internet. do you see things like that owing on? obviously, george bush much worse. politically, who decides damage?

>> it is interesting that you mentioned it. under the typical stock is already down substantially. very few stocks that have held up the index. down 5%. the average stock or the medium stock on the new york stock exchange is down something like 20% already. a lot of stocks that are down. down 20% from the high. the so-called stocks, facebook, amazon, netflix, google, the market has more downside than people perceive. >> you are talking about those issues. the amazons. the google.

they could crater here. >> yes. they are, essentially, prized for perfection. i remember in 1973. these were stocks. nothing could go wrong with these companies. polaroid, kodak. 2012 and people said, these good companies. no prizes to hide. 80%. >> wow. all right. good news. good catching up with you, my friend. very influential market watcher. he has a lot of things right.

a lot of trends right. these big run ups. as you know, hearing last year. we like to hear from them. we balanced it out. both sides. fox business network's version. there you go. my new year's gift to you. a selloff. a big one. you lose everything. more after this. ♪

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. . neil: all right. we have a curious story out of saudi arabia. foreign minister saying the recent tiff between his country and iran, shutting embassies down, all the unrest will not affect political negotiations in syria where russia and iran are working in tandem with other players to find a peaceful solution to the refugee mess and whole another nine yards. it's weird, but i just pass that along. speaking of that refugee mess, a number of governors, said we

will not allow any of those refugees in our states but invariably a lot of their attorneys general will say, you know, gov, you can't do that. that was the case in georgia. the governor there decided all right. i will have to allow thesefies in because the law is the law. is that the case. emily agrees. heather hansen says the state can refuse. so, emily you agree the governor did the right thing. >> i agree that the attorney general did the right thing, yes. here's why. first and foremost federal preemption trumps any conflict between federal government and the state. zoo bottom line, no topic more true than matters of national security which immigration falls over, falls under. secondly there are active federal administrative laws under the u.s. department of homeland security which specifically designates and rates fund to the state for resettlement program which georgia already accepted. they already agreed to be a

resettlement coordinator. you can not say no thanks. you can not defy federal fund after you already accepted them. neil: heather, sounds to me the lawyer, the attorney general, spoke to the governor said, not that he is his boss but you can't do it. it is illegal. is emmy little right. >> emily the constitution is right, you can't refuse it but you can goo home but can't stay here. governor diehl in 2010 he withheld federal contracts for federal funding for things like english skills, for things like job training, for things like after-school programs. all things refugees need in order to best integrate governors can control. while they can say no you can't come here, they can make it so difficult for refugees to come and integrate it is in effect keeping them out. neil: whatever success he might be having by making it intimidating for them to come there, legally the governor, to your point, emily has no ground to stand on.

is this a message for 29 or30 other governors taking much the same stance that they might as well cease and desist or what? >> i do think it is an important message their positions have been made clear but legally they don't have as much leg to stand on. this remind me on larger scale of kim davis situation in kentucky. because you have a certain moral position or ground doesn't mean you can a use your active case as governor to wield your power that way. yes, i think it's a message but importantly they have made their message clear. it is just not going to work here. neil: heather, what about states rights? >> that is where the federal government holds the states hostage, if he they decide to spite bite their nose to spite their phase, you're absolutely right, unfortunate reality, neil, as emily said federal government has power when it comes time my graduation by supreme court case by an act of

1980. neil: we'll see if other governors response similarly taken a stern position. no refugees here. i appreciate it, guys. if you watch this saudi iran thing, i seem a little obsessed about it. because i haven't heard anything from the most influential player at all when it comes to iran, vladmir putin. for a guy that likes to rub things in our face, he has been eerily quiet. i mean super silent. i mean scary silent, after this. ♪ at ally bank no branches equals great rates. it's a fact. kind of like ordering wine equals pretending to know wine. pinot noir, which means peanut of the night.

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the company is actually doing really well on, on social media. oh that's interesting. i - i started social media. oh! it was my...baby. neil: all right. well the president has backer in gun owner, mogul gun owner montel williams on facebook, calling on fellow gun owners to do the right thing telling supporters to do the right thing here. quotes montel williams on facebook. i own 14 guns responsibly. no responsible gun owner should oppose or fear what was announced today. i spent a lot of time with victims from school shootings. i have had enough. it is not about gun-free zones. it is about people having guns and expanding mental health. back and forth ensues. a big gun owner, a big sign of support for the president's plan to at least try to rein these

in. we have growing tensions in the middle east and syria, still exploding. now you have got saudi arabia and iranians not talking and shutting down each other's embassies. you probably figured, oil must be soaring. it's not. for the second day it's declining. what the heck is going on here? to former shell oil ceo john hofmeister. john, it is not making since. what's happening? >> i think we have too much oil, neil. that's the problem. remember we went into 2015 with a head of steam on oil production because of five years of heavy investment. neil: i know that. i know that usually psychologically, even in the past we would see a spike-up even though might be unjustified, trading on fears. that might be short-lived but not now. what is going on? >> we've lived with this political disturbance in the middle east now, how many years, since the arab spring? neil: yeah. >> when the arab spring first started we got an oil price

but now it is every day. every day we have another problem. oil keeps moving through the straits of who hormuz and state owned oil companies keep producing. people are immune from the political distress having to do with oil availability at this stage. neil: john, do you worry the saudis are up to something more than hurting iran with this boost in production but hurting us? that this is a trojan type of strategy to shut down our fracking industry, oil producers and eventually collect all the chips on the table? >> i think we're collateral damage in the u.s., neil. they can't go to war on oil price with iran and russia without there being some kind after collateral carryover but if you notice the international majors are taking this in stride. exxon, chevron, shell, yes they're pushing out investments but, and they are laying off staff, but they have been through this some times.

what it's really hurt are the independent producers who we know were really stretching the business model almost to an extreme where they were producing oil and really running their company on negative cash. you can't do that for too long. and so they have had a comeuppance. i think this will slow down any recovery that we see because people have to have a business model where you actually make profit. and they weren't making profit at 80, 90 or even 100 some of them because they were just trying to produce so much, so fast, that they were almost out of control and they needed a little bit of a slap-down to come back to some kind of reality. unfortunately it hurt the very people who buy things this economy. the consumer impact i think of the cutback in oil investment has been very severe. and think there is a huge manufacturing cutback that it is going to take a long time to recover from because you know, just, we've laid off so many

people across the oil patch, not just at the rigs but in the factories that produce the products that the rigs use. so whatever recovery we see will be slow. it will be laborious. and i think we'll see price spiking as a consequence of that. neil: yeah. not happening right now but it could to your point. john, thank you, very, very much. >> you bet. neil: meantime you heard what vladmir putin has been saying about all this? nothing, because we haven't heard from him. he has been quiet as a mouse. what does that mean? he is crucial in this whole debate, since effectively controls what iran is doing. and iran closely considers what he is doing. so what is he up to? you can imagine it is something admiral jim -- former homeland security deputy is thinking about this. he is wildcard here but a quiet one. what do you make of that, admiral? >> well, frankly neil, i think if you're thinking in putin's

mind, his ambition which he has said with his own rhetoric is to sort of revive the great empire of the soviet union. and i think his thoughts with regard to the middle east have to do with displacing where possible u.s. influence and replacing it with russian influence. so his role, for example in the iran nuclear deal just the other day where he accepts all of the enriched-uranium from iran is a statement about how do you get this done without the russians involved. his offer to mediate between the current crisis between iran and saud -- saudi arabia, is another behavioral manifestation with putin thinking out loud how does he push russian influence into

the middle east with the ultimate goal where he could of displacing u.s. interests. neil: do you have a feeling, admiral, that, things could turn south very quickly and disagreement and shutting down countries embassies can to something a lot scarier, could lead to war, how realistic is that fear to you? >> i think it is always a realistic fear or concern and has everything to do with the efforts on the part of secretary kerry and others to hold on to diplomatic exchange arena as long as possible when these kind of things are potentially on the table. so to keep in focus the reality of, you know, the shiite, sunni differences of opinion with regard to internal muslim issues, my god, that goes back to the 7th century. there is no way that over the weekend or through the course of an administration we'll quote,

unquote fix that but in the current event end what goes on in syria, the aftermath of the iran nuclear deal and even the executions of a week or so ago, all of those are chapters in the book so to speak of the greater picture that you try to hold on to the balance in the middle east between shia and sunni leaders. and the balance is only in place there really when saudi arabia, the you know the heavyweight with regard to the sunni side and iran, the heavyweight with regard to the shia side are not on the verge of doing something outside the diplomatic or wording arena and find their way towards military engagement. that is something we want to avoid at all costs. neil: at all cost. >> even putin seems to suggest that is the exactly right thing to do. >> admiral, thank you so much for sharing that. we appreciate. the executions the admiral was

referring over the weekend when the saudi government executed, 48 what it called renegade revolutionaries including, this one was most controversial one, a shiite cleric even though it is a shiite country. he is dead and that lit up entire middle east. you heard from mark faber, he is a big bear. the fact he has the accent where he sounds like a villain from james bond only reinforced the image things could get back fast. you heard what this uber bear said about a freefall this year. now a bull to say, hmmm, not so fast.

>> it is time for your fox business brief. this news on twitter today. if you're a user of twitter than that. longer tweets may soon be on the way. the current limit as you probably know is 140 characters but the website recode that twitter is thinking about upping that big time, 10,000, so you can tweet away. not a huge surprise, that is limit on text messages from person-to-person. this is on regular old public tweets. giving people more space to get the point across. twitter is testing it in a way when you look at timeline it would still look the same but there would be a way of telling there is a longer tweet because you have something to click on to get rest of it.

the stock, you see it here, has not been doing so well, put it mildly. it is at 21.94 today. there is more to come. neil will be back with more "coast to coast" in just a moment

neil: a lot of people either through the 401(k)s or pension plans are automatic investors and they're buying indexes that mirror performance of s&p, the dow, nasdaq.

foolhardy venture this year or how would you describe it? >> i wouldn't buy any index right now. neil: really? >> i would certainly not in the u.s. my sense is that once these so-called stocks, facebook, amazon, netflix, google, crater, that the market has actually more downside risk than people perceive. neil: we cut him off, when he said happy new year everyone. wow, mark faber. raymond james has a different view on this chief investment strategist is jeff saut. what do you think what mark was saying? >> he is very smart guy. he has been pretty negative on stocks for the past six or seven years. neil: yeah. >> he make as good point with the fang stocks. reminds me very much i got in this business. nifty 50 stocks, one decision

stocks you would never buy and never sell. that ended poorly in '73 and '74. neil: he says we're married to the latest names. amazon and google are latest of the nifty type darlings. >> that is exactly my point. the counterpoint to that however is that if you look at the lowry's operating company only universe of stocks, that takes out closed end funds and a lot of etfs, 47% of that research universe was down 20% or more last year. so you could make the case a lot of equities have already been through a bear market. neil: normally, i don't know historically it is always true when the indians are sort of tumbling matter of time before the chiefs catch up. averages reflect what is going on with some of their members. do you buy that? >> not, not yet. if we take out the august low in the dow and the transports, the transports have already taken out their august low, if the dow jones industrial average takes out its august low, then i will

have much more cautious approach to the equities but until that happens, what you have is right now a dow theory downside non-confirmation. the first few days of new year are a lot of noise especially geopolitical backdrop we've had. neil: dow theory view, transports are falling out of bed, matter of time before rest of the market does. you're not in that camp yet, right? >> not yet. not unless the dow jones industrials take out respective august low which was around 15,666. neil: huh, 666. interesting. so your view going forward is, if we just cool down here, just don't overreact things will be okay? what could destroy all of this? >> i'm much more concerned about the saudi arabia and the u.a.e. and bahrain, you know, severing diplomatic relationships with iran. i think that could spin out of control that concerns me much

more than a .4 of a percentage point drop in chinese manufacturing pmi. neil: that is an excellent point, you know that? we get caught up in silly stuff. something big like that would change everything. jeff, thank you very much, my friend. appreciate it. >> my pleasure. neil: all right. connell will be rejoining me. he does have uncanny mark faber as well. we'll compete doing devious german voices of the get out. get out! would be funny if he tried after this. we live in a pick and choose world.

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call today at see car insurance in a whole new light. liberty mutual insurance. neil: all right, not exactly a fox alert. nra not a fan of president's gun proposals, that they would not prevented any horrific gun deaths that the president referenced in his remarks.

saying essentially this is much ado about nothing. here we go. it will get nasty. another thing that could get nasty at consumer electronics show, a lot of people come back this year, last year promising technology that didn't resonate. virtual reality is still a big deal. one headset that they're debuting that being sold at $100 loss and you still look like the human fly. i don't know. but, my view is, really? a communications ceo says, we got jo ling kent with you. begin with you. still pushing virtual reality. >> reality in itself now. a $5 billion business according to super data. if you look where all information and live sports an concerts where it is heading, it is all moving in this virtual reality direction. nba -- neil: looks stupid. >> maybe on the outside -- neil: going deep sea diving. larry, what do you think? >> it's fun.

>> you have to invest in dramamine stock. neil: that's what i hear. >> a little dizzy. really is, can be big. it is all about advertising, neil. neil: they advertise in it? >> right now they don't. right now the whole idea behind it, getting into gaming. almost like microsoft with xbox but think about a virtual world in facebook. everybody has to understand, when you go on internet, about e-commerce and advertising at end of the day. that is what will lead. if it doesn't it will fall. >> i talk to vr companies, watching the nba game in the headset, planning to change the advertising sell at that. sandra: that's all i need from my son. can't get him away from this stuff. neil: selling at $100 loss to -- to -- -- >> that makes sense. these things take time. that number you cited was $5 billion number up huge. >> just this year. >> it was like 500 million. neil: people in this field everyone look like this. >> oculus coming out.

preorders start tomorrow. htc doing vibe. samsung and smartphone companies are expected to take the lead in sales. take your smartphone -- neil: they're all, concern about about 3d. >> you can do it with google cardboard. put your phone into little apparatus. neil: you like it, use it? >> i don't use it. i'm a facebook shareholder. the reason why i like the deal, i like it for advertising down the line. right now loss leader. get it out there. neil: you're going to make a lot of money on it so? >> so whatever. >> i want it to work, but about the advertising. >> do you know who loves it? mark faber. he has a bunch of these. neil: see the end of the world. guys, i'm kidding. we have a lot more. actually, i'm not kidding. more after this.

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neil: all right. fair amounts. we had an super bowl and it uber baier. someone who is favor of what the president wants to do. a perplexed on republicans. trish. trish: thank you so much. president obama issuing an executive order on gun control. requiring background checks on all future gunowners. it was in emotional plea from president obama. he cried as he remembered the victims of the mass shootings that happened under his watch insisting we could do better. >> every time i think about those kids, it gets me mad. by the way, it happens on the streets of chicago every single day. [applause]