countries have trouble. ashley: a nervous market. one more headline, a bad headline. stuart: ashley, you know what you're talking about. pretty good. ashley: maybe. stuart: somebody else who knows what he is talking about is neil cavuto, and it is now his time. neil. neil: i want to shoot something what's going on in north korea. these are folks cheering. yes, they found out that fox business is hosting the next week's presidential debate and they're let the. no, actually this is from the testing of a hydrogen bomb. that's a pretty scary deal. and even if they didn't do exactly what they said they would, we're getting indications of unusual seismic activity in the area. so something big went off. connell mcshane on why this is such a big deal. connell, what have you learned. >> well, it's interesting. we're looking at the difference between an hydrogen bomb and atomic bomb, which is most of our points of reference of this, in world

war ii those were atomic bombs. now, north korea has claimed what they tested is a hydrogen bomb. there's some doubt as to whether that claim is authentic. but if it is, hydrogen is more serious than atomic. as atomic is obviously yet a couple hundred thousand people killed in hiroshima but it can do more than that. several magnitudes higher in terms of the release of energy. and basically in explanation, it's like high school science when you look at the difference between the two of them. hydrogen get the energy through the fusion of the atoms, atomic is fission of atoms. and fission is basically splitting of atoms literally splitting into two separate atoms. but you're creating a larger, heavier atom, which is a hydrogen bomb could be. and experts say it could wipe out an entire city if it were that. that's the important part.

the north korean's claimed they tested this hide gentlemen of the jury bomb, a number of experts doubt it was actually hydrogen, the energy yielded about this, and you say something happened here clearly, but the energy yielded by this test is lower than what they would expect from a hydrogen bomb and some experts say it was lower than what we saw in 1945 1945. neil: yeah, to your point it's scary stuff that they can do this. something close to this. connell, thank you very much. another word of central command later admiral -- even if they don't have the hydrogen bomb capability, they seem to be close to a big bomb capability of some sort. and this despite efforts we have made over the decades to reign them in. would you make of all of this? >> i think it's very destabilizing to the region. there's a pattern of behavior here by the north korean

leadership and certainly the young kim jong-un has taken up where his father left off to propagate the unexpected on people. this is dangerous because it's the i believe fourth in a series of some kind of nuclear test or detonation. and his objective is to get attention, in my opinion. to make the world look at him, and he wants recognition as a major player in the region. and it's a challenge because the neighborhood is not particularly unified. there's a lot of tutting going on now about here's another one of these bad behaviors. but in terms of cooperating, we don't see a lot of that between south korea and china, for example,. stuart: you mention china, and that's the key here because we're told china in the past is trying to reign this guy in and go slow with this and watch what you're doing.

and even they're not doing that, what do you think of china's role here? >> i think china has got -- in a couple of different ways. they're probably not happy at all that you have a rogue state like north korea. right on their border with potential to have nuclear weapons. on the other hand, i think they're very concerned that what might happen in the future if and when korea gets unified, i think that's probably going to happen sooner or later. but unified korea would clearly be dominated by the south because they're economically much more powerful. and to have that free enterprise democratic state on a loan border with china probably scarce the more than the scare of the potential of dealing with north korea as they are with the potential of nuclear weapon. neil: you know what i'm worried about, sir. i hear you and real quickly we've got china landing planes on disputed islands that they've reconverted to military operations.

so the japanese are worried about it. they complain about it. we send a ship into the area to sort of let our anger be known. but we don't do more than that. north korea keeps doing what its doing. iran just sort of laughing in our face. and seems to pretty flagrantly violate some of the key deals we just signed. >> well, it's clear that the new year doesn't have solutions. we have a lot of problems, and the atlantic of predictability of leadership. so i think we're going to have to pay close attention. best thing we can do, in my opinion, is to try to get the neighborhoods states to cooperate with themselves and with us and at least have a unified front to show the north korean leader that his kind of behavior isn't going to be tolerated. neil: yeah, i hear it. it is a weird way to start the new year out. and thank you very much for spelling it out and ironing it

out. but to his point, you have the trifecta of real concerns here and terrifying concerns, and not even gone into isis. you know, it is not as if we haven't tried to go the negotiating route and negotiate a deal route, the sanction route. does any of this ring a bell? >> this agreement is good for the united states. but for our allies and good for the safety of the entire world. it reduces the danger of the threat of nuclear spreading in the region. >> the iran nuclear deal solves a specific problem, which is making sure that they don't possess a nuclear weapon. and it's our best way to do that. neil: bill clinton talking about a deal he thought was a done deal and a safe deal and peaceful deal with the north korean's 1994. fast-forward to this president talking about a deal, he thinks it's a good deal, a safe deal, promising deal with the iranians in 2015. now to 2016.

ambassador robert negotiate that north korean deal. what does he make of what's going on now? what do you think, ambassador? >> it's good to be with you. neil: same here. what do you think is going on with north korea? do you think they detonated a hydrogen bomb? >> good question. i think most of the experts that have looked at this that i've seen writing on the subject would say probably not that a true thermonuclear weapon is beyond what the north could do. but let me know when your eyes begin to water. what is much more likely is that they got what's called some thermonuclear better than. in other words, they got some fusion of white isotopes of hydrogen which produced a little bit of energy and a lot of neutrons which caused a little bit of fission. so it was probably mostly a fission device with what's called some boosting, which gave it a little bit more yield. but still i think you've noted

this, admiral fallon noted this. not much yield. so i don't think this is something to hyper venue late over. even if it were a thermonuclear weapon, and i don't think it was we would be talking about a potential for a design to produce a much larger bomb than can be produced with simple fission. but the key here is whether the north is deterred. in other words, is the american nuclear posture one that can deter the north in nearly any contingency. neil: do you think our answer here is we're not up to that task? we can't control what's going on? >> no. i firmly believe that our deeternit deterrent posture is a good one right up to the nuclear level. and i think not only do the north korean's understand this

but just as important our allies in tokyo and soul understand that the extended deterrent to those countries is also still viable. stuart: well, it might be, ambassador, you're an expert on this. but i just read and collect a lot of events. if the bad guys aren't intimidated, they certainly have a funny way of showing it. and i wonder now with hillary clinton on the wires saying the u.s. should impose additional immediate sanctions on north korean and all of these sanctions over the years have not done the trick and the prior deal the north korean's have found a way to wiggle around them in democratic and republican administrations alike. what do we do? >> it's been 20 years since i negotiated or headed a negotiating team against north korean on what i thought was a good deal at the time. these things are all relative. we -- wars are not pure, simple, and good. and neither are all negotiations. the question is are you better

off with a negotiation or not having the negotiation or the deal? not whether you can imagine some better outcome. neil: yeah, but if you think about it, that negotiates them not getting the stuff. no offense to you, sir, they got the stuff or something close to this stuff. so it makes people wonder whether we were hoodwinked. >> no. we weren't hoodwinked. we knew at that time that we had a good chance for stopping that program for a while and maybe a long time. so for 11 years or month or maybe more than that, we did stop the program and eventually the north korean's cheated on the deal and during george w bush administration, they tested first of what is now four nuclear weapons. neil: so you're blaming this on the bush administration. >> say, again, please. neil: you're blaming this on the bush administration. >> i'm not blaming the north korean activity on anyone but north korean's. neil: right? >> and they are the outlooks here. and what we're talking about are rational ways of dealing with that.

and what you can expect of the it is a of america at any time. if we wanted to use force, could we crush this country? yes. is that the right thing to do? no. neil: obviously we're world premier power. everyone knows we could crush other countries if we wanted to do so. i guess what i'm saying here and wondering about is whether the north korean situation brings to mind the iranian deal. and you said at the time you had assurances that certainly in the near term would stop whatever they were doing ten years out or whatever they were obviously doing other things. who's to say that the iranians haven't cobbled together the same sort of strategy and aren't doing the same thing? >> well, that's why you have transparency provisions. that's i couldn't do inspections, and you do the best you can with these deals. i don't think anyone who's been involved in negotiating with a country like iran or country like north korea is going to say you have a full proof deal. the question is are you bet off making the deal. neil: do you think we're bet

off -- seriously. do you think we're better off now thanks to your efforts. and you worked your hiney off, i don't take that away. but do you think we're better off now? >> there's absolutely no question in my mind. by the year 2000 had we not done the deal, the intelligence community the north would have about 100 nuclear weapons. this is now 20 years later, and we're talking about them having maybe ten. neil: you don't know that. you don't know that; right? no way to know that. >> what we know depends upon what our intelligence community can find out. and the best of our knowledge, and i can say that, we're way better off because we made a deal then. better off. neil: but, sir, the offices of that deal then was that north korea would not ever be in this position. maybe i misread it at the time, others misread it at the time, we played a bite from president clinton at the time that seemed to indicate we

stopped north korea down this path. and now they're down this path. >> you know, there is no stop. there is a delay. there could be political changes. neil: yeah. >> that produce stop. but you can't guarantee a stop for all time. again, i tell you the question you should ask about any deal is are we going to be better off if we make the deal? can we monitor it? will we find out if they cheat? those are the kinds of questions you should ask in the real world. neil: all right. we couldn't monitor this one because years later they did cheat presumably. with this iran an deal we're told the same thing. we can monitor if they're cheating. i have my doubts. assure me that i'm wrong. what do you think. >> well, i think the answer is that we did catch them, the north korean's that is when they were cheating. we caught them in the '90s. the bush administration when they came into office was aware of this, and then they ultimately went to the north korean's in a second year and said this has got to stop. and eventually the agreement collapsed. but it collapsed because of

what the north korean's did. for a long time -- neil: what i'm asking you is do you think the iran's are doing the same thing with us? >> at this moment, i heard you say that there was material breaches already of the deal. i'm unaware of material breaches of the deal. i would have to find out about that. to the best of my knowledge right now, we are still in the opening days of having this deal implemented. and we have to monitor it. neil: all right. >> no question. neil: ambassador, thank you very much for taking the time. >> thank you. neil: whether this is weighing on the markets or whether concern about china is weighing on the market, we had more bad news on the services sector. do you remember what got us going at the beginning of the week was troubling in the manufacturing sector now the news that the servicing sector is collapsing as well. add it all up, and we have stocks down. although we had been down more. that's all i can tell you. the dow already down 3% on this still relatively young week and still relatively young new year. more after this you pay your car insurance

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see car insurance in a whole new light. liberty mutual insurance. neil: you know, i want to show you footage from our friends at sky news that is really scary stuff. because this shows you that they're not -- when it comes to isis a renegade bomb are just whack jobs. they might be whack jobs, but they've got sophisticated stuff. this is footage showing what they've got called a jihadi technical college where isis employs scientists, weapons experts, almost like, you know, the nazis with their missile program. they've already got heat-seeking missiles, cars, you name it. man, oh, man. it is super stare stuff. keeping an eye on it, but it does confirm what analysts have long suspected that isis given all of the millions they take in every day either from

oil or ransom or terrorist activity, they're putting it to use. and other news out of walt disney that suspects today "star wars the force awakens" will pass avatar to become the top grossing movie of all time in u.s. and canada. [laughter] really? applauding. it has done wonders for the stock, hasn't it? but it hasn't. they've got other problems with espn and people cutting the cord and all of that stuff. but for my money, avatar deserves a better place. eight foot blue women. hello? i'm going to go to scott on that thought. he's looking at all of these developments into the selling of the new year. i don't know what the market maximum is. the five days of trading. but if that is the case, so far not too good. what do you think. >> no. it's not good. as goes january typically, neil, as goes the year.

now, i think there's a couple of interesting things going on. north korea is definitely serious. especially when you consider its proximity to other struggling economies that we've talked about in a long time. which is china, japan. and there are other issues too in the u.s. department that i think we're reacting too. aside from kim jong-un playing with his atomic energy lab gwen, i think you have problems here with the federal reserve, credit problems, an environment that doesn't really have much inflation, and an environment that's struggling to grow. so i really think there's a lot of things afoot here that are coming to roost on a day like today. neil: all right. while i think this indicated the first five days, january indicator works eight out of ten times, i don't know. i think you guys make this stuff up. >> eight out of ten times, it's right half the time. neil: all right. normally the longer you have bumpy days, the more nervous investors get. selling and selling, it just

adds to itself. are you afraid just psychologically that could happen? >> well, i'm concerned because this is a very consumer-heavy economy. and frankly given how tied in consumerism is around the globe, if the consumer feels it in their pocketbooks, whether it is interest rate related. as far as how much your debt service cost now. whether it's an auto loan that you get or mortgage. the cost of getting debt now or getting a loan is much more than it was six, 12 months ago. and i think what happens, neil, is especially when you see your 401(k) go down, you see an investment account go down in value. that makes you reign in your spending and that's exactly what drives the economy. that's exactly what drives growth and at the end of the day that's what drives stock prices. stuart: did you hear what i said about star wars? that this new ridiculous stupid predictable movie that you have to read when it starts is now going to be the biggest movie of all time. what do you think of that? >> i'm interested in listening to it on tape.

but you forgot something about avatar. eight feet hot blue women is what's different. that's why i would take avatar over star wars. neil: in 3d it looks good, but i digress. see you when you get home. oh, hello, lovey. >> i'll switch keys with you. i may be in the same deal. neil: all right, scott martin, thank you very much, my friend. and that is going to make the folks very loud it looks like the fastest time ever a film has become the most watched film in human history. but in inflation terms, what do you think is the most watched film ever? you would have to go way back. i mean way, way, way back. i'm talking gone with the wind. so all of your other stupid-dressed characters, you're nothing compared to scarlet and red butler. we'll have more after this

i thought i married an italian. my lineage was the vecchios and zuccolis. through ancestry, through dna i found out that i was only 16% italian. he was 34% eastern european. so i went onto ancestry, soon learned that one of our ancestors we thought was italian was stereuroan. is imy aestowho dn'tnow out.

ancet stted r fr at ancestry.c scoving ur sry. neil: all right. earlier we showed you north korean reaction to news that fox

business network will be doing another presidential debate. a lot of you might have been mistaken to think that was footage from them hearing that their grand leader had tested a nuclear device. a hydrogen device. no, it was them hearing that we will have a debate next week. but one of the things -- by the way, if you have any -- go ahead. prove me wrong. just go to north korea. find out for yourself. in the meantime one thing about debates -- and we know from ours, from others, they can move the meter. they can move poll numbers. sometimes for just a little while. sometimes they make a seminal shift jo ling kent looking at how they moved it in our last debate. jo ling. >> that's right. we're looking at what happened in our debate next week. eight days to go, we're counting down. let's pull up a chart here, i want to show you what happened to trump and cruz. this is the november 10 debate and you can see here that carson has basically dropped about 20 points more or less and trump continued his decline, even more steady and

consistent after having a pretty rough spring, summer, and fall, and here you have senator ted cruz climbing very stealed, and you can see how that's playing out, neil, in how the poll numbers have come out overall. i want rcp average right now. you can see donald trump's 35% ercp and senator ted cruz holding steady at 19.5. marco rubio at 11.5 and then ben carson, dr. carson there at 8. #%. so eight days to go in charleston, south carolina. surely will be a very important moment as they head toward iowa and new hampshire. neil: did you say the debate is next week? >> yeah. are you ready? neil: you did not tell me that. >> i heard you have a role in it. neil: okay. well, thank you for that update. no, that's very interesting. very, very interesting. and i tell you to her point, it can move fast just as much as the other direction if you don't capitalize on whatever you do. and one thing about having a big debate about this just a couple of weeks before the

iowa caucuses, is some folks get desperate. it comes off with the gloves, and you get the likes of this. chris christy slamming marco rubio in the washington post saying i just don't think marco rubio is going to be able to slime his way to the white house. he wants to put out a whole bunch of negative ads, well, go ahead. i hope that he will acknowledge at some point that i couldn't care less. so i don't think he's a fan of some of these pack ads that have run on behalf of senator that just ripped chris christy a good one. essentially being just like barack obama. it did not sit well with chris christy. we've gotten knee williams here, we've got charlie gasparino. but, ebony, my point this is the stuff you're going to see the closer you get to iowa, the closer you get to new hampshire. this is where it's nasty. >> it's fighting time, neil, and for donald trump, christy would have a fuller opportunity -- neil: i fully agree with that.

>> so this is the time that works well, christy's brand. but, yeah, we're going to see it get nastier than this. this is just the tip of the iceberg. neil: i think you're right. what do you think. >> i don't think this is the tip of the iceberg. this will be the last -- the battle of the bold for the establishment. there's essentially two campaigns going on. there's the campaign that is more subtle because they're not directly attacking autopsy other between cruz and donald. neil: lately they're getting exchanges. >> they are getting a little bit heated. and then there's the establishment food fight. and, unfortunately, for chris christy, if he doesn't have a good showing here -- neil: what is a good showing? >> well, let's -- i think he has to come in third or close fourth. it will be -- okay but my point is this. neil: in new hampshire. >> yes. if he doesn't, if jeb doesn't have a good showing, if kasich doesn't have a good

showing, and i know this talking to the donors, there will be tremendous pressure on those candidates to drop out -- neil: well, i think you're right? >> and have a three-race merge between rubio, trump, cruz, and that is the most direct way the establishment can win -- neil: you don't have to win outright; right? we forgot in the caucuses in 1976, jimmy charter actually came second to -- >> iowa. neil: in iowa; right? and second bill clinton was second, but he was the come back kid. so you can make an argument, but i will agree with charlie, i don't know about fourth but third, second, or first, if you're outside the top three, you're in trouble. >> yeah. and right now christy's at four. but it's tight. neil: it's very tight. >> and here's the problem. >> charlie, wait, one second here. neil: tell him to shut up. >> i have the pearls, neil, i have to be classy today. but right now the under

substituted establishment candidate, i don't think all of his bets on marco rubio,. >> but that's now. if he does good in new hampshire, it's going to be done. the establishment -- neil: if who does? >> if rubio does well, it's done. neil: if he doesn't do well there, then what happens? >> then the food fight continues. but, neil, it's out of -- we can sit here and speculate what we want. there's about 300 people between new york and texas that matter here. they're fundraisers, they bundle a lot of money for gop candidates. neil: those fundraisers have not moved the meter. >> the guy with the money -- >> don't mix metaphors here. neil: you're a hater. >> do you want me to finish what i'm saying? neil: no, i don't. you interrupt other people, i'm just interrupting you for the hell of it. fast. >> the establishment -- you guys should do some reporting every once in a while. i'm just tell you. neil: tell me what it is. >> the establishment fundraisers are going to force them to pick one candidate. neil: and i think the establishment guys have

been -- the money guys have messed up and they're not important at this stage. >> they're not important -- >> the people have said despite all the money jeb bush has or whoever, they are going -- >> you don't understand my point. neil: you don't have one. you've been wrong. the money guys aren't anything. >> we move one more time. >> there are two races going on. >> okay. >> there's the nonestablishment, there's the establishment. >> uh-huh. >> the establishment wants a win, which fundraisers -- >> and i disagree. >> guess what they're going to do? if rubio does well, tremendous pressure on everybody else. neil: 300 people who matter from here to -- >> with the establishment. neil: all right. well, you sounded very -- >> hourly, neil. neil: i'm offended. >> you understand -- neil: gop establishment. >> i'm a woman of the people. i don't understand. neil: yeah, i am too. i'm a person of the people. and he goes to restaurants -- >> yeah, i don't get it. neil: no idea. a lot of you have been complaining about this footage

that we've been showing that north korean reacting to fbn news and people saying, neil, that was for the hydrogen bomb, not fbn. prove it. more after this - 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.

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neil: did things go bad to worse to or chipotle after news of a subpoena and criminal investigation now. authorities looking into what the company knew, when it knew

it, up and how bad that scandal has gotten? and it moves up to that level of concern. the stock, 43%. all right, food for thought when it comes to technology, liz claman is at the simmons -- consumer electronics show looking at a lot of hot tech items and their stocks which have not been as hot. liz: i can tell you i have made some new friends at future robot. these are called the pierogies, they are brand new and can do anything for all kinds of purposes such as entertainment and dancing. can you make one dance while we are standing here? this is a korean company but they have the chinese market and the effect of the chinese market as it goes off dancing, affected

also, replace workers, etc.. i don't know if you should worry you but they can actually serve food. i don't know if they can be fixed tv anchors, maybe charlie gasparino. i was talking to the earlier and they said the va. the chinese market is under stress. you have the market came and chinese consumers who love gadgets and the chip companies might want to worry, you have qualcomm, arm holdings, intel, they are relatively stings especially the drones. i am talking to a lot of people who say the chinese consumer may slow down but they hold their money to buy these exciting things. they have the world's tiniest drone coming up at 3:00 p.m. eastern. we are going to be showing you that. i have six of the hovering around my head to show you how they work. it is a tough time for china and that weighs on people here. when they retesting the audio

here, and 2.4 square feet, testing it in english and repeat what they worth saying in chinese. never seen that before. the chinese market is huge. neil: as a reminder to you charlie is a robot. the challenge would be to make him a human being. thank you for that update. connell mcshane looking at interesting technology because some moves on to become part of the culture. there we go. connell: it is weird that way. and the 8 tracks that year. i was there two or three times, stuff, you have to look back 5, 6 or 7 years and you can talking to this watch and that is all

the rage. i outlined the stupidest items. let me start with this, nothing like having two got on a television set talking about us martin biron. we talked about this yesterday, you can't talk about it too much. nothing good again come out of this. look it up. since you are awake, a -- an alarm clock. 100 miles an hour. you like this, since their wake, an alarm clock. and alarm clock wakes you up with a smell so say you want to smell, you are sitting there and the smell of prime rib wraps you up and the sound in case you pass up and the prime rib

doesn't reach it and smart built. neil: don't go here. this is your wage here. charles: it is a fitness tracker built into a belt buckle and it tracks all your -- essentially does that, you sit up straight, drink more water. neil: does this go with the fitness? connell: the broad and the alarm clock. we got a call from our legal department here again. we are down 180 points on 17,000, and syndicated news that the manufacturing sector, and the first few days, january,

triggers how the rest of the year goes but you are not happy camper. more after this.

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online and on the usaa app. neil: we are monitoring another white house press briefing, getting news of the north korean seismic event, north koreans saying it was the detonation of a hydrogen bomb but according to the nuclear treaty organization the magnitude of this latest so-called seismic event was slightly less than one in 2013, which was alleged that the time to be an atomic weapon of some sort but that is correct, this would obviously not be, they're thinking hydrogen bomb was tested and gone off, it would be something less but something big happened. i don't know if you can take much comfort that it was not a hydrogen weapon, just another really supermassive weapon but you needn't worry. i don't know if there is too reassuring but if you think the

global energy markets are panicked by any of this stuff because normally you get the middle east out of sorts, saber rattling between the saudis and the iranians and everyone lining up, evidence that isis has high-tech weapons, schools manufacture them, oil soaring on that as a psychological fear that these are dangerous times. throughout this week oil has been slip sliding away and what that means, follows this closer -- that is surprising, is it not? what do you make of it? >> it is surprising but in one sense it is not because the saudis, kuwaitis, united arab emirates to account for 50% of production, meaning opec is going to continue to produce as much as they can and that is what market expects and put pressure on prices. neil: if the market is trading

down, then it is not worried or traders collectively are not worried about this tension between iran and saudi arabia escalating into something worse for iran getting its trigger finger itchy in the strait of forces. they don't think that will amount to much. >> that is right, they don't think we are going to have iran attacking saudi arabia or vice versa in this mutually assured destruction scenario where neither of them would get any oil revenue to support their government budget. neil: what about this slowdown? you touched on it a while back, this could be just a reflection of people who feel the global economy, maybe china more to be point with service sectors hiccuping that maybe this is nothing more than that, supply/demand deal, fear of a global slowdown deal.

>> number one, this is an oversupply situation, no doubt the shell revolution in the u.s. has added supply much faster than the world demand can absorb it. at the same time it is clear the market is becoming worried about those manufacturing indices and figures coming out of china, seeing a slowdown, if we see it in the physical oil market where china is exporting record amounts of diesel fuel which is what you use it your construction boom was continuing. neil: how do you see this going out the rest of the year or near-term with oil prices because a lot of people hang on that. >> and the near-term crude oil looks ugly, we will get to 3250 which is good news for the consumer because gasoline prices are likely to fall another 5 to $0.07 a gallon. in 2017 things look better as production is going to come off in the u.s. at those low prices. neil: happy new year to you.

we have the dow close to 200 points, one is bucking that trend and that is walmart. if you bought the dog in the new year the dog does a lot better and those were this is oilers of the doubt, you sell them off because they won't do as much. it is only for today. more after this. you pay your car insurance

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neil: there are some winners amid the losers, it has been better than 3% on this new year. nicole petallides has the latest with that. nicole: i know you touched on wal-mart, the dog of 2015 so that is a winner on the dow jones industrial average. we are seeing those names that

are under pressure, the ones you would expect like chevron and the like because oil pulling back which may settle at a seven year low but the names that are bucking the trend are the names that were stars in 2015. netflix was 131% and amazon which didn't go with my theme but a moment ago was still green and that has been a real winner over the last yourself up 114%. the airlines as oil pools that, the airlines are in the green, names like american airlines of 2.3%, southwest airlines, got hit hard, apple, as we that apple, there's a story, inventory buildup, the slowdown the iphone production, stocks down 2% and the iphone suppliers are all under some serious pressure. that is one of the down names. neil: nicole petallides is the only one who is bright and cheerful at 5:00 a.m. each morning, she is.

that alone is an achievement. to be in that good a mood that early. i am never in a good mood never read any point. let's look at gun stocks, they have been selling off a little bit but the fact of the matter is the more the president is raining in, more americans are buying a lot. in randolph, new jersey, the latest proof of that. >> this is the right to self protection, firing range popular with everybody, all ages, mail, female, some of the stocks of the firearms manufacturers have shot up since january 20th of 2009 when president obama was inaugurated. if you invested $100,000 you would have today over $1 million and the dividend close to $1.2 million, but we are thinking of different people who are firearms enthusiasts, and

what the president is doing is just political theater. >> this then never hurt anybody. is a good gun because i am a good person. by affecting me and taking away my right you are not affecting crime, you are not affecting time rates. it is political theater. >> when we speak to the people at the firearms range they will have 1,000 people come here on any given weekend. mr. friedman has seen sales surge but it is women, 40% of handgun sales in the united states are to win and he thinks what the president has proposed, i am going to wrap up but there's a long line who wish to fire today. neil: watch where you are walking. thank you very much. to let you know little earlier, with all the political back and

forth and nasty broad sides the republican candidates as they get ready for the debate on that bien, there's one particular candidate you might remember him is going to join us in the next hour and he is about to announce big news as donald trump would say, some huge news and he could choose any venue to announce it but he is doing it, he is announcing it on fox business. get ready. i think this could be pretty big. stick around.

neil: a lot of height and concerns about north korea and the data and hydrogen weapon today on top of new concerns about china's economy sputtering away, some weak news on the services sector, weakness on the manufacturing sector. we are now awaiting a white house briefing on what the status is with north korea. there are indications, blake

berman that it is not a hydrogen weapon, it was something that there's growing sentiment that it was not a hydrogen bomb. what we know? >> it depends what expert, what you listen to their. the south koreans have doubts about that. that has been an approach, wait and see from the administration, a few details about what exactly they feel what might have happened. we are hoping to get some details from the white house press briefing which should be taking place at any moment at some point this hour. you see the empty podium judge ernest should step to at some point. all the administration is saying, they put us statement earlier today and that there was some seismic activity in the area of a no nuclear site in north korea but they can't confirm north korea's claims at this time. this was the statement put out by the state department and the

spokesman john kirby who said in part, quote, we will continue to protect and defend our allies in the region including the republic of korea and will respond appropriately to any north korean provocation. and the statement from the administration with very few details about what may have happened. fascinating to follow, many of the republican presidential candidates coming out, talking about this thing and another reason why the country needs to move on from the obama administration but also the clintons. take a brief listen to chris christie and marco rubio from earlier today. >> this administration has done nothing about it and bill clinton want to live speeches a few years ago by the way. it is reckless what has happened under this administration. >> a failure of intelligence and foreign policy to allow this to happen and this is the president's problem and hillary clinton's problem. this happened on their watch.

>> on the other side hillary clinton since she was named also put out a news release, statement earlier today. i want to read you the latest paragraph of it, quote, threats like this are another reminder of the stake in this election, we cannot afford reckless imprudent publicity stunts, that risk war. we need a commander in chief with the experience and judgment to deal with a dangerous north korea on day one. that is probably a little bit of a shot toward donald trump as far as here in washington we are awaiting the daily press briefings for the white house. neil: it was her husband who negotiated the first deal with the north koreans that they later on she did. thank you very much, blake berman in washington. we are awaiting that presser. is not often you hear a republican calling for a czar but it might be needed when it

comes to iran, we may be need and iran is thought. could you explain why you think so? >> what are we supposed to do? rely on the obama administration to certify, john kerry, everything iran is doing is terrific, they are complying with every part of the complex iranian deal, a deal but by the way iran has not signed, nor will they be signing, they're getting everything they wanted so why believe speaker ryan should appoint a congressional czar in your word, a coordinator to make sure all the relevant committees are still looking at the iranian deal to make sure the administration is doing what it should to keep iran's feet to the fire and check whether iran is actually complying with this deal. i expect them to comply because the bar is so low. we had u.s. sanction legislation that was really tough. we had un resolutions also

tough. now all of that has been wiped out with the very weak, ineffective deal that basically gives billions of dollars to iran and has the trusting kind of mechanism. i don't think we should trust iran. we need someone to supervise this deal to make sure that iran is or is not complying. it is complex legislation. neil: i don't know if a coordinator or whatever does the trick but i do know this. whatever deal the craft and i go back to the north korean won, it buys us time, and i am wondering if this iranian deal is buying us time to say we are checking on them when we know in retrospect with the north koreans that eventually they cheated, we know right now it is distinctly possible but iranians could do the same. are there any provisos we know of that czar or coordinator could stop now?

>> we need to have someone who is not part of the administration ready to look at this in an unbiased way and say they are not complying. already iran has fired missiles in defiance of u.n. resolutions yet nothing is done. so interesting you bring up north korea. the parallels are strikingly you track president clinton's words about how this deal we did with north korea years ago was going to make sure everything, we have peace in our time and track what president obama said about the iranian deal and it mirrors the fact that both statements say if we sign this deal we don't have to worry about things but we do need to worry that they cheat, lie, manipulate the data and we can't take the obama administration's political analysis for it, we need to do our own, too many committees involved, we need a coordinator in congress. neil: we had regimes cheetah

democratic and republican administrations. to your point, maybe the fresh set of eyes on this would come in handy. thank you very much. we showed you at the beginning of the broadcasts, startling video from our friends at sky news that seem to show we essentially a high-tech university for isis. i am talking very advanced gadgets. we always heard how much ice is particularly when oil was more expensive, how much money was taken in every day, every week, hundreds of millions, some say isis, in the billions of dollars, they're putting it to good use. all sorts of james bond type weapons systems. this is not your rogue gallery of malcontents here. with this, what happens now? let's get the read from the former obama campaign foreign-policy adviser, former national security adviser to dick cheney. to begin with you, this is

pretty scary stuff. they have some very high-tech capabilities. what do you make of it? >> we don't know if it is true. people have got to look at it who understand these things but would not be surprising. neil: this is a fox entity and sky news, you can take it to the bank. >> 100% sure. neil: what do we do? >> it only underscore is these guys are the quote leak, building a state, they have our social media empire, built a national oil industry, have a chemical weapons program, the fact they have heat guided missiles that can actually hit civilian airliners and maybe our aircraft underscores the degree of threat that is out there and the need for the west and the united states and our allies in the region to figure out a way to accelerate hall we put pressure, put these guys back on their back foot and dismantle

this caliphate before the very worst thing happens. neil: i guess we could argue with semantics, you are not the senator lee a fan of arguing of radical islam or whatever but whatever they're doing with this technology is certainly a radical departure from what we had traditionally known of these groups, even al qaeda. what does that mean? do you think this has escalated years to the point that whatever we are doing isn't working because this is pretty sophisticated stuff. >> this is different from the threats we face from terrorist organizations in the past. the reason is isis holds substantial areas and territories and that gives them room to do things like build a laboratory like this. previous terrorist groups like al qaeda were hiding in caves or secret compounds, had to move around a lot, didn't have access to the resources, isis is drawing on the resources of

substantial territory that it holds so the number one priority has to be to push isis out of the cities, like mobil, in iraq, like syria, i was there a few months ago and went to the kurdish american base where they are fighting isis, they had towed a vehicle they captured from isis, a regular truck isis put on her on and made into an armored vehicle that it could drive into soft targets and fill it up with explosives and fighters and private into soft targets. i asked kurdish fighters, how many vehicles do you think isis has and they said how many regular trucks do you think isis -- are in mos old? as many as are in mosul they could make all of them into armored vehicles so the threat is so substantial because isis holds that territory. we got to push them out of that territory. neil: they could do this in a bunker somewhere and the fact is the same. thank you. very much. i want to let you know the

selling has escalated, we are down 220 points. seems to be china. you say we overstate china and i agree, we sometimes do. they do hold a lot of that which is why we tiptoe around the subject of defending them. republican and democratic administrations alike but the fact is we are beholden to them. donald trump says they are beholden to us because we buy so much of their stuff but the bottom line is with interest rates taking up a little bit and the cost of the debt as kelley moore than on a little bit we are in a lot of hurt and this is the year the herd could explode after this.

neil: the u.n. is going to be on

north korea's i see now that the security kill strongly condemn this north korean nuclear test, a pledges to pursue some new sanctions which i hasten to add all of this seismic activity recorded in the area because of the hydrogen bomb, we say something less, bottom line is the have been doing all this through sanctions so it is not exactly range in bad behavior. it is what it is, the u.n. is kickoff and letting the world know it. also letting the world know the guys who consistently warned about this has all the debt is piling up not just at the federal level but the state local level, david walker, former controller general saying we wake up, all going down, happy to see him in the fletch. you are saying this is much bigger than washington. >> it really is the deficits have come down in washington, but the debt is still growing at the rate of the economy and is expected to grow faster than the

economy. the bill that was passed in december for tax and spending made it worse, 2 to $4 trillion over ten years depending -- and out of control at the federal level. states had serious problems, and with burdens for taxpayer, bottom five, ill. new jersey, and massachusetts. and they can't declare bankruptcy. what the federal government did not restructure and bad news flows downhill. it makes life tougher for them. neil: a balanced budget requirement. how did they get around that.

illegally supposed to. >> 49 of 50 states, the balanced budget requirement. how they define a balanced budget, in most ways the describe the balanced budget is balanced cash flow. what do you do? you can raid trust funds, defer paying expenses, accelerate revenue cannot make retirement contributions and say you have a balanced budget and cash basis, even in some states like connecticut you can borrow money, borrow more money than you need to balance the budget and call that a balanced budget. neil: all these unfunded liabilities if you at what is going on in state and washington and what is going on -- >> and the private sector. it is staggering. we are building up that again. neil: you got to raise taxes. obviously got to aggressively

cut spending. the point of no return. >> what we have to focus on at the federal level is the debt as a percentage of the economy, not deficits, not balanced budgets because the way the government counts a balanced budget is a joke to begin with. we need to be spending more on investment, critical infrastructure, research and development, spending less on consumption, comprehensive -- neil: the percentage of the deficit, has never been so good in years but as a percentage of the death what are we dealing with now? >> right now as a percentage of the economy, 103%. public debt -- neil: what we are taking in. >> you got to keep in mind total debt is over tripled in the last 15 years has percentage of the economy has about doubled in the last 15 years ended is not where we are today, it is where we are heading. we got to have comprehensive tax

reform, we have got to be able to reform social insurance programs. neil: we never do, left or right. >> we won't until we get a new president and the earliest that is going to happen is 2017 and will depend on who that president is and how they go about -- neil: how does the president elected on a landslide, things change big, ronald reagan, they change big, both were elected by a landslide. >> they don't have to be bussed what they have to do is use the bully pulpit and engage the american people directly with the fact and truth and tough choices. there are ways forward, we proved it through representative engagement with citizens, 60% to 92% support comprehensive range of reforms from taxes to spending to social insurance. is possible with leadership. neil: u.s. comptroller general david walker, you have been warned about this for years and we whistle past it. all right, i want to acknowledge a mistake. i was wrong.

when i was showing this footage out of north korea. celebrating something, they were not celebrating, fox business network is getting the debate next week. they were celebrating that fox business network is covering the state of the union address next week and january 12th before the debate. now you know. at ally bank no branches equals great rates. it's a fact. kind of like reunions equal blatant lying. 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.

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neil: meeting with reporters getting a lot of questions on north korea and just was it? unusually high seismic event this morning, what we've getting out of that neck of the woods. the explosion of hydrogen bomb. experts say it wasn't a hydrogen bomb, very analogous to similar explosions we out of that area in 2013 which were close to atomic explosions but bottom line is the seismic activity, it

was not a firecracker. assyria's seismic activity would indicate something exploded in that neck of the woods, despite sanctions and the like the we thought would keep the north koreans in line. not quite. the u.n. moving to push more sanctions here but you know how that goes. you see how well it goes. they are seizing on this already, republican candidates put this together with a number of foreign policy debacles to say it is time for a change. none of those candidates on the right or the left are that change, maybe he is. i'm talking about former new mexico two time governor gary johnson ran as a republican for president, independent president. and now be doing something like that. good to have you back with us. what is on your mind? >> i want to announce my candidacy for president. i am hoping to get the libertarian nomination for

president in 2016. and in fact offered that alternative. i think the biggest problem facing this country is the $20 trillion debt the we will have when obama leaves office, government is too big, it is unwieldy, out-of-control. we need to get control. term limits would go along toward achieving that. personal responsibility, personal freedom, that is what this country is founded on, the notion of being fiscally conservative and socially liberal which is the definition of a classic liberal, and i am a classic liberal and at the end of the day we also face an islamic terrorist threat. it is very real. no one is talking about sharia lobbying the basis for the problems we have. we need to separate freedom of religion, islam which is something we will protect from the politics of sharia, we need to cut off the politics, the funding to the politics of sharia.

neil: just to be clear, you are announcing on this show, on fox business, this is the venue you would shoes, makes perfect sense, announcing your libertarian candidacy for president of the united states. are you on board? are there other libertarian candidates we don't know? what can you tell us? >> i am announcing my candidacy right now for the libertarian nomination. there are 25 other candidates running as libertarians. 150 -- there are 150 democrats. neil: you are one of the better known one the. libertarian's excuse my ignorance, they have a convention but there have to settle on not nominee. how does that process go? >> it is similar to republicans and democrats. there will be a convention over memorial day in florida to determine the libertarian nominee. neil: of the powers that be, governor, you tried this before,

you are our guy, we are going to go to a new guy, we love your message that we want a new messenger. >> it is an open process and i welcome the notion of an open process. the fact that those candidates in the libertarian party that are running for president will have the dates and i will partaken that. neil: how is it decided to get there are not primaries so how do you do it? >> state conventions, delegates that go to florida and vote at the national convention. neil: ok. then the battle becomes getting on all 50 state ballots. how did that stand? >> it looks as though the libertarian party will be on the ballot, there's a possibility, and i will say this is remote. week sued the presidential debate commission. the notion that if you are on the ballot in enough states to mathematically be elected

president that you should be included in the presidential debate. if the libertarian nominee for president and i hope that is b is in the presidential debates, i think lot of things can change in this country. we believe the lawsuit against the presidential debate commission has the possibility of changing politics. neil: you don't like the way they do it based on polling which shows the candidate at x percentage points. that in this case would be based on one libertarian candidate, not bunch of them at the same time. >> exactly. this would be included in the presidential debate come next fall. which would afford the opportunity to hear somebody that is fiscally conservative and socially liberal, something when it comes to social the liberal, republicans are not embracing whatsoever and when it comes to being fiscally conservative i don't think the

democrats would not how to balance a checkbook. neil: biryou raise good points. are accomplish two term governor and when you were running on the republican side your an effective debater given the chance to be in that debate but it is a chicken and egg argument, you don't get that opportunity if you don't blame you don't pull well if you don't get that opportunity so the prevailing wisdom the best you could hope for is getting included but affect the final outcome and hurt one of the major party candidates. the consensus seems to be in your case you would hurt the republican nominee. what do you think? >> it is donald trump and it looks like it is going to be donald trump, i get the floor of donald trump, the same basis i got elected governor. i am not for sale, paying for my own campaign, i'm going to get in and do the right thing.

the system is corrupt. republicans and democrats alike don't do the right thing, elect somebody that is going to do the right thing. this is kind of trump's pitch but then when you get to what he is going to do he is going to deport 11 million illegal immigrants. neil: i wasn't clear in my question. donald trump do not your ted cruz or marco rubio or chris christie, who knows, you would hurt that nominee. as a former republican, you would hurt that nominee just as ross perot is thought to as a third-party candidate but former republican hurt george bush sr. when he was running for reelection handing the election to bill clinton, the governor of arkansas. what do you say to that? >> i think that is conventional wisdom. lot of people hold to that belief but in fact that is not the case at all. when it comes to libertarians, libertarians draw as many votes from democrats as the do

republicans and i do believe crony capitalism is alive and well, democrats and republicans contribute to that, i would like to be that choice that is not going to succumb to that and i base that on my having been governor of new mexico it having vetoed more bills than arguably the other 49 governors in the country combined. when it comes to a balanced budget the president of the united states can veto sending, i would pledge to veto that spending. does that accomplish a balanced budget? no but you do the things you can do, you need to be reality based, you need to be honest, acknowledge mistakes, communication and you need to love what it is that you do and on my deathbed i am hoping that i look back and believe that i was the voice of reason in all this regardless of how many votes by end regarding. neil: we will watch closer whether people like you or not but you have a chance or not,

you are smart guy, ahead of the curve on a lot of big issues including the debt, including the deficits, including cavalier attitude to spend on the part of both parties. you are not a nut, put it that way but that is a complement. >> this announcement on your show, who knows? i might be 20% in the polls right after this show. thank you for the opportunity to be out here to do this. neil: we are on it whether people agree or disagree the fact is it is a free country, people can do what they want, make an impact the way they feel they can make an impact, do it here on fox business, thank you very much, we will see how it goes. >> thank you very much. neil: as the governor was speaking dr. ernest was commenting on these planes, north koreans, that they detonated a hydrogen bomb. ernest is saying it is not consistent with some of the initial analysis that was something less than a hydrogen bomb to which i say it is not a hydrogen bomb.

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>> well, neil, i want to take this opportunity to announce my candidacy for president. i am hoping to get the libertarian nomination for president in 2016.

and in fact, offer that alternative. neil: all right. i think we have a third party candidate in the race already or trying to. of course we know governor johnson from his days running new mexico, running as republican candidate, running as libertarian candidate in the past. announcing he is indeed seeking libertarian nomination. quite a few others are seeking the same nomination. would be fair he would have inside track of the job. it is also fair to say third party candidates can often times move the meter, if not for themselves but affect other two prominent parties and their candidates especially in close races. i have dagen mcdowell and chris bedford on the third party threat. chris, begin with you. we know third party candidates have a tough time winning but they can affect the outcome. what do you think of what johnson would do? >> they certainly can affect the outcome especially race like this, with donald trump looking

like he may win republican nomination. all republicans from the senate, down to the house, down to base republican voters are not afraid of. his support base is different than anything republicans see before. hillary clinton on other side, the reason democrats like her at all she is quote, electable. no one is fired up. that leaves room for third party candidacy. the problem is i don't think the governor is the person that can light the fire and third party candidacy can move the meter. there is libertarian republican far more mainstream libertarian republican running and he hasn't gotten much in the room. i don't think gary johnson constituency has support and i went to school with up has of nice that were pro-pot and pro-abortion and i don't think they -- >> what tells me gop is badly out of step with the centrist voter. what that happens the electorate swings in the other direction.

1964 with barry goldwater. then electorate went to liberal richard nixon. he was liberal many levels. you saw mcgovern in 1972, then swung to more centrist jimmy carter. gop has yet to kick the rock bottom polarized level. we thought would see with the mitt romney win because he is more centrist. again and again in this election this could be rock bottom for gop if trump gets to nomination and swing to more century -- centrist vote. neil: even third party candidates, ross perot got 19% in 19992. wallace was effective candidate in 1968. wallace stole votes from huber humphrey. perot stole votes from george burke senior.

>> gary johnson won in 2012 and got less than 1% of the electorate. neil: the ralph nader argument that tipped florida. >> maybe. i think that you are to chris's point, you're already hearing privately the conversations of, if it is trump v. clinton, who are you going to vote for? there might be room for someone who is different, someone appeals to younger voters. the pot and privacy party if you will. that might be appealing to some people. say this. sound like gasparino, with the terrorist attacks in paris and san bernardino, the worry about this country, number one issue shifted dramatically to national security and threat of terrorism. neil: a libertarian argument no matter who espouses it. >> get out of the way. only 21% back in april. so that does not bode well for any libertarian candidate. neil: chris, what do you think

of that, the general doesn't help. back to the main point, i think it could tip it in close contests many argue had there not been ralph nader competing on third ballot particular in florida, florida would not even be close it, would have been president gore? >> i think that is absolutely true on nader and before that ross perot. the problem here with gary as well, governor johnson he does pull from both parties as you mentioned. he is very socially liberal. i've been to his speeches and small gatherings he holds. he is around d.c. he is very, very socially liberal but as well fiscally conservative. he will draw democrats disenchanted and draw from republicans. neil: you're saying equally? >> equally, if he can get on the ballot. neil: libertarian candidate has a good shot on getting in all 50-state ballots. you about to your point it doesn't guarranty anything. >> it's a voice that needs to be heard, marginal impact with the libertarian candidacy. if there is brokered convention,

trump does not get the nomination, if he goes independent, wow, that will be multitudes of impact. >> some loud voices out there right now. like thanksgiving as cavuto house, nobody will get heard, not with fairy johnson's voice. neil: everyone will eat well. i leave it at that. >> only two words you need to know, only two words you need to know today. "star wars." neil: oh, my god. >> "star wars," "star wars." right in january, january 6th, 2016, number one movie of all time in the united states. neil: beat out "avatar" with the eight foot women. >> you couldn't get women made of flesh and blood so you're -- neil: oh, man. oh, man. look at the time. we'll have more after this.

♪ >> fox business brief. we've been look at oil all day. on the screen right now. down 2%. it is a seven-year low. oil price certainly focus for markets. other things we're watching including apple. stock price today, story on slowing iphone production. it is down again today. seems like a follow-up on that. 2% drop. netflix is another one. apple is at about $100 even. netflix had an upgrade and stock went down but bouncing back about 5%. time warner cable another one doing well in up market down by 4%. fcc delay of proposed charter

merger is big news. numbers are pretty good too. suggesting cutting off some of the cord cutting affecting industry. big picture, tech related stocks have a rough start to the week. you look at sector this week. many of these stocks mirror last year's best performance. neil is back in a moment. the

neil: we're getting more white house reaction to this north korean thing. you know what they were focusing

on when the whole thing started. not alleged hydrogen bomb that north koreans exploded. but auto sales. that is called deflecting. josh earnest showing auto sales figures which were a record for the big three, extending to the big four. not all u.s. auto companies but auto sales are strong indication american economy is strong. yeah, north korea might have exploded a hydrogen bomb! now they're saying it wasn't a hydrogen bomb. there was seismic activity but doesn't look like hydrogen bomb. very analogous what was exploded off of there, or activity off of there back in 2013 which was fine which was something close to an atomic weapon of the as best i can tell they're not as concerned about it because this activity was similar to that activity which wasn't hydrogen. maybe not atomic but big. and auto sales are going through the roof. can't make this up. jeff flock, has latest on all the midwest flooding going on.

jeff, what can you tell us? reporter: looks like a lake out there, doesn't it, neil? actually a couple hundred acres of corn and beans. tell you that is the good news today, better news because you will flood something in the winter, best thing to leave flooded is farm fields. doesn't have any crop in it at the moment. also today, water receding largely on both mississippi as well as the illinois river, although portion of illinois remains shut down. they open ad portion that was closed yesterday. so that is good news. in all, the ozark pipeline, that oil pipeline that was coming from cushing, oklahoma, to here in illinois, that has reopened. so i think we're past the worst of it. but, you know, it was a big flood. it was a mess. a lot of people still digging out there. neil: jeff, were they surprised how long it took these waters to recede? to your point they're not all receding? one thing to get a flood, normally within days everything is quasi-getting back to normal.

not quickly but quasi. not here, not now? >> you have gotten colder temperatures so you had a lot of this water that froze. it had a freeze top on it. it has chilling effect on water going down as well. so, no, it is, you know, things are getting weirder. neil: buddy, thank you very much. great reporting as always. jeff flock. you always hear this talk about when markets are volatile do you have a emergency stash of cash handy. what they talk about emergency fund, three to six months worth of expenses to get by if everything hits the fan. you say, my gosh, i don't even have three to six months, i don't even have one month, itch nothing. guess what? you've got company. guess what? most of america. ♪

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go long™. ♪ neil: you know gerri willis knows personal finance inside and out. as long as i can remember, gerri, you've talked about you got to get a stash of cash, just when everything is hitting the fan or emergency fund. sure enough to your point, then and now most americans don't, do they? >> they don't. they don't even have $500 worth of wiggle room in their monthly budget. numbers from bank rate astonishing. 63%, 2/3 of americans couldn't afford a simple $500 car repair or $1,000 emergency room visit. think about that. amazing statistics. even half, neil, of those folks who earn $75,000 still couldn't afford those things. people are not setting aside money. and that puts them at risk.

puts their families at rick. look what people would cut back on to be sure they could afford some of this stuff. eating at restaurants. the cable satellite bill. buying coffee. cell phone bills. buying alcohol. so, you know, look at end of the day, if you don't have the money in the account, what are you doing? you're turning to credit cards. getting a loan from mom and dad. you're in desperate straits. considering the stock market isn't helping us out, you have to set aside money on your own. neil: scary stuff, gerri, thank you very much. >> you're welcome. neil: want to pick up that with charles payne. when you're that short of cash, obviously less money to put in the market. see what is going on here, more concern, others could feed on it. >> this is, one of the things, average american is afraid of is inflation. inflation, the big i word, they should be more worried about deflation and negative economic kind of things we're going through. not when we have a whole bunch of money, that could be dangerous.

what about situations where year after year people see paychecks shrink and bills go up and around the world deflation. talking about gasoline, at multiseven-year lows? neil: what are they doing with that money? are they saving it? a lot of data to the fact they weren't spending it. >> bump with restaurants. we spend more money at restaurants than grocery store. that is our little thing we do. we get a little bit of extra cash. for the most part we are afraid. that is the biggest problem, we are afraid. i have to be frank with you, neil, the way people save changed over last 10 years. before we saved for big house, retirement or kids education. now people save for purchase. you see something in the window, you want, can't get it with this check, you save up for next two checks or emergency. we are so snake bit. we don't save the way we did. younger people have this thing,

yolo, you only live once, fomo. fear of missing out. neil: i heard yolo were losers. >> inventory numbers for gasoline. gasoline inventories up 10 million barrels. neil: prices come down even more. >> they come down even more. neil: these guys are not benefiting. come on, what is the deal? what is good for gas if you don't have any place to go. people rather have a job. neil: percentage higher as it used to be? concern you people are in the same financial sort of give up state. >> it concerns me. it concerns me. because a lot of any successful economy has to be self-fulfilling. i don't care what anybody tells you. put all the stuff, xs and os on chalk board, convince me you have the perfect economic plan, if i don't buy into it won't work, it won't work. even as gasoline has gotten cheaper, savings rates gone up.

people aren't saving again, 5%, 6%, you're spending little bit that they have. they don't have any faith in the future anymore. neil: in this environment, you're the federal reserve, minutes are out in couple minutes from the last meeting when they did, do you keep tightening? >> absolutely not. i just, i don't know what the heck they were thinking about. of course the biggest thing for them is friday the jobs report. one thing we haven't talked about today much is adp report, private sector jobs report. neil: i didn't have time. >> came out pretty good. neil: there is the headline. >> you broke bigger news than that with gary johnson. i get it. neil: that is the way i roll. he is in the race. >> i like that guy a lot. neil: he is smart guy, he really is. fed minutes are just minutes from being out. more after this. symbol hmglf. there's a revolution happening in energy, and it's not in oil and gas, it's in energy storage. pure energy is based in nevada which is home to the only producing lithium mine in north america. pure energy has signed a

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i saihi, i'm andrew luck.... could anyone use some of my lucky beard for retirement? i could use some luck. make a wish. nice. >> i could use some luck. >> make a wish. nice. >> thanks. >> your turn. >> no, thanks, um... td ameritrade. you got this. neil: all right, forget whether donald trump runts as third party candidate. i think this guy might have beat him to the punch. assuming gary johnson can get past 100 or so other candidates

vying now for the libertarian party nomination. they do it a little bit differently. they meet in big convention center. like republican or democratic convention their delegates vote who they want to represent them. last time it was gary johnson. we'll see who it is next time. but there will be a third party candidate. trish regan. trish: thank you, neil. breaking this hour. two emerging threats to the safety and security of the united states. first north korea stuns the world with its announcement that successfully tested a hydrogen nuclear bomb. the u.n. security council just finished their meeting. we'll have intel on what happened behind closed doors. disturbing new video with terrorist camp where isis is employing scientists and explosives experts to create deadly sophisticated weapons. i'm trish regan. u.n. security council wraps up a meeting. they pledge more sanctions against north korea and condemns the country's