mccollough and michael murphy. right now it's carrying through the open. stuart varney will be all over it. stuart, over to you. stuart: thank you very much indeed, dagen. it's a very big deal that we'll remember for a long time. stocks are about to drop big time. we have no idea how things will stand when the market closes, but we can tell you a half hour from now, the dow will open hundreds of points lower. it's dropped 500 this year and yet again, it's the sharp decline in the price of oil that's a big factor helping drive stocks lower. look at this, $33 a barrel right now. it was 32 and change a moment ago. you've got to go back to 2004 to see an oil price bust that low. in fact, a bust for oil may be good news at the gas pump for you and i, but it's a signal of serious weakness in economies around the world. all right, backtrack, let's go back to where the stock selloff began and that is china. whoa, real drama there.

ashley, what happened. ashley: as soon as that opening bell rang in shanghai. stocks fell 7% which kicks in the circuit breaker. it actually comes in at 5%, that would hold for 15 minutes, but 7% means we're done for the day. in the 29 minutes there was a mass panic to cash out because they were concerned, they wanted to get ahead of the circuit breaker. one manager of 46 million dollars in equities cashed out all of his holdings, it's that kind of panic selling that leads to this. this is one. most volatile markets in the world anyway, stuart, when you throw in this and the fact that they don't understand circuit breakers, it's having a huge impact not only there, but rippling around the world. stuart: in my opinion, china is a casino, but that's another story. ashley: yes. stuart: how about circuit breakers and holds on trading in america, on wall street.

ashley: they've revised the rules in 2013. there are essentially three levels. the first level, triggered when there's a 7% drop. stuart: on the s&p 500. ashley: on the s&p 500, i should point that out. level two a 13 point drop. a 15 minute halt, can only happen once a day. if there's a 20% drop it's halted for the rest of the day. done. stuart: now, we're not suggesting. ashley: not at all. stuart: charles payne is here and grinning, i'm not suggesting that the circuit breakers in america kicks in today, i'm not suggesting that at all, but i want to ask you about china. it's a casino. and i'm not so sure that it's that big a deal for america. straighten me out. >> china as a market isn't that big of a deal. china as a barometer is a big deal and this is what we need to pay attention to, china is export driven economy. last august they devalued their

currency, that's when all of this began, they had to make their products cheaper because there wasn't enough demand around the world. we've got to be careful, if china doesn't have the export demand that means we're buying that stuff. in a way it's a proxy for our economy. and we talked about gasoline being a proxy and two days ago, the inventory numbers. gas stock piles 10 million barrels? the demand isn't there. what drove the economy is not there. stuart: that's what is driving the decline. the global demand is not there. >> it's more complicated by china's mishandle, by the way, guys, china in january of 2014, they had $4 trillion of other currencies, foreign currencies, down to 3.3 trillion. they had to spend a record 100 billion last month to defend their currency and it's still in freefall, they're in trouble. stuart: hope you stay with us for a few minutes, at the least.

>> once you give me a laptop, i'm here. stuart: we dealt with china, got it. looked at the price of oil, got it. now, there is trouble elsewhere in the world. remember that theme that we have the world is on fire and there's no leadership here? how about this? the saudies are doing something against the iranian embassy in yemen, hot war? >> so goes iran accusing saudi arabia of war planes targeting the capital of yemen. they say it was damaged. that the embassy staff were injured. however, residents and witnesses on the ground say it's completely untrue. the main building was not damaged and the missiles fell quite some way from the building. saudi arabia, of course, is saying you're talking rubbish. stuart:? this anxiety-laden environment. ashley: oh, yes. stuart: a report like that accurate or otherwise. ashley: keeps it ratcheted up. stuart: high anxiety, everybody is looking. ashley: the saudies are taking

on the houthi rebels. >> i want to jump in. saudi arabia is the wild card. i know a lot of people, oil bearers are taking credit, but no one saw saudi arabia, not only opening up the spigots last year, but the market is down 5% overnight. last year had a $98 billion deficit, by far a record for them. they're selling bonds. i don't understand their oil strategy. listen, i get it, they want to try to knock everyone off, but they have some serious issues, guys. some really serious issues. stuart: back's against the wall. which is a problem. >> you talk about the ultimate empiriic victory, what will they win? >> a possible terror event in france? >> yes, stuart, a man with a knife was shot dead outside of a police station in the northern suburb. in paris this morning. french officials say he shouted

allah akbar, which is god is great in arabic. he had a knife and also believed he had a suicide vest on. he was shot and killed and they sent in a robot, the device turned out to be fake about you all of this comes on the one-year anniversary on the charlie hebdo attacks. this is a city op edge, officials are concerned, is there anything else? >> it raises the anxiety level all over again. market watch, david dietze is with us, come in and welcome to the show, it's a very big day and i'm glad you're with us today. i want to look at a specific group of people and what they should or should not do at this particular time. in 20 minutes, the dow jones average is going down maybe 300 points, sharply lower. if you're an older person, and by that i mean, you're in your mid 60's and you're looking towards retirement, i can't see a good reason why you should not sell at least some of your stocks right now, get out while

the going is good. what do you say to that? >> well, what do you do with the money when you've done that. stuart: i'll tell you, i'll tell you. >> cash, nothing, and then-- >> no, you don't have to go to cash. if you can-- you sell the amazons of this world, you've made a ton of money and you put the money into at&t, it will give you 4 1/2, 5%, pretty safe. what's wrong with that? >> now you're talking my book. we love some of the telecomes. verizon is the one we suggest with 95 million customers, covers 25% of the united states. are people going to use their smart phone less today because the news in china? i would argue they're using it more to find out what's going on. stuart: this is the kind of thing that viewers want. we'll take them through the opening bell when the market drops sharply, but people say what am i going to do? what should i be doing? asked the same question of charles payne. you're in the your 60's-- you're not, but if you're in your 60's and you've made money in your market, what's wrong

with telling half of your high-tech stocks on getting into at&t or dividend stocks. >> nothing wrong with that. there's an old formula, took your age and subtract it from 100 and tell you what you should have in stocks and bonds. we're living longer. i like the way not going alt way into bonds where the yields are dropping. i think your point is 100% spot on, david. stuart: david, come back in, supposing you're a youngster and by that i mean you're in your 40's and maybe got cash, but you're in your 40's, a long way to go before you retire. what's wrong with buying, say, apple at 97, if you can pick it up at that level? what's wrong with that. >> maybe i'm old school, but when prices come down, we urge people to look for their favorite stocks and aed to it, and prices go up, you got more skeptical. so if you've got a long-term time horizon as your 40-year-old may have, this is a time to get out your shopping list and go shopping and take

advantage of what's going on and thousands of miles away. stuart: yeah, charles, would you agree with that? >> the oldest axiom is buy low and sell high. people panic. we started talking smith & wesson being up 1,000%. most people wouldn't have had it because there are periods when the markets went through things like this, but that's the prime example, ride it out, the fundamental story only got better and better. stuart: david dietze, what would you buy if you're in your 40's? >> we like wal-mart. 10 cents of every dollar spent by the consumer goes to wall street. 50% more than the 10-year treasury. if there's any company out there that can announce their e-commerce capabilities and take on amazon it's wal-mart and plus they've got the network country-wide and paying 30% less than a year ago. buy low, get the dividend, it's

a category killer. stuart: i want more big name stocks on the screen. they're pre-market trading activity. i want to see what apple is going to do and amazon is going to do. apple is probably going to open around upper 98's. 99, 98 a share. it's broken below $100 a share. look at amazon, that's down 7, 8, 9 bucks at 623. a week ago, 10 days ago, it was close on $700 a share. it's amazon way down. how about netflix, not down much today at the opening bell. about 116 compared to 117. ashley: had a big day because of the announcement it's on the line and-- and showed green. stuart: i'm putting these stocks on the air to you can see what's likely to happen in 20 minutes' time and what bargains, if you think they're

bargains, are available at 9:30 this morning. >> listen, we bought netflix yesterday morning and did facebook at 100 this week so we have been nibbling on this weakness as well. stuart: good strategy. [laughter] >> working and keep our fingers crossed one more time. stuart: we've got another market watcher will us, brad mclittle m mc-- mcmillan, glad you're with us. >> good morning,stuart. stuart: same question i've asked everybody else. you're in your mid 60's, approaching retirements and what's wrong with selling some of your profitable investments and putting the money into dividend stocks? >> absolutely nothing and in fact, it makes a lot of sense, but you're staying in equities. you're not getting out of equities and that's the right way. stuart: yeah, that's true. i'm not shifting to bonds, not making that calculation, i'm staying with the stock market. so, what stocks would you be buying today? again, if you're an older person, you're in your 60's, you're selling something, what

are you buying? >> i still like consumer discretionary, i've been beating this drum for. stuart: wait a minute, what's that? i have no clue what a consumer dis-- >> buying --. stuart: go ahead, brad, tell me. >> fair enough, it means apple, target, any stock that people are going out and spend money to buy stuff they don't need. amazon that help people spend the money. people are making more money and they'll make more money this year. the u.s. is doing just fine. stuart: you got me worried when you said buying stuff people don't need. >> the tv,'s. stuart: i need a big screen t have. v. brad mcmillan the same to you as the other people. if you're in your 40's, a youngster, got a lot of time before you retire. what's wrong with buying aggressively this morning? >> i think this is exactly when

you should be moving into the market. i fwree with that. we're seeing a pull back, it might get worse. every time we've had this type of situation before we've ended up fine. now is the time to be buying if you've got that time horizon. stuart: let me recap exactly what we've got going. we're 16 minutes away from the opening bell and what we've got is a dow industrial average that's going to drop 300 points. it was looking a bit worse than that a couple of hours ago, but we're down 300 points as we speak. the price of oil is at $33 per barrel. it had been 32. you've got to go all the way back to 2004 to see a crude price that low and that's a big reason why this market is selling off. we have to take a commercial break because we need to make a little profit here, you know what i mean? we'll be back in a second. 32 years at this place and now

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>> all right, 13 1/2 minutes to go and the market opens and

you'll see a sea of red. the dow is down 330 and that's improved from a while ago. oil earlier touched 32. ashley is with us and he's working today. ashley: yes. stuart: if like everybody you didn't win the lottery. ashley: i forgot to get a ticket and i'm happy i'm still in the running. no one hit the powerball lottery. it's expected now, and i think it's going higher, $675 million for saturday night's draw and that's the highest in history. and 665 was the mega millions. there are those who say if the fever picks up it will be close to a billion dollars. we'll wait and see. stuart: i've got to ask you, if apple is at $98 a share today and it's going to open about that, what's wrong with instead of putting $100 into powerball

has a lot of people do buy one share of apple, what's wrong with that. >> nothing wrong with that at all. buy a share of apple and maybe scrounge up a buck somewhere and get at least one ticket in the powerball. i know and say this all the time. never win the lottery at least 20 million all you'll do is lose your friends and family. the government takes half a money and some are going to go behind your back and say my uncle is a bastard. 20, 30, million, 600 million give it a shot. stuart: you've given this a thought. stuart: the audience is looking down 330 points and you're laughing. >> that's an alternative. stuart: the dow futures down 300 and oil about $33 a barrel and they're coming back a little, both of them, but that's still a sea of red when that market opens at 9:30 eastern. we've got to move on. newly obtained footage of an

isis weapons lab in raqqa, syria, some are calling this the jihadi technical college. it shows isis tinkering with driverless cars and tinkering with missiles. joining me knew the former ambassador to syria, mr. ambassador, rob ford. sir, we've got a world that's on fire, we've got a stock market that's extremely anxious about what's going on around the world and we're looking at video of high-tech isis. it's a new expanded terror threats that we're looking at? >> isis has all kinds of capabilities. it functions as a state and it even has a research and development laboratory, sort of like a real government would have. so, yes, isis has a lot of capabilities and they're not stupid, they're smart, and they're always looking for new ways, either to gain ground in the middle east or to find weak targets to attack.

stuart: was that propaganda? it was propaganda, obviously, but is it real? i mean, they show them tinkering with a heat seeking missile. it shows them tinkering with driverless cars they can blow up at a distance. is that anything more than just propagan propaganda. do they really have the capability? >> i don't know if they've developed the capability. certainly they like to use suicide car bombs, they use them every day in syria and iraq. now, a jihadi militant group attacked a police station in libya and killed 60 people just today. >> how about this report of an increasing likelihood of a hot war between saudi arabia and iran? what do you make of that? >> well, it's certainly hotter than it's been. the two countries have been competing for influence throughout the middle east for

years. i note that the iranian president yesterday said that they want to use diplomacy to calm things down. i don't think either country is wanting to start a real war between them, but there's going to be a lot of competition. one of the affects of that, the saudis will try to keep the oil prices low and that will keep pressure on the weaker iranian economy. and some say we've tilted toward iran? >> the obama administration hopes to get iranian help to address regional problems, conflicts in syria and yemen. so the obama administration takes a somewhat softer line publicly on iran than previous american administrations did. at the same time, stuart, we have a very longstanding, deep relationship with saudi arabia that includes oil, it includes trade, a lot of american companies do big business in

saudi arabia. so the obama administration is maybe trying to balance things, at least publicly, a little more carefully, but there's a deep relationship with saudi arabia. stuart: the world is on fire and it's causing high anxiety around the world. that's a fact. mr. ambassador, thank you for joining us. big day, we appreciate you being here. again, we're looking at a sharply lower open for wall street this morning. bear in mind that so far this calendar year, three trading sessions for dow industrials and we're down 500 points. we're probably going to open another couple of hundred points down in eight minutes' time. you know, we're down 8 or 900 points in the very first week of trading in 2016, not good. i want to bring charles payne back in for a second. we were just talking to the ambassador there about the world on fire. >> right. stuart: the economy in america is slowing down. i say there is no leadership out there. the institutions of our society are not there to pull us out of this.

>> they're not yet and yesterday the federal reserve spoke, what did the market do, fell further. but take the bigger picture, the big news story yesterday, north korea, the fourth time they dead detonated the atomic bomb. every single time the market went up. october 9th, 2006. may 29th, 2009, may 12th, 2013, every single time our markets went up not down because the public felt these guys are nuts, but we will take care of them at the right moment. they don't believe that, we've got another bad actor joining isis, joining rogue states because we've got a president, a leadership that won't stop them. that's the difference right there. stuart: see, my premise is that this world on fire, these dreadful problems around the world, mideast, china, et cetera, et cetera, is the back drop for us and our trading here. it does have an impact here. it's not divorced, it's not

separated out. it hurts us right here. >> the notion that somehow we've got a moat around us, it's a two-way street. when things are good around the world it helps up and when it's ugly and it doesn't feel like we'll intervene. stuart: david, i've got a question. what would it take to turn this market around today? who could say what that would reverse this downside move we're going to see six minutes from now? >> two things, one is if one of the federal reserve people get out and start talking about a much slower pace for rate hikes going forward, the economy is not as strong as anticipated last december, i think that market could turn around. watch the nonfarm payrolls tomorrow morning, a blowout number i think would convince the investors that this economy is somewhat insulated from what's going on in terms of the

chinese stock market. stuart: good stuff, david. i'm intrigued about this. we'll close 400 points down. it's not an assumption, what's this about? >> here is the one-two punch. overnight china has got to do something and they will do something, probably lower the main lending rate and another thing we keep forgetting, if they'd done this in the first place, short selling and stocks, they will put that back in place and put a big brakes on the selling. and maybe not surprised to see the markets up 5% and see a blowout jobs numbers. we get that kind of number tomorrow, it will be the one-two punch and we could reverse this. stuart: i'm trying to calm things down here, when you see a sea of red, you assume that's going on all week, here we go, boys. buckle up. >> it's a tough start to the year. stuart: it's a very tough start to the year, but nothing says we cannot arrest the downside move and bounce back a little

and stabilize. ashley: and china can be turned around, it's just, you know, not all doom and gloom. stuart: i'm doing my best, liz liz: a third. time we see the markets show, a third of the time since world war ii we see the markets low in january, january doesn't necessarily have to portend of the rest of the year, we have starting next week 11 s&p 500 companies starting and the thing to watch, the chestnut comes out, sometimes the companies set the bar so low for their earnings, even a caterpillar look at the year to year comparisons. i think that charles is right, the fed funds futures market is saying no further fed rate hikes for the rest of the year, four out of ten and-- >> i saw on the monitor, peter morici, you're here.

i made a rash comment that the chinese stock market is nothing more than a casino, doesn't have relevance to us, the markets in america, what say you? >> that's not far from the market. the chinese stock market is a ponzi scheme, in real estate, manufacturing or what have you, now it's incapable of continuing to grow at the pace previously established, disappointing those who lend them money and offer them capital and so forth, over the long-term, the if fed slowing rate increases and things of that nature. important, over the long-term important to remember, what ails the american economy is fixable. in 12 months to be exact. [laughter] in 12 months to go exact. you notice, there's no leadership from the white house. you've been asking where the leadership is. what ails the chinese economy is not fixable in 12 months. stuart: okay.

>> those guys want to cling to power and they're going back to their old play book. the jig is up on these guys. china is a fraud. stuart: stay right there, peter. the market opens in two minutes. we go to a commercial break? yes-- no, no, we don't. stay right there, ladies and gentlemen, we're not going anywhere, we'll watch the market open in less than two minutes. >> here we go. this is what it is. we're going to treat it like that. and the stocks engage, ladies and gentlemen, these things are going to run away, and i want to know what direction they're going in. brad mcmillan, are you there, please? he's gone? liz: can we talk a little about this, the ugly r-word, the recession is coming up again pet peter morici. stuart: when you see the index contracting so much and

corporate profits decline two quarter, that seems to indicate recession, it doesn't mean we're stuck at the end of the tunnel. stuart: i think there's a political fix here, i think you have a different direction right from the top of the white house and you've got a different direction for this economy. peter morici, give me 30 seconds on that. >> well, we need real stimulus and back up the market the way that greenspan did, this does not-- >> wait, peter, what are you saying here? the fed should print a bunch more money. this is made in j.p. morgan or lehman brothers, it's important that we not get caught in the contagion, as greenspan did, put the money in the store window. it will lend as necessary. with regards to the federal government, unfortunately, barack obama said it's an

opportunity to legislate yet another social program. i'd like to know which group is out there dying to get free benefits. stuart: i'm going to tell you the market is opening in five seconds. this is going to be a rough opening. let's see where we go after the first ten minutes, we are going to be down 250, 300, 340, trading has just begun, instantly we're down 77 points, we are going to be down very, very sharply. i want to see what happens at 9:40 to see just how far down we are, then what is the trend. you're flushing it out with 110 loss in the first 30 seconds, actually and away we go, we are down 113 points. do we have any stock quotes. ashley: apple 98.50. 98.50, 98.40 on apple

liz: netflix, in all the countries. netflix liz: we're in 190 countries and binge viewing. and they're out-- >> down more than-- apple is down 2%. amazon is down nearly 2%. 6.21. down 11. and alphabet, call it by its name. microsoft, not even talking about that. and then netflix down, and techs are down, but it's not a route. that's not a route. >> it's not a route, but apple is the one to watch. it broke the key support number at 100 and cutting iphone sales and you know what? apple is one of these names never gotten true respect on wall street from traditional valuation metrics. people are concerned about apple also being a proxy for the rest and of course, the fang trade. those stocks started coming back and to your point though, they've had such a huge year last year, for the most part, i

don't think they're going to wait. not companies like that, don't forget. they can be extraordinary volatile. >> can we show facebook, please? there's a stock a lot of people keep mentioning as ones you can get into as a back stop. there's the big tech there and-- facebook is down. >> it's down 2% and 1100 is holdi holding-- >> facebook came out with a new price tag, 599 bucks and they were talking 400 to 450 for that. stuart: wait a minute, we had a guy on the show from university of minnesota half the guys got sea sick-- >> buying dramamine. stuart: this market will send you.

>> 44%, but you know what? forget that, this is a lot better. stuart: now we're down 266 points and we're into the trading session by almost three minutes, that's it. i'm not going to say we're stabilizing, i said that yesterday, that was unwise, in the extreme. down 263. and the sharp downside move arrested at this point. >> which is an all-time low. stuart: twitter just hit an all-time low. 21 bucks. >> what about some of the retailers? what about finish line, they're going to close and they reported this morning. stuart: finish line? >> yes, athletic wear. stuart: never heard of it. ashley: you're kidding me? >> never heard of finish line. >> i don't know how much soccer gear they sell there, but other than that, it's important because they're closing 25% of their stores. it's a brick and mortar. and macy's closing stores liz: charles bring up a good

point. some retailers are holding strong, am -- abercrombie & fitch and others. there's a different story line. stuart: look this is up. >> the ceo had a relationship with wall street they talk his stock up as much as possible. last year didn't help, it crashed. but it's not good news when you have to fire people and close stores. stuart: twitter all time, this came out as an ipo, everybody thought oh, another facebook, up she goes liz: they're breaking below the price. now we go to 10,000 character tweets. people don't want long essays, they want clarity and short pithy headline comments.

stuart: they don't want the negative stuff liz: and the trolling. >> very bad management. two quarters ago they laid an egg and they're sitting there with sweatshirts on and calm and cool because they're billionaires. they made a huge mistake with the board of directors. stuart: are they calm and cool and-- >> you do the wrong thing, charles payne, i'll kill you. you know, did i-- i mentioned the word stability and now we're at 313 points. 16-5. i'm trying to do the math here, we're down 800 points plus since the very start of the calendar year. ashley: the fourth day of trading this year. stuart: david dietze, come back in, please, i think i asked you before. what would you buy now that we're down 311 points. do you see any bargain basement prices out there at all? >> absolutely.

i would go right to the epicenter of some of the pain, i'd go right with exxon. why exxon? you've got a dividend yield of close to 4%, the best combination of price, yields, quality and diversified across the planet, they're diversified upstream, mid stream, downstream, they've got it all and guess what? when you're the 800 pound gorilla on the blocks, you love it when the wannabes are struggling with too much debt and low comment prices. >> peter morici, i'm going to ask you for a stock pick, you're a professor of economics, give us a stock pick, what would you buy? >> what would i buy? i would look for who is impressed the most today. i like ford, in the technology sector, i still like apple. so these are places i've looked. i would say who took the biggest dump simply related to the quality of the company and look for the strongest companies in each sector that might be depressed at this

moment if that sector is down a lot. stuart: i've got jo ling kent standing next to a very interesting stock quoting board. showing us all kinds of losers, by the looks of it. go through them, please. jo: microsoft leading the charge in the dow, down 3%. cisco. caterpillar, j.p. morgan chase all down north of 2%, stuart. intel visa, chevron, 3m. apple down more than 2%, a company that has until now been challenged for orders for iphones, perhaps being cut and also going down with the broader market. boeing taking a hit. down 2.2%, stuart. stuart: that's great stuff. exactly what hour viewers want. where is my stock? where is my stock? >> microsoft is down. stuart: i know that. thanks very much, ashley. ashley: i wanted to do the flipside to what jo is talking

about. one of the big losers, managed to turn it around. wal-mart has been up in this down market and it's up again today. despite the broader markets down 2, 300 points. stuart: that was like yesterday. same up stock. ashley: that was performing last year. stuart: larry levin is in chicago, you've got to tell me about oil. 33.31 as we speak. this the week when we challenge $30 a barrel? >> yeah, we'll see the $20 handle. only today and tomorrow left this week, stuart, wouldn't surprise to see it early next week, but i think we'll stay below that, the settlement is the key. 33.20. that's late 2008, early 2009. that settlement is, if we settle below that point that's going to be technically very weak, i think we'll get below 30 and see that $20 handle next week liz: next week? >> you're going to move this market. steven schork is with us, an oil expert and then some. he's on the phone and we had a

prediction, that we'd have a 20 handle, do you agree with that steven schork? >> absolutely. the fundamentals are disconnected between prices, no one is making money pulling barrels out of the ground in the low $30. when you decouple from reality you trade on psychology. now, today we crashed through the $32.40 low print, that was t print made during the great recession following the commodity implosion in 2009. the first key technical target you're looking at. the next is pure psychological. $30 a barrel giving from supply and demand and around the globe mow reason to think we can't take it out. stuart: stephen, let me ask you the same question i'm about to ask larry levin. if we break down below $30 a barrel, does it take the stock market with it? >> i think so.

there's correlation between stocks and oil and we have to keep in mind. what we're finally seeing, stuart, is the idiotic notion being spelled that somehow cheap energy and let's be honest here, cheap energy, cheap copper, cheap aluminum, cheap lumber, cheap nickel. these are not a panacea, you get industrial commodities as a symptoms, driving economic growth, that drives commodity prices and this ongoing purge around the globe in industrial commodities is a clear sign that something is not right out there. stuart: i hear you, stephen, i've got to get larry levin fast. same question, we broke below $30 a barrel, does that take the stock market down a big leg lower as well? >> i don't think it does it itself. but i think china-- you can buy equities today, and more next week at lower prices and because of oil and because

of china. stuart: thank you, larry, i just heard that china has suspended circuit breakers, i believe, that's accurate suspended circuit breakers. they are at sea. charles: china will do a lot between tuned this and tomorrow morning. the market will start to rally higher. oil companies can't keep making this a. netflix is a. signature which is the stock are pounded the table on. stuart: what do they do? charles: the small increase in people's pockets was all over the place. stuart: walmart is the one dow stock that is up. charles: every day this week. stuart: you like the stock coming and. tell us why you are buying it again now.

>> we have all these bears on oil but as oil goes down prices at the pump go down, who benefits most from lower gas prices, walmart customer, extra $550 per license to dollar, bring on those oil prices, and a company that will benefit. stuart: look at the dow industrials. and we are down 218. stuart: i won't use the word stability, charles: the most important thing, the last 20 minutes, and the last 30 minutes of trading, we will see. stuart: tomorrow morning at 8:30 eastern, the jobs report, a big deal on a day like this. the last 30 minutes of trading

today, what we going to see? charles: big-time money managers were so awful, a lot have to go out on a limb. stuart: they go out on a limb -- charles: they got to buy these. stuart: the last half hour of business we may go up. charles: i would not be surprised if we get a 200 point move to the upside. ashley: snapping up bargains. charles: positive guys who lost 20% last year but can't get -- have to start making money. stuart: china stocks on screen, ali baba, et cetera, those are china stocks and they are down big time, 3%. tell every china just said no more circuit breakers. that is a big deal. are they going to let the market ride tomorrow morning? liz: sounds like a vote of confidence temporarily in the market as they suspend the markets, circuit breakers, they

let it rise. ashley: people could see the market tumbling in china, the new the breakers would kick in and get ahead of that so they could have shouted at the opposite effect. stuart: remove circuit breakers and bounce back up again. charles: they have to save currency. liz: market regulators in china are continuing to hold emergency meetings. stuart: chipotle is down another eagle hours. nicole: they are plagues with people live bacteria and the north of virus. now new news, authorities are conducting a criminal probe to looking to everything that ties into food borne illness. stocks are 40% since october hit a new low today, that is a far cry from its recent high of $760. thunder pressure. my kids went there for the first

time in months this week. maybe that is an indication things are turning around. bernard: when you own the stock and are trying to stimulate -- nicole: i don't own stock but i do own the kids. stuart: nicole petallides used her children as guinea pigs that joy pollees -- chipotle. charles: someone might ring your door from child services, just letting you know now. "cavuto coast to coast" when you are terrible. ashley: really shocking. charles: the pc crowd, organic and fresh and i will pay an extra $20 for a salad because it is fresh. forget about chemicals. charles: what do you have with this? cheryl: getting back to chili's stock will not find a bottom until they say we definitively found the problem and eradicated it. that is true of prior food scares at places like

mcdonald's. charles: target, discount, recessionary environment looking better. stuart: we have walmart, target up, gasoline -- charles: less-expensive jewelery stuff. a lot of people probably took some of that gas money and bought that stuff, 5% or 6%. stuart: last word to larry levin before we go to a commercial break and we are going to do that. what we are seeing right now in chicago. >> i say orderly, behind me in the s&p futures volatility here, fairly orderly, there has been a decent amount of buying, up 10 points since the open. it is really low rule. when we talk about china next week we very well might and might be in the same situation

and we are seeing some buying and that is a good thing. stuart: this is not the last word to you. if you think we are going to leave our viewers in the lurch as the market drops 200 points and becomes back -- charles: any s -- someone who has been this successful, everyone else is nervous. stuart: i think you are right. charles: the average person, sees the dow up 225 points, the last -- hopefully they are watching. >> it is a relative thing. we are down 313, now we are down 200 plus so we are going in the right direction. got to stay calm around here. stuart: a very calm guy. great input this morning. i won't say this is the last word from you but come in and say something.

>> another reason we like wal-mart is not just the above average dividend that they have grown the dividend from 14% 3-year over the last ten years. if you have a dividend you want to look for growth in the dividend to carry your investment along. stuart: what do you have? cheryl: china is saying the move to suspend the circuit breakers will take effect on friday so basically that is tomorrow. we are going to do it overnight. will that mean the market is free to write down or up or wherever in china? stuart: peter morici, what do you make of this in china suspending circuit breakers letting the market go? >> they don't know what they're doing. i believe there is something to the notion that the market overreacted and suspending circuit breakers could bring it back a bit but it is not going to solve the problem. i give caution about walmart. part of the thinking is a benefit most from falling value beyond. the reality is so do their

competitors and they have to compete for the sales and folks in an environment like this are not going to take cheaper gas prices to the store and buy more stuff. that is why fourth quarter growth, things won't pick up. stuart: we hear you. keith fitzgerald is with us. you are our asia expert. what do you make of the china market? i say it is the casino. don't think it has that much relevance to our market here. may have a little but i don't think it is that much. >> you are onto something. 81% of 200 million retail investors trade at least once a month, most graduate from high school. and is more consistent with gambling for investors in the west and some of the culture, it is the lack of experience. people forget the chinese retail investor have only -- in the

last decade, further less than chinese stocks have foreigners. where's the magnitude here? it will be more volatile. in the united states 50% -- stuart: i don't see china's stock market leading america's stock market. i want to ask about apple trading $99 a share. is it still? >> that very thing on monday. belong term investor, and the right approach, this is not a company that is going away, it is fundamentally internal, and it is at these levels. stuart: i am watching 200 points. that is a bit of a come back. charles payne sitting next to

me. charles: two stops on gretchen carlson's show. cygnet is up $7 and autos zone. 20 points total. we got to look at u.s. centric businesses as well. whether it is autos zone or clorox or even walmart i disagree with people on that. walmart is a value on this point. ashley: coming back a little bit more. stuart: we were down 300 plus, now we are down 190. as larry levin said it is quarterly. this is not a panic sale by any means. liz: an interesting admission,

recapping what you are saying, our circuit breakers did not work as well as we expected. charles: centrally planned government. stuart: look at oil please. now we have come back on oil, 33 and big change. just looking on our screen, 3350, 3357, we have hit 32 earlier, got to come air, stocks are coming back a little bit, relax, relax. this is a horse race. we have a cast of characters that comes in and goes out and here is gerri willis. what do you have for me? gerri: this date in the market going on, the same time fidelity releases the big important survey about the proportion of americans who are ready for retirement, a 55% cannot even cover their basic need in retirement. think about that. people are behind the eight

ball. they are better off than they were in 2013. 45% vs. 38% who can afford housing, health care and food. we have a long way to go in and it is a day like this that makes people fearful but i don't think you should be fearful now. you should be looking for opportunity. we are still 1,000 points above where we were last september. there are lots of reasons for optimism in our economy. stuart: the market comes back and gerri willis says get out and buy. gerri: time to look for quality names. you look at this market a you see we are down 9%. even if we were going to have a 20% correction we are halfway there. now is the time to think about where i want to be, what i want to own and you are going to be in the market. stuart: i have someone with as you can see named geoffrey small and he does not like these big-name thanks stocks as they're called, facebook, apple,

netflix, google. geoffrey small, come in please, you don't want to buy these paying stocks, big name technology stocks that have been beaten down last couple days, you don't want to touch them. >> those stocks are up 83%, it will be hard to repeat that this year. amazon and google, i think they are overpriced right now. i like for the long term, i do like facebook and netflix. those are true growth stories where fundamentals will continue to be ignored. stuart: would you biden now at these prices? desjardins after all. >> could be risking dollars to make pennies. stuart: that is a platitude. everybody is going to be careful. they don't put down $1,000 without thinking about it. do you biden? yes or no?

>> for the long term i would say yes, i would buy them for my own portfolio. stuart: when we say a faint stock, facebook, amazon, and netflix, i have to look on screen to make sure i get it right, google. ashley: it will be the fan this year, dropped the google, can't keep pace with what they did. charles: the irony is i recommended netflix yesterday morning and monday we did facebook so we're breaking in now. stuart: you are so cool. charles: you can't try to play around, if people want to buy them they have to know what is possible. liz: there is something to be said for having a british accent. charles: you get away with that, mispronouncing names, it resonates when i do it, look at that idiot but when you do it sounds great, people want to change the name to what you said

it was. liz: you sound great making mistakes in your accident. stuart: i want to chalk this up to everybody, facebook. i like it. i think facebook at 99 is not exactly a steel but i think it has growth potential. do you like facebook as much as i do at 99? >> you want me to do that with an english accent? i say that would be fabulous stock to buy. stuart: do you mean it? >> thank you. "cavuto coast to coast" when you actually mean it? >> absolutely i do. i think that is a fabulous stock with tremendous potential and again if you draw the line, how do you buy in today's market dq by this of this quality, internal and the must have. on days like today, so what? the stuff that is important facebook is one of them, knocked down by 3%.

>> i don't think the market will drop further past 10:00. stuart: we have got you, did you say that? >> i did. stuart: what about facebook? you like it? >> they have twice the user's twitter has, that will challenge google in the future for advertising revenue and they have a unique platform. is not a fundamental purchase, it is a growth purchase. stuart: gerri willis is still here. gerri: hanging around. make it go away. "cavuto coast to coast" when you can't leave yet. you don't pick stocks. i know you don't pick stocks. now is the time to pick some quality. gerri: the couple things i am thinking about. my favorite stock is amazon because i think they are superat smart and got to part with a chunk to buy the stock but i have always liked the stock. why do we have to look at paying, what other companies that are paying great big

dividends? stuart: i will stop using that expression. i agree with you. what is wrong with looking at stocks with dividends like at&t and all the rest of them? who is that? is that jeffrey small? >> earnings growth, if you tap into those it will be long-term investment. stuart: right now i have amazon up 616, down another $15 a share, that is 2.5%, bigger loss than the overall market. what about charles payne? charles: a killer. did facebook, netflix and on the other side of the equations don't forget mcdonald's. i think what people need to do, the comfortable with companies that have been around for a hundred years, probably will be around another hundred years. and don't necessarily worry

about it. they will probably get rid of the ceo and stock will go to the moon but i won't panic here. if they ever make it a hundred years, they were 99 years old. you remember the old browny.

stuart: despite two predictions from experts, bcu -- heading to $20 by next week. charles: sideways most of the day and the last hour of trading. stuart: it will be a bumpy ride. john hofmeister is with us. are you there? >> i am here. stuart: you are the former president of shell oil. you have clout. we have had two people on this program earlier today say oil break below $30 a barrel. will you be the third person to say oil breaks below $30 a barrel? >> it could but i doubt if it will. the reason, i was reminded this morning by the daily report that we are reaching a point where u.s. stripper wells are going to go cash negative if the price drops any further below 632.

these are the old wells, hundreds of thousands across the country, that produce 1, 2, 3 barrels a day. when they go cash negative the owners of those stripper wells shut and down and give you shutdown 300,000 stripper wells you have a circuit breaker built into the system because they are not going to send off that oil, even the small quantity it is if they are losing money so that is a million barrels a day could get shut in very quickly by independent operators who run these wells on their farm, rangees or wherever, even on the front steps of the oklahoma city capital. so what is going to happen is we are reaching at point of no return where it makes no sense to keep producing the oil and that doesn't stop other state-owned companies from continuing to produce globally. it doesn't prevent the saudis from continuing to pump away but at least in this country is an

opportunity to really shut in some oil production quite quickly. that will affect the price. stuart: that will also affect america's domestic economy because drilling for oil has been very productive for a lot of people, north dakota, texas, etc. shutting down that oil production, you take some money out of the american economy. that won't be domestic right now. charles: i couldn't agree more. such a boom that this is the best bet is coming along if oil prices don't recover. stuart: with 32 minutes into this trading session this thursday morning we are down 200 points, that is where we are. at apple, there is an interesting stock, it has been the technology company in this world for a long time and now you can buy it for $90 a share. the high was 134.

charles: talking about amazon, making big on a day it should be down. i am not criticizing tim cook but there is something to be said about showmanship and wall street on your side, something to be said, the only time apple missed see the jobs when he would get on stage and give them the benefit of this or that that is the intangible that apple doesn't have right now. and operations guide, people questions the big vision and the ceo, chief excitement officer quality. stuart: apple at 98. what do you say? >> i am here. i am not surprised apple is where it is. i would not look at buying apple. it is going to keep dropping especially in but euro we are in. just like night follows day contraction follows expansion and apple can't keep going up. makes me switch toward a service based model and it peaked out in

iphone sales. gerri: a bellwether for china is what the stock is. if you are concerned about china you got to be worried about apple, the number 2 market for their products. they make products but also seldom. ashley: you have all this cash, do you buy excitement? do you buy a company that reenergize is? charles: the pact is being put together. icon pack. he has made the biggest bet of his career in apple and almost forced them to bring the money back and unlock this value. we will see what happens. that is why the stock should not go much lower than it is now but on the upside they need to your point to cut production on iphone 6 and maybe the 7, but there is something missing. stuart: show me amazon. we call that the stock of 2015. it was approaching $700 a share,

got into the high 690s in the last week of 2015 and look at it now, it is $615 a share down nearly $17 well over 2.5% down on amazon. i won't say that is in freefall but is sharply lower as any of the other big-name tech stocks. gerri: is the most profitable non profitable company because bottom line is really tiny versus walmart but we do have a corporate earnings season rolling out next week, we have a bank of america saying look through the downside earnings per share growth down nearly 6% so it doesn't feel good but there are good values in here. we don't know where the low is going to be of these stocks. stuart: wouldn't we like to know. reset the market with 35 minutes into the trading session, at one stage we down 318 points, we came all we back to a loss of 180 points.

now we are going back down, 236 points. this closely mirrors the action in oil. the this morning we hit $32 a barrel in oil and the dow is down 300 points. we came back to $3 per barrel. now we are heading lower again on oil awfully close to the $32 a barrel again and the dow is down 231 points. liz: this is key for the jobs numbers. manufacturing in the united states is in recession because of the oil patch, 17,000 jobs created in manufacturing. that is really low so those indicators are flashing red in terms of recession in the united states so they come to transcanada saying we should have been able to build the keystone pipeline and transcanada saying we want $15 billion of the federal government for blocking the keystone pipeline.

that would have created, we avoided a possible recession if you let things like the keystone pipeline be built. and give us the gasoline side. national average for gas as of today is $1.99. i can't believe falling to $32 a barrel we don't go down to $1.75 for gas. going to give me a hard time on that prediction? >> no. demand continues to rise believe it or not, miles driven continues to rise. and oil products for 2015 the prior year, and supplying a lot of it to south america and the caribbean. the consumer side is a pretty robust story at all things

considered. station operators don't make much money on the price of gasoline. but more miles driven means more people stopping at the convenience stores and the convenience stores are doing pretty well. all things considered. there is an upside to this. stuart: and walmart is showing the upside as we speak. if you show me the 30 dow stocks, 29 of them are in the red. walmart, you saw that briefly is at 65 and it is up $1.57 right now. the only dow stock that is the danger, that is walmart and to your point, that is what people got extra money. gerri: when americans go to the store they go to wal-mart and the stock had the poor performance last year as they tried to get their act together on line, having a hard time with it, everyday low pricing struggling with that. if the economy is going to slow,

if that is going to happen people are going back to walmart. charles: web management did, talk about leadership, they bit the bullet, they have not hard landing, stocks got hammered because they bit the bullet. we need to remember is that in our daily lives, politics, give you a soft landing, that all is backfires. stuart: show me macy's, they just announced what? 4,000 layoffs? was that we sail over the holidays? macy's is up 3%, 4% this morning. i guess people like it when you cut costs, they are doing something. charles: sales between november and december, 5%, a huge drop. liz: talking about buying at convenience stores and walmart, if we could momentarily take a look at walgreen's because the ceo is now saying snapping up

rite-aid for $9.4 billion, not the last acquisition, they are looking to make more to do more deals. really interesting because a lot of people do by other things at walgreen's. charles: anywhere in the world, there will be a walgreen's. stuart: go to florida and arizona cvs on one side of every crossroads, cvs and walgreen's on the other side competing away. walgreen's up today. charles: pretty good numbers this morning. stuart: roulette me wrap up the first 40 minutes of trading, let me wrap up this year. we started out on monday, we breed down. came back a little bit tuesday. big drop wednesday and today we are down 200 points as we speak. that means in the first four trading sessions of this year we are down approximately 750 points. as to what percentage that is,

we are down 750 points in 3.5 trading sessions. that is quite a drop as we speak for 2016. is a rotten start to the year and our viewers tuning in want to know what is going on. i am not trying to live with the anxiety level but it is not a free fall for the dow industrials at this point today. it is not. is an orderly sell-off. does that make you feel better? we are down 239 as we speak. i call that orderly. charles: it is orderly. last hour of trading, don't want to use any more cliches but be ready. i think we're going to get a rally. stuart: i have been told that shell has not cut its dividend at all ever since 1945. is that accurate? >> as far as i know. i have never seen that occur and part of it is a fundamental

philosophy that shareholders deserve their return and the company has honored that for a very long time. i can't myself remember a cut in the dividend. stuart: look at dividend stocks. when the market is in sell-off mode you look for a dividend plays it gives you 3%, 4%, 5%, you should be pretty happy at that because you don't get represented the bank. what is wrong with a dividend? charles: the dow was off for the year and so was the s&p. stuart: at&t will be a 4%. charles: how many oil companies are under pressure now as the low price -- charles: big names will not cut. chevron is a buy right here, that is why exxon mobile is a buy, 4% dividend and two years from now stock is up 30%, the ultimate win/win. stuart: you know what nobody is saying? we mentioned that briefly.

bonds. who has said get out of stocks and go to bonds? no one has mentioned it. >> people around world and coming into treasuries, 2.2. stuart: that is trading money. ashley: what we saw yesterday was money pouring into gold ended is happening again up $14, 1106. "cavuto coast to coast" when it reached $1,100. 1106 to be precise. we are going to take a commercial break. the first on this program this morning. we are going to do it now but we will be back with more in just a second.

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tandem with stocks. we are down on the price of oil, $33 a barrel. and we checked goal with $1,100 per ounce. that is where we are. jeff flock, a levon 06 to be precise on gold right there. jeff flock, you are right down there at the cme in chicago, looking at the oil market, what is the action like right now? >> oil traders would tell you they lead stocks back. if you look at the intraday chart, we got as low as 3210 which is 2004 numbers but it has been an orderly clawback for oil. speaking of orderly the s&p futures, this is the last open outcry, at the cme today, the isn't peak is fairly orderly. you mentioned quarterly, this has been very orderly and oil soars same way. it has clawed back and four locations, we are down $0.65 which is a lot better than we

were. stuart: i like the use of the word order me because we came on at 9:00 eastern time. it wasn't panic, that is the wrong word to use but it was a sea of red and we were all predicting a sharp drop in the open. we got a sharp drop in the open but it was an orderly come back to some degree from there and it mirrors the price of oil. we will get back to you shortly. liz: more pressure on oil stocks around the world. saudi arabia may put into an ipo the world's biggest oil producer, you may see a new listing of state-owned saudi arabia oil co. saudi arabia clearly needs money in that country because of what is going on with oil. stuart: we have j. b. holmes, is down sharply. ashley: reporting lower-than-expected profit and revenue for the fourth quarter blaming inclement weather including floods and storms but

also said there's the chronic strange shortage. they're having a hard time finding qualified construction workers as low wages failed to attract them. stuart: sharply lower. the dow 30 losers. >> cisco is the biggest lagger down 2%, microsoft, 2% done this loss, chevron, caterpillar, boeing, a lot of big stocks with a lot of exposure to china, the oil story as well, jpmorgan also down 2% but apple is the stock we are talking about for the last hour, you can see it continues to be down 1.7% up off of 0 earlier lows. stuart: the backdrop of the market decline, one of the

things we have been talking about, is the world on fire? developments from the persian gulf to china to even germany. the world is indeed on fire raising the anxiety level but investors around the world, come in leif babin, you are the guy who won ramadi. >> i participated in the battle. i can't claim i won but we were proud to contribute to the efforts that were victorious. stuart: i detect a lack of leadership from the white house, the world is on fire specifically they seem incapable of naming a threat, they won't say islamic terror. when it comes to afghanistan they won't a we got combat troops and their fighting, we won't say combat troops. what is with that? >> political talking points and we can't talk about the nature

of the enemies or the ideology we face. we certainly will not be able to come up with a strategy that will defeat them. that is the issue. president obama, secretary clinton, john kerry, those that are representing them across the world do not understand the nature of the threat. stuart: the administration is not going to put a lot more troops into afghanistan. does that mean we are in an orderly retreat from afghanistan? >> it is virtually the hand we have some extraordinary guys that are fighting this battle, doing all they can to prevent the taliban from coming back and taking over. i don't think they have troop numbers to prevent that and i had friends who spent a lot of time in afghanistan who told me

the taliban is taking over ken soon as we pull back and that is exactly what happened then you have folks in senior levels who have not recognized or talked about that reality. stuart: it is a lost cause? >> don't know if it is a lost cause. it is a lost cause to think that we are going to keep afghanistan, taliban free but i think it is not a lost cause to think we can defeat this enemy -- >> are we prepared as a country to put the resources -- >> clearly not in this administration. stuart: what about a republican administration. >> you have to set a realistic goal and a realistic goal, doesn't have to be advanced power, afghanistan, we have to defeat our enemies. i don't think we will never destroy the taliban or the al

qaeda elements they are alive with if you don't take those issues in traveled areas of pakistan. stuart: the world is on fire, you're telling us where it is. let's see, we have walmart. >> so far it has been turbulent and a tough go, it continues to move higher. target moving hire. the only other green from stocks right now, cigarette apparently. stuart: we got to take a break. john kasich is next along with our coverage of the market sell-off.

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one 89. you could call that a come back, we will take it down 189, 16-7. the next republican debate comes of january 14th hosted by fox business. john kasich will be there and john kasich joins us now. welcome to the program, good to have you with us. >> never heard anybody say the market is down 189 and a come back. stuart: doing my best to put a good face on it. >> that is optimism in 2016. stuart: give us your prosperity plan. can you bring it all together and tell me how you are going to restore prosperity to america?

>> i have done it twice. it is all about certainty. job creators are not going to invest in things that are rickety. you need to let up with the regulation that is killing companies or at least send a signal that we are not going to continue to do that. i would freeze all federal regulations for one year except health and safety and start reviewing congress to be involved when they create regulation. secondly obviously corporate tax rate has to come down. we have to allow companies to bring their profits back without taxation, get the corporate rate down, allow them to write off investment and equipment which helps wages quicker and on the individual side, 28, 25, 10. also a lower capital gains rated 15 and also make sure the earned income tax credit to be able to work harder at the bottom level.

and finally restrain government. and a balanced -- stuart: not interrupting, sorry about the delay but the play and you just outlined is a plan which any conservative can get behind. why haven't you punched through. 3% or 4% support. >> let me finish by saying i did that in washington as chairman of the budget committee and the economy grew like crazy and in ohio the same formula, up 385,000 jobs. i am either running second or third in new hampshire, and i am rising in new hampshire. the national polls, i am not as well-known as stuart varney. i am just john kasich, governor of ohio. i can and out of new hampshire as a story and we will be doing things after that and all of a sudden it all changes and i am

still in this thing, people thought i wasn't going to have enough money, to make the debates, pay no attention. up here we have the best ground game, we are growing, have momentum and doing really well so we have another 30 days to go and you will see. stuart: what did you do to get ron burke 0 on your side? the is the billionaire, previously, big supporter of hillary clinton, holding a series of fund-raisers for you, john kasich. what did you do? >> we had a breakfast meeting and it went on for a couple hours and we talked a little bit about politics, we talked about a lot of his interests and my interests and we met a couple times and just sort of connected and is really great. he is an unbelievable guy, an amazing entrepreneur and i am so totally interested in business, i was in business for ten years when i frankly left politics and

decided to get back in. come on, what was i syncing? we do what we have to do and i am fascinated by business and law entrepreneurs and he is one and he is terrific and is very successful but very humble and very appealing to the way i think people should conduct themselves. stuart: we will see you on january 14th. >> are you a panelist? stuart: i will not be, sorry. what can i say? >> one of these you will. that ought american accent you have. stuart: did you know that i became an american citizen six weeks ago? did you know that? >> i thought -- that is great. warner: when you thought i was an american anyway, didn't you? >> i really did. it is always great to be on your

show, you do a terrific job. i want to say one thing about this whole china thing. we are facing a government that never lets the markets work and the world is paying a price. sort of like if they sneeze parts of the world will get a cold and this has got to settle down. the chinese i going to be participating in part of a market basket, you understand that means they have got to come clean because they have to let this thing work out. they can't manipulate things because it doesn't work. doesn't work for them or the world ended affect our companies as you well know. stuart: well said. you can come on this show any time you like, appreciate it. good luck. republican presidential candidate marco rubio talking neil cavuto noon eastern today on neil cavuto coast-to-coast. we have the dour industrials, i am going to say coming back,

we're down 165. john kasich may or may not accept this as a come back but we're down 162, we were down 318. i call that a come back and we have more on after this.

....

gerri: we're down 143 points. walmart, disney, pfizer. three, however are up. that is a brighter picture than what we had for you in our ago. right now we are down 145 points. how about the price of oil. riding in 10 built with stocks.

it has helped the stock market combat. market watchers joins us now. you say that what we should be doing now is looking for it dividend stocks to pay high dividends. >> global volatility that we have. you want to look at dining restaurants. texas roadhouse. >> wait a minute. a chain of restaurants. 2%. >> yes. stuart: i can do better than that. there is opportunity on the upside. line dancing. >> a casual dining restaurant. it is very local in nature. in many cases, it is like chipolte, but texas style.

[laughter] >> it is really a good value stock. do you own this thing? >> i own texas roadhouse. i really believe in texas roadhouse. goldman sachs will give you 1.9%. it has been as high as over $220. there is so much upside to goldman. goldman always comes out the best winners. charlie: goldman cannot trade did there is not much upside.

>> they get the benefit of those companies. one pays 2%. >> it is still better then you can do with a cd. you know, here is this thing. sure. i love arise in. all of these companies have leveraged so much. that is why late goals as well. there you do. a better dividend. a company that has just been hit. decimated just like all the other retailers. stuart: i hear you. thank you very much indeed. with this going on in the market and the economy, i expect that the economy will be coming front and center in the collection

campaign. i think the economy is coming forward. it raises the question. hillary clinton. what is her economic policy plan. gasparino. >> trying to get my hand around goldman sachs. what does she have? one of the good things about the republicans. they all have this the same sort of approach to the economy. lower rates. plug the loopholes. keep the capital gains rate. i am not sure if hillary clinton has an economic plan right now. >> that is not a plan. i will do this.

it is meaningless. if the market ended up down 50 today, there is a problem with the economy. 1% growth hide the summer. what you just described is not an economic plan. stuart: jonah goldberg from the national review is here. hillary clinton. do you agree with you that the economy comes back front and center?

>> the economy is always really important. i agree with you that it will take center stage again. it has to at some point. typical to politics. i kind of agree with charles. you go back and look at what hillary clinton said about the economy. she just simply promises different set heirs of the democratic polish in. more on childhood. education stuff. more family leave. she has to hold off sanders. lots of promises. speed to how do you go into an election campaign that does not include growth? it is really all about redistribution. how can you realistically going to an election campaign without that? >> people feel at ease and insecure today.

certainly, the voters that she is going after look more for security then they are blue sky economic growth. she is promising to take care of people. my husband delivered prosperity. i have the same last name. i will deliver prosperity, two. what she will actually do to spark growth. hillary clinton really did not have that plan either. lucky that the internet came online. he served that to this legacy of being great on economics. stuart: thank you. i am sorry to cut this short. time for the sector report. big losers on the dow.

>> i want to show you the technology sector as it stands. qualcomm down more than 3%. you also see microsoft continuing to take hits. though google stock here, down one and a quarter percent. stuart: the market is down. that is not as bad as it was. we will be back.ke order ♪ pinot noir, which means peanut of the night. we were in a german dance group. i wore lederhosen. so i just started poking around on ancestry. then, i decided to have my dna tested through ancestry dna. it turns out i'm scottish. so, i traded in my lederhosen for a kilt.

nicole: i am nicole petallides with your fox business brief. down 161 points. had been down 318 points. the shanghai composite index translated right now home. weighing on markets. here are some of the biggest dow losers. caterpillar, chevron, microsoft. technology has been under pressure. the lowest level we have seen since 2003. yesterday was a winner. today, let's take a look. certainly bucking the trend. netflix got a nice call. 164. they tripled dropping 30 countries. 118 and change. start your day 5:00 a.m. on fox business. ♪

>> we are down 140 points. half the loss that we had about an hour ago. people sold a lot of stock. it is not a disorderly rout by any means. the s&p down 1%.

the nasdaq is down how much? this is not good. dow jones. a lot of big stocks in their. you have three pretty big stocks there. that could take the average is up. the real fundamental problems are still there. possibly slow on the u.s. economy. possible rate hikes. >> okay. all right, everybody. let's get to hillary clinton. hillary's use of her private e-mail account exploited a loophole on transparency. the judges here. what is this all about now? >> independent investigative agency within the state department. publicly acknowledge what mrs. clinton has refused to

acknowledge. mainly that she intentionally kept e-mail traffic from the state department. the state department would not have it available when freedom of the information act was made. the freedom requests were made at the state department. they could answer honestly and truthfully. we do not have e-mails from mrs. clinton. this is not new except that it is new. the inspector general has recognized this. this continues to jindal put the view of those of us that watch these things for a living. the fbi is close to a decision. in favor of indictment is truly overwhelming. >> the report says, she deliver it late, she exploited a loophole because she knew the loophole was there.

she exploited it knowing. >> yes. >> elaborate. she wanted to do this. >> this is a political condemnation. the fbi has a lot of evidence. the obama state department under john kerry of the inappropriate behavior of the obama state secretary of state. stuart: judge, we understand it now. thank you very much, sir. i will call that a modest combat from where we were. more in a moment. ♪ you pay your car insurance

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call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. stuart: lori rothman joins us now. apparently, investors like the news on this. moving up three and a half percent. let's get into the details. >> holiday shopping is so important to these retailers. especially these anchor department stores. you have macy's. also owns bloomingdale's. laying off 4000 workers nationwide. all in the effort to save

$400 million. the key here is the real estate. these macy's stores owned hundreds of thousands of square feet. >> why the poor sales? >> we have this extraordinary warm winter. they get off at the 59th street subway stop. they go to bloomingdale's. of course, the macy's flagship stores, because of the strong dollar, they just did not. ashley: it is expensive. price target of macy's because of this consolidation. >> great stuff. thank you very much. more varney just three minutesce away. ♪ innovative solutions to unmetanimal health needs in the

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stuart: welcome back, everyone.

this is the third hour of "varney & company." not quite as germanic as we saw one hour ago. up 120 points. 320 points literally early this morning. how about the price of oil. all the way down. that was the low. bouncing right back from 3389. that is quite. show me technology stocks. they were the huge winners last year. it went down sharply. some of them have come back a little bit. amazon down $4. it had been down 15. microsoft is $53 a share.

up $1. it is one of the stocks for the dow industrials. macy's, two. bases this morning announced that there are 4000 layoffs. ashley: selling some real estate, two. stuart: that goes down well. you have $37 a share. let's get right to work. rolling overnight. that was china. down 7%. gordon chang knows about all of this. the author of the coming collapse of china. i say the chinese stock market is a casino and has nothing to do with the underlying economy of china.

>> that is true some of the time. it is in the same direction. the real problem here is that the growth model is more than 35 years. that is exhaustive. they do not know what to do to change it here at the calculus in beijing does not permit the discovery. stuart: they announced about an hour ago that they will abandon the circuit breakers. no matter what happens on the market when it reopens, they will let it fall or rise. >> that is a good thing. the government will go in and buy shares if it feels it has two. the real problem is the confidence of chinese oh facials. there will be a period of calm where the government will stabilize though, governments. on thursday they have to pick in the circuit breakers again.

they devalue the currency. to such an extent that people said, oh my god did not understanding the market still. contributing to the problems we have today. >> it has gone down a lot more. >> that is the most important paying. capital outflow. that follows third-quarter down. $461 billion. coming out. >> at the rate of $2 trillion a year. the only reason that was a little bit less in q3 was because of government has now put in an informal, off the books measures. it makes it look like a banana republic did this is what they

do in west america when they have these problems. >> china's problems are bad news for the whole world including wall street. >> it has not been discounted in our markets. clearly it is headed toward something we will all remember. >> kicking off the third hour of "varney & company." i am glad you are on the show. thank you very much for being here. market watcher is here. the dow is now down 120 points. jason. technology stocks. the two that you were real big on where the end of last year. number one, facebook. do you still like it? >> i continue to call facebook fields of a growth stock. nothing has changed.

there is some panic in the market. we are seeing some short-term lows being put in today. some of the headlines on various websites and newspapers saying i think that is way overblown. any depth in the dip continues to be a buy for numerous reasons. they are growing like crazy. the facebook messenger app just reached 800 million users. that is just a part of their user base. i think you may see some short term volatility did they spoke, it is not quite a safe haven. it is the ultimate growth stock in this environment. stuart: microsoft. you know that i own it. i think it is about 53 at the moment. $53 change.

would you buy it at 53? >> sure. i said mid- 60s. i think that that is still in the cards. safe haven, you think of gold. you think of u.s. bonds. this is a different year. microsoft may be a better safe haven then u.s. bonds. the china story, which is very important, china spending all of its money, the whole idea is they are buying much less bonds. u.s. bonds will go down this year. they will look for strong u.s. companies. stuart: thank you very much for joining us. we do appreciate it here and we had a turnaround. thirty-two-10. now we are at $34 a barrel.

essentially, we change from sharply lower to breakeven. just about even on the day. energies chief. with me now. you are in the middle of the oil patch. tell me, not you, but other drillers, in your area, will they still drill, open up new wells, with oil at 32, $33 a barrel. >> we are getting dangerously close to having a big panic here. a lot of guys are levered up. already in trouble. we see oil not getting back to $36 tomorrow. that could start a new trading day. right now, we're still drilling. we are drilling vertical wells. we're still fracking. if things go lower, we may have

to go to the backside of 1999. you heard it first here. fracking may have to go on hold. if we could drill old wells, they would have subbed $20 wells. looking for the future in the near term. if you shot down some of the fracking, how much oil would you take off the markets? >> we are accusing 500,000 barrels of oil each day. 9.22. by april, and another half million. that gets rid of the current overhang. the sanctions give more aggressive they are. saudi cannot increase their production any further. i agree that to be true. the market changed very rapidly.

i still have a case for being bullish. we will ping-pong around here in the 30s. we may be very near-term. stuart: thank you very much for joining us. we dealt with the price of oil. a look at politics. monica crowley is here. the washington times. boaters are on a rampage. it has to do with the political establishment. i gather it is widely unpopular. >> also now bleeding out into moderate independents. a lot of democrats who are wholly, disenfranchised by your own government.

left, right left. more political versus everybody else. washington cartel. more interested in a wrenching themselves and empowering themselves. that is what you see on both sides. rising to the top here and they have promised to blow up the higher system. same thing on the left with bernie sanders. people are reject in the establishment. tired of hearing the same cliché. they do nothing to change the status quo. >> the establishment will be out in full force. americans are rejecting this across the board. they feel that they have sent

republicans in droves to washington. 2010 and 2014. the radical agenda. a few exceptions like senator cruz. they are done with it. they will try with something completely different. 318 points. now it is down 149. the price of oil is also rebounding. coming up next, a headline from the "wall street journal." the rowboat of the politically incorrect. we are talking politico outsiders again. after this. ♪

stuart: this is a look at all 30 of the dow stocks. four of them are of. that is a different picture from what we saw earlier. how about some big retail names. you know all of them. surprise surprise. a big market day. how about this. the price of oil. now we are at $34 a barrel in that area. we were down to 3210. we come back on oil. listen to this. calling this oil price drop. yes, he did. watch this. >> doing this to prove me right. no reason to start buying oil at this. now we are down to $80. if you go to 50, if you go below $50 a barrel, that is the time.

there are so many things overhanging the oil market. by the end of the year, oil will be $70 a barrel. $70 a barrel. they were put off with this program. gave the opportunity to throw that. sell it. the lowest prices since 2003. $11 a barrel. that was only three years prior to that. audio can go substantially lower. here is what is going on today. everyone who is sucking wind on their oil positions will go i better get out of this now. i have seen a lower price.

drillers want higher prices. there could be a base formed around here. prices will start to move up from there. so many things negative to the oil market. not losing money is like making money. hold off. there is plenty of oil around. 10 million-barrel building gasoline yesterday. that is massive. iran and saudi arabia are fighting missiles together. there are so many reasons why oil will go down. it always goes further than you would expect it to go. no one saw 35 when it was 50. no one would see the $25 price that i thought was going to happen. >> you said that sharply lower oil is good news for america's economy.

>> but for america's economy. >> it is a better long-term prospect. they need a lower energy price. back when oil was going up. ups and fedex. putting a fuel surcharge on their water. that would scale back from their purchases. it is bad for the oil patch, but the oil patch will survive. they will make it profitable again. you pull 1000 or $2000 into american household pockets every year, they will spend it. >> on tape on this program. $25 a barrel. thank you very much indeed. let's get to politics. that is the bread-and-butter of this program.

the regular call him write this. writing about donald trump. here is the title. rowboat of the politically incorrect. dan, welcome back. >> good to be here. that would be donald trump. that would be ben carson. anyone else? >> the millions upon millions of people that support them. that is your resolution. i think that americans have had it up to here. >> straight on their speech. at least 25 years. we all know what politico correctness is. it began in the 1990s. people were told that this is the way you have to think. you will like it and get in line did people do not forget these things.

they have had it on their minds constantly. i think it got to the point where you had a candidate. ben carson was the center of his campaign. the idea that you get along by going along. we should resist that. giving speeches on that. donald trump comes along and says virtually anything. it is not mainly that he said we should ban muslims going into the country, here is a guy that does not care what he says. all of these people out there have been feeling that way for 20 years. waiting for someone that talks like that. >> you oppose it on almost every ground. >> i do not think he is giving us any kind of picture of how he would deliver in the united states. he can push his candidacy into a place where he is talking about

governing. >> how long before we see what i would call an established republican? breaking the law and becoming politically incorrect. >> i think people are supporting outsiders like tromping carson. we have been outsiders for many years. we have been kept on the outside did the establishment are people who never spoke up did they never pushed back hard against belinda kull correctness. that includes the politico class. suddenly claiming i am speaking for all these people that would never defended over the past 20-25 years. they will have to find a way. stuart: you have a blast. dan, "wall street journal." thank you very much. 200-point move for the dow industrials. down 320.

down only 120. big change. that brings me to this. i have a message for the 2016 oh election race. it is the economy. ♪ we live in a pick and choose world.

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>> the market is stumbling. we are a long way from prosperity. what would hillary do. she has the front runner from the democrats. as the election approaches, the economy will surely come from the center. hillary says, if she is a aggressive democrat, not a socialist, she cannot or won't say what the differences. it has already turned sharply. that means, more government spending and higher taxes. at the moment, that is our policy. that is the progressive democrats posterity policy. it will not work. it has not worked. fairness, spreading the wealth around, produces more jobs for better incomes.

seven years from president obama. middle america has seen it fall. it has clearly exploded. that is not trust. the. bill clinton ran against the first president wash. his campaign came up with a slogan. politically, that was very clever. it was a winner. the clinton team today may be tempted to resurrect this year. they should be careful. you would be indicted the progressive democrats. what will hillary do with iowa and new hampshire are just weeks away. just as middle america saw, she has to stick with her wealth redistribution policies. the structure and policies, actually. she is stuck with tax, spend and we deserve you. i suggest the republican candidate adopt the old content

slogan and use it on the progressive democrat. it is the account of me, stupid. ♪ ♪

. stuart: i will not use the word stability. no, i really won't, but i think that's what we've gone. we're down 163 points, i know that's a lot, but it's not as

bad as minus 318, which is what we had earlier. how about those financial stocks? they took it on the chin earlier this year, that means earlier this week. where are they now? jo ling kent, you have to tell me. >> yeah, take a look at this, stuart. you see this down 1%, leading them down is city group down 2.43% right now. you can see the volume there. it continues to drop throughout this morning and throughout this month. wells fargo also taking a hit along with jp morgan chase, bank of america, the other two sectors to watch. industrials and materials. also taking it on the chin, stuart,. stuart: jo ling kent, thank you very much indeed. now, monica crowley has decided she will stay with us for the entire hour. why is that? she has a theory, and i want to tell everybody about it. it was part of my take to some degree. and monk's theory is this. i'm going to tell them what it is. >> fine. stuart: hillary clinton will not be the democratic nominee

for this election. make your case. >> yes. well, i first proposed this last summer in the washington times column, and i know i'm swinging out here by myself. stuart: you're on videotape. >> but i simply don't believe that barack obama is done with mrs. clinton yet. we know there's a long history of very bad blood in between of two parties. and if she were really dominating the field, dominating the democratic field as well as the republican field by 20, 30 points, i think she would be left alone. but because her poll numbers are so bad particularly on leadership, honest, trustworthiness, i think she's vulnerable. and because of this long history here, because of the outstanding fbi investigation, which is on going. which i believe the obama white house has used against her as a political and legal vies and every once in a while they tighten it on her. i think there's a possibility she will have an enindictment

and become toxic. and there's one person who matters here on the democratic side and that's the president. and i don't believe the president wants her to be the nominee. stuart: so who does he want to be the nominee? the obvious question suggested would be joe biden. and he has made noises recently. >> in the last 24 hours, the vice president gave an interview saying he regrets not running every day. now, whether those tea leaves or not, i don't know. it's increasingly difficult for anybody else imu to get on these state by state ballots and so on. but it's not impossible. and should mrs. mccain impose, there are going to be other step up. stuart: you're not going to say who. >> i'm on a limb who. stuart: we have you on tape and we're going to replay you vigorously. markets like this have me wondering which candidates are going to be best for the economy. it's a good question, isn't it? look, the market's down,

question r economy is slowing. who's best to restore prosperity. bar rescue john taffer, also very interested in politics, i know you are, john. so you tell me who is the best candidate out there to restore prosperity to america? >> well, i believe that if you want to take care of employees and employment, protect the employer. that said to me hands down i've got to go with trump and here's why. to me there's four aspects of business. investment, development, operating, and exit. jump knows the tax and regulatory consequences of all four. he knows what inhibits investment. he knows what holds back development. he knows what has a negative impact on operations, and he understands how exit is impact by regulations and tax. he lives it and his overall tax plan about eliminating the death tax, keeping corporate

taxes at 15%. these are significant moves, and we have to analyze the overall impact of them. but he goes to bed and waking up every day feeling the consequence of tackation in the four critical areas of business and to me, that makes him the strongest. stuart: you didn't feel like this back in june when donald trump first announced for the presidency, did you? >> well, we were talking about the way he spoke and the way he communicated. to isolate this issue of business and understanding the negative regulatory impact of government upon business, he's the guy. stuart: what odds would you put on him at the moment for being the nominee for the republicans? what's the odds? >> you know, i think it's better and better. obviously there's a shake up that would happen if he wins. and there are forces out there within the party that are trying to inhibit him winning. but the fact of the matter is, you know, it's hard to stop a machine with a lot of momentum and, by the way, monica is right on the money. i've got to say.

and you and i had this conversation six months ago on this very show about, as i recall, what's your reason -- john, back to you. what's your reason for thinking hillary will not be the nominee? >> well, i said she was unelectable on your show about six, seven months ago. i believe the investigations, the fbi, all of this weight of dishonesty and particularly investigations has to play into this at some point. and i think we're starting to see be perceived by donors and people around her. i felt at some point this would have to take root, and i think we're getting there. stuart: you know, you sound like donald trump. you speak in the same fashion, same directness. [laughter] john taffer, bar rescue guy. thank you so much for joining us. >> thank you, stuart,. stuart: quick to the market, down 164 points, again, that is a come back from where we are.

we were down 3 # 20, now we're down 163. you know, i really like politics, so i'm going to go back to that. dan henger was on the show earlier saying this is the year of the political incorrect. and author of sling and her name is victoria from new york. welcome. >> thank you very much for having me. stuart: i think of ted cruz as being -- not politically correct. he's not the kind of guy. but he's not politically incorrect guy, is he? >> he does sometimes defy categorization. but i think in this case what you're identifying is his very straight forward way of speaking. but very precise way of speaking. stuart: he's a lawyer, isn't he? >> he tells me he is. stuart: that means he is. did he argue cases in front of the supreme court? >> he has argued a number of

them before the supreme court . stuart: successfully? >> very successfully. stuart: i don't think of him as establishment. i think of him as nonestablishment. how do you see him? >> well, that's very much been the skace when he came to the senate. a lot of people treat the senate like a club, you go there to get along. stuart: doesn't have any friends. >> "we" one. senator lee. stuart: do you have another? >> he's quality if he's not quantity. stuart: is he deliberately positioning himself as a nonestablishment conventional politician. >> no. i don't think that was the goal. electing his goal was to do to promise the voters of texas what he would do. and when that came into conflict with leadership, he continued to honor his promises. stuart: what did he promise texas voters he would do? >> repeal obamacare, for example,. stuart: that doesn't seem to be his main issue, though. >> it has certainly been his front and center issue for the last three years and then also keep the nation safe. it's something he has been fighting against the iran deal to do. so these are the sorts of

issues he cares about a. stuart: the strategy seems to be on your part, on your campaign, that you flood iowa with a lot of resources. >> uh-huh. stuart: win iowa, establish momentum, and move on from there; right? >> well, there's certainly a lot of effort going into iowa, but we do have a nationwide campaign. we have a strong operation in new hampshire, south carolina, and then all through the scc primary states on march 1st. so he's really built to go countrywide. stuart: how much money have you got? >> we just reported well over 20 million for q4. stuart: so to million dollars came in the fourth quarter last year. 13 weeks, income $20 million. >> very effective operation. stuart: you would like more but are you comfortable? >> i think we are good with i. stuart: will you predict a plat out iowa win for ted cruz? >> i will predict a flat out iowa win to ted cruz. stuart: it was not like pulling teeth.

that was kind of easy for you. >> it was a easy thing to predict. stuart: stay on politics. greenberg is making comments about jeb bush. charlie gasparino has the comments. >> exclusively to fox business. in that journal he gave contributions of $10 million and it was very interesting. it was one of the biggest backhanded compliments i've ever seen from a contributor. he told me point-blank we have the quote on the full screen. but he essentially said that his company gave the money and not him. and this is something that really blew me away. listen, i like jeb bush. sorry he's not living up to expectations but that's the reality of it. stuart: so greenberg, very wealthy guy, is not giving money to jeb bush. is that accurate? >> we should point -- yes, it's to the pac but i think -- which the take away of this is twofold. number one he's trying to distance himself from jeb bush. earlier wants to support someone else it sounds like right there.

he wants to keep his options open. number two, look at what he said about him not living up to expectations. it sounds like this guy is having buyers remorse by being in the bush camp. this is what it sounds like. now, we do have a comment, we have a call out to jeb's people to see what they have to say. but that is a verbatim quote from about ten minutes ago from greenberg. not something that you often get that just wrote you a $10 million check. stuart: fine reporting. thank you. now, if you're just joining us, and you may be, you may be expecting a route on wall street because it looked like that before we got rolling at 9:30 eastern this morning, and it was pretty bad for the first half hour. went down 300 points. now down 168. again, i'm not going to say stability -- ashley: you just did. [laughter] . stuart: i did. >> you were, like, this is great, this is a rally.

[laughter] . stuart: easy anxiety factor amongst our viewers. >> anxiety is good. viewership goes up -- stuart: another story we're following for you. a possible muslim civil war. that would be sunnis, saudi arabia, versus shi'a, iran. that is a big story, and we're on it. next

>> i'm nicole petallides with your fox business brief.

the dow jones industrial average is up off its lows of the day. had been down 318 points today. right now, down 153. that's a lot, the s&p down 20, the nasdaq down 56. we from europe as the shanghai composite halted down 7 pest. but now look at this. we have winners here for disney up a half of a percent, walmart gains of 1.5%, jp morgan with down arrows. oil came up off the lows and that actually helped the market. it has been at the lowest levels in the 32 range since 2003. but with that move higher, the weaker dollar, that helps bring it higher. and look at some of the energy names, transocean hitting the new low, all of these names hitting a new low and kb homes a new profit get on the floor! do something! oh i'm not a security guard, i'm a security monitor. i only notify people if there is a robbery.

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stuart: let's keep you up to date with these markets. now we are down 200 points on the dow jones industrial average and the reason for the slippage in the last half hour is because we've got slippage in the price of oil. for a moment we were up on the day for oil, now we're back down again. thirty-three dollars a barrel. these two markets are moving in tandem. let's go to the middle east. the threat of the hot war between the saudis and the iranians is ever present these days.

james is with us, former cia director and currently chancellor of the institute of world politics. james, welcome to the program. >> good to see you, sir,. stuart: i believe -- a lot of analysts have told me this -- that president obama has tilted towards the iranians in this dispute with the saudis. shi'a, sunni. is that accurate? >> i think he's done more than tilt. he's shifted. i think it's recognized throughout the middle east that we're not a loyal ally of the egyptians, the saudis, the whomever. and he is playing up to the iranians in spite of their support of terrorism, in spite of their host ity, . stuart: i hate to ask you are you serious -- i don't want to do it in that tone. but you get my point.

if a rocket, a missile flew from iran over to the gulf towards the saudi oil fields, i don't think america would shoot it down? i don't think america would support the sunnis of saudi arabia? >> i think we might. it would depend on the rules of engagement if this was a surprise that the local commanders had at the time. some of their rules of engagement had been pretty weird, for example, they were not the military for months to attack tank trucks just sitting in line along a highway that were filled with oil for isis. stuart: right? >> because we were told we shouldn't harm the isis truck drivers. i mean it's really hard to tell what this administration is going to do. it may be that we would, yes, shoot down -- let's say shoot down something that was coming at saudi arabia. but the saudis can't count on that, and they would not be wise to.

stuart: this is profoundly unsettling. if we have switched sides away from our traditional suede allies and begin to the iranians for the sake of a nuclear deal, that's very unsettling. >> it's not exactly switching sides. but it is showing extraordinary sympathy and assistance for the iranians in spite of the terrible nature of this agreement -- from our point of view terrible -- that we have assigned with them. and it's more or less ignoring the needs of our ally saudi arabia we have our differences of course with the saudis. but they have been able to count on using when we went to war, for example, in the bush one administration to free kuwait. we're not viewed that way in the middle east anymore. stuart: what a shift. james, thank you very much

indeed for joining us as always. >> thank you. stuart: check the dow jones industrial average down 200 points, we were down 318 at one stage. you're watching the market, you're watching "varney & company," and we'll be back secrg 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.

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wall street. and it started with the chinese market overnight. it was only open for 29 minutes. they closed it when it dropped 7% and the circuit breakers came in, ended the day's trading. we have a market watcher with us who knows a thing or two about the chinese market. you used to live in for china for 10 years and manages money. you manage money, don't you? >> we do. stuart: patrick; right? >> yes. stuart: i think of the chinese stock market as flat out a casino. and therefore a very little relevance to the united states market on wall street. and you say what? >> it is. and the gyrations in china stock market tell us more about the distorted stock market in china than about anything else. however, a lot of people watch the second largest economy, and they try to figure out what's going on there. and you see all of these confused and conflicted signals and people are trying to make tense of it. and it just adds to the anxiety. stuart: that's right. the backdrop to today's action on wall street is anxiety all

around the world. whether it's iran and saudi arabia or the chinese market, it's high anxiety time. >> that's right. stuart: now, we hear that the chinese authorities have removed these circuit breakers. does that mean it's a free flow market tonight. >> no. because this was just one restriction on trading that proved very propmatic for them. they have a 10% down on individual stocks, which could kick in. they also intervene heavily in terms of persuading people not to sell or having state funds to buy. so it's still a very managed market. stuart: what's your reading on china's economy? we hear it's not growing as 6.9% like they want, more like what? >> three or four percent. stuart: that's it inspect. >> yeah. because there are some sectors in china's economy that are growing and mainly to consumer and service sector of the economy. but there other sectors this had been driving growth, property, construction, heavy

industry that are really in the tank right now. stuart: real fast. if the market in china goes down again tonight big time, do we go down again tomorrow morning on wall street? >> probably. but not for good reasons. i mean i think people really need to step back, take a look at what's really going on with china's real economy, how it impacts global stocks, and that is the fundamentals that they should be basing. not just the sentiments of knee-jerk sell because something is wrong with china . stuart: many thanks. we do appreciate you being with us today. there will be more varney after this when a moment turns romantic why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph,

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huckabee will be the first to leave the race and then the next big one to exit will be jeb bush. stuart: whoa. save the best to last. >> after new hampshire. stuart: thank you, monk, very much. and ashley too. neil cavuto, it is yours. neil: thank you very much. we've been all over the map, and as stuart saying it could be worse. four hours to go. the bottom line here, my friends is that china has revealed itself to be an ineffective economic and now market power. and the bloom is off the roads. that much is clear. and the country's ability to sustain at least these body blows. it is indicated already that all -- they're going to go these so-called circuit breakers are going to go. so they're just going to dry tomorrow. we'll see how that goes. for now, we've got a sell of better than 211 points. but as i say, it could be worse. nevertheless when you step back from this from the political fallout, presidential candidate marco rubio just telling me it does