we're in a cautious stance in skybridge, but soon. maria: soon you think? >> a republican president, dow 20. >> 30 maybe. maria: because you're talking about tax reform. gentlemen, great to see you all. steve scareamucscaramucci. i'll see you monday. charles: thanks, it maria. it's a big day for your market and for the country and for fox business. we've got a couple of major stories for you, including, of course, the stock market. the big selloff, just in a half hour from now. you're looking at futures that are going to be down huge. china falls out of bed, we fall out of bed and reports, tell us maybe our worst fears could be coming true. president obama may have to rewrite the state of the union. and the oil now below 30. lowest level in more than 12

years and the back drop for the market action is the race for the white house. another action-packed debate on the republican side and you saw it here on the fox business network. we've got a couple of front runners here. donald trump and ted cruz going toe to toe, not just throwing jabs, but haymakers at each other. it's phenomenal. buckle in, a lot to absorb in the next three hours. "varney & company" starts right now. ♪ . >> you worry most of all about keeping your homes and your families safe and secure. you cannot give hillary clinton a third term of barack obama's leadership. >> hillary clinton would be a national security disaster. she's under investigation with the fbi right now. if she gets elected her first 100 days instead of setting an agenda, she might be going back

and forth between the white house and the courthouse. >> she wouldn't just be a disaster, hillary clinton is disqualified for president of the united states. >> and someone who lies to the families of four victims in benghazi can never be president of the united states. >> everybody on this stage is better than hillary clinton. >> i to speak to all of theys maddened by political correctness where hillary clinton apologizes for saying all lives matter. this will end. charles: those are just some of the highlights from last night's debate on fox business. one of the big things, as you just saw, attacking hillary clinton, we're all over debate for the next three hours and first sart with this. big, deep, strong arrows to the down side. the dow likely to drop at least 300 points, possibly even more. oil hitting new lows also this morning. we want to take a look at the yield on 10-year treasury at 2.01, but it did dip under 2%

moments ago. you've been calling for the market to pull back for some time and federal reserve is one of the things that bothered you a lot. bullard spoke and they've been insisting on full rate hikes. i assume that might be off the table. the fed with actions not words? >> a lot of people blame the price of oil and say that that's the reason the market is falling. oil has shown us what we needed to see which is that there's global deflation. the problem here is the fed clearly the fed, they had promised the market a lot and now they can't fulfill those promises. they have become the safety net for the market and now the market-- now they have really nothing to go on. if you look at what happened yesterday with bullard, they wheel bullard out, he says a few things that makes it clear they're backing off the position that they have with interest rates, raising interest rates. the market rallies. that shows that this market is

addicted to the fed and when you remove that, there's going to be withdrawal. charles: at some point the market's got to do what the market's got to do. the fed, there are no more arrows in the quiver. they were using extraordinary measures and accommodative and rewritten the book. and did little for main street. mainly it's buying and selling. >> there's going to be a ton of momentum. the traders lo of this volatility and they're obsessed with volatilities. now it's coming into earnings time. when you look at the last two quarters there's no reason for optimism on earnings at least the next two quarters going forward. so we're getting down to reality now and reality is going to be harsh for a lot of people. charles: also on that note, we have some breaking news now. wal-mart is closing 269 stores

globally. 154 stores will be in the united states. the stock has taken a pretty good hit on that although i've got to tell you, that's the kind of news i would expect particularly with a company like wal-mart knows they've been behind the eight ball and need to redo the business model. not the kind of news when retail sales are out, they disappoint whether you look at ex-auto or ex-anything and there's a sense that americans have money and why are they sitting on it. >> and we've been told if oil prices are down, retail prices will i am perfect so -- prices will improve. so you have to say that's a look where we are. charles: two military helicopters collide off hawaii. got to go to lauren simonetti following this in the news room. >> hi, charles. the coast guard confirms that two marine helicopters collided off the coast of oahu.

they were on sea stallions, transport helicopters. right now the mission is classified as an active search and rescue. we are praying for the 12 people on board. searchers and local news reports say they spotted a fire and a debris field which included an empty raft. about two and a half miles from the coast. we have no word yet on the cause of this collision, but we do know that the waves in the area were 30 to 40 feet high, charles. charles: lauren simonetti, thanks a lot. >> thank you. charles: i want to get back to the debate. the gloves came off and the bromance is over for donald trump and ted cruz. he threw the first hay maker. >> back in september my friend donald trump said he had his lawyers look at this from every which way and there was nothing to that, there was nothing to this birther issue. now, since september, the constitution hasn't changed.

[laughter] but the poll numbers have. the fact is there's a big overhang, there's a big question mark on your head and you can't do that to the party. you really can't. you can't do that to the party. you have to have certainty. >> interestingly enough donald j trump would be disqualified because donald's mother was born in scotland. >> when it came to defending new york many think that trump maybe got the better of cruz, watch this. >> everyone understands that the values in new york city are socially liberal, pro-abortion, or pro gay marriage, focused around money and the media. >> when the world trade center came down, i saw something that no place on earth could have handled more beautifully, more humanely than new york. the people in new york fought and fought and fought and we saw more death and even the smell of death, nobody

understood it and it was with us for months, the smell, the air, and we rebuilt downtown manhattan and everybody in the world watched and everybody in the world loved new york and loved new yorkers and i have to tell you that was a very insulting statement that ted made. charles: all right, tammy bruce, what do you think? >> well, look, i think last night was fabulous, as you noted perfectly handled by the italians, so for the first italian debate we're all winners. charles: okay. >> i think that donald trump in that example, you normally wouldn't put eloquence and his name in the same sentence, but he delivered. now, here is one of the big difference froms last night. it seemed everyone had finally relaxed, that they realized donald trump was there to stay, he was a real player, kasich relaxed and everybody was more in a better zone, it was a pressure to watch and ted cruz got nailed in that particular snaps, but he did well, obviously, mr. trump did well, and i think the nation in

seeing the talent on that lineup, i think we all won last night. charles: i didn't think ted cruz lost that. i don't think anybody thinks that new york city is the hot bed of conservativism and tell you mo are reasons. but i'll tell you more later on why i say that. dr. ben carson is calling for unity among republicans and warning his fellow republicans what happens if they don't come together. roll that tape. >> but in 2012 election, you know, we, and when i say we, republicans tore themselves apart. you know, we have to stop this because, you know, if we manage to damage ourselves and we lose the next election and a progressive gets in there and two or three supreme court picks, this nation is over as we know it, we've got to look at the big picture here let's bring in governor mike huckabee, when you had your show here one time i stopped you in the hall and why aren't you running in 2012 and you sort of allude today what ben carson was talking about, the

rough and tumble nature of the process has been leaving the ultimate candidates so roughed up, that it's hard to win the general election. >> well, that's really true, charles. look, this is going to be a tough process and i don't think we can expect that we're all going to sing kumbayah around the calm fire and toast marshmallows and have a group hug. this is a tough battle and everybody who runs for president understands it's more like sock em sock em robots than it is like my little pony. the difference is, it's perfectly fine to have a very vigorous debate, to go after each other on the issues. what isn't helpful and what happened in 12 was a lot of it was personal attacks and attacks on people's character and integrity and there's plenty of that to be aimed towards the democrats, especially as long as hillary is in the race. so, yeah, we need to show the contrast between us as candidates.

we need to show why some have the experience and some don't. but any notion that this is going to be a love fest among the republicans, whoever says that has never run a race before. i've been in plenty of them and believe me, they're tough. charles: no doubt about it. and part of the process to see who has the toughest skin it makes you wonder if the birther issue is towards policy or the 2012 things you're talking about. how do you feel overall? i've got to tell you something, it was one of those nights where it was hard to say anyone really lost. the g.o.p. shined big time and i think the entire party did themselves a big favor, including yourself. >> well, charles, i feel the same way. look, we took tough questions and we answered them. i think it was an opportunity to the american people to see that there are differences among candidates, but the one thing that was clear, every republican wants to have lower taxes and not higher taxes. every democrat wants higher taxes. >> every republican wants to see economic growth.

the democrats want to push policies that would destroy economic growth and would drive wages down further. every republican understands that there's got to be some serious measures to bring national security to the forefront and fight radical islam. nobody in the democrat side will even mention it. so the contrast is clear and i think the american people had an opportunity to see even the nuances and differences among republicans, stark as they may be, the real difference is between any republican and any democrat. this election is going to be a clear choice. >> good morning huckabee, congratulations, you did really well last night. we appreciate it. >> thanks, charles. good to be with you. charles: hey, it's going to be an amazingly huge day for the wrong reasons for this market, for your money. your 401(k) is going to take a ding. the question is to what extent. you see the futures. we are going to be talking to a

member of jeb bush's finance team. did jeb do enough to keep his backers happy? ♪ your path to retirement... may not always be clear. but at t. rowe price, we can help guide your retirement savings. for over 75 years, investors have relied on our disciplined approach to find long term value. so wherever your retirement journey takes you, we can help you reach your goals. call a t. rowe price retirement specialist or your advisor ...to see how we can help make the most of your retirement savings. t. rowe price. invest with confidence.

>> triple digit selloff coming right at us and of course, i want to check the price of oil which has gone under 30. before that, we're looking at big names. wal-mart had been a shining star early 2016, they're closing down 169 stores, over 100 in the united states. that's massive bullet they've got to bite, but not the news that america wants to hear. apple is down. and the key number, the inability to break that has been negative and of course, this stock was above 130 not long ago.

facebook, also down, it was as high as 110, and now $95. and then there's exxonmobil. had a huge day yesterday, go i having some of that back today. most of those gains. if oil is falling away, that's falling. that's a fat dividend, i wouldn't surprised to see some of them back in later. and donald trump, while he backed down on the pledge to prevents all muslims from entering the state. >> mr. trump, your comment about banning muslims from entering the country created a firestorm. is there anything you've heard that makes you want to rethink this position? >> no. we have to stop with political correctness, we have to get down to creating a country that's not going to have the kind of problems that we've had. charles: all right, let's bring in retired navy seal carl hig bye.

there's 1.4 billion people on the planet and we don't trust 1% of 1% of them so we block this. is that the smart way to do this? >> what i would do i'd stop all immigration until i narrow down who is the parties creating the problem. and there's a way to say it's muslim and then break it down, which type of muslim and he's starting big, he didn't say a permanent thing, that's the only yes and no answer of all the candidates last night which i loved e well, listen, i know muslims and united arab emirates and philippines and someone like ted cruz or some other candidates, i think ben carson says why don't we do it where isis and al qaeda has large swaths, block everyone from syria, iraq, libya, you know, those kinds of things, that ultimately is where you're talking about going down to

because i think we kind of know where the hot beds are and the bad guys are and other economic issues which is why germany has the problem because of the birth rates. we're not there yet, but it's one thing that's interesting. i want to ask you about another thing that ted cruz mentioned, talking about the captured sailors, i wanted to listen to it. he started off the whole debate with it, roll tape. >> today many of us picked up our newspapers and horrified to see the sight of ten american sailors with on their knees, and i give my word, no man or woman will be forced to be on their knees and captured, and they'll feel the full force and fury of america. charles: you're as upset as he is. >> if this was on my watch, i would reduce them to a parking lot. this was a test and we lost, we failed that test big time.

and i want to know who is going to be court martialed, there's a navy code, you don't surrender your men or your vessel. i was talking, they were taken over by like a kayak, who was in charge here. charles: a lot of people said that had to go up the chain of command. someone gave them a surrender order with a high level power of authority. that order does not supercede the navy standard code of conduct we have in place, no way they should have surrendered, they should have fought off the attacks. >> and may i add, the ships were in the area and even if the ships should not been order today fire, there should have been enough to intimidate. >> iran doesn't care, they're going to march all over us. charles: we're minutes away from the opening bell, red arrows where you're looking, you don't want to miss this open, guys. we've been opening high and then crashing, we're going to

talk about the debate and here is one of our favorite moments according to social media. >> mr. president, we're not against you, we're against your policies, the american people have rejected your agenda and now you're trying to go around it, that's not right, it's not constitutional, and we are going to kick your rear end out of the white house come this fall.

growing up, we were german.

we danced in a german dance group. i wore lederhosen. when i first got on ancestry i was really surprised that i wasn't finding all of these germans in my tree. i decided to have my dna tested through ancestry dna. the big surprise was we're not german at all. 52% of my dna comes from scotland and ireland. so, i traded in my lederhosen for a kilt. ancestry has many paths to discovering your story. get started for free at ancestry.com.

glad i could help you plan for your retirement. alright, kelly and promise me that you'll try that taco place on south street. and we have portfolio planning tools to help you manage your ira. yeah, you're old 401k give me your phone. the rollover consultants give you step-by-step help. no set-up fees. use your potion. sorry, not you. my pleasure. goodnight, tim. for all the confidence you need. who's tim? td ameritrade. you got this. choose, choose, choose. but at bedtime? ...why settle for this? enter sleep number, and the lowest prices of the season. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! save $1100 on the i8 mattress with purchase of sleepiq technology and flexfit3 adjustable base. ends monday. know better sleep with sleep number.

>> markets are set to open and we're going to keep a very close eye on it all morning long for you because it's your money and it's going to take a serious hit. we're going to open down. part of the problem is this oil, oil is the symptom. you only paid 50 cents for gasoline it would not wreck your household budget. something else is wrong. and many said last night would make or break for jeb bush, he had some moments particularly when he went after hillary. >> here is the problem, if she's elected she's under investigation by the fbi. the first hundred days might be going back between the white house and the courthouse, we need to stop that. charles: all right, here is jeb challenging donald trump on his muslim ban, watch this. >> we're running for presidency of the united states. this is a, you know, a different kind of job. you have to lead.

you cannot make rash statements and expect the rest of the world to respond as though, well, it's just politics. every time we send signals like this, we send a signal of weakness not strength. and so, it was on a statement and why i'm asking him to consider changing his views. charles: with me now, a member of jeb bush's national finance team. how do you think you guys did? >> charles, we were thrilled with the debate last night. while the first term senators were trying to figure out who was the bigger flip-flopper and chris christie was running away from his liberal record. jeb bush showed he had the experience and judgment to be the commander-in-chief in 15 minutes you'll hear lindsey graham, the senator from south carolina come out and support jeb. we have to have somebody who cannot only beat hillary clinton in november, go toe to toe with vladimir putin reassure our allies and make our enemies again if not respect us, maybe even fear us, and barack obama has wasted

that opportunity. charles: at what point, i agree it was probably jeb's best moment, best debate so far, feels like he got loser and tried to speak from the heart rather than memorize lines. at what point would you say, hey, despite the fact that he resonates with us, that this is a message we want it hear, his inner circle, you say it's not working with the american public? >> you know, charles, you probably know this, but the past has shown even in iowa and new hampshire, 50% of the voters make up their minds the last week before the caucuses and the primaries. jeb's got the momentum now,'s going to have a firewall in south carolina, he's going to do great in south carolina. he doesn't have to win iowa, doesn't have to win new hampshire. he'll do well in new hampshire and win south carolina and he'll be there on trajectory with the southern state primaries, i think, to become our nominee. charles: all right, james, i need you to stay there. we definitely want to talk more about this.

we've got to look at the market. wal-mart plans to close a couple hundred stores half here in the united states. >> 269 stores globally closing, 102 of them here in the u.s., 16,000 workers affected, 10,000 of them in the u.s. why are they doing this? they're shifting away from the smaller store format, focusing more on the super centers. you know, as you look at wal-mart share price the past 52 weeks down almost 30% so they're retooling things. jo ling kent spoke to the company and they said the higher wages they're giving their workers are not affecting this decision whatsoever. charles: that's not what they said last year, but thanks a lot. something's affecting the company, i want to switch back, maybe what's hurting them is hurting the market. take a look at futures, the dow down 420 points. james, you're a money guy, it looks like we're headed into another selloff. looks like correction territory. we were there except for the major averages. what's it saying about the economy right now?

>> it's ironic, the day after barack obama gives a state of the union and says everything is wonderful in america's economy, the market loses almost 400 points. people knows something is wrong with america. china could have had no growth and we would have grown 1% in america. i think it's a lack of confidence by the investors in the marketplace and i'm afraid that we'll have this volatility until america decides who is going to be its next commander-in-chief. >> i agree with you 1,000%. here is the thing, the g.o.p., they have to find a way to explain to the average american why lower taxes helps them. rather than the bernie sanders stuff that it only helps 1 is%. your man did pretty good. >> thank you, good to be with you this morning. charles: the opening bell 030 seconds away, it's an ugly start to the market and you'll have to buckle up here, we were down big this year and we had a little bit of a reprieve yesterday. a pretty interesting reversal.

here is the thing, you want the market to be tested like this. i tell you it sounds crazy, but you want a session you open down 400 points, 500 points and find a way to rally back, that's your only buy signal if you have bad economic news and so-so earnings news and the opening bell is going, the first trade down 24, if it would only stay that way, down 73, down triple digits the next couple of ticks. want to bring in adam shapiro, tammy bruce, scott shellady, jeff, stocks getting hit here pretty good. do you have a downside number you're looking at, jeff? >> yeah, i think we're most likely going to see that -- we're going to go about 10% down from where we are now. i think you can't, you can't number that this is going to be straight down, but i think we're going to get hit pretty hard. charles: can we say 14 sh,000? >> yeah, i would 14,200. and for me, so, you've thrown

the technical stuff out of the window for the most part? >> when you're in a bear market, people are going to pay attention to earnings, revenue and things they ignored to this point. when they start to pay attention, the reality comes to the surface and reality is things are not looking good. and i never advocate panicking, but people have to look to protect themselves. charles: another reality, if you pull up the chart of the market, particularly 10-year periods, 20-year periods, these moments in time, they're a blip and the reality is that the markets over a long period of time goes up. and that's what you're talking about right now. >> charles, the reason shares are falling right now, first of all, the reason they're plunging in china because they were too expense zych. mainland shares in china when you back out the cheap, 20, 30

times earnings earnings. in the u.s., our growth stocks got pricey, not crazy pricey, but we need to come back and reset. there are fine deals to be found in the stock market. i think that could set off outperformance for value stocks, strong earnings and solid performers right now. >> well, you know, for me, as a lay person, and one of your other guests noted it, about obama's comment, he's been doing it for seven years, that everything is fine. that it's fiction to talk about the economy being in trouble and now americans simply don't believe him and in fact, maybe become afraid when they get too much of a reassurance from barack obama that something else is wrong because he hasn't been right so far. so that's a psychological element. and then you also have the royal bank of scotland saying cataclysmic 2016 and as a lay person we think all right, there's a global dynamic

happening and oil is attached. >> the thing is i would be happy to blame the president when the dow is down 300 points and bad news for you, the markets goes up over the long-term so be ready to shell out more praise to the president. >> we're talking seven years also, china manipulating its markets and the united states dealing with interest rates at zero, manipulating dynamics and talking about summers of recovery that were never really true. you have a combination of what's happening with europe, what's happening with oil and an american administration that's not managing a dynamic honestly. charles: one thing i'll say for people, and being frank with you, i don't know that neve a lot of credibility themselves anymore but when you yell fire in a crowded scared theater, it doesn't help either. i want to talk about one of the proxies for the whole thing, oil. oil has been getting crushed and now we hear russia is cutting production and the ruble is a disaster. everybody is maybe trying to

get rid of surface, is there a market for it, scott? >> well, here is the bottom line, the monetary policy we've been the last, say, six, seven years, it hasn't done anything, but keep things elevated that shouldn't be elevated and the central banks can't come to the rescue and a government that thinks it's doing a good job putting people back to work, but lesson jobs. how do we have an unemployment rate at 5% and a gdp at 2%? something is not adding up. the engine is broken. seven years of inflation, we should be paying attention to that and not the people going back to work. and the central bankers are cutting rates and devaluing and we're in a little bit of trouble here. charles: a lot of that trouble is into china. the market is--

and we know they were overbought. are they as important as the immediamedia would say. and china overstirred the economy with global spending. >> yes and no, they're not a big part of our economy, but they've been a decent contributor to our growth. by the way, shares of mainland china look very expensive. in hong kong the blue chips looking cheap. we had a basic credit card advance on our surplus and now we've got to pay it back. it's not the end of the world, but average returns out the next several years and they're lower than people like. sorry, but you're going to get mid singling digit returns over the next five years if we're lucky. we have to save harder.

you can't pump up the stock market. charles: one thing that changed this year, it's a tough name, we talked about amazon, google/alphabet, so, jeff, they're richly valued and that's the nature of momentum stocks. when they go up-- is it early tore people to think about getting in? >> it's early. the next two weeks we have to look if they can substantiate the valuations. think opinion, you can't. you have companies like netflix doing good things and the valuations have been ignored and i think there has to be a point where they come back to reality. charles: the other end of the spectrum on the value side. listen, overall, if you say that before the p.e. or the trailing 12 months is 16, 17, historically that's not the stuff of crashes. it's 24, 25 or more.

a shallow perhaps sharp decline to the downside. do you look at value names? >> here is the problem i have with values, a lot of value stocks that trade with dividends, the problem i have with them is a lot of bond investors have rotated to them to get the dividends because they've been starved out of income. i think that creates a vulnerable position for these stocks. >> even trading at low mobiles. let's say they have pig percentage-wise, 6, 7%. i think we've not enough cash to survive this. would you buy? >> i think that's where to look. the energy stocks that could substantiate the dividend, the it's certain that some of these-- >> i want to ask you, when tammy hit on the american psyche and i think that's important. in 2000, the market and

confident traded in tandem and then crashed. and then the market came back here and confidence is here. confidence has been broken since that crash of 2000. it's never totalsly recovered. isn't that at some poent a self-fulfilling prophesy. where is that cheaper gas. >> gas is a lower expenditure in terms of household budget than it used to be. to your point, i want to caution your viewers, do you not mix your politics with your stock investing? >> that's a greats point. >> and how we're supposed to run the country, fine. charles: i'm not saying the stock pitts, but the economy. there's some sort of malaise that has nothing to do with the actual money in your pockets, whether it's real prosperity or backward prosperity like strong dollar and cheap gas. we may have entered a period of slower growth.

i like a lot of what i hear from jeb bush and that's not one of the things i like. i don't think it's rell list particular to think we can go up 4% long-term. >> everybody feels like it transcends politics and needing to save any tiny bit from gas savings, it's nothing to do with republican or democrat. it has to do with the futures and-- >> and the wild card knows why haven't they spent money they net in their pockets. let's look at nicole on the he can change with the losers. nicole: right now the dow jones over 2.1% right now. here is your dow, all 30 dow stocks start in the red. intel, they reported quarterly numbers, down 7.3%. weighing on the dow and the s&p 500. caterpillar and chevron under pressure. caterpillar down 3.7 and chevron 2.7. the energy names are crushing the s&p 500, you see moth is down.

and marathon energy, those are down more than 9% on the s&p 500 and we continue to watch the financials. you've been hitting them throughout the morning with earnings. "chicago" and wells fargo. and traders are talking about the revenue and the revenue was a little soft. yes, it was a gain, but that's one of the reasons that citigroup came under pressure. they're hitting new lows as well. charles. >> it's amazing because citigroup had a pretty good beat top to bottom. in this environments i don't know that any news is going to get your stock up. as soon as i see the company beats i know the stock has gone down. nicole: technology is the worst. >> this is what you were talking about with the technology names already. you know, i think we need to talk to the audience and they probably know anyone who is active in the market knows that the market masked the cannage last year. and one week into this year, every single sector in the s&p

500 is down 13% or more. most of them had already entered bear market territory. so are the big names that kept the float, jack, now having their couple up-- comeuppance. >> you had stocks out there doubling and pulling the index higher and those returns you're not going to see again. i wouldn't point all the companies with the same brush. you have alphabet up there. they could double their growth at the end of the decade with t the-- >> i've got a couple of shocking numbers for the audience yesterday at close 52-week highs on the new york stock exchange, six companies hit 52-week highs. 689 hit new york lows, in the new york exchanges, on nasdaq, seven companies hit new highs, 480 hit new lows.

and maybe that could be a shallow bear market because we were already in a bear market coming into the year? >> it was my contention we're already in a recession, already in a bear market. keep in mind anytime we've had major selloffs, the fed has always stepped in. they stepped in yesterday and i think the fed not stepping in, realities coming to the surface. investors don't have a reason to buy at this point. charles: outside of jawboning the market, quivers got dust in it. >> they have a credibility issue. their credibility-- >> it's shot. >> and there's when we can determine whether we're in an asset public and when we're not. and now they're suffering withdrawal. >> got it point out from the

audience. to me it's got to hold on to closing basis, we haven't been under 16,000 since september 20. it would take us to 15,666, and how if the market doesn't make a stand, how does a market make a stand on a friday with this kind of carnage. and tammy, looks like you'll jump in. >> we've got numbers out of december when it comes to consumer spending and this is the holiday month, of course, retail sales fell in december. across the board, we're looking at not just general merchandise, closing and yes, gasoline. that wasn't a key factor. across the board we've stopped spending since two-thirds consumer spendings, it's two-thirds of the economic movement. >> and by the way, people should know, this summer has been like this. i've been studying it closely. only thing doing well is

restaurants, maybe somebody who has cheap gas main has gone. >> it doesn't help that we've had weather that didn't agree with those at the clothing chain. i'd still well away from companies that sell clothing. >> how about burlington coat factory. >> hanes brands, you always have underwear, and the wonderbra. >> in it was good weather, people are going to get out of the house and shop. one way or another. charles: that almost brings us back to amazon because some of the stores that we're talking about brick and mortar, it's not just about the consumer, it's about dynamics of shopping. we saw over the last holiday that the hype about the eventual death of brick and mortars.

we've seen empty malls, jeff. amazon, two firms are cautious on it for some reason. despite the that it's going to overvalued from tradition l a metrics. that might find buyers sooner rather than later. >> and i bet a lot of those criticizing them i bet they're eating their words now because amazon owns retail and sets the pace for retail. i don't believe it deserves the valuations it has now. i've been a fan of the stock, i would not be in it at this point, but the bottom line, retail, brick and mortar retail is going through an incredible crisis right now. we're going to see a lot more of this wal-mart carnage across the sectors. people are returning to books away from digital dynamics, they like to see what they're getting, we don't get that on-line. charles: we're older and we

romantici romanticize. on new year's i was playing old frank sinatra albums. my son, their friends, they do everything on-- >> and that's a dynamic and the millennials enjoy that and it's a matter of capitalizing it. >> the first answer, why isn't yahoo! going to kill this wp? because they get exclusive models, that so amazon doesn't-- >> is jo ring kent available. jo: yes. charles: you've been talking about the company. jo: planning to close 269 stores globally, more than 150 here in the united states. what you're going to see change. if you see a wal-mart express in the neighborhood, you may see that shut down. they're going to announce in an hour and 15 minutes what stores they're shutting down. i asked them how much that has to do with that 12% drop in

profit? remember the outlook that came in october that completely tanked the stock. they said this is in line with how to work out being a more efficient company. a lot of stores around the world, including in brazil and the united states had everything to do with the fact that they make losses. and the higher minimum wage they've instituted at wall street store, more than a billion dollars to put it into play next year or this year, rather. and they remain fully committed with the higher age and has to do with with these. charles: you know, jo, i think that's a reversal when they crashed last year, they did blame higher wages, but that's the political answer. check the big board, 16,000, the magic number today. that's the magic magic key

moments. marco rubio had one of the most memorable comments of the evening. roll it. >> the second amendment is not an option, it's know the a suggestion, it's a constitutional right of every america to be able to protect themselves and their families. isis and terrorists do not get their gun from a gun show. the immediate answer before he knows the fact, been control. here is the fact, we are in a war against isis and trying attack us in philadelphia last week and san bernardino, the last line between them and our family might be between us and a gun, we are going to win the war. the powerful intelligence will tell us with are they are and the most powerful military, if they are captured, they'll get a oneway ticket to guantanamo bay, cuba and they'll tell everything they know. charles: and welcome to the

show. what did you make of what senator rubio had to say. >> that's the first time i'm hearing it and i agree with most of it. my stance on terrorists is that if you have somebody who's gone that far, who actually wants to end our way of life, then you got to end theirs, there's no talking or rationalizing and you're not going to talk them out of it. charles: and the trust thing, we don't know how much hollywood fiction or dramatic, but feels like one of the issues, even when you guys are over there fighting, you would give your trust or feel like you trusted, could trust someone and then couldn't trust them and i think that americans feel that way in general with the whole situation, which is why banning all muslims resonates so high. >> i had my life saved by some muslims so you're not going to be able to convince me of that either. look, it's time to do some adult thinking here and talking. if i say something one way

doesn't mean that i go all the way down and get rid of all of them. that's not what that means. i mean, listen, i'm not one of the end of the world type guys, but they're here, all right. >> we did our best to keep them out of here in the sand box and that's why we went over there so we could die over there and you guys didn't -- couldn't die here. but they're here now, tell americans to be vigilant and act like an adult and be an american. that's the way i want to be talked to tell me what's going on not what kind of going on. charles: how about policy, would it be smart to stop people coming in from areas controlled by isis, would that be the smart move. >> i think you shed get a look at them. they're not stupid, they can circumvent that. in my opinion you need to ask yourself, is it more important for me to give up-- when people hear that word give up they're going to lose their

mind, but there has to be a way that we can monitor and figure out who they are without disrupting the american way of life. i would like to think that. we put a man on the moon, i don't understand why we can't do that. charles: do you think we give up piece of ourselves when we go down the path, you seem adamant about it. >> which one? >> and ban all muslims. do you think your life was saved, but-- >> i think the muslims communities need to step up and let's get serious here. those are the ones doing it and especially the-- >> you wouldn't ban all of them from entering the country? >> no, i think it's a ridiculous idea. charles: what about the gun situation, the whole thing with marco rubio. >> can you do that and get that done and ban every muslim trying to get in here? because i would just tell you i'm not a muslim. charles: well, listen, it's

presented as a main theme in the presidential race and resonating, donald trump says he can pull it off. so, whether you can or can't, just like getting rid of 11 million illegals, we don't know, you know, how much it would cost, how tough it would be, but i wanted to get back to the gun thing for a minute. people are-- our national security and safety we feel unsafe in this country and nevertheless, president obama one of the last things he wants to get done in office is to-- a lot of people believe it's ultimately to completely get rid of guns, but they certainly curb the law abiding citizens to own and have guns. how do you feel about that? >> i disagree with that. i did a cnn interview. january and february i completely unplugged and that's on me, i've been doing this for a long time and good job, michael, for twisting that because my own mama wanted to disown me. charles: why? >> i came to the realization

you can't have an intelligence conversation about something that important on television, you can't do that it. they spun so many ways what i said. i support the second amendment constitution until the day i die. you're going to be one of the guys you have to pull the gun away. i support the n.r.a. and i'm a card carrying member. i was trying to have a civil conversation with somebody, with michael and peter burg and when they started filming and we were talking after bee did the interview you i go, hey, i need my-- i was clear, right? you guys aren't going to twist that that's exactly what i said and oh, no, we would never do that to you, bro. >> your first choice was a bad one, the wrong network. >> well, i mean-- i'm still-- i'll be buddies with him, doing his job and got me good. charles: my point is, you're for n.r.a. or-- >> absolutely.

people mistake the n.r.a.-- this is the deal. i think most people, maybe not a lot think we're uniform wearing members at that carry rifles. charles: like militia. >> that's not at all. the nr hamilton is a great organization if you don't know how to handle somebody so you're know the scared of it. i've been around guns my entire life and what i did for a living, i still grab when i touch a weapon i treat it exactly like i did the first day i learned about it. >> never can get sloppy with a weather. >> never, know the one time. charles: your documentary, you've done this documentary called "live to tell" let's talk about that, okay? >> it's actually, it's a great deal because there's so much that went into operation red wing to get me out of there and get me home. charles: right. >> the rescue-- this is what the movie "lone survivor" was based off. told the story from the beginning from insertion until the time i was in the village

and then the rest of it, this show is back filling it from when the green berets and the rangers came to get me out, air force, everybody pretty much had to get me out of there. but i think it's born because you've got to understand what those guys did to get me out of there. the only thing i had going for me, i knew they were going to get to me. and i knew they would get me dead or alive. charles: and what about the navy ships heavily armed, apparently, i don't want to say surrendered, but apparently a fishing boat picked them up and they were taken in forced to make a video and we had carl higby on earlier who said they should have fought, the code of the navy you fight your enemy, even if they were ordered by higher authority to surrender that their code supercedes such an order. what do you make of it. >> i'm kind of unadvised on the

whole situation, i don't think that the navy would just hand their guns over, is that what happened? >> yeah, they gave up to the iranians. >> yeah, yeah, two navy ships, two navy ships. >> a ship, let's call them boats. it's either a boat or a ship. charles: the boats are typically the kind that carry commandos. some amazing weapons and also a lot of technology on the boats, all right? one was apparently disabled and the other came to help, but iranians seize both of them and then we have serious military and navy there, and a lot of people are wondering what the heck went on here because there was no fire fight, and of course, then iran treated them almost like prisoners of war, they had them on their knees. >> that's propaganda. charles: that's prop granada, they made a film on tv. >> they film everything. charles: and broadcast to the world. >> mighty americans on their knees, right? >> and the question, should the

sailors have fought, should they have been in that situation or surrendered themselves? >> look, i wasn't there and i've been in enough gun fights if i wasn't in one, i can't talk about it. that doesn't sound right to me. that doesn't sound-- that sounds thin. i think there's a lot more going on to them. if they were armed, or-- then i'm thinking what you're talking about, then man, i sure hope they didn't give up, man, i wouldn't like that. charles: i don't know, i don't know all the-- i don't have the details. and everyone is waiting for the -- for more details on it, it was the same day of the state of the union, an embarrassment to the american public and we love our men and woman and why we appreciate you. i appreciate you coming on and telling the story. thanks for having me. charles: make sure everyone sees the documentary "live to tell". we've got to get to the market. we are an a little off the worse of the day.

the dow down 371 points and china down more than 3% overnight and their market year to date is in a bear market. by the way their market is down 45% from their peak of last year, but a lot of this goes back and the correlation with oil, but a lot of this really goes back to the notion of a global recession, a global deflation. now, all of last year, many experts said, no, america's got this moat around it, it's not just a physical thing, but because we're so unique. we're finding out perhaps that's not the case and maybe the one entity that is supposed to protect is did not. quick to you, jeff, it gets unfortunately to the federal reserve and forget about inflating markets and all of that kind of stuff. their mandate with respect to employment and inflation, do you think they pass or failed? >> oh, they failed miserably. this goes beyond failure. they have this specific plan date and felt with this academic solution they could accomplish what they set out to accomplish and really what

they've done is they've created a monster. how they view their mandate going forward is very, very interesting to me, but they've blown it as far as their future. >> rand paul wasn't on the debate stage and reason he has a core following just like his father, he's not a fan of the fed. i'm not a fan of the fed. you can read about it from the creature of jekyll island on. you go back through history when the fed was created we had great depressions and recessions and butchered business cycles. through it is, the constant, the super wealthy, 1% of the 1% never get skcathed. >> you can see the system has failed. you can see it with the policy and economic policy. the difference we've had a mixed dynamics, mixed with

capitalism. maybe it's time as one of the candidates said last night to stop most regulations and all of them except involving food safety and things like that. let the marketplace reinvigorate itself. >> and the democrats of course, obama ran on the notion that our capitalistic system can't regulate itself. let's recap, guys, we open under a huge amount of pressure and oil broke the $30 number and china down yet again and a correction, they're in a major correction and then we opened lowered. helping that news, also, intel had had a great number and warned about the first quarter not the rest of the year, but the first quarter. wal-mart out with news they're closing a couple hundred storm. it's negative news, bad news and the market is paying a heavy price for it now. we're down 374 points i keep saying at that 16,000 is the number. going into the last hour of trading, that's going to be your key number.

if it holds, great, if doesn't, thar she blows. jim, you're cool about it, but you're a billionaire, you can ride it out. [laughter] that's the first red flag. what do you make of this action in the market? >> we've said all along on your show at night that the risk to the u.s. economy is a credit-induced recession. and kept the money and led people on the fixed income market reverse curve to get yield. a lot of loans made that maybe shouldn't have been made and the chinese complex. charles: what kind of loans? you're not talking consumer loans? >> no, the chinese complex, countries that are dependent on china if it continues under pressure, people who borrowed who are going to be an i believe to pay the loans. oil companies, mining companies, it would be sof vens countries that borrowed in

dollars that produce commodities and the commodity prices down and their currency prices down. and the risk here, you have a few of those the credit market streams up and therefore u.s. stock prices. and i want to point out the daniel to -- damage to asset value and they did more on the way up. they're emotional in any case. we're down 400 points. what's the mood down there? >> the first thing they're noting, the first thing i heard when i walked in one of the trading booth. the volume, sell it. they were looking to sell into the open and jump out of everything and that's what happened from energy to technology to health care, on the dow jones industrial average, the biggest losers of

the dow 30, they're all red. intel, and reported numbers, and several financial names hitting new lows and we're seeing the dow under that 16,000 mark for the first time since late cement. the nervousness was higher. and the index, the vic. that shows you that the jitters are here. we're down over 1400 points this year. charles: wow, and it's indiscriminate across the board to your point. thanks, nicole. we're down 423 points, 15,955. jim, i want to come back to you. this is one of the concerns, december 15th the atlanta fed that fourth quarter growth would be 2%. as economic numbers have come in they started to ratchet lower and lower and lower, and a week or so ago, considering retail sales numbers out today. empire state was a january number, but sort of a trend from december. could we actually be talking

about negative growth the last quarter? >> it's shaping up that way and it's looking like 2016 is going to be much lower than the fed is forecasting and the concensus economists are forecasting 'cause everybody else is looking back. what's happening today will affect retail sales and business spending, capital investment on a forward basis. stanley fischer, you had them saying on course, the fed was behind the course raising rates and they will not end up raising rates four times and i think the credibility is at stake and tools they have available are limited, but i want to say always in long-term economic history if you buy during periods like this, you end up making money and the

oldest and best axiom in the world is buy low and sell high, but it's hard when there's a crush. one getting crushed, wal-mart. jo: what you need to know in the united states 154 stores shut down and that of course means a lot of jobs will be cut, 10,000 workers will be out of a job later this year. and 16,000 workers globally. wal-mart says the majority of stores that close in the united states will express very small convenience store type foremats and they don't necessarily have plans to shut down larger stores and wal-mart and brazil, a lot of stores are going to be closed as well. this is the biggest store closure for wal-mart in five years according to their team and what they're facing is a profit outlook dropping by 12% in october. you'll remember that

would effect the company and how it would be able to do that. they say it delivered more efficiency and of i believe $1.5 billion that's how much it's going to cost. so walmart right now looking at redoing its entire format but continuing to be reliant on that program but we've talked about this so many times, how those walmart pivot the competing of amazon as that market share continues to rise? charles: jo ling kent, thank you very much. >> in 2014 they had a conference call noting it was obamacare. charles: right. >> we've been talking about wage issue on profits but people were not paying cash for their prescriptions because suddenly that was covered. these local stores filling prescriptions, if there's no cash and there's no profit, we've got to we've in the impact on retail sales, especially for a company like walmart because of obamacare. nobody wants to talk about it

but that now -- those chickens are coming home to rooster. charles: all right. well, on that note between obamacare and hillary clinton because she tweeted this out during the debate. two and a half hours of this question mark? imagine four years. #gop debate. well, she was probably responding to the barrage of attacks on her. roll tape. >> hillary clinton would be a national security disaster. >> hillary clinton is disqualified from being commander-in-chief of the united states. someone who lies to the four victims in benghazi can never be president. >> she's under investigation with the fbi right now. if she gets elected, her first 100 days instead of setting an agenda, she might be going back and forth between the white house and the courthouse. >> if we elect hillary clinton, the next four years will be the worst than the last eight and our children's will be the first ever to inherit a diminished country. >> hillary clinton cannot be president. >> every person here is better

than hillary clinton. charles: democratic strategist jessica joins us on that parade of -- what do you make of it? was it a compliment? or were they pointing to things that are legitimate? it was a great sount byte from the white house to the courthouse, but it could be true. >> i don't think that that's what's going to happen but, yes, it could be true. i don't see that as -- i think that what they're doing is what they should be doing and they're going after the frontrunner and the democratic side, they went after obama more than they did hillary this time versus the last debate where it was more about hillary clinton but, yeah, that's what they have to say. that's who they're going to be facing. they have to draw attention to whatever insecurities or may be projecting that they have. they're also speaking to -- gop primary voters, they're not deciding between, oh, maybe i'll vote for ted cruz or hillary clinton, they are speaking to those independent voters who really where this election is going to be won or lost. >> no doubt that's what you're

supposed to do in the debate but what they were talking about specifically with these -- >> i'm not going to -- i'm not going to be siding with them if that's what you're going to say. charles: no, i'm not say siding with them but you have to acknowledge that this active fbi issue. >> an issue. charles: it's a real serious issue. this is not something people are making up, it doesn't go away, gets worse, and this is what they're talking about about the idea that even the obama administration, by the way, president obama is reluctant to endorse anyone. been pretty aggressive and they've put an army of fbi agents on it and every other week it feels there's more smoking guns. >> i'm not sure. i wouldn't call them smoking guns but james comey is an honorable man, he's taking this seriously as he should be, loretta lynch as well and we'll see what comes out of all of this. again, i don't think she'd been indicted over this but this is something that has dogged her and the end of month e-mail dump i

think is a huge mistake and they really should have put it all out there to begin with and dealt with it then so that we could move on past it but, yes, this is republicans being republicans and democrats are going to be democrats. charles: well, the bottom line in this particular case hillary is making it a lot easier. now, there was another -- in the first debate, i want you to take a listen to this because carly fiorina really -- >> i thought this was -- charles: well, let's let the audience listen. >> the truth is i've had and been blessed by a lot of opportunities to do a lot of things in my life and unlike another woman in this race, i actually love spending time with my husband. . charles: do you think that was a low blow? >> i think it was not only a low blow, i think it made her look incredibly low as a person. i mean she's talked about rising above, how this shouldn't be about the gender card or anything like that and personal attacks. you know, when donald trump came after her personally and said look at that face, liberals and

republicans alike, they defended her. going after hillary clinton's marriage like that -- the grand fascination with how much they love each other, you know, what is the actual situation? do they live together. how often do they hold hands, what do they talk about at dinner? it doesn't doesn't matter. hillary clinton is married to bill clinton, the most popular politician in this country. his popularity spiked in 1998. more voters think that donald trump is bad to women than bill clinton is in the most recent polls. yes, absolutely. so why carly fiorina is doing this is beyond me. no one cares about her marriage. yes, if you want to look more human and say things, like, oh, i spend a lot of time with my husband and there's a picture out there with them holding their dogs but also thousands of pictures with hillary clinton and bill clinton and we know these people are deeply dedicated to one another. charles: we don't know that part. but i want to bring something up. senator lindsey graham just now announcing that he's endorsing jeb bush and, adam, >> if i can add.ails on this.

bush put most everything into new hampshire and his spokesperson that you had on earlier effectively said they don't expect him to win iowa or new hampshire. which is now suddenly the focus is on south carolina. how far will he go? take it to nevada? . charles: i'm pretty sure that's what we heard this morning is that south carolina, if that's it, that's it. >> which means they're giving up interestingly. they're seeing something internally where they're giving up on new hampshire. charles: sticking with politics, donald trump coming out with a new ad and blake berman still in charleston. tell us about this ad. >> yeah. hi, there, charles. donald trump just went up on the air today with a second ad in iowa and new hampshire. trump had been promising for a little while that he was going to spend some money, and he is indeed doing that. a $2 million ad buy, a 30-second ad. in it it takes a little bit

more of a hopeful tone i guess you could say. that first ad he talked about chopping off the head of isis. here, though, he lists several different issues as to what he wants to see happen in his words how he's going to make america great again. and i think you'll be able to get a slice of it just from the last seven or eight seconds or so. here it is. >> we are going to make it great again. we're going to make it greater than ever before. thank you. >> so there you have the imagery of trump in front of the crowds, the music, people cheering for him and the like. again, a $2 million ad buy iowa, new hampshire, obviously there on the ground and once again back up on the airwaves. the second ad buy in those two states. charles: thanks a lot. now we're joined by former jeb bush cochairman. all right. listen i guess you also think jeb did a pregnant job, huh? >> i do i think he did a great job last night and the debate

overall was a tremendous substantive debate, congratulations to fox business but all the candidates did great as well. >> . charles: we had james cane on earlier and he said that perhaps south carolina would be the place where jeb makes his big move or perhaps pulls the plug. those are my words not his, but that's what i took from it. >> well, i would say this. no one's giving up on either iowa or new hampshire, and i think there's real ground to gain after last night's debate. it -- particularly in new hampshire. but today's endorsement of lindsey graham of jeb bush's candidacy does have real legs beyond the debate because lindsey graham is a popular u.s. senator who has a political and support network that's been there long-standing in south carolina. and this is not a meaningless endorsement. it's very meaningful. charles: i heard you saying by the same tone you can't mean graham wasn't resonating big in the national states nor his

home state. so i never understand when these endorsements roll in and it all of a sudden changes the dynamic of the race when it didn't help the former candidate. >> i don't think it hurts the dynamics of the race. what it does is adds to any momentum that the campaign can get in south carolina. and clearly this is a big momentum push. more than anything. but coming out of last night's debate, though, i think that what you saw is executive experience. appropriate temperament and depth of knowledge, charles, from jeb bush that i don't think anybody else on the stage showed. and i think that was important. one of those examples was when donald trump came out and talked about the tariffs that he wanted to impose on chinese products. that spoke to my heart. i'm angry with the obama administration. that certainly pulled on my heart strings. it made me feel good but the secondary issue about what are the ramifications of the tariff would be on a american

consumer as well as a potential trade with china, the only candidate that understood that ramification and was thinking to the next step and next step was jeb bush. that's very presidential. charles: you know, and i did think it was smart of him to keep talking over and over again about that boeing plant -- which, by the way, the obama administration fought to the nail for south carolina not to get. so it's important to note that boeing the largest exporter in this country. but it still feels like when it's all said and done, it's not resonating. now, i think why people think jeb did better is because he spoke from the heart. he's kind of spoke off the cuff. you didn't see the wheels moving trying to memorize lines. do you think that's how it's going to go from this point out? >> yeah. i think it has got to. we know jeb as a heartfelt leader, conservative, compassionate person, i think you saw some of that in some of the things he's done, say, with the child with disability. i think those kinds of

things -- those issues that were addressed here in florida, i think that if he takes the national stage and shows a little bit of his heart, i think that will play very well with all republican voters. charles: all right. thanks a lot. we appreciate you this morning. it was a big night for all the candidates. thanks a lot. i want to go to adam shapiro. adam, news on caterpillar. >> yeah. hitting another 52-week low. $58.85 and as we talk about what's happening in stock markets economy, you want to look at a stock like this because they sell equipment to places like brazil, even canada which dig out the commodities that china is not buying. so you can see how the chinese contagion spreads into our back door into our economy. charles: caterpillar, jim, gets 70% of the revenue outside of this country. it's interesting they brought up brazil. they canceled carnival. >> yeah. charles: the parades that are amazing, they canceled them. they're in big trouble. >> brazil is in big trouble, latin america in general is not going to have a great year.

the emerging markets are in trouble. anybody whose economy was dependent on exporting to china is in trouble. the u.s. is the best act in town. and it looks to me like we're not going to have a great yea. charles: well, this is a global economy; right? >> yeah. charles: this under scores the fact that it is a global economy. i want to bring in kevin kelly to the show. kevin what about do you make of this all? the markets getting hammered pretty good here? no good news anywhere, not even silver linings this morning. >> yeah. there's no getting around it; right? the china fact is happening; right? i mean what happened whether we talk about canada, australia, we look at the emerging markets, everybody built up excess capacity to supply china because they were the biggest consumer of oil and other commodities. we've seen that pull out because they're shrinking right now. so further downward pressure and the knock effects are reverberating through the economy. so getting to caterpillar, trading at 18 times earnings still. charles: here's the thing, though, kevin. china deliberately has been china shift from export

economy to we learned this week that it sold 22 million cars, up 18%. >> yeah. charles: we heard starbucks is going to open up 500 stores he have year for the next five years, disney is going to open up a gigantic theme park, we heard that they had good news with kentucky fried chicken and the american consumer being the buckley of it or still export dependent. >> they're still export dependent and what you're seeing is the credit cycle happen over there. they're having a really low default rate but glowing growing on the credit cycle to a exponential degree so still some reverve abrasions. >> you brought up consumer spending in china. that's the one thing holding up. but just to give you what's whapping -- the canadian dollar two years ago was stronger than the u.s. dollar, 69 cents, so it has fallen in value and gives you an idea -- >> the most important thing is

that people need to wait for earnings cycle to come out. because companies come out saying they expect $58 a barrel for this year. well, we need them to give us the guidance of where it's going to be? how can they manage 25, 30, $35 a barrel and we need to see that guidance from them. charles: i'm not sure right now -- maybe next week if even the best earnings can turn it around because everyone's going to warp for the first quarter like intel did today, and i know that these quarterly warnings are being treated like yearly warnings these days. there's really a negative emotional aspect to it, and you happen to like a couple of the volatile emotional stocks; right? >> yeah. you're getting a great point across. people are going to kitchen sink the year; right? because this is a great time to do it. but there are great stocks you want to look at and they're the ones growing revenue and really defensible. alphabet is a great one. they're in the three hottest sectors in the market right now and be more transparent.

so it's a growth at a reasonable price. they're in mobile with android, they're in streaming with youtube, they've got a great surge business. it's one of those stocks that you can have a lot of confidence and microsoft is a great turn around story, which has a 2.75% dividend and actually trading at around the same pe level caterpillar is. so these are companies that are growing revenues and doing well with that. and they're managements that you can trust. charles: jim, on that note, to -- well, google certainly a higher beta name. but these are two names if someone buys them now, they're going to have to deal with volatility. do you think the average investor has the right temperament to handle that volatility? jim? >> oh, yeah. no, they don't. and i think investors are going to get speaking spooked but the investment standpoint correct. if you dollar cost average this year and buy into this weakness, growth at a reasonable price companies you will five years from today,

three years from today be better than you would have done in cash or bonds. but don't expect to make money this year and don't be short-term oriented. >> jim's talking about the long term strategy. americans are saving more money than we've seen in the past 25 years. 5.6% also have the pension funds. this isn't good because they're horribly under funded but a lot of them have moved to cash and the pension funds are going to have to start chasing yield again and come back at some point into the market. >> one of the natural buyers in this marketplace hasn't been there because it's been a black out period and that's actually the companies themselves; right? because once they report, they can actually go out and buy and goldman estimates about 24% of buying volume is the companies themselves on share buy backs, and they have a lot of cash on their balance sheets. so once earnings come out, they can come in and start buying their own stocks. charles: one of the things too, kevin, they have to do that because last year americans dropped so many mutual funds and atfs.

and the average american investor gave up on this economy a long time ago. i want to go back to you, though, on the savings thing, adam. we were at 1.3 trillion something like that. $1.2trillion at the peek, now at 700 billion. so do you think people are saving more now because they want to get back to where they were? or something about the lack of confidence in the future? >> i think it's about a lack of confidence in the future but at some point people put money to work. we talk about the millennials being risk adverse and they're not. the millennials are investing in different ways than perhaps you and i invest because we came up at a different point. but at some point you have to look at what kind of return you're getting. and when you have cash sitting to the side and it's not doing anything and you're investing in things which are not performing, you're going to come back to something which is proven over -- you know, centuries -- not centuries but decades and decades, which is the stock market. yes, we have downturns. the s&p 500 1999 to 20122002, you would probably have been nervous about coming in. but if you had come in at tha at that point, look where you would be today.

charles: by the way, i do want to go on the record. i am with you 1,000%. i am licking my chops because a lot of emotion plays part, that's when amazing opportunities come up. it's just dicey how you enter and what kind of tempment you have; right? jim. >> yeah. when you go to 2008 it fell awful on the floor of the new york stock exchange, if you did buy them, you tripled your money. so my message to investors this year could get ugly, could get ugly, it is getting ugly that if you think long term, this is when you want to buy stocks just don't expect to make money this year. charles: we've got wynn on the screen, the stock has been getting absolutely hammered, i have a feeling the ceo who i love his absolutely american success story may be out and they could see some major activist activity but, tammy, let's get to you. >> yeah. one factor on american savings and what they're doing. we're complaining of course because the economy is wrapped up into how people save. but most americans are still one paycheck away from the street. 63% do not have enough money

to cover any emergency expense or even an extra month's rent. so this is as the american people are looking at politics this year, as they're looking at this market and they have been saving because they realized if something goes wrong, what am i going to do? this is going to breed. it's not going to be helpful for hillary. people are going to be looking more carefully, even more intensely at the election coming up. and this is what americans now -- it's going to probably get a little bit more with terrorists when it comes to consumer -- charles: yeah, one thing too what we see with the different years old the state of the union president obama turned to joe biden and said that joe is going to help cure cancer. the notion that the government can do all of this stuff was echoed again this morning when the obama administration said they were going to put $4 billion toward autonomous cars. wouldn't it be better to let google and uber and the rest of these guys solve this because they're well on the way of doing it. >> yeah. private enterprise is better than allocating capital and we've seen that throughout the years and these companies are doing that with or without the government's permission, and you've seen that been going on.

and the government is actually collaborating with them on several different fashions. look at face x. they're a private enterprise. so you're going to see a lot of these technology companies putting the smartest and most able companies at and work driving innovation forward, especially for this country. charles: i think the government needs to make it easier because this is going to happen. we don't need to put $4 billion toward that, we can put it toward something else. >> outrageous. charles: let me do a recap here. looking at alphabet, one of the many names that are down. down 339 points, the dow starting the day off, oil cracked 30, china down over 3%, we have bad news in retail sales. in fact, everything that has come out this morning has been negative, below estimates. consequently we're at a key support point 16,000, it has got to hold. if it doesn't, remember the flash crash low? that's a possibility. we're going to obtain. we'll be right back

.... ....

....

>> the market cracks right at the open. we get slammed on a variety of things. down about 45% from the high of last year. they, obviously, are in trouble. all week long we talk about 30. those two things broke down pretty bad. our numbers were looking ugly this morning. we have retail sales out. it was not a good christmas. we talk about that word looking stuff. that was disappointing a manufacturing. and then, of course, we have earnings. citigroup, you could say had a great number. intel was blown away.

every sector is down. every sector is under pressure. 60,000 is your magic number. watch it all day long. you have to be on it. we will either get a big rally like yesterday, but we could see some buyers. we are now 16,000 from the key number. >> i like to follow the s&p 500 more than the dow. most of my investments are tough. the fact is, if we break through that, you will really see katie bar release the herd. is it time? it is never time to panic. a bank that should have failed a long time ago. craziness. if we break through that, of what investors are truly

thinking, it will happen in the next few months. charles: panic. the pros are saying there is not enough panic. maybe the dynamics have changed. neutral funds by a lot of the stocks. the individual investor is not as act of as they once were. this massive capitulation. i think it only comes from computers. >> i think you are bringing up a great point. people talk about the volatility. the relatively calm. it has actually stayed between 22 and five during these sessions. it is not indicating this. coming into the year. still relatively high.

compared to european counterparts. you look at germany. it has a three and a half% dividend yield. about 1.9% dividend yield. we know earnings have to come down. no one is really panicking at this moment. >> should we be panicking? >> no. giving you reason to panic. once again, back to earnings. >> we are joined right now with foreigners ceo jeff johnson. a relationship with oil. equity markets and the global economy. >> it is kind of strange to say the truth. very seldom do you see oil prices come down.

everywhere from manufacturing to the retail buyer, if you will. they do not have as much expense. they do not have as much expense. as so goes the market, so do your energy prices. it is a little bit different. it is a lot like 2,002,001. we actually received two checks for $7.75 a barrel. i went up to new york. we were trying to raise some capital. one asked me if we'd ever get to 20 again. the other said it is too cheap. i would agree with the person that you have an studio with hugh. very hard to pick the bottoms. if you can get it on the way down, close to the bottom, once

you hit bottom and bounce up, there is a lot of competition. we welcome back. we cannot produce for under $65 a barrel. we have to have that price to make a profit. it welcome back. >> let's talk about that. what is your strategy here? i do not get it. in $98 billion deficit. they have all kinds of expenses out there. they are thinking about floating thinking about even taking it public. what kind of strategy is this? >> well, you know, it is working. they are a large exporter. they can pretty much control the

oil price. if they announce that they would cut 20%, we would be back at $100. they do not want to do that. they rather produce 10 million a day. they are is all kinds of ideas as to why. they definitely want to put pressure on russia. on isis. but the producer out of business. as far as the ipo, that will not happen. think about saudi arabia. they drive prices down to 30. just so they can go sell barrels in the united states for a lower price. part of me would say they were smart enough to drive the price down. u.s. dollars put into saudi arabia to invest in oil. i do not think it is happening.

i think they have a lot of compliance issues. >> it is hard to truly understand what they are doing. it is destroying them as well. thank you very much. really appreciate it. >> this has an impact on russia. an interest in oil and impacting iran. russia went into recession last year. the lower the price of oil goes, the harder it gets iran. it is certainly a war weapon now. saudi arabia feeling pressure. of course now with iran. >> she is on top of this walmart store closing. you have more details. >> yes, we do. shutting down 269 stores globally. 16,000 jobs are on the line.

they are being cut around the world did 10,000 of those jobs are going to be here in the united states. they are closing down 102 of their walmart express stores. you may have seen those in your neighborhood. they are not owing to be grocery shopping. pick up a toothbrush with extra supplies. a day-to-day basis. it is clear. they will continue to prevent to try to boost their e-commerce efforts which are costing them billions of dollars. you should also know that this is coming off the outlook that they provided and not over. they say that they will keep those wages high, charles. >> they probably do not have a choice anymore. thanks a lot. now, to this. real-time voter reaction to the republican debate last night.

watch the screen. democrats will be responding in blue. republicans and bread, independence in yellow. first clip we have trumped going after crews. were lit. >> i am very angry. our country is being ran horribly. i will gladly accept the mantle of anger. our military is a disaster. obamacare, we will repeal it and replace it. we have no borders. our vets are beach reading horribly. our country is being ran by incompetent people. yes, i am angry. >> you did this survey. what did that tell us? >> i am fascinated by this. does not run from him. he just goes right for it.

what i think is the most fascinating about this is independence were all the way up to the top there. that will ultimately decide the election at the end of the day. independence are tracking with them. independence are more frustrated with anybody. >> do you think that is why bernie sanders has resonated. >> i do. some still see him as an outsider. i want to roll the next one. it is a ruse going after trump. were lit. >> my friend donald said that he had his lawyers look at this from every which way. there was no issue there. there was nothing to this further issue. [laughter] this september, the constitution has not changed. [laughter] the poll numbers have. charles: the line did not go as

high as the previous one. all three of them were higher. crews had an amazing night. the first candidate to release cool drum. we did a poll as well in addition. people said he won the night. we love your work. thank you. finally going toe to toe and last night the bay. we will talk to trump'sit spokesperson next. ♪ i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?

went to ancestry, i put in the names of my grandparents first. i got a leaf right away. a leaf is a hint that is connected to each person in your family tree. i learned that my ten times great grandmother is george washington's aunt. within a few days i went from knowing almost nothing to holy crow, i'm related to george washington. this is my cousin george. discover your story. start searching for free now at ancestry.com do something! get on the floor! oh i'm not a security guard, i'm a security monitor. i only notify people if there is a robbery. there's a robbery. why monitor a problem if you don't fix it? that's why lifelock does more than free credit monitoring to protect you from identity theft. we not only alert you to identity threats, if you have a problem, we'll spend up to a million dollars on lawyers and experts to fix it. lifelock. join starting at $9.99 a month.

nicole: i am ♪ ♪ petallides with your fox business brief. down well over 400 points. in that bed moved to the downside. 15,000 for the very first time. down 337 on the dow. the nasdaq down 113. you saw oil dropping below $30. right now 29.59. have not seen this in 12 years. technology and intel. the quarterly report. united technology. goldman sachs. all those names you love to watch. amazon, twitter, also, facebook. tesla.

fox business at 5:00 a.m. ♪

charles: let's call it the calm after the storm.

none of it what we thought it would be. the state of the union address. fiction out there. senator lindsey graham. tweeting a response. and bears himself with his failed run of presidency. for the further embarrassing himself with his endorsement of bush. what is that all about? it's a little like trump wanted that endorsement. >> no, not at all. a vision of what it was like. it is very obvious that lindsey graham was going to support the establishment. >> it was pretty obvious.

i know the poll numbers are low. somehow between that and good governor's comments, maybe the establishment is making the last stand. >> the gop actually said that. nominees that they want. we just went back to one election cycle. not only did lindsey graham endorsed romney, but so did governor nikki haley. politicians today, they are not worth that much. charles: focus on donald trump now. listen. >> everyone understands that the values in new york city are socially liberal or pro- gay marriage.

focus around money and the media. >> when the world trade center came down, i saw something that no place on earth could have handled more beautiful late, more humanely. everyone in the world loves new york and new yorkers. that was a very insulting statement that had made. >> maybe it helps donald trump in the general election. people outside of new york have always looked at new york, particularly manhattan, as the epicenter. >> is goldman sachs the lead of them? this is actually an opportunity for donald trump to really show his softer side. i think that they felt the intensity of his emotions when they came to the home state.

the smell of death almost knocked me to my knees as well. i understand exactly what you are saying. thanks a lot. >> good to see you. charles: fair game. is this strategy, will it resume with millennial's? we have charlie kirk after this. >> our children will be the first americans ever. it will lead to even greater war in this world. ♪ feel a cold coming on? new zicam cold remedy nasal swabs shorten colds with a snap, and reduce symptom severity by 45%.

shorten your cold with a snap, with zicam. choose, choose, choose. but at bedtime? ...why settle for this? enter sleep number, and the lowest prices of the season. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! save $1100 on the i8 mattress with purchase of sleepiq technology and flexfit3 adjustable base. ends monday. know better sleep with sleep number. [bassist] two late nights in blew an amp.but good nights. sure,music's why we do this,but it's still our business. we spend days booking gigs, then we've gotta put in the miles to get there. but it's not without its perks. like seeing our album sales go through the roof enough to finally start paying meg's little brother- i mean,our new tour manager-with real,actual money.

we run on quickbooks.that's how we own it. you premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call to learn more.

switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light.

charles: we will check the markets. we are watching another big selloff. the s&p 500 is down 40 points. we want to see a breakthrough. that is the low. the nasdaq is down almost 3%. the dow was off almost 8%. they did that out last night steve dave. they say that that is fair game. charlie kirk.

my nephew who is a college student asked me in a text message what are they talking about with clinton. several sexual scandals. >> i do not personally remember it. i think it is important to remember. a topic that people discuss. he actually will be back in the white house. she was positioned at one of the chief instruments. this is a topic that hillary clinton is talking about. bringing a woman forth. should be believed until there is other evidence put forth. that should be something talked about.

a lot of young people do not roll call what happens. >> is this the kind of messenger that would turn off millennial's? don't they tend to be far more open then perhaps older people? >> it is this narrative that has been building on college campuses. sexual assault, young people protesting about what they would call a rape culture on campus. if that is as strong as big youth are trying to make it. that is my point. especially with young people making a big deal about sexual assault and things on this issue. charles: oil trading below $60 a barrel. don't forget, there was a republican be bait last night. our three of "varney & company" coming up. ♪

charles: i am charles payne and four stuart varney. stock market. the selloff. the crash. down 15,000 for the first time. you better close above there or it could be dangerous. the republicans last night, they brought it. first, hillary clinton. we have a heck of a lineup for you. the third hour of varney starts right now. ♪ checking the big board. we have been down triple digits. 15,095 for the dow. oil coming at us. cracking under 30. thirty has been a huge importance.

here are your biggest losers on the dow right now. a lot of stocks are getting hit on the dow. all 30 stocks are down. let's bring in hilary kramer. we talk markets all the time. you are generally optimistic. you have to rose colored glasses. at dyou ke othe selff? ybe is me tchan dictio witournvesng. >> we have a black swan event. it has dropped from being helpful to consumers and helpful to companies to now being a major problem. you combined that, of course, with some of the numbers. those do not agree with what we are expecting. you have situations like intel today. charles: may be big-time on the

top and big-time on the bottom. do you think any of this is overreaction? >> some of it china. there is that kind of global market that we are in right now. our particular economy is strong. it is diverse of five. countries that are dependent on oil. they just cannot make ends meet. >> a report on manufacturing out today. we can have a good economy. there are so many big question marks. >> there are still opportunities. people can still make money. >> we have to take our time. oil is really important.

what do you make, first of all, if i saw the average person out there, let's just say hypothetically. you will pay a dollar a gallon for gasoline. essentially, that is what they are looking at. >> that is just a point. prices are dropping, obviously. that is a big thing. obviously, for the driver on the street. obviously, this is good news for them. more money in their pocket. they can take the family out to dinner a couple more times a week. charles: saudi arabia is the wildcard here. i know a lot of the oil bears are taking victory laps.

saudi arabia turning their spigots on. even turn them on even wider. knowing that a lot of businesses, a lot of oil companies are losing money, at what point do they stop production and we get a sort of rebound? >> we are waiting for someone to blame. they continue to produce. they are acting as a cartel. united states production is still very high. yes. like you said, no one is blinking. i think, at some point, we do get to see that. probably for the remainder of the quarter. what does a rebound look like? even in the grand scheme of things. we're talking about 70, $80 a barrel. >> looking forward to it to stop

dropping. we appreciate it. we want to stay on the economy. cheap gas. cheap oil. >> it was terrible. the month of december. retail sales last year were the worst since 2009. what is going on? staging money at the gas pump. why are we not spending it in the economy. overall, the picture was just really gloomy. most economists saying we have a print of 1% growth. >> let's take a look at some other retail stocks. it is trading up today. you talk about the restaurants. >> from an investment if, some of them are a lot better. a verizon or at&t.

charles: although -- >> closing stores entirely. i do find it interesting what adam is saying. game stop has turned higher. electronic stores which i love. seeming like the business model is wracked. oversold stock? >> yes. there is always opportunity. even mike spaces that seem like they are in trouble. charles: donald trump and ted cruz last night. roll tape. >> back in september, my friend donald said he had his lawyers look at this from every which way. there were no issues there. [laughter]

now. since september, the constitution has not changed. though poll numbers have. the fact is, there is a big overhang. there is a big? on your head. you cannot do that to the party. you really can't. you have to have certainty. >> interestingly enough, donald j trump would be disqualified. charles: i have to tell you, it is obvious that cruises well-prepared for this one. >> very well-prepared. they came out in full effect last night. a brilliant move by ted cruz. again, it put donald trump on the defensive. strikes right to his week point which are the polls. he gets nervous. i think he handled it very well against donald trump. i do not think, charles, that

this issue will be going away anytime soon. this will be played out is the debate. charles: are we getting to the point now where we want to understand how these guys get us back to prosperity? >> absolutely. this causes a distraction in the campaign. ted cruz kept talking about it. a story that still has legs. it is not going to be going away. donald trump will bring it up at his rallies. an issue that will haunt ted cruz. partly because there is a chance that there could be lawsuits brought against him. we saw the story of the mccain campaign because he was born in panama had a military installation. this is something that donald

trump will continue to harp on. charles: what about rubio? i do not know if he is to literally not going on for the home run, but it kind of seems like a nascar race. does he have some sort of strategy to ultimately put this in full gear? >> yeah, sure. senator rubio had a very strong debate performance. i think you could tell. there was a lot more passion last night. the debates are not just enough for rubio. for him it will be about retail politics. you see those ardent code that come out. something that ted cruz is doing. for example, trump, buying out a movie theater. these are the steps that retail politicians really have to take advantage of. >> you mentioned trump.

it is pretty clear. a lot of people, particularly, new yorkers, let's roll tape. let me ask you about it. >> they are socially liberal. they focus around money in the media. >> when the world trade center came down, i saw something that no place on earth could have handled more beautifully, more humanely then new york. the people of new york fought and fought and fought. we saw more deaths and even the smell of deaths. nobody understood it. the smell. the air. we rebuilt downtown manhattan. everybody in the world watched and everybody in the world loved new york. that is a very insulting

statement that ted made. >> you should see the coverage of the new york daily news. that kind of underscores cruz point. south carolina and iowa. >> i do not think so. i think that it backfired. that was his best moment in any debate. liberal values. why do you go after a whole state. it does not make sense. >> he actually said new york city. >> now we do. >> we love new york. we represent our values. there is no dow not that that was one of the best moments last night for donald trump. >> this is the big story.

under that 16,000 mark. the talk of global recession. were started the year ever. more varney next. ♪

>> checking the peg board. we are moving sideways. you know we will not stay in the last hour of trading. oil finally broke through that key support. psychologically, it means everything. more than 5%. there are some big losers on the dow. >> we were talking about walmart. walmart was the carling that everyone loved. walmart is down today. closing some stores.

not the biggest losers. the big one i was talking about earlier is caterpillar. part of it is 70% of what caterpillar cells is to countries or companies and countries which are dependent on selling stuff to china. i do not know if he handled it as well. they anticipate when things are out of hand. charles: to amazon. now they are starting their own fleet of ocean liners. amazon is dominated by land. applying for a license where

they can now ship things to be a freightliner. charles: cutting out -- >> ideally, in the future, shipping and item to a customer right here in the u.s. they would be able to ship things for other countries as well. >> ocean liners. they have it all covered. one of them cars and highlights from last night was when he was asked about bill clinton's sexual history being fair game. watch this. >> there is no question we should be able to look at any past president whether they are married to someone running for president or not. we need to start once again start recognizing that there is such a thing between right and wrong. let's not let the secular progressives drive that out of us. charles: special faith adviser to advisor to ben carson joins

us now. johnnie moore. it seemed to really resonate. do you think that he dropped the ball by not focusing on this? the gop was really threatening to rip them apart. they got it together. it feels like this is ben carson's trip. >> ben carson is the epitome of dignity. naming a living legend. a congressional level of freedom. he is amoral figure. i think every time he speaks in this way. he further invigorates the millions and millions of followers of ben carson did they are believers. that is why they are in it. charles: i think the trend in

this country has moved away from the conservative lifestyle. does he threaten alienating people by putting down their way of living, their way of life? they get offended. >> i think, actually, it is the contrary. uniting people. wanting to bring people together. showmanship and partisanship. ben carson is this person. he is steady on all of the issues. he is not making a show all the time. he just wants to bring the country together. actually, that is what everyone in america thought of ben carson.

they viewed him as amoral figure. as soon as you dabble in the political field, they have to put you in a category. in that stage last night, he was the adult on the stage. he will not get caught in the fray. he cannot question his intelligence. he cannot question his goodness. that is why we are so enthusiastic about this. charles: stock selling off big time. serious talk about recession. we are following your money for you. more varney next. double go

charles: checking the pig towards. we're down 400 points. setting up a major last hour of trading. going into the weekend. they could trigger some panic selling. allele started all of this off. our magic number all week long. gave away big-time today. we have some big losers everywhere. including blue chips. worried about the current order. paying a price for it. it does not matter.

all 30 components are in the red. public lands. i felt like they have are ready done this. >> what is interesting about this, sally jewell, announcing they will put a lease on a freeze and new leases. publicly. going forward, the need to review policy. the first time in 30 years. this is clearly tied to the obama administration climate change agenda. environmental mental health aspects. we will still pull call out of the ground. for three years. charles: all right. it has been ugly. to sports.

a new head coach. he may not want johnny mandell to be his quarterback. hopeful advisors is here with us. a lot of baggage. a new coach may not want to deal with that. >> jackson is a great friend of mine. we are excited for him. you get a new coach. a new gm. obviously, the baggage that johnny brings, you do not see the troy aikman's in and the bradys out there taking celsius, he has to get people around him to tone it down. charles: i remember cleveland had a game. i guess he had a way gone somewhere in vegas. he had this persona. he has brought it with him to the nfl.

kids being too young to handle that kind of money and celebrity and fame. >> and not having the right team around you. i have seen the guys at the peak. the ones that stick to business. your game of football. charles: you can also connect that to somebody. you know better than me. they want to buy a brand-new bands, they will buy a brand-new bands. alumni did not give it to him. hanging out with lebron james.

i think he has opportunity. deshawn watson. did not win a championship. his performance was really phenomenal. what would your advice be for him? >> obviously, go back to school. the other night in that game, he played against nfl talent. they are going in the first round. he put nightmares into the other coach. he could not only throw the ball, he runs. he was poised with the running. he went in and assess the situation. he decided i will do this and do that. >> that is barry and. part of the scheme as well. he performed, i do not think he could do any better. charles: thanks a lot.

we crashed at the open. i think we can hold on to the last hour of trading. if not, it could be a even bigger selloff. ♪ when a moment spontaneously turns romantic, why pause to take a pill?

and why stop what you're doing to find a bathroom? cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away ♪ ♪

.

charles: the market selloff continues. we opened lower, and it's been under pressure ever since. dow down 361 as you can see it 16,018 all 30 dow stocks in the red for now. i want to take a look at -- actually we've got one peeking up. but first oil. oil set the tone, that gave way. now, some names have turned higher, including home depot. this is a big, big move from home depot. we also talked earlier chipotle, gap stores, some of these interesting names. home depot shows that's a flight to quality right there. that's what you're seeing. now, to jeff flock at the cme. jeff, what are the traders saying? because it's got to be nuts down there. >> you know, it's been a tough day. we've got as low as 29 .38 as one point, charles, that's the low of the session and if you look at the chart, you'll see about three or four different attempts to hit that point, dips in the market, the last one about an hour ago and now

we're down again pretty low. iran today, news that the, you know, sanctions to be lifted. that pressured the market today as well as all the other negatives. economic news. i give you one positive and that is a barkly's oil analyst who tweeted in the last hour that he thinks all the headwinds have been priced in with the iran news. obviously that's a dissenting view. other people saying we're going to crash below 20. but pardon my appearance, by the way, charles, we had protesters at the cme this morning trying to block access. didn't happen but it was just for protest, not oil. charles: all right, buddy, we appreciate it. thanks a lot. someone tweeted me check the republican date, dow is now down 400 points a couple of days later, and december 15th, the dow is down 350 points. is this a conspiracy? and lauren, people like this news. >> okay. so february 8th chipotle across the nation

will be closed until 3:00 p.m. when they will open for business. what they're going to do -- and this is probably why the stock is responding positively today. they're going to thank their workers for helping them get through this time, we're talking about the norovirus and the e. coli, and they're going to go over safety measures as well. charles: are they going to cleanup as well? [laughter] >> well, they're doing something proactive right now charles: on come on. >> it's a big deal to close your stores. >> also going over some of the new cleanliness protocols. but look at the message they're taking. we take it seriously to close every store. we're going to talk to our employees about basics, wash your hands, and then reopen. this sends a message to people who eat at chipotle and people still ate there. charles: if i was them, i would blame my local producers not saying i have employees who may not wash their hands from time to time. do you agree when puriea took

their product off the she feels? an iraqi refugee who was arrested in texas allegedly has ties to isis. reportedly he wanted to attack malls in the houston area. chairman group in dc. now, this guy, they've got a lot of information on him. he was really out there making it pretty well known that he wanted to blow these things up and then perhapsing g to syria. how serious should we take this? do you think perhaps isis or isis inspired? >> it's looking more and more, charles, that this may actually be isis. but i think that's the wrong question to ask because it doesn't really matter if these individuals. and this is the second refugee from iraq who has been arraigned in the last ten days. there was another one in california as well for being a terrorist. it doesn't matter if there's a

operational terrorist, the question is are they doing it for isis? are they doing it in the name of the new caliphate? and we published a report all your viewers can download it. it's about the domestic threat to the united states, and we've collected all the information. we've had more than 90 people in america in the last 18 months arrested or killed in connection with isis. and the scary thing is, charles, 30% of those more than 90 people have no intention of traveling to the middle east to be jihadis in iraq or syria. they decided the best way to be isis is kill americans here on u.s. soil. that's just the fact. they're here already, charles . charles: yeah, omar, 24 years old. here's another thing that bothers a lot of people, and it gets back to the san bernardino situation. born in palestine, palestinian, born in iraq. living here since november 2nd, 2009. he entered as a refugee.

married, got a 10-month-old son, been granted permanent legal status and was applying for citizenship. this seems like the ultimate person for america's kindness. america's warrant, america's open armedness. you know, the give us your tired, whatever. and still turning around to bite the hand that saved him and even allowed him to bring up a family here. that's what bothers people. how do you stop people like that? >> human intelligence. you stop it with the kinds of things that the nypd has been doing until mayor arrived and shot them down. and this kind of threat, the terrorist threats of america really isn't about huge amounts of nsa collection or satellite. it's about penetrating local communities, penetrating those radical cells with your agents, with your human intelligence assets, understanding what's going on and catching those people before they make the pipe bombs, before they make the pressure cooker bombs. it's about human intelligence.

the kinds of things we really aren't paying enough attention to. charles: i think it's so amazing that the people who should be most thrilled about being in this country have the most resentment, even hate. thank you so much, buddy. >> thank you. charles: hillary clinton took to twitter last night to express her opinion. two and a half hours of this? imagine four years #gopdebate. talk show host leslie marble. all right, leslie, what do you make of that? >> oh, i'm not surprised. i think people on the right were tweeting the same thing when they felt it was a love fest moments between the former senator and former secretary of state hillary clinton and senator bernie sanders. and i find -- i think that she's right on, which is pretty much these guys are running against each other, they're republicans and appealing at this point in the election process to republicans to pick one of them. she's not the nominee yet and certainly anybody that's going to be voting for one of these guys isn't voting for her.

so i think they're barking up the wrong tree, at least now not when the general election comes up if he's the nominee. but i think she echoes the sentiment of many democrats who tuned in. charles: although there are chores of independents and general election themes whether it was trade, national security, listen, donald trump, he might win new york state if he's the gop -- you know, nominee. so it felt like there were overchores -- i think her sort of dismissing it out of hand could be a mistake. >> oh, not at all. i mean the people that are going to vote for one of these republicans, you know, aren't going to vote for hillary most likely in a general election. i think we know, charles, that those who love her, love her, those who hate her, hate her and it's not those that the republicans are targeting. it's the people who really aren't in love with or hateful of one candidate or another. those in the middle, the centerrist, the independents, the moderates, the undecided, those are the people and i

don't think that tweet is going to help her or hurt her with those individuals at all . charles: all right, leslie marshal, thank you very much. see you again soon. >> thank you. charles: i want to stay on politics, tim's in dc, and, tim, you're endorsing marco rubio. why? >> well, first of all, let me graduate fox business on a great debate last night. but i looked at the republican field, and i think it's a very strong field and marco rubio stood out to me as the one strong conservative who could unite every faction of the republican party and be a strong leader as president of the united states. so it was a thoughtful choice, but it -- i think it's the right choice. charles: all right. so you were very popular, senator, yourself. is it something, though, that you just kind of naturally gravitate towards senators? or you really think -- you do all the work, it comes down to the marco rubio being the best candidate and also, tim, some people say they like him because they think he can win in the general election.

>> oh, i absolutely believe that marco rubio is the -- is the republican the democrats do not want to run against. but i -- really i think oftentimes the governors are better presidential candidates. in this case i don't think so. i think marco rubio in spite of being in the senate is by far the strongest candidate. he's the one who can unit both they evangelicals and a very skilled debater and gifted politician. charles: said said that, i only have 30 seconds. but i have to ask. it feels that marco rubio doesn't go for the knockout punch or maybe this is his still. is this the nascar approach where he's drafting the two cars in front of him and waiting for the last minute to put it in overdrive. >> i heard your theory earlier. i don't think he's drafting. i think he's positioned well, though. not one coat has been cast, you get through iowa, new hampshire, i think he's

going to run very, very strong in the south and in states like arkansas. charles: right? >> so i think he's positioned right where he needs to be going into this first caucus. charles: well, definitely considered one of the favorites coming out of last night. thank you very much, sir. >> thank you, charles. charles: let's take a look at the big board. we know the markets have been down all morning long. down 390 points, right there the dow 19,988. up next, one of "varney & company's" big guests. his take on trump right after ts marco rubio. he ran for senate saying he opposed amnesty... then he flipped, and worked with liberal chuck schumer to co-author the path to citizenship bill. he threatened to vote against it. and then voted for it. he supported his own dream act and then he abandoned it. marco rubio. just another washington politician you can't trust. jeb bush. he's a leader, so you always know where he stands. right to rise usa is responsible for the content of this message.

>> i'm nicole petallides with your fox business brief. stocks are down for the year more than 1400 points on the dow jones industrial average. today right now down 387. off the lows for the morning. we had been down 435 but down 387 right now as we speak. 15,987, first time that under 16 percent mark since september. s&p 500 down 45, the nasdaq down 145, that's down over 3 percentage points. energy is one of the main reasons we're selling off. marathon, devon, and also hitting new lows and marathon oil down over 13% today. transocean and freeport also selling off. and intel came out with quarterly report slower growth reported and with that that stock sold off. revenue growth is a key and that's down 9%. walmart announced store closures and of course layoffs, and we want you to

start your day fox business at . enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car. and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro.

charles: the last time john taffer was on the show, it sounded awfully like he was endorsing donald trump. well, john is back with us. and we're all curious. what did you think of trumpst performance last night? >> i think trump was trump, charles. you know, he -- i don't think he gained any ground. he didn't lose any ground. he -- he maintains his positions, and he's

maintaining his poll position. you know, i'm an independent voter from nevada. and at the end of the day the independent voters are really going to decide the election, i'm sure you agree with that. and in my position, i haven't endorsed anyone. i believe that we need to look, listen, and evaluate, and unmitigate risk for people every day, the decisions i make affect other people, and i've learned you don't make a decision too early because factors change. charles: i love that -- i'm sorry go ahead, john. >> decide later, charles, and i think you have a better chance at mitigating risk. charles: now, having said that, here's one of the issues i have. they all want to lower taxes, all talk about pro growth stuff. i would like to hear them start to recollect this to the average person out there, particularly poor middle income folks out there who have only heard that lower taxes help the rich. in other words, we need to have somebody to articulate this to the average american so that they understand that it's not out there to hurt them but to help them.

>> well, i agree with you. how does it impact small business? how does it impact lower income levels? the fact of the matter is -- and we all know this. 600,000 small businesses are created every year in america. 720,000 close. how does this impact mainstream america? entrepreneurialship and families that want to start swabs. at the end of the day that's what's going to fuel our growth. charles: do you think to that point -- because we saw last year when entrepreneurship hit an all-time low in this country that it's not just about banks not loaning money or anything like that but people thinking if i start a business and if it's successful, they're going to -- is there something about the rhetoric that comes from the very top that sets the tone, even for people who may want to start small businesses? >> oh, absolutely, and i would call it fear. but also, charles, margins are tighter. let's face it. health care costs are higher, in some cases workers' compensation costs. so years ago if i could have a 20% profit margin.

if i messed up by 10%, i still made money. i had a cushion. today because of regulatory and taxing issues, margins are tighter. if i make a mistake, now i'm losing money. so we don't have that cushion. and there's the fear environmentally, which causes people to pause or not grow or in some cases choose not to do it at all. charles: i'm with you on that. you know, these higher minimum wages. all right, john, real quick on this because you were giving $10,000 to a small business owner. your taffer virtual teaching concept. tell us about it. >> well, you know, i love to do this and every time we do it, we create something fun. a lot of people have great ideas out there. i want to give them a few dollars to take an idea, turn it into a business plan so that they can get it to the marketplace and taffer virtual teaching is a small business educational program that we have where we train people online and this is a nice way to have somebody think that their idea can truly become a reality and get them to the marketplace to raise some money. charles: yeah, i've got to

tell you something, john, you are really -- you're the kind of person we need. too bad you're not running because we need that enthusiasm, we need that understanding of how economies work, and ultimately, you're the kind of person that will help someone move up the ladder of success. it begins with small businesses. >> it's true. well, when they move up the ladder, don't we all move up with them, charle. charles: they all have coattails, that's for sure. thank you, john, good to see you. >> good to see you. charles: let's look at the big board. we started with that gigantic move to the downside, but we're going to be sideways until the close. we could rebounce, but we're talking about global recession and that's worrying people. more varney after this we believe tomorrow starts today. all across the state the economy is growing, with creative new business incentives, the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. like in utica, where a new kind of workforce is being trained.

and in albany, the nanotechnology capital of the world. let us help grow your company's tomorrow, today at business.ny.gov choose, choose, choose. but at bedtime? ...why settle for this? enter sleep number, and the lowest prices of the season. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! save $1100 on the i8 mattress with purchase of sleepiq technology and flexfit3 adjustable base. ends monday. know better sleep with sleep number.

approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs.

you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you. these are the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. plus, nine out of ten plan members surveyed say they would recommend their plan to a friend.

remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ . charles: the internet and social media was buzzing big time with last night's fox business gop debate. and, jo ling kent, you're going to break it down for us. >> yes. well, you always want to know who was the most googled candidate and who did the best on google. well, trump no surprise there, donald trump taking the number one spot on google followed by ted cruz and marco rubio. ben carson coming in fourth and jeb bush trying to make a flash, trying to survive in the polls and climb up. he's at number five according to google. we want to talk about the most tweeted moments. what really resonated with a

lot of the viewers out there as they were looking at their second screen. the second most tweeted moment in the gop debate last night here in charleston was trump's discussion of 9/11 and having new york values, which of course of a big theme of the conversation. but here is the most tweeted moment. most social moment on twitter. you're going to hear ted cruz and donald trump going back and forth. take a listen. >> the american people have rejected your agenda and now you're trying to go around it? that's not right. it's not constitutional, and we are going to kick your rear-ends out of the white house come this fall. [clapping] >> well, that was actually sound byte from chris christy, so that was -- the -- one of the most tweeted moments of the debate. we should know that the issues very much were important to people on twitter last night. foreign affairs coming in number one, gun issues at number two and economy number three. donald trump, though, you should know, charles,

dominating on all social media platforms. facebook, twitter, and google. back to you. charles: to just tell you, jo, i did some math. here's what you need to understand. of all the twitter followers, trump has 59% of those five guys. 38% of the -- to me, the news is cruz at 22% and bush had three times more mentions than his followers. maybe he resonated. thanks a lot. we've got breaking news right now, guys. the white house saying that treasury department is monitoring this drop in the stock market. we have the worst, toughest year in the history of the stock market. more varney after this

>> this is going to be a tough process, and i don't think we can expect that we're going to all sing around the campfire, toast marc marshmallows, everybody who runs for president it's more going to

be like rock them sock them robots. charles: that was mike huckabee on last night's debate. neil, you did an amazing job, buddy, take it away. neil: i don't know about that but thank you very much, charles. all right. we are in charleston, south carolina. and we like it so much, hell with it. the debate's over, we're just staying here and eating everything in sight, we're -- we're going through medicine cabinets, you name it. well, welcome, everybody, i am neil cavuto and now that the debate is done, one debate rages on. what the health care is going on? and who is at fatality for huge sell i just don't of? the dow down north of 400 points, back under 16,000, oil playing a big role here. but what's very interesting as we get deeper and deeper into correction terptory is where some of the money is going. interest rates are getting sharply lower. so if you do away to be able to buy a home, right