today. former presidential candidate herm main cain weighs in. david: he is great businessman. three americans in iraq were kidnapped by an militia. was this ordered by tehran? [closing bell rings. melissa: selling off in the close. we're down just about 246 points as the bells ring. david: a lot of people retreating into gold, melissa. s as kind of an investment of last resort. melissa: what a wild ride for markets. five of the dow 30 stocks are in the green. all 30 are negative for the year. lori rothman down on floor of the new york stock exchange. lori, talk me through what happened.

>> my goodness what a day and roller coaster ride. we end lower across the board. lower exposure to economies about china and other larger countries as you know have been slowing. china data has been killing the markets really for the last number of months but really digging in these last couple of trading sessions and that's one of the catalysts behind the precipitous decline in oil prices. oil companies were weak. enough is enough. we tested late summer lows. you know the economy, jobs picture, certain sections of the economy are okay. charlie gasparino talking about cheaper oil prices leads to more consumer spending. perhaps this will lead to boost for the u.s. economy and maybe we tested low es. i say, maybe, maybe very strong bill case there. there are still significant

pressures there. looking at futures rates predicting next interest rate hike, shows chances are we only likely see to the fed fund futures one rate hike this year, versus three or four, last year after the december rate hike, first one in about 10 years. biotech led. that managed to turn around in the session. back to us guys. melissa: thank you very much, lori. david. david: oil is really fueling this market whiplash. things may be getting calmer. the contract ending down nearly 7% to 26.55 a barrel. we're rolling to the march contract. it is trading higher. it may put an end to some of the volatility. stay out of the weeds of trader talk if you can. tell us what all this means,

todd. >> hi, david, great to be away. that goes to spot or cash. it's over, it's gone. now we got oil, actually oil made a rally within seven cents of the high of the day when the market was roiling. they're really not coupled. what you're seeing here oil is coming down to level of real support. eia number comes out tomorrow. traders are so bearish, so many people piled on top of this i can only see a potential rally from here. i think you've actually probably sniffed the bottom of the oil market. if you look out into the future you see higher pricing go forward. david: todd, here is the real question. supply or demand. fit's supply that's one thing but if it is demand that is why market is tied to oil going lower because they think it ishe commodity space, david.

that means less jobs. no oil, no fracking. no farmers, no workers that ties into the commodity space. overall looks like it is tied to oil. only coupled for short period of time. eventually they go th going higher from here. david: from your lips. todd horowitz, thank you very much. melissa. melissa: here with reaction capitalist pig hedge fund founder, jonathan hoenig, and gary kaltbaum, kaltbaum capital management. fox news contributors. jeff saut, raymond james and john tabacco, fortified funds. jonathan, start with you. talk to me about today's market. >> when elephants are dancing mice get trampled melissa, that is certainly what we're seeing here. best thing you can say about this market, however, i was glad to see rally towards end of the day, still i think the best thing you can say about it looking out a month, five

months, even a year that it is extremely oversold. that you've got something like 1700 stocks at 52-week lows. only a dozen at 52-week highs. no stock doing well. you could make the case it is oversold. you can also make the page it is front page news that tend to lead to a rally. no stocks are in uptrends right now. if you're looking for the route that is reason to avoid this market. melissa: gary, i don't know about that i'm not sure stocks are overold. i do think oil is oversold. what do you think? >> i think the world is what is known as oversold right now. after 2,000 points and about 14 trading days you got there. i'm pretty short, we're talking about the trees here, short term, we found some areas today just tired of going down, probably washed out some sellers. we probably are going to rally. specifically i saw it in the nasdaq and things like that. let me give you the forest which is big picture. we're in a bear market of

stocks. it did not started two weeks ago. started with commodities in '14. 2015 topping out sector by sector, stock by stock. all you're seeing major indices catching up with the average stock. to be clear, when the transports are down 30% from where they were three years ago, when russell 2000 in mid 20s where they were three years ago that is some bad news and it is speaking a lot where the economy is going over next few months. i would say south. melissa: jeff, i don't want that to be case, but everything gary said right there was pretty compelling especially given fact a lot what we're seeing was predicated by bubbles. whether equities were driven up by the fed bubble or oil and commodities driven up by folks reaching for return everywhere because you can't get return on anything related to interest rates. gary makes a compelling case. did you agree? >> he is one of the best on street of dreams, i read his stuff. i was interested in your comments on crude oil because i saw goldman sachs came out today after being negative and said to

buy crude oil. then there was a tree fell in the forest that nobody heard and it was ubs closing down one of their exchange traded notes that is energy-centric. it wasn't supposed to close down until july of 20 who. that is the kind of stuff you see around bottoms. -- 2040. we're in a selling stampede at market. started gypping of the year. run 17 to 25 sessions with only one to three session pauses orally attempts. tomorrow is session 15. i think we're getting close to a tradeable bottom. melissa: in oil, maybe. john, i see that case in oil. i've been covering it for a long time back at 2003 levels. if i had enough room i would buy a dozen barrels of oil to keep it for myself because i never thought i would see these prices again i don't know how much lower it can go. you can say demand has let off a lot not like this at this level. world will still use oil. it looks like a bargain. >> looks like a little bit of a bargain but the problem there is

opposite effect going now, would you think when the dollar gets stronger that is good thing we should feel patriotic an feel good bit, with commodities priced in u.s. dollars, as dollar gets stronger, commodities get weaker. jonathan was talking about before elephant dance, right on this show in september i said elephant in the room is china. nobody really wanted to address it. now i think we're starting to see a country for many points, people believe a lot of stats coming out of china are manufactured or architectured. even when manufactured stats start to get bad, people have to take the elephant a little more seriously. the main thing many people forget this market has been up, up, up on fed intervention. melissa: right. >> we have china, that is the biggest holder of u.s. debt. god forbid they get this real problem and need to start selling some u.s. treasurys. we'll not be talking about oversold. melissa: jonathan, are we close to that? certainly china is slowing quite

a bit. we saw slowest growth in 25 years, but sort of a question how hard will they land and do they turn around a sell a bunch u.s. treasurys? is that serious if what do you think? >> i see weakness, melissa, i haven't seen since 2007 and 2008. seeing all banks and financials at 52-week lows. even some big cap energy stocks dropping 5, 8, 10% in just one day. these are some dramatic moves. so whether they sell treasurys, whether they have to sell high yield, think market is quite weak right now. people might be looking for long-term bargain but this is falling knife. melissa: stick around, we'll come back to you. in a second. david. david: there were bright spots in today's sea of red. adam shapiro has winners for us. hard to see winners for the losers but there were some. >> biggest winner unitedhealthcare, reported it lost $720 million through the affordable care act what we all

call obama care but investors seem to believe what management is saying at that they're poised of rebound from their on tim ma unit that proprides technology services to outpatient centers, medical care technology. bottom line that stock was up almost two percent. nike this is last week's news, partnered with ohio university, they were up 1 1/2%. american express with new 52-week low today but they were able to rebound. the ceo talking about poised for end of plastic. don't leave home without it, you don't need it. use the smartphone. microsoft up half a percent. apple barely closing positive but it did. apple was down at low today at roughly $93.42 a share. but it managed to close at 96.83 and it closed in green. david: there is twitter, less said about that. >> don't talk about it twoer. melissa: teddy weisberg of seaport securities. you're a stapleof the stock exchange.

have you seen any like this kind of volatility recently? >> we've seen this volatility in one form or another, melissa, last seven or eight years. a lot is fundamentally driven but a great deal is also mechanically driven because it's a big topics. they changed way stocks trade. no dealers. no short sale rule. so volatility has been with us since all the rule changes came into effect that goes back seven or eight years. melissa: no, that is rolly true. what do you think it means for the long term? >> well i think for the long term the glass is half full. otherwise we wouldn't get up in the morning. problem they don't ring a bell as you know. picking bottoms can be very expensive and very dangerous but at some point the stocks will tell you when they're ready. i don't know if we're there or not. we'll know when they're ready when they start to ignore bad news and do better on bad news. i guess we're not quite there yet. are we oversold? certainly but, trying to pick a bottom is a little tough here.

melissa: you know having spent years on floor of new york mercantile exchange myself always interested to watch what traders are most focused on. whether watching oil or watching television to see what is going on in politics. teddy, what is your sense what traders are most focused on down there if. >> i think everybody has their eye on the energy sector. problems we have there are some unknowns. nothing is really different today than it was at the end of december of 2015. for some odd reason we kind of ran into this perfect storm. i mean the market has been telegraphing weakness for months now, for months. we've been kind of, deluded fact popular averages sort of levitated while market internals have been deteriorating. simply a matter of time until the rest of the market followed. clearly it has. we know there is nothing rational about the stock market. they go up too far. they go down too far. i don't know where we are in that cycle.

my suspicion is we're going a little lower but you know, i guess if you're long-term investor clearly stocks are cheaper today than they were three weeks ago but this is the only business in the world that when they have a fire-sale nobody comes. melissa: that's very true, teddy. thank you for that. good perspective. we love it. david: we love teddy. dow was down 2,000 points at the low. john mccape weighed in. he said who would be blamed. former republican presidential nominee. democrats are in charge. people hold presidents responsible leaving democratic candidates to contend with market plunge in election year. john mccain knows what he is talking about. he was stuck with bad deck of cards, many people say it led to his losing that election. our panel is back with us. gary let's tie that in to what teddy just said which there is reality check going on. this market is going up, up, despite the fact earnings have been going down for a long time.

some people say we're in earnings recession now. is this sort of reality coming in a way we haven't seen for a while? >> yes, david, bigger than that, there is a sales recession. if you look at companies like ibm, 3m, dupont, many other, sales are down not only single digits but double digits. that means earnings will be in big, big trouble going forward. look john mccain is correct. even my great, wonderful father says so, that it is whoever is the president it is on their back and there is no doubt in my mind that we have a market that is saying recession going forward. as we go not middle of the year obama will be blamed more and more. that will impact the election big-time, my friend. david: john, here's the problem, a lot of companies bought into the hype. that is companies were spending a lot of money, one trillion dollars 2015 on s&p 500 on stock

buybacks and dividends. one trillion dollars. that is more money than they spent on operations. they couldn't do that. they did that with expectation stocks would continue going up. since they're not going up and since some of those stocks buybacks were leveraged is that a problem going into the end of the year. >> i think that is a big problem. last couple years earnings out were positive but earnings were not you up from growth. most of the earnings especially big financials in the u.s. are from cost cutting. we're not seeing any real growth. we're seeing companies take some cash and go back in and further stimulate their own stock by buying stock back. that also put itself into this rally as companies go out to make their stock look a little better, eliminate some dilution. the stocks are not getting better, companies are doing worse but they're -- david: when purchases drain resource, jonathan, you have a problem. companies when they're spending more on buybacks and dividend than they are running their own

business and research and development that's a problem. >> david, actually tend to be terrible market timers even when it comes to their own stock. they have a tendency buy much more near the high than near the low. what worries me, david, i think you hit the nail on the head here is the leverage. there is dramatic explosion in leveraged loans and junk bonds and all creative types of financing as melissa talked about, people reached for yield. all those closed end fund that deal in high-end bonds and leveraged loan etfs, hy. about, they're at 52-week lows. that is poor harbinger of markets to come. david: jeff, is there a problem with the stock buybacks at least from 2015. >> i was surprised by that i thought there would be pickup in capital expenditures in 2015. it just hasn't happened especially among large cap stocks and some mid and small caps you have seen increase in

capital expenditures. a lot what japanese call zy tech, which is financial engineering. they're exactly right. david: gary the reason why companies did this again because of the federal reserve. because they created this economic distortion through zero interest rates. companies were looking for some way to feedback, to give people a sense that their savings were gaining money. that they made money by buying stocks. i just wondering if the fed feels it necessary, they have been doing so much over the past six years, if they feel that they have to step in now and do something else, maybe negative interest rates, who knows? >> i hope central banks take a long two year vacation and never say another word or do another thing. here's the problem, they have distorted price and yield. the yield on interest rates defines risk and we have not been able to define risk. on top of that they have completely screwed the saver by taking away all riskless

investments. they were able to get 3 to 5% on money markets. you can't even get that on a 10-year note at this point in time. it made them go into bond funds and high yield and master limited partnerships they're getting killed in those right now and they caused it. this is all in my opinion on bernanke's back. he is telling everybody he is absolute hero. god bless him. david: jonathan, janet yellen is in charge now. janet yellen spoken very kindly about negative interest rates while savers in america are getting killed. zero interest, you don't get any money saving interest. for negative interest you bet penalized by saving money. >> i can't imagine contributing to global uncertainty taking about face where the fed said we think employment numbers are getting better, even though they're not, we'll start raising interest rates and now make a u-turn talking about negative rates. i think that would cause more panic than we're seeing now. david: got to ask quickly, jonathan and jeff, are you buying anything. >> i'm not.

david: jeff is not. jonathan? >> you know only precious metal, only asset i'm looking is rodium. david: rodium. i first thought you said rodeos. maybe that is better bet than anything. gentlemen, appreciate it. melissa. melissa: new details on three americans kidnapped in iraq. colonel oliver north gives is his take how america should respond now. david: herman cain on deck. we'll talk to the republican candidate on his thoughts about trump's big palin endorsement. that's coming up. >> well they sound angry. i say doggone right we're angry and justifiably so! like i said yesterday in iowa, no more pussyfooting around! [cheers and applause]

when i went on to ancestry, i just put in the name of my parents and my grandparents. and as soon as i did that, . . . . yeah, it was amazing. just with a little bit of information, you can take leaps and bounds. it's an awesome experience. whfight back fastts tums smoothies starts dissolving the instant it touches your tongue

and neutralizes stomach acid at the source tum, tum, tum, tum smoothies! only from tums thcompetition, it's protecting buscustomer trust.not every day you read headlines about governments and businesses being hacked, emails compromised, and intellectual property being stolen. that is cyber-crime, and it affects each and every one of us. microsoft created the digital crimes unit to investigate and fight cyber crime. we use the microsoft

cloud to visualize information, so we can track down the criminals. using our advanced analytics tools, analysis that used to take days to run, we can now see in real time. and we're building what we learn back into the cloud to make people and organizations safer. when it comes to the cloud, trust and security are paramount. our passion is making life tougher for cyber criminals, and making it safer for you and your customers. melissa: deadly attack at

pakistani university has left at least 20 dead and wounded dozens of others. armed militants stormed the school and country's northwestern region. students have told media that the aassailants were young men wielding ak-47 rifles, in university housing where students were sleeping, senior taliban command hears taken responsibility for the attack. david? david: disappearance of americans in iraq points to iranian-backed militia. u.s. and iraqi officials say shiite troops supported by iran kidnapped three americans from baghdad days before president obama and secretary kerry touted diplomacy between u.s. and iran over prisoner swap. colonel oliver north, former marine corps lieutenant joins us now. colonel north, does this operation directed by tehran to take american prisoners. >> they issue these blankket instructions. fet any americans you can,

whether they directly whether patrol boats taken here 10 days ago or something like shiite militia. look it, we've been through this before. this is as you pointed out iranian-supported shiite militia. it is beholden to the islamic revolutionary guard corps. no doubt that taiwan can cause all three to be released like pay route hostages held by hezbollah in 1980. i certainly know about that one, beyond that, colonel, are they trying to strengthen their bargaining position with us on whole range of issues by kidnapping or ordering kidnapping of these u.s. soldiers? >> i seriously doubt somebody picked up on the phone, three americans we got in a truck going into a shiite neighborhood. but, like i say, they have given instructions to the militias through the quds force of the irgc to do these things. here is what we ought to be doing. the united states still has tens of billions of iranian sanction funds have not yet been

transferred. that is what you call leverage. david: right. >> obama could still condemn iranian icbm test. they can go further by connecting dots between tehran and democratic peoples republic of korea in pongyang. david: rather than doing the hard-line thing as you suggest, they actually take our sailors, some kind of weird operation in the persian gulf where we're still not sure how that worked out, then humiliate them on camera and clearly using these humiliating scenes to spread the word across the muslim word that they hold the cards and we don't. >> sure. in fact, if you look carefully what the supreme leader khomeni said over the last 24 hours, he praised those who had taken american sailors, taken those pictures and propaganda value they're getting from them. at same time, he condemned the sacking of the saudi embassy in tehran. now it is very interesting juxtaposition.

he considers both united states and saudi arabia to be adversaries. reality is he knows saudi arabia controls lynchpin to iranians making any money whatsoever on oil. as long as saudi continues to overpump and get rest of opec overall, iran is knocking making revenue they want -- david: quickly, chain of command is at the heart of our military. i'm worried that the military doesn't think this administration has their back, whether it comes to individual instances like iran or larger issues. what do you think? >> i wouldn't want to speak for anybody in current armed forces of united states but there is no doubt in my mind having covered this u.s. military now for 14 years of war, no doubt this administration does not have their back. david: colonel oliver north, good to see you. melissa? melissa: shocking new satellite images obtained by associated press confirm the islamic state

destroyed the oldest remaining christian monastery in iraq. it was known as st. elijah's monastery and stood as a place of worship for over 1400 years. st. elijah joins the list of hundreds of religious and historic sites loot and destroyed by the group. david: it is genocide for christians in the middle east. it is genocide but people don't spell it out as that. melissa: big spoiler alert, u.s. is not ranked number one or number two. we'll let you know who beat us out and why. on the road trying to make america great again, sarah palin hitting campaign trail with donald trump. former presidential candidate herman cain on how going rogue will impact the donald trump campaign. >> only one candidate has proven success where he masters the art of the deal. he is beholden to know one but

we the people. you both have a perfect driving record.

perfect. no tickets. no accidents. that is until one of you clips a food truck, ruining your perfect record. yeah. now you would think your insurance company would cut you some slack, right? no. your insurance rates go through the roof... your perfect record doesn't get you anything. anything. perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. see car insurance in a whole new light. liberty mutual insurance. ♪

lost shipments, lost invoices, lost prospects, lost respect. well-crafted solutions for today's problems in commerce. pitney bowes, the craftsmen of commerce. i'm mary ellen, and i quit smoking with chantix. i have smoked for thirty years and by taking chantix, i was able to quit in three months. and that was amazing. along with support, chantix (varenicline) is proven to help people quit smoking. it absolutely reduced my urge to smoke. some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. some had seizures while taking chantix. if you have any of these, stop chantix and call your doctor right away. tell your doctor about any history of mental health problems, which could get worse or of seizures.

don't take chantix if you've had a serious allergic or skin reaction to it. if you have these, stop chantix and call your doctor right away as some can be life-threatening. tell your doctor if you have heart or blood vessel problems, or develop new or worse symptoms. get medical help right away if you have symptoms of a heart attack or stroke. decrease alcohol use while taking chantix. use caution when driving or operating machinery. most common side effect is nausea. i can't believe i did it. i quit smoking. ask your doctor if chantix is right for you. melissa: wild ride for the dow. we were down 565 points of the at low we ended down nearly half of that though. here is where the other averages ended the day. the s&p down 22 points. that is better than 1%. nasdaq not having too bad of a day. basically flat on the session. there is your culprit, crude oil, trading down significantly on the day. although we rolled over to a new contract so that fortune could be changing tomorrow. david?

david: meanwhile still the one. donald trump leading republican pack at 36% in a new poll from monmouth university. that is down slightly from last month, but, trump still doubles the support of his nearest rival. "the donald" hitting campaign trail today with his newest supporter former vice-presidential nominee sarah palin. fox news's john roberts in des moines, iowa, with the very latest. she has been out working with trump so far today, right? >> she has, yesterday as well. david, to put this in fox business network lingo, donald trump is the one who wants as president to fix the economy, bring back jobs. he enlisted a little bit of help to get him over the line in terms of republican nomination. he has the general election to fight after that, bringing in alaska governor sarah palin. a lot of people were looking for her endorsement. decided to go with trump. liked his independence. the fact they share a love of country and want to fix the economy. the fact that trump says pretty

much anything he wants to say. what does sarah palin bring to the table? a few things here as we look at her with donald trump in omaha, men, a short time ago. first of all she has basic conservatives here in iowa. he might need shoring up because he is little weak on that front. she is still the darling of evangelicals which is ted cruz's core constituency. she can inoculate trump from attacks coming from the cruz campaign that quote, he is not a real conservative. like trump she injected a little more color in the campaign rhetoric and saying that trump would kick isis's, rhymes with basses and in omaha a short time ago. >> not every conservative has the guts to talk about the real issues that are needing to be discussed and debated. our candidate is ball sy enough to get there and put those issues on the table, the issues a lot of other candidates have wanted to duck and run from.

[applause] reporter: forgive me, tulsa, oklahoma, not omaha, nebraska. when last time you heard a candidate described as b-a-l-l-s-y. sarah palin stumped for cruz when he ran for senate in 2012. if it weren't forker her he would not be in the senate. across the nation she says donald trump is conservative closely matches her values and not ted cruz. she also at the rally in tulsa addressed what she called elephant in the room. her son track palin was arrested on charges for domestic violence. she attributed to that the ptsd he is suffering as a result of deployment in the iraq with the strikesser brigade in the u.s. army. the fact that president obama is not giving returning troops their due. so we'll probably hear more about that as day progresses

this situation track unfoaled, i love you spelled balls sy. >> just not a sv word. david: we used it. melissa: newest member about team trump has a strong message for the republican establishment. >> even today the gop machine they're attacking their own frontrunner and his base of dynamic, diverse, very patriotic supporters. they're attacking you because they can't afford for the status quo to go. otherwise, the gravy train, it stops and they can't keep slurping from it. melissa: some truth in that. former governor sarah palin is out at road with donald trump today after endorsing him yesterday. she is warning the establishment to start taking the frontrunner seriously here to weigh in, herman cain, former presidential

candidate, author of the book "the right problems." he is also a fox news contributor. that is interesting point she makes. there are other people that said that. one of the many reasons the establishment isn't supporting trump is because they are worried about their own gravy train. how much do you think her endorsement means. >> i think her endorsement is game gainer for trump but not a game-changer. a lot of people are still very loyal to sarah palin. i think it will have positive impact but i don't think by any way lock up the nomination through the caucuses in iowa. on other hand what doesn't get talked a about, what governor branstad said don't vote for cruz. that will hurt cruz more than sarah palin's endorsement of trump in eye because. but across the country i don't think people will pay that much attention to branstad's comment but definitely hurt him in eye way. melissa: i definitely agree with you. that was a game changer in iowa for him. what do you think about what

we're seeing with those two, sort of establishment starting to see the train pull out of the station and they will just get on board? there is this sense trump is running away with it, and you kind of get on or get left behind? do you give that credence? >> i give it credence. her is the way i see it. the establishment was resistent of trump, cruz and extent rubio. quote-unquote outsiders. only reason i classify rubio and cruz outsiders. they're in the first term. they haven't been there too long to be totally tainted yet. establishment has moved from resentment, bring him down, to well, maybe we better shut up for a while. they still haven't reached acceptance level. that is still to come. you can't argue with success he has. i think they're gradually moving away from bring trump down, we'll cool it and see what happens over next few weeks. melissa: you're tremendously successful businessman so i can't let gow without asking you what you think about the market right now.

what does it tell you what is going on in the economy? or do you think it is normal part of the cycle, the fed getting out of the way? what do you think is going on? >> what tells me this administration last couple of years has been in denial how weak this economy is. i started predicting end of last year, not that i'm a great economic predictor we were headed for recession in the first part of this year. here's why. one, because of the phony numbers they put out every month about unemployment. they change the calculation. they don't count everybody. melissa: right. >> they get away with this stuff. and number two, the fed and administration keeps walking back prediction for gdp growth in 2016. we aren't going to come near 2% which is way below what this economy is capable of. i think now, as they say the chickens are coming home to roost and it is being reflected not just in what we're seeing in turmoil in stock markets but seeing it reflected how people are saying who they're going to support in this presidential race. melissa: i am just hearing

rumblings what you are saying though. i think there is a lost truth to that. >> yes. melissa: want to ask you about your book the right problem. what is the right problem. >> start with replace the tax code, when i ran for president that's what i talked about. people in the establishment say you can't do it. a lot of people say you can't do it. this is what is wrong with washington, d.c. yes, you can. not only that, we have to. the second one is rebuilding our military. getting to real energy independence. you noticed that oil is down in the 20s now. you know some people are saying oops, that's bad. no that's good, that's good for consumer who hasn't gotten a raise in term of average wages for long period of time. secondly what a lot of people don't talk about these low oil prices puts pressure on isis's bank account. it puts pressure on russia's and iran's bank account. that is good thing for us. we shouldn't bemoan the fact prices are low, it helps the consumer but we need candidates talking about replacing tax

code. trump put his new tax code on the table which i like. i give it seven out of 10. then you had ted cruz put his plan on table. probably eight out of 10, 10 being perfect. fair tax, national consumption tax is perfect tax. but you still have candidates talks about tax reform. you con not reform the tax code. just like you can not reform obamacare. both need to be replaced. >> the herman cain, very powerful. i love it. thanks for coming. i love passion. thank you. >> you know some people say i'm just an angry black man. no, i'm just angry. melissa: you seem very happy to me. i don't see anger at all. i see a big smile. >> david, i'm happy and passionate, okay? melissa: there you go. david: are you kidding herman? particularly from the original anti-establishment candidate. that is herman cain. >> thank you, my friend, thank you. hillary clinton has a burning problem, you get it?

days before the first votes in 2016 rates are cast. leonardo dicaprio, have you heard the latest. taking on a new role in davos, switzerland today. a lot different from his "wolf of wall street" role. that may put you at five times greater risk of stroke they can pool together in the heart, forming a clot that can break free and travel upstream to the brain, where it can block blood flow and cause a stroke. but if you have afib that's not caused by a heart valve problem, pradaxa can help stop clots from forming. pradaxa was even proven superior to warfarin at reducing the risk of stroke, in a clinical trial without the need for regular blood tests. and, in the rare event of an emergency, pradaxa is the only oral blood thinner other than warfarin with a specific reversal treatment to help your body clot normally again. pradaxa is not for people who have had a heart valve replacement. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke or blood clots

ask your doctor if you need to stop pradaxa before any planned medical or dental procedure. pradaxa can cause serious, and sometimes, fatal bleeding. don't take pradaxa if you have abnormal bleeding. and seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have kidney problems, stomach ulcers, a bleeding condition, or take certain medicines. side effects with pradaxa can include indigestion, stomach pain, upset or burning. don't just go with the flow. go with pradaxa, the only blood thinner that lowers your risk of stroke better than warfarin and has a specific reversal treatment. talk to your doctor about pradaxa today.

its intelligent drive is msystems...ng. paradigm-shifting. its technology-filled cabin...jaw-dropping. its performance...breathtaking. its self-parking...and self-braking...show-stopping. the all-new glc. mercedes-benz resets the bar for the luxury suv. starting at $38,950.

melissa: in case you missed it after quite a roller-coaster day the dru ended down 229 points. we've seen triple digit closes on nine out of 12 trading days this month. the exchange is down 1600 points for the year. david: what a year. we're just beginning. new numbers in new hampshire that could spell trouble for hillary clinton's campaign. leaving clinton supporters worried and ready to attack sanders on his social it views. here to weigh in, joe trippi, former campaign manager of howard dean. also a fox news contributor.

ohio state senator capri kafaro. >> i answer to anything. david: thanks very much. joe, first to you, how much trouble is hillary riley in. does he have a chance being the nominee. >> no, he doesn't really. look, iowa and new hampshire are states, if bernie sanders can't win there, he can't win anywhere else. iowa saw in do point register poll, 41% of the caucus attenders 40% beef in capitalism. neighboring state, new hampshire, that neighbors vermont where they elected him. if he can't win these two states, these are his best two states. if he wins there, yeah, there's a path but it's a much diverse, more diverse democratic electorate and he can't feed into that. david: let me throw out another number.

this is poll about trust. it has been going further and further south for hillary. only 36% say they truster had. 62% say they're not likely to trust her. they don't find her trustworthy or honest s that the reason people are going to bernie. >> i will say i think so. you know, here's another alarming poll number. i'm saying this as someone who is going to vote for hillary clinton and in my ohio primary as democrat woman elected official. we have seen just in the last month of the national polls that secretary clinton's numbers with women have dropped almost 25 points. david: it is all about trust, capri? >> i think it is predominantly about veracity, yes. combination of veracity and authenticity. those two things together i think are giving women pause, giving democrats pause. i think this is why bernie is succeeding, to the extent that he is. i agree with joe, iowa and new hampshire are places to feel the bern and there is southern

strategy for hillary likely the nominee. those two things, authenticity and veracity are you what are hurting hillary clinton. david: how does she win, it is so difficult once you've lost trust to win it back? >> i mean first of all, within the democratic party she hasn't. i think she has taken hits and clearly she has got some work to do but not in the party. in the party her favorables are off the charts. >> her favorabilities are off the charts but i've seen numbers that actually sew that 55% of democratic voters see her as least honest person candidate in the race that should be alarming. i think that hillary clinton and campaign are concerned. >> and donald trump is running the same kind of numbers on that you know as well. i'm not, we can fight about that all you want. the reality is, when you get down to, down to this, sanders has a couple of states that he can perform well in. he carries white progressives

and he carries young people. she carries everything else. david: want to remind the viewers, those two people you're listening to are both democrats. there is split in the democratic party. joe, capri. thank you very much. >> thank you. melissa: rocky start to the year on wall street. our panel weighs in on what you need to know before tomorrow. plunge in oil prices that sent markets to two-year low. we'll talk the oil factor. that is coming up next. you can't predict the market. but through good times and bad... ...at t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence.

wheall i can think abouthit, is getting relief. only nicorette mini has a patented fast-dissolving formula. it starts to relieve sudden cravings fast. i never know when i'll need relief. that's why i only choose nicorette mini. amerivest selects the funds and manages your portfolio. is it run by robots? no no, you can talk to a person anytime. 'cause i don't trust robots. right...well, if the portfolio you're invested in doesn't perform well for two consecutive quarters, amerivest will reimburse your advisory fees for those quarters. i wasn't born yesterday. well, actually it looks like you were born yesterday. happy belated birthday.

thanks. for all the confidence you need td ameritrade. you got this.

david: leonardo dicaprio making waves in davos blasting the coal, oil and gas industry as he received the world economic forum's crystal award. i wonder what that plaque says. >> we simply can not afford to allow corporate greed of the coal, oil and gas industries to

determine the future of humanity. enough is enough. you know better. the world knows better. history will place the blame for this devastation squarely at their feet. david: a lot of people would say devastation of the energy industry right now that people should be talking about, deirdre. >> rough day to be throwing shade if you like at these companies. we've been talking about this all day. oil at 12-year low. companies such as royal deutch shell saying they may have to lay off thousands of workers. but more to the point, leonardo dicaprio, i do like his movies but david, it is worth noting that he got to davos, switzerland, in a private jet which no green fuel jet that know of yet. and numerous times takes tours around world as such. david: he has a carbon footprint probably half the size of the globe. so for him to talk about this is something. deirdre, thank you very much. we'll see you in a couple of minutes. melissa: tough day on wall street after a plunge in

oil prices sent the markets to its lowest level in nearly two years. oil falling to less than $27 a barrel for the first time since 2003. here to weigh in, what to expect tomorrow, fox business's jeff flock, jonathan hoenig is back with us, and john petrides of point view wealth management is here as well. jeff flock, let me start with you. the oil contract rolled over. it is already higher. what do you see happening tomorrow? that leads the way for the rest of the market? >> a lot of people thought this was overplayed today. february contract expiring. very little liquidity in it. closed at 26.55. a lot of people think that was driven down by the expiration. tomorrow we're going to trade higher, above 2dollars. there might -- $28, this there might be a different view. we're looking at a true futures price. melissa: john, where do you think the price of oil heads

from here, because a think that is a lot of what market is predicated on and tells us what the market thinks about economy and supply and other things? >> there is no question it is oversold. as deirdre talked about all oil stocks are at fifth week lows. they tend to be a great harbinger for underlying asset. stocks at 52-week lows tends to be a very poor harbinger for gold. what i'm looking at melissa, two things, quickly, is china. we're the tail now. i should say the we're the dog and china is the tail and that is setting a mood for our own markets. as i said before junk bonds and leveraged loans at 52-week lows, if those continue to head down i think it is katy-bar-the-door when it comes to stocks. melissa: john, oil thing cuts both way. a lot of people make point. when it is lower, good for consumer, gasoline will be a lot cheaper. problem it is dragging down oil stocks and financials and

they're backing a lot of these contracts and a lot of these companies. it is pulling down the stock market all together. which outweighs which, the benefit or cost? >> good point. there is recently real high correlation of stocks. price of oil goes up, stocks go up, price of oil does up, stocks go up. gasoline prices go down, should be benefit to global consumer. energy sector is under a lot pressure right now. that is in it is own sub universe. particularly u.s. economy should be benefiting from cheaper gas price. melissa: i ask all of you what you think broader market will do tomorrow. jonathan, i will let you go first. >> ironically, melissa, i hope there is dramatic capitulation tomorrow. if we came in overnight and futures down 5 or 600 points that worries me about today's bounceback, as terrible as it was i don't think you saw the real capitulation. i think we could see that next couple days.

melissa: real quick, jeff, john, washout tomorrow, lower or higher, real quick, jeff. >> one trader tell me today he already saw people for the first time what he said were puking basically, calling him saying i want unsolicited sell calls. maybe it is already happened. melissa: john, higher or lower? >> depends on what mario draghi says in the morning. you have myriad of earnings colling out from banks and from airlines and from union pacific, up with of the rails which will be really important earnings call to listen to. melissa: thanks so much. david: jeff flock wins for graphic. many copping up the same group at davos that just awarded leonardo dicaprio just ranked the best countries in the world. wait till you hear where the u.s. ended up. details in a moment. the microsoft cloud allows us to scale up. microsoft cloud changes our world dramatically. it wasn't too long ago it would take two weeks to sequence and analyze a genome. now, we can do a hundred per day. with the microsoft cloud we don't have to build server rooms.

we have instant scale. the microsoft cloud is helping us to re-build and re-interpret our business. this cloud helps transform business. this is the microsoft cloud. 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.

david: braniacs at davos, switzerland came out with a poll

best country in the world and it is germany. >> we beat somebody. the data based on surveys more than 16,000 people. really, germany? david: i don't know. 10 years ago they were saying we would run out of oil in 10 years. how the how did that work out? here is "risk & reward." deirdre: wild day in wall street. one of the most chaotic trading days ever in markets. this is risk and reward. i'm deirdre bolton. the dow plunged more than 55point at session lows. there was attempted at rebound. the dow did close lower but certainly off that very low mark. oil dropped a big part of the negative sentiment. prices fell below $27 a barrel, a level not seen since may of 3:00. we have you covered from all angles. from the floor of new york stock exchange, my colleague, lori rothman there all day.