stuart: ladies and gentlemen, we are going up in the world. tomorrow on "varney & company," steve mnuchin the treasury secretary on the show. neil, it is yours. neil: thank you, stuart, we have crazy day. one day i noticed all the networks are paying attention to the markets. it is darnedest thing. the dow down 330 points. in case you're looking for that correction. not even 1.7% over last couple days. a lot of people are clamoring to see 5% one to get us on to something healthy, however you want to interpret it. what you have royal -- roiling the markets, president's speech can he get any kumbayah on capitol hill. the sudden announcement out of likes of amazon and

jpmorgan chase, berkshire hathaway, with what they're calling health industry salvo to remind them, maybe all of us together can underpin you twice and maybe underprice you twice, all of those guys, including unitedhealth are taking it on the chin. united health is accounting for a third of the roughly 324 point selloff today. their presence and teaming up has a lot of folks worried. a lot has to do pretty much with interest rates as well. a backup picked up considerable steam amid expectations come tomorrow, that the federal reserve will make it official yet again to hike interest rates. it will be janet yellen's last meeting. again these are sort of a representative of market-based rates that are 2.72%. the markets get very leery of this sort of development. the backdrop is still very strong markets going into today, the markets are noise. volatility index, so-called vix as it is known.

it is better than 18-month high. highest it has gone in the bull market cycle. high as 20. we're a long ways. people get anxious when they see what is going on. this is not a shocker. but again for a president who tonight will use state of the union address to crow a little bit about markets and a lot about the economy is this kind of backdrop he wants to see? keep in mind that the markets are up a lot more than they are past couple days. timing is everything. connell mcshane, in the capitol, what we can expect. reporter: no doubt, neil, the president has and will continue to talk tonight continue to talk about the successes in the markets even with the two-day selloff. when he gave us preview of tonight's state. union address, exactly what he said. he would talk about success with the markets and tax cuts. to dig into deeper and listening to white house officials about what we might hear tonight. they are telling us there will

be two issues emphasized above all else. one is immigration and the other is infrastructure. other things obviously will be spoken about, but those two will take precedent. the other thing white house officials have been talking a lot about is the president's tone in the speech this evening. listen. >> you're going to see very upbeat, a very positive speech. he will reach across the aisle a little bit. talk about successes past year, one thing the people ignore about the government shutdown, the political angle. that happened over anniversary of the inauguration. i'm still convinced the democrats did that to see nye the president a forum to talk about a great year the administration has had. you see a little bit about that. reporter: you will see a little bit of everything. you see the balance trying to strive, pick up support from democrats on issues like i mentioned irk immigration and infrastructure. talk about invited guests always

a point of focus for state. union address. invited, sitting along the first lady from the house chamber will be number of different individuals. a couple siblings from ohio that run a manufacturing plant. they will be there. that will be a focus, neil on the economy. but on other side of it, we start to see a growing list of democrats planning to boycott the civil rights icon, john lewis will boycott this evening and a kennedy, congressman joe kennedy, from massachusetts delivers democratic response. neil, back to you. stuart: always tough position to be in kennedy or not. a lot of drama over tonight's big gather thing at capitol hill. congressman and women will not be a part of the event. congressman mark walker joining from us the beautiful state of north carolina. thanks for taking the time. >> thank you, neil, always a pleasure. neil: do you think a market backdrop like this, while markets have been soaring since

donald trump's election, since the inauguration, i notice a number of networks are suddenly fixated on the dow where they were never before. what do you make of that? >> i think it is amazing you reach ad place where people are almost cheering with a couple of days of downturn something not measured significant from where we've seen the growth. not just the stock market. we're closing in on 3% growth over the past year. if you measure that with the former president's first state of the union, gdp dropped 2 1/2%. i would imagine you won't see too much of that information on many networks today. neil: ronald reagan used to famously say, cog man, never quote the dow much even though it was doing very, very well under his stewardship, stocks more than doubled, his aides say he was spooked by doing that. so he wouldn't. served time of '87 crash. stocks finished higher. do you think the president might

regret using dow because all markets correct? >> they do. whether he regrets it i can't speak for the president. i would offer the same kind of caution. make sure we're not putting all of our emphasis or eggs in one basket. talk about many other accomplishments the house and senate has working with the administration over the past year. neil: sir, meantime, nunez memo is out now. we don't know whether president just waits it out for the five days they can. then everyone gets to see it. but you have stood apart from your republican colleagues by saying that it is not a smoking gun. you went on to say if your audience or somebody is believing this is the end-all smoking gun it is not. you make the case this is the most shocking document in the history of mankind i believe that is a little bit of hyperbole. you don't think it's a big deal? >> no, i do believe it's a big deal. but there is a great gulf

between a big deal and greatest scandal in american history. i would rate what happened to john f. kennedy or actor shooting abraham lincoln. those were scandalous acts as well. neil: what they're saying enough here to make you question the wisdom of a probe into the president at all. i don't think you're refuting that part. do you think republicans hang their hats too much on this? >> when we use that kind of language, what has the potential of happening is that discredits at other times. this is very damaging document. the players that are involved in this. it may even see prosecution. at which point does it remove, or move from a bias to a wrongdoing. those questions are in play with the names and i believe there will be prosecution that comes out of this, but to be able to put all of our concerns with this entire investigation into this one document, 3 1/2 pages i would caution against that,

because there are more things that have transpired that are not necessarily included in this document i believe are damaging as well. neil: republicans given majority did not release a democratic memo. they said that was unfair. how do you feel about that? everything should be released ultimately let the american people decide for themselves service. >> sure. the democrats didn't even decide to even write a memo until this memo came about. in fact a lot of them had refused to even read the memo. the thing about the memo without getting into the specificities of it, neil, is that some of this isn't conjecture. some is listing what transpired. anytime the american government, the federal government can be more transparent to the citizens that is a good thing. we saw that as i served on house oversight, having put inspector general on the lois lerner emails. amazing how quickly sometimes

these igs can find stuff that democrats can not tell you where it has been. neil: do you think the president should in any way address this tonight, sir? the last president, my records, might be a little bit off track, richard nixon addressed the ongoing watergate investigation, started out state of the union address that year, saying nothing will come of it, he will serve out the interests of american people. eight months later resigned. i'm not comparing the two at all, you understand, but the president might be compelled to say something about it tonight? if you were advising him what would you say? >> i would stay away from it, hitting in passing, stay consistent with the message. i look for wart to the truth coming out, seeing how much i love this country. how much there was no interference. we'll continue to do what is best are to the american people. move on with all the great things that we've accomplished over this past legislative year. neil: do you think the president will on this memo want to get it out there right away, doing nothing, and gets out there five

or six days regardless? >> i think sometimes in marketing i think anticipation is as good what the product could be delivered. if i was him i would wait, let there be more attention focused on it because the memo is damaging and i believe it does show some overreach involvement by some of the players that, the names have been listed before regarding this investigation. neil: all right. congressman, thank you very much for taking the time. >> sure, neil, thank you. neil: a panel dipping into all of this. market craziness going on, we have sarah westwood, "washington examiner," white house reporter, sabrina schaefer here, the herald group vice president of public affairs, last but not least our charlie gasparino. sarah, the market backdrop for this, it is one day, it has been a very strong incredible market, but i did notice what has been around, it is getting undue attention in the media. >> exactly the president trump

owns the stock market on the way up. he will have to own it on the way down. that is always a risk for being cheerleader in the market. neil: this is a blip in scheme of things. another thing if it accelerates, right? >> exactly. all the outside attention he gives to the stock market versus previous presidents creates something of a bubble. but he has plenty of other good economic news he can tout in the state of the union speech that has nothing to do with the stock market. neil: sabrina one. backdrops he is referring to, economy itself, strength is picking up. all the companies sharing lower tax rates and sharinging bounty with workers, more than the white house thought. is that a big theme? >> absolutely should be. the stock market is one data point how the economy is doing overall. neil: talking about my life. >> he does have a lot of good news to fall back on terms of it the deregulation happened in the first year.

repealed parts of obamacare that should be significant. judicial nominees, all playing into the stock market rally. he can tout the fact that the stock market raised 5000 points first year, whether you like him or not. nothing to sneeze at. neil: you know on the markets not to get too caught up in the weed here, many would love a correction, right? >> of course. it is always a fool's game to be touting the stock market. when i see reporters with 25,000 hats on take it off immediately. markets go up and down. neil: what if they had a dow 26,000? >> that is really stupid. you don't get any credit when had at this times 26. you get a lot of negatives when it doesn't. here is the thing, stocks reflect corporate earnings, or what they price corporate earnings to be. corporate earnings will have to show that it is worth 26,000. until they do show that it is 26,000, it will come out in

dribs and drabs. neil: right. >> you might get this sort of selloff. at same time you have higher interest rates across the globe, not just the u.s. you have a competition for money. i don't think 2.75% on a long bond is something that really competes against dividends and stuff like that. neil: it could be reflection of improving environment. >> right. neil: he could turn that around to his favor and say interest rates are moving up because the world is moving up and i'm leading the moving up. that is his argument in davos. >> right. some people say that is the preview of economic argument he will make tonight. there are other things white house will focus on. consumer spending. consistent gdp growth that we've seen. enough convincing anecdotal evidence that workers are getting high every pay, beaupre newses because of the tax cuts. you will see the economic argument. >> if he is smart he will not mention the stock market. neil: or at least as much. one thing to say all i know people who poo-pooed my -- i don't think he will say poo-poo,

correct me but, might look at it and say for all those that thing $1000 is chump change or just crumbs, millions are going to be getting that, before they even see it in their own checks the next month. >> right, right. i think he also should tout some of the political civility people did not anticipate. usually stocks go up when there is political gridlock and washington doesn't interfere with the markets. neil: good point. >> the fact things are doing okay. the world has not fallen apart untrump. people still don't like him maybe but a lot of people come around to him. hey, look i'm reaching across the oil. there is a lot of work that has to get done on immigration for instance. this should be a good point for trump. neil: last year was not a state. union speech, joint session of congress speech he was praised for keeping it measured. >> the markets went up. neil: will he keep it measured? does he have to? >> i think he does. i think he should. i know a lot of traders are thinking we'll get a bounce because he will be very

measured. if he is smart he will emphasize the two things we heard about, immigration and deal for "the dreamers". infrastructure is another stimulus for the economy. neil: no one knows where he will get the money. >> from what i understand, some public-private thing. there is match for what you bring privately you get a match from the government. it will be an interesting lift to see -- neil: will democrats get on board with that. >> not in election year they don't want to do anything that could resemble a victory. in theory at beginning of last year it was itched that would bring republicans and democrats together. neil: now you never know. it could make both sides look good, couldn't it? >> i wonder if they, i think, they will, i think they will try to spin it as a gimmick, this whole public/private stuff, never works, never happens. you would be -- neil: we have history of doing it. >> really? when? >> skeptical republicans saying

where is the money coming from? neil: that is where he gets his argument from republicans. just on immigration thing he will have more resistance. >> i heard the freedom caucus guys who would be against more spending like the public/private thing. they are sold -- neil: 200 billion-dollar down payment on a trillion dollars is fine. where the money comes problem. higher gas tax. >> you could do that. i don't think higher taxes -- neil: you're right, charlie. >> i have to drive. right here. neil: a left here, for god's sakes. thank you all very, very much. david stockman of course has long been bemoaning republicans and democrats failing at the one crucial thing that is staring us like a anvil about to drop on our heads. it is called the dent and if the former budget director, the ronald reagan had to bring -- it is time we all pay. david stockman and that cockeyed

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>> the tax bill is really the dark cloud that hangs over the capitol. he sell it as middle class tax cut. 86 american middle class families will pay more in taxes as a result of this bill. neil: you know for the life of me i don't think a right or left position, i don't know where she gets 86 million will pay more. i assume she is talking 10-year horizon, five years, some credit 10. it is possible at that point it is more than they paid on fourth year, net-net, everybody 95% will pay less. the dark cloud for my next guest isn't who gets what, it is the fact we can't afford to do any of this, between tax cuts we can't pay for and spending we really can't pay for. both parties are complicit.

david stockman, former budget director, david, good to see you >> grad to be here. neil: the president should be crowing about the tax cuts, should he? >> absolutely not. he is in the midst of one of the most irresponsible spruce of spending, tax cutting and borrowing in recorded history. next year there is going to be a 1.2 trillion deficit, the 10th year of a recovery that at a point that will exceed any business cycle expansion we have ever had in history. it is bad enough when you have a huge trillion dollar deficit at the bottom of the recession, but after 10 years of recovery, that is all she wrote. we're heading for the next recession one of these days, an they're piling on the debt with red ink like no tomorrow. this tax cut should have been paid for with spending cuts, if you wanted to have it and they didn't do it. now at same time we have the fed

finally shutting down the printing press and they're going to be shrinking their balance sheet. so let me make the number very explicit. the treasury will be borrowing 1.2 trillion in the coming year. the fed will be selling bonds at 600 billion in the coming year. who is going to absorb the 1.8 trillion of new debt that will be flooding into the bond market? we're going to have a collision. the interest rate is heading towards 3% or more. that will totally undermine, this phony, fantastic stock market bubble we have. trump is making a drastic mistake by embracing the public he inherited, the impaired economy he inherited. he should get the playbook of ronald reagan out. ronald reagan blamed jimmy carter for three years for the mess he inherited. and didn't dare start bragging until 1984 when the economy was

back on a solid footing. trump is walking into a miserable trap that he is going to pay for dearly and the republicans. neil: all right. you know, you so upset people with that, that briefly our lights all when out, so, if you could just try to keep it on right side of somewhat cheery. you mentioned ronald reagan. they have been loathe to pounce on markets at any given time. reagan was particularly concerned about that this president has been saying, look what i got. media won't run with it. the media will run with it. you say that can come back to bite your heiny? >> of course. this is the craziest financial bubble we have ever had. this is suckers rally like never before. the stork market is trading, was, at a couple days ago, 26 times s&p 500 earnings.

worse, 150 times the russell 2000. these are not sustainable. this is crazy. the economy isn't taking off despite all the rhetoric from the republicans in the white house. neil: it's a little stronger, right? >> well, neil, i have to tell you in the first full year, fourth quarter to fourth quarter, the economy, real gdp grew at 2.5%. that is the same rate we've had over the last fur or five years. the problem is we're -- neil: you're including the fourth quarter of last, of year he have about, right? you're not. >> i'm starting with the fourth quarter quart of last year and going on year-to-year basis. there were many quarters in 2014 and 2015 where economy grew 3% on year-over-year basis. neil: you're not seeing any pick up in activity, we'll not see any pick up in activity with people getting bonus and extra hot money in their hands? >> no, tax cuts are being

borrowed. it is coming out of one side of the economy going into another. neil: what would bug you more, people borrow to spend or borrow to get tax cuts? >> they're both equally bad when you have a 21 trillion national debt that is -- neil: i would concure that. it is a little better money in american's hand they can spend. >> but that is the wrong decision. 10 years into a business cycle. this is 112 to 122, we've never been there before. longest business expansion in history is 118 months, that was in the 1990s, under far more propitious conditions. they're asking for a fiscal bloodlets like you have never seen before. when they get 1.2 trillion deficit at the top of a business expansion, you know, you're -- neil: let me ask you this. we got a lot of people when you come on, you obviously generate a good many emails. many favorable, many not. the ones who don't like it, he has been a crate banger.

always mr. negative. we can see why reagan took him out to the woodshed. one guy says he should have beaten the hell out of him. what do you think of that? >> they don't want to hear the truth. they have been living on borrowed time. neil: david, they say you've been doing this for years. you're always johnny-one-note doomer and gloomer. you say? >> fed made it possible by monetizing trillions of debts, buying all these bonds. that extended the shelf life of this crazy fiscal policy but the key thing is it's over. the fed has said we're done. they're shrinking their balance sheet beginning in october. they will shrinking at 600 billion rate. which means they're dumping bonds into the market. they're not buying the new debt of the treasury. the market is going to reset. interest rates are going to soar. the whole stock market -- neil: soar how much? how much?

>> between 3 and 4%, 300 and 400 basis points. neil: wait, wait. we're at 2.7 now on 10-year note. you see that getting up to 5.74, 6.74. >> it could go to 3%, 4%. a year ago in july it was 1.3. neil: i understand that. where do you see it going? back up to what? to 7? >> back up to 3 1/2% easy, 4%. 4 1/2%. this market will overshoot. neil: you realize even then that is historically low? >> it doesn't matter. compared to where the bond market was a year ago, anybody that owns these bonds, junk bonds priced off them, take 20, 30, 40% losses. when you have that much carnage in 100 billion-dollar, 100 trillion-dollar global bond market, all bets are off. this bubble is about ready to blow. and if trump has any sense whatsoever, he would get off

this bragging thing and start beating up an obama and the fed for delivering this mess to his doorstep. neil: well he is probably watching now. i'm sure he revising the speech. >> good. neil: david, always good seeing you my friend. thank you very, very much. to the point david mentioned, when you agree or disagree with some games they play on capitol hill, they're working on another continuing resolution to carry us past february 8th, the 6th such endings tension to keep the government lights on. daca, immigration, all that other stuff, but another cr, continuing resolution, just to keep going. imagine if you handle your bills that way, a few weeks at a time? that is what they're looking at now. continued coverage from our nation's capitol. the president's big speech ahead. the dow is down 339 points, that works out to 1.25%.

stay with us. you're watching "coast to coast"

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neil: the latest republican incumbent, big one at that, the house appropriations head, after serving two decade in congress, almost guaranteed election, re-election, one time after another, his family long steeped on capitol hill, he is stepping down. 32nd prominent republican to do so. they have big difficulty, republicans finding big names to replace the big names who are leaving. enter tim phillips with the americans for prosperity. he is their president. they're investing a lot in this election cycle. 60% more than in 2016 to help that out a little bit. so it is very good to have you, tim. could have been telegraphed. facing a tight raise, out raised by democrat opponent in largely safe republican district. what is going on here? how do you counter that?

>> it's a challenging environment but republicans need to do, to simply explain, i know our network will help do this, that the tax reforms, the tax cuts that are already helping literally millions of americans, neil, we talked about it on your program, with pay raises and bonuses and stock options and new job opportunities, they have to make sure americans are seeing benefits that are surely happening because of tax reform, because of the role back of regulations, really getting rid of some regulation. the administration deserves a lot of credit for that, congress too. they have to make sure they're explaining benefits to the american people and prosperity and opportune happening that is a key for them. it's a challenging environment. the party in powder -- neil: the koch brotherses are stepping up. a lot of republicans are getting nervous. some are worried about senate itself. are you? >> i think you have to look, look at history and the party in power can suffer big losses. republicans have a raise shore thin majority.

the map does favor republicans, neil, we both know that. that helps them, but -- neil: well the map favors you in the senate. the map favors you in the senate right you no. the house is anyone's guess to your point but where are you targeting? what states or districts are you targeting? >> basically the midwest and central part of the country, you have got districts across iowa pennsylvania, ohio, industrial belt, wisconsin, it has done so much better in the last year, year-and-a-half, economically. we want to make sure folks in those areas know that. a lot of suburban, exurban districts, neil, the atlanta race special was close one. a lot of suburban areas around northern virginia, where i live in georgia, atlanta, denver, those are areas. i'm telling you this is normal. it is historical. the party in power struggles in off year like this. their best way to victory to make sure americans are seeing

benefits of what they have done. on tax reform there are no bigger benefits happening right there, for folks enjoying a better life because of these tax cuts and tax reform. that is the best opportunity for them to hold on. neil: we'll watch closely. tim, thank you very much for taking the time. tim phillips. >> you bet. neil: joining us right now, it is a very hard backdrop to talk about stocks in the moment, always risky. this president will likely talk about the great improvement in the market. it depend on the environment, really depend on the environment. what will it be like for this president tonight? [ phone rings ] hey maya. hey! you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track, closer to home. we grew to a trillion dollars in assets under care by thinking about your goals as much as you do.

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♪ neil: welcome back, from the nation's capitol, where the president will give a state. union address. he did address a joints session of congress shortly after becoming president of the united states. that was not a state of the union. this is just another opportunity

following up on address widely praised at the time, kept it measured and focused. other issues dominating the theme shortly thereafter. that was then. this is now. a little selloff going on. karl rove, what is at stake for presidents when they have this venue? it is iconic moment. how do you think it is supposed to go, if you were to advise president trump, what would you tell him? >> well, my suspicion tonight is well at hand. this focuses white house. the run-up to this speech tonight has been, you know, there have been briefings about what he is going to say. there has been emphasis from the white house on his tone is going to be unity, cooperation, bipartisanship, focusing on the economy, boosting, touting results of the tax cut in his changes in his regulatory policy. but talking about the future.

tonight i think it will be pretty good. sound like it. what will really matter what happens in the days after, because if you're going to reset, you don't need to reset for one night. you better reset for a longer period of time. is he going to keep that same tone? is he going to keep that same emphasis? will show discipline in selling the tax cut to the american people and selling his economic program more broadly to the american people? >> you know, a lot has been made of overtures he will make to democrats on immigration plan, for the time-being seems to be raising, hackles more within his own party, conservatives within his own party than anyone else, but it is still early but a infrastructure plan, which democrats and republicans you would think could readily agree, at least to the broad features but in this environment, it is anyone's guess. what do you think? >> first of all it is more difficult than we think, the democrat approach is, let's take a bunch of money and spend it. the republican approach, the

trump approach appears to be more let's find ways to make it easier for the private sector to invest in the kind of infrastructure that mesh wants. there is philosophical disagreement there. you condition square some of those circles. you can, take some of the ref edges and sand them off, so you can find something but, it is going to be very important for the president from here till the election to stop tweeting things like crying chuck schumer and expect to turn around the next day to sit down across the table from him and arrive at a deal. people are people. the president of the united states is one person has to set the tone, not engage in that kind of activity in my mind if he wants to get things done. neil: i was noticing, karl, before going on the air, looking at other networks, not predisposed necessarily cover soaring stock market, but gosh darn it today, they certainly have been. i'm wondering, whether that hurts the president going into

tonight, because obviously stocks are up a heck of a lot, even with today's downdraft, when he took office. but that that is the danger of the aligning yourself to the markets, at least perceptionwise. >> look, markets go up, markets go down. got to be very careful, look, 52% of the american people, according to federal reserve, investment study, 51.9%, to be precise, americans own stock. but as professor ed wolfe at nyu points out, only 14% own it directly. they're investors in the market. the other 38% own it quote, indirectly through 401(k), ira or some kind of a retirement plan. so one out of every six americans is invested and looking at it day-to-day, making decisions and so forth. neil: right. >> everybody else is making contributions but is a little bit more distant from it. better to emphasize the thing that is going to happen with the tax cut which is virtually every

working american will see their paycheck be larger, and their companies will be doing better because we're making ourselves competitive on the international stage. so better to put the emphasis there i think, to he who lives by the market rise, dies by the market rise. better talk about the optimism we feel about the economy and growing sense of strength in our economy rather than touting you know, each day's rise in the s&p 500 index. neil: yeah, you're right. you're right. carl, always good seeing you, my friend, thank you very much. >> thank you, neil. appreciate it. neil: karl rove. to karl's point, focusing on stocks for a moment, if not for united health today, we would be down all of 239 points and 338 points. why that is, why so many key health industry players are feeling so sick. ♪

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>> welcome back to "cavuto: coast to coast." nicole petallides live on floor of the new york stock exchange. big board down 360 points. near session lows. stocks are weighed down by health care related stocks.

unitedhealth and dragginging about 10, 100 points off the dow jones industrial average. the big news is that amazon, berkshire hathaway, and jpmorgan, have agreed to team up on a health care venture. this venture is pressuring the group over all. they wanted to offer cheaper care to have more satisfaction and reduced cost. unitedhealth down 3.75%. express scripts 5.7%. cvs, aetna, down 4%, 2%. entire group is selling off. pharmacy benefit manage es, warren buffett one of the three companies here, talking about over 500,000 employees between the three of them. he noted that big picture here, the ballooning cost of health care acts as hungry tape worm on the american economy. the three together are putting together talented experts, technology, in order to move health care forward. back to you, neil. neil: thank you very, very much,

nicole. a doctor on the very subject says this is what the doctor ordered, welcomes this development on the part amazon, jpmorgan chase and berkshire hathaway. a doctor joins us now. you like this. why? >> i do. i think it is huge, mom you meant and anything that can have positive impact in the lives of my patients i'm all for it. three huge corpses are coming together to provide health care not just for employees but for their families. that has to be over a million people. but my concern is that the doctor as i want to make sure, i hope that the care that is provided to them is good, quality, care and it is affordable. on top of that, we want to make sure patients can access it easily. we wonder why do patients always go to the e.r. that are not emergent. they called their primary care doctor, they can't get in for two or three weeks. you can't wait for two or three weeks with strep throat or uti

or pneumonia. tough treated in a timely fashion. neil: doctor, i wonder whether you worry about this, what you hope for could come to reality. all are bottom line oriented, excess expensing that is rampant in the health care industry. some are fearing this sort of private company alternative to dealing with medical, you know ailments and the costs therein, a lot of these companies are addressing their own rocketing health care costs they could even be tougher, what do you think? >> you know what? i have to say i don't agree because, neil, you know, one of the statements that they said this will be an initiative that is free from profit-making incentives and constraints. that is it why i like it so much. you know, if, they are already billionaires. warren buffett is already a billionaire. is he out to make extra buck? if you make employees and happy and healthy they will work

harder for you. richard branson, one of the best advice he ever gave, take care of your employees. a step in the right direction, aca are failing. costs are astronomical. patients right now, they can't afford their premiums, their deductible as and co-pays. it is just a disaster right now. we don't know what the future holds with medicare and medicaid may go bankrupt. it is very good they're proactive, taking initiatives. trying to do something to benefit their employees. neil: if i could switch gear as little bit, doctor, up has been written about the particularly virulent flu season. record number of deaths among young people i guess is something that we typically don't see. what is going on? what can you tell us? what do we do, that sort of thing? >> you know the rise of the flu and impact that it has on my patients, i saw 47 patients yesterday. neil: wow. >> about 30 of them who i

diagnosed with either influenza a or influenza b. some had asthma. some were pregnant. it was so important for me to treat them immediately. some are higher risk of complications. for example, many of my patients who had asthma, they tell me they didn't get their flu shots. i had to kindly counsel, educate them. you're at higher risk of complications especially if you have asthma, end up catching the flu, or if you're pregnant you're at higher risk of catching the flu. it is wild and rampant right now. it is spreading like wildfire. most important things we can do to protect ourselves, number one, get your flu shot. doesn't matter if it is 10% effective or 30%. neil: not too late to do that? >> absolutely not. i'm still administering flu shots where i work right now. but also in addition to the flu shot, keep your hand washed and clean. stay hydrated. avoid rubbing your ice, avoid rubbing your nose. get plenty of rest. get a well balanced diet.

neil: 47 patients. you're a busy doctor. >> i love taking care of patients. good to see you, neil. neil: doctor, thank you very, very much. president's speech just what the doctor ordered, democrats skipping a dozen of them, saying a waste of time on their part. a former prominent figure in this town who says you know what? that is sending wrong signal to your constituents. the dow sending a selling signal here. down 346 points right now. for all the fuss for this, 1.3%, over yesterday, two days. far less than 1.75%. just putting in perspective. we'll have more after this. :

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. neil: welcome back, everybody. the dow down about 350 points. in and out of that level for a while right now. a lot of this has been undue attention on united health. we'll get to that in a second. energy has not been a big help here. energy a disproportionate contributor in the dow and the s&p 500 and all energy taking it on the chin right now. that is contributing to the sell-off. i mentioned health before in this competition from the likes of amazon, jpmorgan chase, berkshire hathaway. those insurance guys don't like it, and obviously, they are also disproportionate figures in the markets themselves. this all at a time when interest rates are backing up. again, you have to put this in perspective. with the yield at a 10-year at

10.72%. i think that's what my wife and i paid for a day for a mortgage in the 80s. what you get used to. and we got used to much, much lower rates than that. the half full glass is a sign of improving economy. the half empty glass is yeah, we like the cheap rates. how long can that continue? it's a jump ball for everybody tonight ahead of the state of the union and a lot of pressure on the president of the united states to rally everyone in that building behind me, behind big initiatives like immigration and infrastructure, lot of things being planned. adam shapiro handicapping it all right there. reporter: there's a lot we expect to hear from the president. we expect to hear him talk about the accomplishments of 2017. tax reform which is clearly historic. a booming economy with the stock market up, and unemployment at historic low. we haven't seen unemployment this low in 17 years. those are the accomplishments

going forward. there's going to be discussions about infrastructure and the one trillion possibly even $1.7 trillion plan over ten years that the president is hoping to outline, and there's also going to be a discussion of immigration reform. but the democrats who will be attending are bringing as a sign maybe you could say the demonstration attention are bringing dreamers to the event because they're allowed to invite a guest. to show their support for the dreamers and democrats who are going boycott. 12 will not attend the state of the union, frederica wilson, the congressman from florida who got into it with the president. maxine waters, barbara lee, some of the democrats who are not going to attend. there is concern there might be protests during the speech but kevin mccarthy, leader in the house, the republican leader, says that's mostly unlikely and calls it a sign of disrespect. if it did happen, here's what

he told us. >> i would think they'd be very disrespectful. i wouldn't support that during a time when president obama was, in i wouldn't support it now. i think our country is better than that. i don't think tonight is the night to play political games okay,ates night to listen and pay respect. reporter: to sum it up, at the state of the union, we expect the president to say the state of the union is strong. back to you, neil. neil: thank you, buddy, very, very much. adam shapiro. news out of some of the democrats including nancy pelosi, who is apparently telling house democrats to play nice during the president's state of the union speech and allow trump to be, in her words, his slobbering self. there we go. want to get reaction to all of that from the former governor, the former senator from the pine state of virginia. george allen. good to see you, sir? >> good to be with you, sir. >> allow president trump to be his slobbering self. >> political posturing, the same with the members who don't show up. neil: what do you say?

dozen strong not showing up? >> they get to be on tv. here's the dozen. if there's 14, i don't think anybody would pay attention to them. listen, cheer for the things you like and be quiet for the things you don't like. neil: remember when they said you lie and all that, there's a difference between that and skipping out. whatever happened to decorum. >> you should have decorum. heck, when i was governor, there was such fractiousness in the legislature, i had to give it the state of commonwealth address from my office. neil: is that right? >> you get the message out anyway. the president's message is the county is on the right track, investment's up, jobs are up. the manufacturers association, optimism survey is the highest it's ever been and he's going to say here's where we're on the right track. this is where there's going to be benefits for people who are already feeling it from the tax cuts. neil: of course, you heard what democrats said including nancy

pelosi on the tax cuts that it's chump change, it doesn't really add up. how do you think he responds to that? >> the response from anybody that gets a thousand dollars more a year, that's real money. that's going to help the family. maybe they'll pay down debt, put it towards child's college tuition. neil: his support for that has actually risen, more americans do like what they hear. it could boomerang on democrats. >> i think so, the message is this is all for the wealthy, usually class far fare rhetoric from the democrats. i said what people care about the most in this, most say yes, we're going to be more competitive with corporate tax rates, rather than the worst highs, we're going to get better than average. am i paying more or less in taxes? as people see the bottom line they're paying less in taxes, they keep more of what they earn, they're going to say this is good, i like this. neil: yeah, do you think the president should mention, we're at session lows now.

the dow down about 400. still up a lot more than down. that is the risk when you allow yourself to the markets, they can go up and down. >> people look at 401(k) and not look at it -- people can follow this hour-by-hour, moment by moment and watch fox business to get the scoreboard, but i think they're going to look at their monthly reports, year end reports, they're looking at 2017s fiscal year or calendar 2017 and say look at the gains i've had in my portfolio, the 401(k) or -- neil: the bigger picture is we're doing better, we're financially more healthy. the economy is rebounding. >> right. neil: these are the themes that the president should pounce on, right? >> right. because of the tax cuts, because of the regulatory reform. it is because of productive energy policies that americans are working. our businesses are more internationally competitive, and all of that's great. and then this president's not

one who just going to rest on that. neil: what do you think is going in your beautiful state of virginia. a 50-50 split, more democrats seizing the momentum. i told you about my congressman, house main stay, house appropriations committee chairman stepping down. something is going here? >> well, the other side, the resistance movement does have a lot of -- i'll say this, they have a lot of enthusiasm on that side. once we get to the elections this fall in november. i think things will be different because people see the economy and how it's affecting their lives. there are people who obsess over president trump's style. they're not used to new york city style and manners. >> do you think he's approval would be a lot higher if it were not for that style? >> i think when he's overseas and being presidential, when he's talking issue abouts that matter to people and not distractions, i think people like that. neil: okay. >> and i think that's important, and i think the

state of the union address is an ability for him to rise to the issues that all the american people care about because he wants to unify this country, make us more competitive. make america great again. neil: tonight is that moment. >> and i think he can unify the country behind it and stick to that message. neil: we shall see. governor, very good seeing you. as the governor and i were speaking we ticked down a little more. nothing to do with the fine governor, almost down 400 points. gerri willis, what's going on here? reporter: here's what i see and people should pay attention. you look at what's going on, the downturn in the market, we're not down 2%. we're down 394 points and at one point in time, that was a very big number. the reality is not anymore. it's only 1.74 percentage points. look, take a intreth here, this is not a huge change. when you look how far we've come this month alone, the biggest gain in seven years,

what were you expecting, we would go to the moon? you have to be realistic in your expectations and you know, this isn't a time necessarily to sit on your hands, you have to listen to what the market's saying, one interesting thing talked about this morning is health care announcement, right? from some of the biggest investment countries in the company. amazon, berkshire hathaway, jpmorgan chase, saying they're going to get together to find a solution to what's going on in health care, they have no details, and yet health care stocks are selling off. you showed united healthcare down 5%. here's what i see happening right now. people a little on edge, they are shooting first and asking questions later. we have no idea what this effort might encompass. neil: it wouldn't be the first time that's happened. keith fitz-gerald, another factor interest rates, backing up to a level we've not seen in a couple years, but again, i can remember a lot higher rates but what you get used to. is there a point which you

think investors say given the volatility, i'd rather be in the safe haven, guaranteed by uncle sam, protection of the bond market? >> i think that's a very valid question. i think gerri makes important points. what's happening, people forget, neil, today in contrast to the markets we grew up with are highly computerized. huge computerized arbitrage programs, making interest rates and correlating adjustments in stock prices. factor in the jpmorgan chase-berkshire hathaway announcement, fact norenergy policy, factor in tax reform. it's natural and normal that the markets have the sell-off before they move higher. neil: when you say sell-off before they move higher, a lot of technicians will be grateful for a 5% correction, one we haven't had in years, forget the 10% we haven't had a lot more years. what would you want to see as far as healthy cleansing, whatever they call that? >> well, you know, it's important, you think like a

plumber. little water can do damage if you are not careful. 3-5% would clean the pipes, shake the easy money out of the trees and give investors a solid footing upon which to build the next leg higher. is the selling going to accelerate? it's more extreme than i'd bet on when markets open, but i'm not overly concerned, either. neil: thank you very, very much. the dow down about 368 point why? art laffer says the trend is our friend, and the tax cuts are friendly indeed. after this. you know what they say about the early bird...

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. neil: you don't think we're seeing any pickup in negativity with all these people getting bonuses and extra money in their hot little hands? >> i don't think so, one, all the tax cuts are being borrowed, so it's coming out of one side of the economy and going into another.

neil: what would bug you more, then, if people had to borrow to spend or borrow to get tax cuts? >> they're both equally bad when have you $21 trillion national debt. neil: i wouldn't concur that, i think it's better when it's american money in americans' hands that they can spend? >> it's the wrong decision. neil: david stockman, ronald reagan's former budget director not a fan of what's going on today. the dow down close to 400 points, the biggest sell-off since june 2016, interest rates backing up today to levels we've not seen or a hit we've not seen in the better part of four years. the read on all of that and whether markets are getting nervous and whether the nervousness is justified with art laffer, he joins us right now. art, there's a former top reagan lieutenant, who is saying i'm worried. you're not worried. what do you make of what he is saying? >> the same thing i said when

he said the remarks about reagan, that he thought it was wrong to do tax cuts back then. he was wrong then, he is wrong now. every now and then when there's a downturn, the doom sayers turn out to be right. right now there are no conditions in the u.s. economy that would warrant a big, big sell-off and downturn in the economy. the tax cuts are great. it will lead to expansion of employment and production. there was a slight dip in the fourth quarter, neil, because people were anticipating the tax cuts and shifted income into the first quarter of next year, but unless the weak dollar which is my one concern, you can't have a strong economy without a strong currency. the weak dollar is the one concern, but it's not overwhelming right now, and i would hope that the dollar would reverse direction and rise and interest rates fall as a result. neil: yeah, we can't tell on day to day, the networks followed on the dow's inexorable rise, certainly

focusing on it today. president will use obviously the markets prior to today, last couple of days as a backdrop for improving economy, better earnings, lot of them are sharing the wealth, corporate tax cut with workers. you know, nancy pelosi has already indicated that democrats should behave, obviously, addressing the dozen or so who aren't attending tonight, they should at least watch their own p's and q's, what do you think of that? >> that's correct. there's no reason for the nasty downtalking stuff that goes on. it makes no sense whatsoever. i went to see the sotu when president obama was president. it was a fine speech. you never treat opposition badly, treat them with respect and dignity. neil: what do you think when somebody wills, remember joe wilson, you lie! but at least he was there. >> i wouldn't make that point.

neil: nancy pelosi was half hearted in her phrase, allow president trump to be his, quote, slobbering self. what do you make of that? >> why should she say something like that. slobbering self is not something to say. treating the president with that disrespect makes no sense. treating obama with disrespect makes no sense. i never said nasty things about obama, i disagreed with his policies. frankly no upside to being nasty. >> the president will be talking more bipartisanship tonight, we're told one on immigration, another on infrastructure. infrastructure would be big spending initiative, as you know. >> yeah. neil: the dirty little details are finding out how you pay for that, and we're hearing talk of a $200 million commitment on the part of the federal government that could be leveraged off by private enterprises, part of that might add a hike in the federal gas tax, what do you make of that? >> good federal spending on highways and infrastructure and

all of that stuff that's productive and not a bridge to nowhere. there is a good case to be made for infrastructure spending. i'm not that terribly worried about the 200 billion, the increase in wealth in the last year and a half years is largely better than 200 billion. i think we can afford this right now and get the infrastructure there to create the jobs, output employment. it will pay for all of the jobs, if not itself. neil: one of the key points, he mentioned this before, but said i've been talking about this for years, there is a day of reckoning coming, the piling on debt that neither party addresses is still out there. what do you say to that? >> it's incorrect, there's no day of reckoning. the amount of national debt is higher, that's very true, but it's not a day of reckoning. if we get this with president trump's tax plan, you will get

the growth. you'll see debt as a share of gdp decline for two reasons, number one, you will see gdp grow faster, as much as 4% or so but you will see revenues picking up and therefore the deficit declining or increasing slower and the two together will lead to a sharp fall in debt as a share of gdp which is really what you want. you want to bring it down to the levels of ten years ago. neil: all right, the good old days. >> the good old days, i think we can do that. we can do it easily with good policies and without screaming. neil: yeah, without screaming. what do you mean without screaming! >> i don't know, i don't know! >> the word has gone out to a number of democrats to behave tonight, no less than nancy pelosi urging that. how joe crowley feels on that? house democratic caucus chairman how he will receive the president of the united states tonight. while a dozen in his party are opting not to even come to the big event. we're live from washington.

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. neil: all right, welcome back, everybody. we have a big sell-off going here. 1 1/2 percentage points in and out of session lows. five stocks disproportionately accounting for this, united health, mcdonald's, goldman sachs, boeing and 3m company and at least three of the companies have reported better-than-expected numbers. that doesn't seem to matter. they're all getting caught up in the same downdraft on the health side. competition that could be forming on the private front with the likes of amazon and jpmorgan chase and berkshire hathaway. that has been hitting united health which was accounting for 100 points of the sell-off, a little less. right now interest rates backing up as well to roughly the highest level in close to

four years, so that's some of the noise to all of this, just curious as to whether this influences the writing on the president's speech. of course, the president ahead of the state of the union address was expected, probably is still expected to talk about the improving markets, prior to today, yesterday, they have been sizzling and soaring. john deckert might no, white house news correspondent. do you know if there is any tinkering given the market developments today? >> i doubt very much they will focus on the developments of today with the dow and the nasdaq, with that being said, the president is going to talk about the booming economy, what's taking place over the course of the past year and many of our viewers right now, they can tell in the sense that their 401(k) has been either mailed to them or gotten online and see how 401(k)'s improved tremendously over the past year. neil: lot of political drama in

washington, you've been reporting on it. we had congressman allen on the back and forth as to the setup of the investigation of donald trump, he said republicans should be careful about going too far with this. i want you to react to this, congressman meckler. >> to be able to put all of our concerns with this entire investigation into this one document, 3 1/2 pages, i would caution against that because there are more things that have transpired that are not necessarily including this document that i believe are damaging as well. neil: do you think the president will, on this memo, want to get it out there right away or do nothing and it gets out there in five to six days, regardless? >> i think sometimes in marketing, i think the anticipation is as good as what the product can be delivered. if i was him, i would wait, let there be more attention focused on it, the memo is damaging, and i believe it does show some overreach involvement by some

of the players that the names have been listed before this investigation. neil: that was mark walker, how is this going to all fallout, jon? reporter: within the next few days, the president is going to give a green light to release this memo, based upon conversations that he's had with the fbi director, with the acting person involved at the justice department, rod rosenstein, heavily redacted. so this will see the light of day. we will see it. rank-and-file republicans will see the contents of this memo and all judge for ourselves whether all this hullabaloo was worth it or damaging information as it relates to the fbi's investigation and a possible bias against president trump in that investigation. neil: all right, jon decker, thank you very much my friend on all the breaking news, the dow down about 393 points. want to get the read of things from new york democrat joe crowley. house caucus chairman.

good to see you, thank you for taking the time. >> good to be with you. neil: nancy pelosi wants democrats to behave tonight. what did she mean? >> well, i think what she's saying is there's a decorum of the house, that we as all members, democrats and republicans should abide by there. was responsibility we have to bear witness to what this president says today, not necessarily a cheering section but one respectful to the officer of the presidency. neil: still, she did add, allow president trump to be his slobbering self. was that nice? >> listen, i think the reality is what she's doing is communicating to our members, that regardless what you may feel about the president himself, we all have deep feelings about this president, that we should not let them overcome us and we should act appropriately on the floor of the house of representatives. doesn't mean we have to clap at everything he says. doesn't mean we have to stand at everything he says, we should show that decorum.

neil: a dozen of your colleagues, sir, are not attending, citing a variety of reasons from his famous s-hole comment and everything else, so they opted not to be there. others have criticized them for denying those constituents they represent, an opportunity to have some influence in the debate and in the night, what do you say? >> well, i respect each and every member's right not to attend if they so choose to do that. they're making a statement in and of itself that they have lost all confidence in this president and his ability to lead the american people. i understand. that but i also think i as elected member of the house democratic leadership to be there and vociferously disagree with him post speech and relay those thoughts as well. neil: you know, apparently, chuck schumer has given the president some advice for his speech tonight to thank president obama presumably for the economy he inherited.

what do you say? >> i think, look, no question we've had tremendous growth. not just this past year but growing steadily ever since. the economy has been heating up and we know it's heating up more now, so i think it would actually give the president some credibility if he actually acknowledged that the economy was improving all along. we had 80+ months of job growth in this country prior to him taking office. it would inure to his benefit if he acknowledged that. neil: do you think that nancy pelosi and some other democrats, i don't believe you were in this group, sir, maybe you can remind me, critical of the president's tax cuts for whatever reason. the key pitch is a thousand dollars the companies are handing out in bonuses is chump change or a waste of time or it really doesn't add up to much. a lot of people are saying this sounds very elitist. what do you think? >> i don't think a thousand dollars is chump change to somebody making $40,000.

where i do question this is whether or not those bonuses were planned regardless of the passage. tax bill. neil: you don't think they would have handed them out without it, do you? >> hard to say. we won't know. neil: half of them have indicated tax cuts are the reason. >> we'll take them at their word. the tax benefits for individuals end in about five years, whereas for the corporations themselves they are permanent. it's nice they're doing this year. what will they do next year or the year after that, or seven or eight years, those are the questions. >> you come from a high-tax state, new york, that's a big concern for states like new york and new jersey, connecticut. the three governors pitched together to sue the government over this, that it's illegal what they did. >> right. neil: i don't know if that's going to go anywhere, but there is a move afoot now to question

whether that was a deliberate move on the part of the president. do you think that was a deliberate move to go after big blue states? >> i don't think there's any question about that. ever since the beginning of the debate on this issue and the exclusion of the democrats entirely certainly in the house of representatives. the one thing, neil, that remained true, no matter what was paid for or not, even when the president announced his initial bill of a $4 trillion package, nothing was paid for except for the state and local taxes, revisions of that proposal. it's been a part of the republican proposal. you can see where it does pit blue state versus red state, and i think upstate middle class voters and downstate middle class voters in new york city, does pit them against each other. neil: i know you worried about the dow, you stand out from colleagues, sounds rich when i hear democrats talking about paying for things. 1 1/2 trillion in tax cuts is one thing, you are quite right. but 10 trillion in added debt,

traditional spending and not many of the colleagues are complaining about that? >> i think democrats and republicans have seen a rise in the debt certainly during the bush administration and this dmrgz it with a $1.5 trillion investment in tax cuts. we can argue about this. 80% does go to the wealthiest 1% in the nation and the wealthiest countries in the history of the world. neil: if they're sharing the loot and thousand dollars, thousand dollars, $2500, $1500. chrysler fiat, better than nothing. >> if that continues year after year, we have an argument. i don't hear that in the 10% plan of the companies. the nation has done further into debt and that was no money to spend on infrastructure. there is nothing left. neil: we were 10 trillion further in the debt the last go-around, right? >> we went into a deep recession after president bush left office and there was a lot of things going on, we need to stimulate this economy and i

think a great deal was done to create 80 straight months of job growth and seeing the benefits of that now. neil: congressman crowley, i know you have a busy day, be well. i don't know if you can hear, this it's very windy, and it was fine before i came up to this set. it was fine. i'm just saying. the dow down 390 points. we'll have more after this. hi, i'm the internet! you know what's difficult?

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. neil: all right, as if apple didn't have enough headaches on a day that stock is getting creamed on indication that iphone x might not be the big hit it hoped it might be, curtailing production to about 20 million from 40 million phones. fact of the matter is anyone selling 20 million of anything

is great news. this is not. the u.s. is probing apple over those slower older phones that the company, i'm old, deliberately slowed down, people say it's a cynical maneuver to get you to buy the next phone. now uncle sam is looking into it. can't be good. the stream of steady stocks, the dow down about 360.5 points, the backdrop ahead of the president's state of the union address despite the sell-off is seeing the markets appreciate quite a bit under his stewardship. how much he devotes to that, jon decker says, he's not going to change the theme that the markets are still up over that, but republicans are getting worried. we talked earlier today saying the investments like the koch brothers and others to hang onto the house and the senate, they're investing a lot of money in this at a time when the latest republican heavyweight out of new jersey, the house appropriations chief

indicated he is going to step down. i believe the 32nd such prominent republican to indicate he's leaving town. and the issue of how appealing existing candidates are, senator ted cruz bemoaning in a memo, he was outraged by opponents and wants to get on the fund-raising stick, the trend not looking good financially, but because a lot of his opponents particularly on the democratic side are embolden to kick him out and this is a priority year to do just that, the senator ted cruz into. this number, political and otherwise, we have dagen mcdowell, mark lauder, former press secretary to mike pence and andrew feldman, democratic strategist. you get the clear sense republicans are responding to what they see as democrats seeing blood in the water here. >> look, if i'm a republican, i'm pretty nervous right now. the generic ballot has

democrats up 8 points, this is not corporate money that the democrats are getting, right? this is grassroots momentum. that's what's happening, we saw this in the races in 2017, seen it in special elections like alabama. neil: this is the time it comes out in a midterm, right? you get that angry. >> absolutely. i do think that the turnout, what we're feeling right now is going to be exceptionally high across the country for democrats, i'm confident it's democrat because what donald trump has been doing, and all the republican congress members who have been lock step with him have not helped the middle class at all. neil: one could argue that tax cuts didn't hurt -- >> i'll argue it too, people have been tweeting me today the as we move into the month of february, this is when people see more money in their paychecks, and they are, 90% of workers get on keep more of their own money and see their paychecks get bigger as we move into the month. number one, i think that republicans do need to be worried about taking a decent

economy for granted. you have incredible grassroots operations with o'rourke outraising in the last few months. the democratic campaign committee raised a record amount more than $105 million. that's why the folks kept nancy pelosi around. she might not understand the value of a thousand dollars but can raise money. neil: the issue is how do they turn the tax cuts to their favor, there does seem to be a sense, despite the critics that americans have grown to like, it they particularly like the bonus talk, they probably like seeing it in text, but is it enough. >> on the money side, we've got a two-to-one advantage in terms of republican fund-raising, in terms of the rnc and the campaign caucus. neil: where is all this money going? is it going to prioritize the house? i'm told a lot of the money is earmarked for the senate?

>> you've got a lot on both sides, congressional and senate committees, you are right. people have more money in pocketbooks, looking the fact we are decimating isis, that's what you hear the president talk about tonight. neil: he's shaking his head. >> somebody just told me a joke, i said how are the republicans going to do in the midterms? this is a republican who told me this joke, he said, well, as long as there aren't any suburbs or women in their districts, they'll do just fine. >> or any minorities, right? look at poll yesterday from reuters. nearly 60% of americans say this tax bill benefitted corporations and the ultrawhip. neil: and here's the thing about the -- buffer were born, young man, i should point out the ronald reagan taxes were similarly ripped apart, americans started seeing it thechlts i don't know if it's going to follow the same trajectory. >> if donald trump has anything to do with it, it won't.

>> you want to make the tax cuts about wall street, they're about walmart. when people are working there, shopping, there getting raises and bonuses. neil: the american public has had a hard time selling it. >> they'll start investing in it. >> this isn't going to raise taxes on some of the lowest -- >> when they expire! i'm so sick of that logic! because budget rules they had to stick to when they passed the dog gone thing, if you gave a damn about the average person in this country, the democrats would have gotten on board. >> really, really? >> when you go to the electorate here in november in the coming years, the answer is if you want to keep the tax cuts, don't elect democrats. neil: the bottom line is we can't tell what the future will be. i will say in history, if it's any suggestion, it defies whatever moment you are living

in. republicans are in deep trouble, i remember in the 2016 election it was donald trump going no where. you should be careful about seizing on something you think is a given. >> this isn't just about tax cuts, this is about a moral compass we're talking about in this country. republicans right now are willing to shut down the government because they don't want to shut down the government. >> because you guys will not allow people -- wait a minute, you don't think the democrats forced the last shutdown, for whatever reason, perfectly valid but that was a democrat shutdown. >> no, no, no, this was an absolutely trump shutdown because he would not work with the -- >> nancy pelosi let her keep talking about the little pathetic crumbs that are the thousand dollars given to more than three million americans. let her keep talking about the little pieces of cheese for the average people. >> i don't think a thousand dollars is crumbs, what you

can't answer is how do we know that the tax breaks or bonuses at the end of the year, weren't given at every holiday period by the companies. this is called a great pr move. neil: have you followed all of the companies? >> of course i have. neil: all of the workers, they've never done anything like this? >> all of the companies doing this are laying off workers at the same time. neil: i've never seen anything like it in history, ever! ever, ever, ever! >> you have to admit this is a good pr move. neil: i don't care about motivation. >> tax cuts that more than 80% of the people in the country are going to pay less to the federal government who misalcase their own money. not just about the bonuses. >> a one-time bonus, why don't you give the hard workers a thousand dollar raise. >> why don't you flush it document royal toilet.

>> you are going to hear the president talk about the daca issue and democratic terms. neil: so glad we spent this time together. almost 49 minutes after the hour. the dow down about 354 points. for all this arguing, chopped 50 points off the sell-off. more after this.

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. neil: all right, do you guys remember the whole dustup over apple and slowing down its phones? now the government is looking into this, and the stock which has been buffeted by concerns that maybe the iphone 10 wasn't hit it was supposed to be and selling half the phone or producing half the phones than was the case. a lot of people would die for the kind of return it's had and sell 20 million of anything, that is half of what people thought and what apple we are told was planning to do, as it sends out the orders to cut back a little bit. more than a little bit. in half. john corpina follows this at meridian equity partners. john, with the investigation that the feds are sniffing around, that can't be good? >> can't be good.

where there's smoke, there's fire, this is something we talked about and heard chattering about for sometime. you talk about the stock performance and what it's done and seeing the last few sessions, yes, it has a tremendous momentum behind it. seen about 10 points pared off of it over the last five trading sessions. i think people expect a lot out of apple. put in a whole different category. neil: absolutely. >> and from small investors to large investors, it's a household name, people can understand the product. to see this headline, it's clearly alarming. >> virtually all the major sectors are getting hit and hit hard, some say too much, some would argue the run-up prior it too much for all the hand wringing down, down 1.5 to 1.6% over the last two days, many are thirsting for a flushing out. a 5% correction, we're a long way from that. what do you make of all that? >> look at this from where the market has gone in the last

month, up 5.5%. markets can't go one way, whether it's one way up or one way down. you need volatility to have healthy markets. pullbacks are going to happen. we cannot be too surprised when it does happen. kind of interesting just the activity we're going to see this week, pullback yesterday, sell-off today. state of the union tonight. we get to the end of the month, unemployment numbers out at the end of the week, clearly a lot going into the pot here that's causing the market activity. neil: how much of the president's performance tonight weigh in even on the short-term basis for you as an investor? >> i think it definitely plays in, if you look back to last february at his last state of the union address, we had a 1% move to the upside afterwards. this is a self-evaluation, look what i've done and look what i'm going to do and look what i want to accomplish. so i think the message that we're going to get tonight is clearly a pat on the back, based off of all the economic data we've seen in the

corporate buybacks and the money that large corporations are infusing back into the economy and back into employees' pockets. i think the market is just going to feel good after this. neil: thank you, my friend, very, very much. >> thank you. neil: speak of the president, two hints what he might say tonight, i want to see our country united, it was divided, not just under president obama, president bush. i remember the impeachment of bill clinton. he goes onto say, unity will be everything. more after this.

. . . . at happened? i got a little over-confident on a moped. even with insurance, we had to dip into our 401(k) so it set us back a little bit. sometimes you don't have a choice. but it doesn't mean you can't get back on track. great. yeah, great. i'd like to go back to bermuda. i hear it's nice. yeah, i'd like to see it. no judgment. just guidance. td ameritrade.

neil: that will do it for couple busy hours. the dow down 351 points. i take you to trish regan. trish: indeed. we're live here at the nation's capitol. in just hours president trump will deliver his first state of the union address. he will tout the strength of our economy, the republican tax bill, encouraging lawmakers to work together to pass an america first agenda. a very big day this, is happening as we see a major selloff on wall street. the dow down 344, sitting near the lows of the session. what is fueling this? we'll talk all about it. i'm trish regan, welcome to a special edition of "the intelligence report" live from the nation's capitol. breaking overnight the h