are back to 20000. i have to believe there's a connection between this memo and the sharp decline in prices. now we are down 400 and still falling. neil caputo, it's your. >> thank you. remember there were a number of republicans who were against the release of this memo. whatever you say, congressman, the republican of pennsylvania said the better part would not be released, it would just feed a political narrative. jeff flake agreed with that sentiment saying releasing it wrist undermining the u.s. intelligence gathering efforts are you have a battle back and forth between that campus ed sure there is a need for all that and another camp said this is not disinfectant, it just stinks up the place, pick your poison. that's a quick read.

the details will start to get very fast. that is on. the employment report that got people talking about much higher interest rates is happening as well. we will get all of that but first to adam shapiro on capitol hill with the latest on the memo. what it is revealing right now. >> we are waiting for the house intelligence committee to post the memo. it has received in the white house has transmitted the memo back to the house intelligence along with the letter of the presidency classifying it. we know there are some bullet points as we discussed. that will be elaborated within this memo, such as that testimony from a high ranking government official and it was used with the fisa court. there is also the problem that

we wrote it, fusion gps, according to the court records, about the contents of this and that it was shared with the fisa court smb evidence for getting the warrants. also, christopher steele, man from british intelligence, former spy who wrote it actually had some kind of animosity for canada and president trump and the fact that the fusion gps as well as bruce or who works at the justice department continued to supply information to the justice department about the dossier, remembering that his wife was hired by fusion gps which created the dossier so, where does all this go? president trump, regarding the

release of this memo had said that what has taken place is a disgrace. this morning, he tweeted the top leadership and investigators of the fbi and the justice department. here he is right now. >> all right. we're waiting to hear from president trump. this is a meeting he is having with north korean defenders. he has already let it be known with the release of this memo that those involved should be ashamed of themselves. the president with these defectors, no doubt might be bouncing on these developments but he was very much for releasing this even though the fbi was not. he might talk about it in this meeting. >> thank you very much everybody. thank you. >> i think it's terrible. i think it's a disgrace, what's going on in this country, i think it's a disgrace for the memo was sent to congress, it was the pacified and they will do whatever they are going to do

but i think it's a disgrace with happening in our country. when you look at that and you see that so many other things, what's going on, a lot of people should be ashamed of themselves and much worse than that. i sent it over to congress and they will do what they are going to do, whatever they do is fine. it was declassified. let's see what happens. a lot of people should be ashamed. thank you very much. >> thank you very much. [inaudible] you figure that one out. i don't think so. these are great people that have suffered incredibly. there were any many others like them that have suffered so much and they were here and i said that tell your story very quickly. we have others that i really petrified to be here.

we are doing a lot. we've done more, we have many administrations that should have acted on long time ago. it wasn't that this kind of position, we iran out of room you know the expression, the road really ended. they could've done 12 years ago, the group tenant 20 years ago, the group tenant four years ago in two years ago. we have no road left we will see what happens. in the meantime we will get through the olympics and maybe something good can come out of it. who knows. thank you very much everybody very much. memo and the republis

who wrote it say it shows sort of a trump down to go after the campaign in the summer of 2016. a lot of people should be ashamed, the president said. he tweeted earlier that the fbi and the justice department politicized the sacred process in favor of democrats and republicans so obviously you know if he can compare the fbi director warned against releasing the thing it would be more limited. there have been some concern expressed that might be inclined to resign this weekend. no indication that that's been weighing on the markets stronger-than-expected. we will get the details of the report shortly. this ongoing concern that this just accelerates the back-and-forth with the ongoing investigations with the fbi into the jump campaign and later the administration. a lot of plain old confusion.

there were a number of republicans who were against the release of this memo today i told you about charlie, the republican of pennsylvania said given this moment and at this time, now might not be the time to do it. john yesterday indicated in leadership should be shared with intelligence figures first. indicated a perfect of assigning and jeff flake who has been on record for quite some time that sharing the stuff, undermining the u.s. intelligence gathering efforts and devin nunes said that by ignoring these requests for information repeatedly, it was the fbi that got us into this and forced our hand. pick your poison, the markets are selling off on a host of other factors. bottom line down 379 points for the worst single day we've seen in about a year.

allen, you, this is all may be an ample excuse to sell after a run out. what's going on. >> you see a little bit of a stop on wind. even with the selloff we are down about two and half percent. not a big deal. we closed that all-time high on friday. your seeing a little bit of profitable back after so many great numbers that were still up 5% in 2018. everything still looks good. you are seeing big numbers but were only down one and a half percent. we are not making new highs in the fear factor even though were making new relative lows. i look at it as a bullish possibility that we could, this could be the bottom. >> on this memo, it is among the factors hitting the market.

you heard about christopher steele to get this investigation of candidate trump going, back in september 2016, according to the memo, steele was sharing the information that he was desperate that donald trump not get elected and was passionate about him not being present. in other words, based on this they see potential trump ties to the russians even though some of those connections might be there at all. we can go back and forth on the legitimacy but it's more noise for markets that probably don't want noise you look, the market wants to go down and when you add in this, when you have in fighting and exciting, this is just the start of it, it doesn't help. the intangible of confidence in government, we need good

confidence and strong confidence in this basically takes it away. all we are seeing right now, since the election, the dow is up 8400 points. so far only down 800. on monday, i said i thought we were ready for a 1000 or 2000-point down in 2500 points would even be 10% and that's a normal correction so i'm pretty sure that's what were in. i think we will see 24000 dow before we can reevaluate it. target is in a little bit of a bullish mode and i expect more to come. >> we do not have the full memo out. we do have little blurbs that have hit the wire hour pouncing on those but i don't want to over interpret. this is the memo republicans drafted, arguing that the investigation has much to do about nothing, based on a report that was literately motivated. those involved that the fbi

political agenda against then candidate donald trump. earlier on they argued that even though it was unlikely he would get elected, they wanted an insurance policy to make sure he never would and pushing for an investigation into rushing russian ties would be one way to do that. there was also a democratic memo that was never released that republicans opted not to release. they have been pushing to get it released to put this out in balance of the report that will be out there shortly all the world to see. we understand that it is not been dramatically redacted. in other words there are names of the report that even the fbi director said remove some of the names. we are told that has not happened. we could be surprised when the report is released, but we can tell you it looks like that has happened so you will see the report pretty much as republicans wrote it.

democrats were already completing their report which was a smashing indictment of the republican report has not been released and promised that in due process it is possible that it will be. it's a mess, no doubt, but into this we have other factors like a good economy and strong employment and all these companies adding to the mix sharing the loop, the tax-cut loop with their workers. which will win out. >> what i see going on here today is about the bull market but not the bull market in stocks. it's bombs back to be ending. we have a four-year high on the ten year treasury yield. is it changing the background caps off for stock market if the federal reserve raises rates more than three times next year, what does that mean for stocks on how they perform? which factors do well, which don't do well? that is the calculation i think is going on right now. what is so interesting is that

this economy seems to be on fire. the federal reserve sang 5.4% growth in the economy for the first quarter. that is astonishing. everyone is trying to make sense of this involves changes coming, how do we respond to investors infusion you are seeing the dow being down 375-point. >> thank you very much. when we come back it will get into the employment report in more detail. suffice it to say it was very strong which normally would be well received. not only wage growth but job growth. even construction would surprise a lot of people. normally that would be welcome news, but given the environment where people are starting to fear higher interest rates could take money away from stock, not the best timing. we are looking at interest rate at the likes of which a lot of people didn't envision we would see this year.

we are looking at the highest it's been for a ten year period the 30 year is now over 3%. a ten year again at a little north of 2.8%. some people say the magic point at which you hit the shift from stock into bonds or away from stock is 3%. i don't know so magical, but whatever it is, it is not in stocks for the time being. down about 362 points. more after this. hi, i'm the internet! you know what's difficult?

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ray, we still don't know everything in the proverbial memo that is now out there on what the fbi was up to and why it initiated the investigation into donald trump. we have to wait a little longer. we don't have to wait on the employment report. that is out there.

it seems like something that's almost too good to be true. >> that's what were seeing. the stock and bond market, we will take you to that movement in minutes. the rod data, 200k is much more than what was expected. these are jobs added to the u.s. economy. we are in 88 month streak of jobs being added in a continuous way. that is the longest streak on record. you have unemployment staying at 4.1% which is a 17 year low. this is the fourth straight month you see that figure. a lot, and was surprised that jobs were added to construction and manufacturing and mining. those were two extra surprises. if you the average hourly earnings, this is a year on year rate, 2.9%. the fastest increase in workers making more money than they were

since 2009. the speed, the rate of increase is what has a lot of economists concerned about this overheating potential in the economy. you mentioned 3% being a key psychological level and i think that's true. there are a lot of them, saying this is awfully close. it's great to have some inflation in the economy. you do want to see price support for goods and services but inflation is like calories. it's necessary, but then when there is too much, there becomes a little bit of a problem. the bond market, certainly selling off, if you look at the 2.85% yield, that is a four-year high. why does anyone care about these rates going higher? it basically just means borrowing gets more expensive. whether it's corporations trying to borrow money to do increases in infrastructure and also, for the everyday average person, you want to take out a loan to buy a

car or buy a house. those rates get more expensive. atlanta fat is really sounding the alarm bells. first quarter gdp could be at 5.4%. the story is great but i think for many people, this solidifies the idea that the bad will raise rates in march. it's not just the potential, something you have to at this point. consensus seems to be for three rate increases this year but i think with this projection and some other ideas circulating, the fed may be in a position to be forced to raise rates. why anyone cares is heather just makes borrowing for companies and people, everyday people, more expensive. >> wall street, it does well when average wage growth source. >> i agree, it's okay to have a pretty big bonus maximum bonus

is double digits. [inaudible] >> thank you very much. we are getting a little more detail on this memo that's been declassified. we will be out there shortly. the president did so, declassified the memo that shows surveillance abuse, according to white house official. they said the memo to the house intelligence committee for release. it is up to them. the white house did not redact any material. the names that were in there are still in there. you may recall the fbi director, christopher ray was not a fan of releasing this material. he said at least redact the names that are in there. no indication that the president did that. he dropped it in the house is left to decide if they wanted to. the presence of a scented to congress, they will do whatever you going to do.

a lot of people should be ashamed. let's get the read on all this. republican john ratcliff. i the camp that said release the thing and get out there. >> i am. i think the memo is an appropriate expression of congress oversight will of the department of justice and the fbi, specifically oversight of the fisa law and potential abuses of that. i am for the release of the memo which is eminent. >> some of your colleagues, not all, i think the majority is in your camp but their concern not so much about the country and what could be in here but how it reverberates intelligence efforts in that backfire. how do you feel about their concerns? >> i think we all have to be concerned about handling sensitive information and resources and methods but this memo, everyone can take comfort that has been scrubbed top national security officials,

advising the president so those aspects are protected. >> all right. now the protection is what's next. do you think republicans should release the democrats counter memo which i think refutes a lot of the points in the republican memo. in other words just for. access and daylight to get everything out there, release at all? >> i think the democrats memo can be released once a ghost to the process. they will quickly say we have our own version and i think that's fair. the problem is i've reviewed their memo and it is replete with sources and methods of their memo would have to be heavily edited and redacted before should be released to the public. assuming a ghost in the process, that's fine. at that point folks will be to make up their mind based on both

version that they are looking at, but neil, there are a few members of congress to be on the line as opposed to movement or summaries. i am fortunate one of them. i'm of the opinion, after having reviewed all of the source documents is an accurate expression of the potential abuses that have been uncovered in our oversight very much for taking the that memo is out and people are poring through it as we speak. that includes adam shapiro on capitol hill. it does not look like any names have been redacted. what can you tell us. >> the names are in here. the quote from christopher steele at the department of justice investment is passionate

about him not being president also evidence of his bias recorded by or recorded at the time and subsequently not reflected in any of the page application. during the same time. [inaudible] more later provided the fbi with all of the opposition research, paid for by the dnc, and clinton campaign via fusion gps. the relationship was in explicitly concealed from the fisa court. it then goes on to say and i'll wrap up because i know you want to get back to your desk, according to the head of the fbi counterintelligence, assistant director bill, cooperation was in its infancy at the time of the initial carter page buys the

application. >> thank you very much. i'm looking at it myself but you hear a lot about this. christopher steele, the steele dossier, many have repeated that and said there was no there there but this may have been used as the impetus to get the investigation going. one thing they put out is that he was a long-term fbi source paid over a hundred and $60000 by the dnc and clinton campaign research ter firm. adam was just referring to that to have derogatory information on doldrums to russia. democrats have raised that that was not the only impetus behind this to expand the investigation and look into potential campaign operatives and their ties to the russians. i see no evidence in here. republican seem to be saying

that was it, it was this whole disputed dossier in this whole report that had no fondness for donald trump that allowed this investigation to ensue. democrats have a variety of other reasons to launch what was launched by republicans are saying at least in this dossier it was just that. then they had an ax to grind about a man who would later become the president of the united states. more after this. ♪ when heartburn hits fight back fast with tums chewy bites. fast relief in every bite. crunchy outside.

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>> stepping back from this memo, as come back to what and why is big deal. i remember this memo wants to try to get to the bottom of why an investigation was started connecting the trump campaign to

the russians. at the end of it was a distorted if not completely false dossier. then you've got some reasons but were told in a democratic response memo to this, that they, again i've not seen it, i'm just hearing it from sources who said it in their memo that there is much more than this dossier to jump on and in fact that was not even a part of it all so republican memo, i read the whole thing, they are saying quite the opposite. one of the things they keep pouncing on is how this went up the chain of command to get an investigation going and you will hear a great deal about christopher steele who was the british author that was targeting donald trump and some crazy stuff i don't want to get into right now, but he had maintained contact with the department of justice associate deputy attorney general bruce

or. you'll hear that name coming up a lot. they worked closely with the deputy attorneys and later rod rosenstein, another familiar name. shortly after the election the fbi began interviewing or documenting his communications with steel going back to 2016. we are in the throes of the fall campaign right before the first presidential debate and they were documenting the medications that he had with mr. steele. he admitted that he was desperate that donald trump not get elected and was passionate about him not being president. there is clear evidence, from the republicans, of his bias recorded by or, subsequently at an fbi trial but not reflected in any of the five applications, the one that requested information that they look into potential trump ties with the

russians. the reason why republican cited this is because the whole investigation started on a pointedly motivated agenda. they hated the guy committed in my cam, they were more inclined like hillary clinton and felt that even though she was bleeding heavily in the polls at the time this would be an assurance effort to make sure you never got close to the white house. we all know what happened since, democrats disputed the chronology of events, probably in their memo something to that point. they have long argued this was not the galvanizing thrust for this investigation. i don't think they ever remove the possibility of that within the mix of reasons. keep in mind, number of figures were being eyed by officials at the time long before any of this came to light, but what triggered the investigation and whether it was unfair was something that the president

said should be of great concern to the american people. he said earlier today with the release of the memo, a lot of people should be ashamed. he has gone out of his way into ethan elsewhere to say the fbi leaders are the problem but he then applauded the rank-and-file. devin nunes,. [inaudible] >> it's just a paragraph, i will read it for you, the committee has discovered serious violations of the public trust in the american people have a right to know when officials in crucial institutions are abusing their authority for portable purposes. our intelligence and law enforcement agency exist to defend the american people, not to be exploited to target one group on behalf of another. it is my hope the committee's actions will sign a light on this alarming series of events

so american people can have full faith and confidence in their governing institution. that is the official public statement from devin nunes. >> do we know, i think i touched on earlier whether nunes will release this democratic memo which, if i understand correctly was a response to this republican memo. they will refute this chronology and everything else. what are you hearing. >> there is no official statement as to whether the chairman would allow about to release the democratic memo. when we were in west virginia with house republicans and some senators we were asking this question and everyone talked about transparency and eventually going through the right proper channels to do that. there has been no official commitment from speaker paul ryan or from german nunes to actually commit to a vote to allow the democratic memo to come out. >> thank you very much but i want to go to charlie on the fallout from all of this, particularly within the fbi itself. the fbi director was not keen to getting this information out.

what's the latest. >> i've been covering the fbi for long time, particularly white-collar business related crimes. i would say people inside the fbi think there is an existential problem with the agency and that doesn't mean they're going to disband tomorrow, but when you have the president of the united states attacking what was once known as the premier law enforcement agency, and may be rightfully so. there are some interesting aspects. even if he granted that, devin nunes has a huge ax to grind, the fact that the fbi took the dossier that serious and presented that, i think that's what this is all about. they presented that to the judge. the questions i have -- >> was the only thing they used. >> the democrats, by the way, have said no. >> right. they had to go to a judge to get the spies a warrant.

this was not a warrantless wiretap. this was not a 702. this is something where you have to get a judge to prove. to go to a judge and say hey, they say there's this dossier and we should tap carter page or did they say, here's this, but we've been following this guy for five years, he's met with russians and -- >> was at the reason they were following him for a long time because he had a history prior. >> yes. we don't know. some of it looks ridiculous but we do know russian agents target bumbling take people to make their inroads. i think that's where we need more information. was it, i read it. by the way, when it first came out, it was so salacious. i was reading it saying this has to be baloney. some of it was so over-the-top. >> they would not be able to use

just that because they're were some non- salacious elements, but any objective reader could say it was overtly political, so i can't imagine that would be the only means by which you would launch an investigation. >> or that that would be the only means that a federal judge would grant the pfizer application. >> these are rotating judges who have to decide what you present is good enough to take to the next level. >> i hear it's not the highest bar in the world to get this. it's almost like a grand jury indictment. they will indict a ham sandwich, but it's not the hardest bar to meet, but it is a bar you have to meet. it doesn't make any sense that they said this memo just came up on this guy carter page.

it's more or less sounds like we were following this guy for years. here's his contacts and by the way, plus look what we have here. but us his phone. >> the deputy director mccabe testified before this committee that no surveillance warrant would have been sought from the fisa court without this information. now, democrats, no doubt are going to dispute that thing that is not the case, that they wouldn't hang their hats on something like this. they conclude this memo saying that's exactly the case. it wouldn't happen, it wouldn't of been pursued, it wouldn't of been advanced without it. more after this. successful people have one thing in common. they read more. how do they find the time? ... with audible. audible has the world's largest

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get your domain today and get a free trial of gocentral. build a better website in under an hour. i love you. >> welcome back. i am not a lawyer but i have read this memo in the entirety and it seems to show this widely

disputed dossier as a political vendetta. at the time it was first discussed, the debates were about to begin and a lot of people didn't think donald trump had a chance. you may recall there were a lot of other medications that showed those in the fbi were concerned by the possibility of donald trump winning the race, that something like this would be an insurance policy to make sure he never did. what to make of all that, with fox news legal eagle, andrew. you've had it chance to see this. your essay democrats didn't hang their head exclusively on this, but it reads from this that's exactly what happened. >> good afternoon. it's a pleasure to be on with you. when the fbi or the nsa appears

before the pfizer court and makes an application, this is done in secret and there's no lawyer on the other side so you have government lawyers and government intelligence agents appearing before a federal judge meeting in secret. the intelligence agents are sworn, under oath. therefore, the applications that come out of their mouths and the documents that they pass to the courts for the courts review, the agents have sworn to the accuracy of. we now know they use documents which were inaccurate, at which they knew were inaccurate at the time when they sought a search warrant, a foreign surveillance search warrant, the standard which is far lower than a normal search warrant on an american. >> what does that mean? far lower. you don't need much to go on to get that. >> yes. if the government wanted to listen to a telephone conversation between you and me,

it would have to show that it's more likely than not that there is probable cause of crime that they would learn about in the conversation, but if the government wants to listen to conversation between carter page and someone in russia, the standard is probable cause that he is talking to a russian agent, not that there is evidence of crime so it's a lower standard and it's an easier one to meet. however, because it's lower and because it's easier to meet, the courts scrutinize it very carefully and any misrepresentation made to the court or any material omission or a document or information has been cu kept from the court coud have catastrophic consequences on the career and professional licensure of the people who did this. >> let me ask you this. i'm sorry the question is so ignorant. could a judge, approving this, based on what he or she was

given and not ask i need more than this, i need more than what you are giving me. >> yes and no because it depends upon the attitude of the judge towards this. bear in mind, this number will blow you away, the pfizer court which has been around since 1978 has granted 99.9997% of all the applications made to it so there can be some sense of cavalier attitude like you guys need this, i trust you, you're here all the time, here's your warrant. that does not justify the use of faulty data, whether known to be false or ought to have known, to present under oath to a federal judge. does this invalidate the entire investigation of whether or not there was a connection between the trump campaign and the

russians, answer, no. but it does show there were agents in the government, there are two names we haven't seen. i will give you both of them, it must of been known to president barack obama and attorney general loretta lynch. they were using the power of the government. it's the most secret, sensitive and awesome power, attempting to diminish, demean or trap donald trump. >> all right judge, thank you. >> there saying a lot of people should be ashamed over the release of the memo in the first place. democrats calling for release of their own memo. apparently that is something which they have no control within the house intelligence committee of devin nunes or

republicans in general would have to allow it to be voted out. they did not included in this release. they might now. democrats are clamoring for just that. we will have more after this. we stay with you to and through retirement. i get that voya is with me through retirement, i'm just surprised it means in my kitchen. so that means no breakfast? voya. helping you to and through retirement. (snap) achoo! (snap) achoo! achoo! (snap) (snap) achoo! achoo! feel a cold coming on? zicam cold remedy nasal swabs shorten colds with a snap, and reduce symptom severity by 45%. shorten your cold with a snap, with zicam.

>> all right. the much talked about memo is out there right now. republicans say they want to get

this out to prove this investigation looking into trump operatives and their potential ties to the russians started based on information from and ask british spy. this goes on to add officials knew at the time that the spy, christopher steele, was being paid through intermediate errors at the democratic party. they're arguing he had a clear ax to grind. there are others who say, there's a separate democratic memo that point out they did not launch this investigation based solely on this dossier and report. but again, we don't know that. we do know the democrats hope to get that out but republicans -- they hope to get out next week.

in the meantime nancy pelosi said president trump has surrounded his constitutional responsibility by releasing highly classified intelligence. he just sent his friend vladimir putin a okay. katie, what do you make of all this? >> to counter what you just said about that, democrat thing that the dossier wasn't the sole reason that the d.o.j. pursued this pfizer warrant. mccabe said to congress that they would not have pursued that initial warrant without the dossier that had not been fully vetted. >> that's right. i'm glad you mentioned that. i remember him saying it pretty argued, in addition, that whatever you are reservations post the dossier, it did allow us to start revealing

interesting stop. >> it was the first domino that fell. additionally, when they went, when i asked the pfizer court for the warrant, they omitted, they did not tell them the dnc and hillary clinton's campaign were involved in this. it was essentially opposition research. there was funding. democrats are jarred. they were saying before this that people were going to karen was clearly partisan politics. their reaction to showing this is absolutely not partisan. it is very serious and goes above republican or democrat. >> the line you are getting on the left is that this is a way for administration to deflect attention from an investigation that they say is ongoing and legitimate. from the right you're saying the democrats have to prove this was not the only means by which they launched the investigation in the first place. presumably, that might be mentioned, i don't know, but

wouldn't they need to have to prove that? democrats would have to show we didn't launch this whole thing into the trump campaign based on just one stupid dossier. >> they have to be able to show that. >> and let's say they don't have that. then what? >> then it really doesn't look good for them. you will see them floundering chaotically and will start asking a lot of questions about the obama administration. you will see a huge explosion. you can tell, nancy pelosi, her first reaction is to talk about handing a bouquet to south america, are you kidding me? they have to talk about surveilling american citizens based on opposition research for an election and that should worry everyone. >> what you make of warner? he said it's reckless and demonstrates disregard for the truth. he goes on to say the senate

intelligence committee will continue the bipartisan investigation into what happened in the 2016 election and the dedicated men and women of the fbi continue to have my full support. what if those dedicated men and women at the fbi had no idea that this could've started with applicable ax to grind? >> the fbi isn't made up of five or six people. there people who have no idea what's going on. in the upper ash lawns, many of them dead. the congress isn't just buzzfeed putting out the dossier. this it involves a security risk and intelligent people who poured over this before it was declassified. to push the narrative that this is big, send it out with any forethought what that means is untruthful. >> thank you very much. crazy stuff. republicans saying this is just an opportunity to get it all out there, even though they are being criticized. democrats hope to get that done

in short order. i believe they need the approval of the republican committee to do so. that could come as soon as monday, maybe as soon as today. no word or update from the fbi director. they were not a fan of releasing this material. there is a white house concerned that he might resign over the weekend if the president made the move to declassify it. blake is at the white house with the latest. >> we have had the opportunity to read through the memo. it's three half pages. we've read through it and let me sort of break it down to the highlights or to what this republican committee is claiming their intelligence has led them to believe for the centers around and the need to get a warrant from that fisa court to, in essence, surveil carter page. and the overall argument here is that the warrant was ascertained

because of information from this dossier which has since largely been discredited. so here are the main bullet points from this. first off, the fisa application did not disclose that the dossier was funded by the dnc and the hillary clinton campaign. secondly, it says the application said that steele was working for a u.s. person but not exactly who. not exactly fusion gps. the application also cited a yahoo! news article from september of 2016 in which it claims, the memo does, that steele was a article source. it then goes on to say that the fbi fired steele for leaking. still, the memo claims, steele was in contact with bruce orr, a top official at the department of justice, whose wife was also employed by fusion gps. it also says that orr's wife later provided the fbi with opposition research. this memo also says that christopher steele essentially had an axe to grind with president trump, did not want him to become the next president saying that steele was, quote,

desperate that donald trump not get elected and was passionate about him not being president. and then it ends or almost ends by saying without the dossier there would not have been a fisa warrant, so says the former number two at the fbi, andrew mccabe. quoting here, quote: furthermore, the deputy director mccabe testified before the committee in december 2017 that no surveillance warrant would have been sought from the fisc, the court, without the steele dossier information. here at the white house the president decided to declassify this memo, and he commented on it briefly moments ago. >> and i think it's a disgrace, what's happening the in our country. -- happening in our country. and when you look at that and you see that and so many other things, what's going on, a lot of people should be ashamed of themselves and much worse than that. so i sent it over to congress. they will do what they're going to do, whatever they do is fine. it was declassified. and let's see what happens.

but a lot of people should be ashamed. >> reporter: the head of the dnc, tom perez, moments ago called this a sham memo saying the only reason it is being produced is to try to discredit the robert mueller investigation. the head democrat on the house intelligence committee, adam schiff, says this memo is solely meant to target the department of justice and the fbi. >> this is designed to impugn the credibility of the fbi, to undermine the investigation, to give the president additional fodder to attack the investigation, and it's a tremendous disservice to the american people who are going to be misled by this, by the selective use of classified information. >> reporter: hearing as well now from carter page as well, the one who this really all centers around at least at the onset. page called it a brave and assiduous oversight by congressional leaders in discovering this unprecedented abuse of process representings a giant -- represents a giant historic leap in the repair of america's democracy.

neil? neil: all right. thank you, blake, very, very much. john mccain has weighed in on all of this, that the latest attacks on the fbi, quoting from his statement, and the department of justice serve no american interest, no parties, no presidents, only putin's. the american people deserve to know all of the facts surrounding pressure shah's ongoing efforts -- russia's efforts to subvert our democracy which is why the investigation must proceed unimpeded. the president must stop looking at this through the warped lens of politics and manufacturing partisan side shows if we continue to undermine our own rule of law, we are doing putin's job for him. no doubt a number of other republicans would turn that around on senator mccain to say the revelations here that this might have been spurred an investigation of a presidential candidate, might have been spurred by the political axe to grind and agenda based on a much-disputed and repudiated report is also playing politics

with this and risking our intelligence credibility. having said that now, let's go to former justice department official robert driscoll, also former fbi assistant director chris swekker. chris, what do you make of this, first off? >> neil, i don't know where to start. first, let me say that this is no reflection on the 35,000 hard working men and women of the fbi who work counterterrorism, organized crime, white collar crime. it's not them. something went terribly wrong on the seventh floor under former director jim comey and his inner circle. this is shoddy work. this is the type of thing that you learn at the fbi academy, source handling 101, source vetting 101. you don't mislead a court. you present all the facts to a court when you're using intrusive methods like wiretap, fisa, any type of electronic interception. please, the american public

should realize this is not the fbi. this is a very small group of individuals. their names are on these fisa applications. this is a leadership breakdown under jim comey. neil: robert, what do you think? >> i was surprised at how detailed and, frankly, disturbing the allegations were. i mean, like anything, i want to see the democratic memo as well because, you know, you read lots of legal briefs that seem great, and then you see the other side. but from what i've read, it's disturbing. and i think if people remove their partisanship from it and just say that, you know, a party in power or in the government, its candidate running to succeed used, apparently, government apparatus to launder their operation -- their opposition research and get surveillance of the opposing campaign. that's tough. neil: yeah, i'm sorry. chris, if that was the case and you have to go back to try to understand what the environment was like there in the heat of a

presidential campaign, and let's say a fisa court judge would not know the origins of this memo or source that had been repeated or paid for by, you know, largely paid for by democrats or conducted by someone who had an axe to grind against then-candidate trump, we don't know. i'm just giving every benefit of the doubt. would a judge approve such a, you know, clearance based on a single source? >> short answer is, no. if the judge were aware, made aware -- first of all, i don't think they would have taken it to the judge with that information in there and gotten themselves a fisa warrant off of -- and one of the most -- neil: but how would they have identified it, chris? sorry for my ignorance. how would that have been presented to the judge? >> right. it should have been in the affidavit. the vetting of the sources, the reliability of the source and the reliability of the information is second, third,

fourthhand is very important to put in front of the judge. in my opinion, this source shouldn't have been used at all, but deputy director mccabe testified they would not have been able to get the warrant without that. so someone had to make a conscious decision not to put that information in there, that they knew about fusion and their motivations and their being paid by opposition. it just, it just smells really bad here, and it's not, it's not -- it's sloppy trade craft on the part of the fbi agents that were involved in this. neil: robert, we're hearing from a letter co-written by the democratic leaders including chuck schumer, nancy pelosi, dick durbin, steny hoyer to the president. let me just cut to the chase. we write to inform you that we would consider such an unwarranted action, the roadway lease of this, as an attempt to obstruct justice in the russia investigation. firing rod rosenstein, the doj leadership or bob mueller could result in a constitutional crisis of the kind not seen

since the saturday night massacre -- of course, i think they're referring back to richard nixon's time. >> right. neil: what do you make of what they're saying? of course, none of that is being contemplated now, we're told. but nonetheless, they seem to be saying if it leads to that, not good. your thoughts. >> it strikes me that everybody's talking past each other on the politics. that's kind of a non-denial denial. i think we should look at the substance of what this memo is about, and its allegations are pretty severe. and i think i agree with speaker ryan that it is kind of separate from the underlying trump issue. i mean, i think to stretch the analogy a little bit, to me, this reminds me of the o.j. case. mark furman could be a bad guy, but it still might be o.j.'s dna at the crime scene. this is worthy of being investigated itself, and that may be an independent question as to whether or not trump did anything or his campaign did anything that requires some kind of legal action. but it seems to me one side's

focused on one thing, and one side's focused on the other when i think this particular issue, this memo today, is something both parties should take seriously. this looks like -- and, again, hopefully there's some explanation coming from the fbi or the democratic memo -- but it looks like this is just a straight political manipulation of what should be a bipartisan legal process. neil: just to be clear, robert, if the argument is even at face value if you were to say that this was started out as politically motivated, look what we uncovered, look what we found out. in other words, the argument might be from those pursuing this investigation the ends justify the means by which it started, you say what? >> well, i think general ethical matter, that's not true. the ends don't justify the means. but i also think that, you know, the evidence has to stand or fall kind of on its own, and evidence can be tainted. and we saw in this instance incomplete evidence being presented to a court, which is troubling.

so i think that at the end of the day even if there's, you know, problems with how it got started, you know, the president's going to have to confront whatever evidence there is. but, you know, again, we haven't seen that much evidence particularly against the president himself yet, and right now this is the evidence we have which appears to fbi misconduct. i think it does damage the fbi, but if it's true and there's no strong rebuttal forthcoming, the reputation deserves to be damaged a little bit. neil: all right. chris, i'll ask you, you're bob mueller, you're getting this brought to your attention -- not that he probably didn't know all this -- how does it affect what you're doing? >> well, first, bob mueller soldiers on. i don't believe they're going to be able to draw an unbroken chain from the dossier all the way through to all of the various aspects of what director mueller, former director mueller is looking at. in other words, i don't think it severely impacts the broader investigation that mueller has

ongoing. this is one fisa application. if it were a criminal case, they'd simply suppress the evidence, and it wouldn't come in. i can guarantee you that anything that follows from the special counsel investigation is not going to be based on that dossier. that dossier is not on his radar right now as far as any type of evidentiary value whatsoever. neil: but it would be safe to say whatever he does come up with, especially if it's punitive against anyone in the trump administration, it would always be looked at with a questioning eye, right? >> yes. i mean, it depends on where you are on this particular -- neil: right. >> you know, this is where the politics come in. neil: i get you, right. >> i think mueller's oblivious to the political aspects of this. i bet he doesn't even read the newspaper these days. neil: yeah, you're probably right. he can't be oblivious now, i guess. gentlemen, thank you very much. the dow at session lows, down about 400 points here.

having little to do with this, some argue that this could portend some confusion, an investigation that could be dragged out even longer, maybe that unknown is one of the factors weighing in. by far the biggest seems to be a backup in interest rates right now, in fact, a four-year backup the likes of which we've never seen in the better part of four years, long before there was talk of russian investigations or a candidate trump or any of this stuff. we're back to levels again we were looking at around this time in 2014. right now it's a very, very different world, but for stocks, a sobering one. more after this. how do you win at business?

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neil: all right, we've talked to a lot of lawyers, right? i'm not one myself, but i watch a lot of legal shows, so i think i qualify, america. anyway, our john decker is a lawyer, he says, you know, that fisa warrants are extremely difficult to obtain. now, that flies in the face of judge andrew napolitano telling me they're almost always attained, 99.97 percent, but what do i know?

he says a very high bar must be cleared before a judge will green light a fisa application. now, what this memo seems to be saying is it was based largely on this trumps dossier compiled by christopher steele, not a fan of donald trump, and a dossier largely funded by the democratic party. now, even if that were the case, even those who argue, you know, against the release of all of this say, well, the ends justify the means because even if this started out to be a shady reason to get into the investigation of then-candidate trump and his surrogates, look what we've uncovered. we don't know what they've uncovered. what we do know is it started under a rather nebulous theme, and that is what's causing some sort of cacophony on the hill, that it's all politically motivated, it started for all the wrong reasons, a political axe to grind. you've heard all that. but it's this back and forth we're going to continue pursuing. some say that's all a fisa court

needs, others saying it needs a lot more than that. i don't know what the truth is, i'm just sharing some say they need a little more than a ham sandwich to approve an indictment, and others say that they need a higher bar. therein lies the rub and the debate. i don't know what the truth is. what i do know is we're selling off aggressively, and it has very little to do with, because even with the expectation of the release of this memo today, stocks were swooning and started really swooning when we got the jobs report that showed stronger growth and interest rates backing up to four-year highs on expectations they could back up even some more with an improving economy. then, lo and behold, this next fellow predicted unemployment is going to go a lot lower than the 4.1% we're looking at, try 3.5% likely by this time next year. chief economist mark zandi on that right now. mark, good to have you. thanks for taking the time. >> hi, neil. neil: so what do you see? what would bring it down to 3.5%? a continuation of a tightening

labor market trend or what? >> yeah. we just need to maintain job growth for the coming year similar to the job growth we've been getting over the past three, four, five, six years. if we get that, then, yeah, 3.5% is likely. i mean, the unemployment rate, neil, believe it or not, has been falling a half a percentage point per annum, so just a continuation will are get us to 3.5. neil: everyone is concerned about wage growth, it picked up at a 2.9% clip, good for those enjoying that, bad for those worried about inflation, interest rate hikes or all of the above. where are you? >> yeah. well, you know, interest rates are headed higher. in large part because that unemployment rate is getting so low, and wage and price pressures are developing and will develop more fully as we make our way through the year into next. and, of course, now we're going to have bigger budget deficits. for the tax cuts, those are deficit-financed, so the treasury's going to issue about a trillion dollars' worth

compared to $500 billion last year. you add that up, that means higher interest rates, and that's not great for stocks. neil: all right. you're jerome powell, you're coming in to take over the federal reserve, you've kind of mirrored the votes of janet yellen, before her ben bernanke. are you now just as inclined to speed up the pace of hikes, the kind of thing that janet yellen seemed to intimate at the last meeting? >> yeah, i think he's going to have to. the federal reserve's going to have to raise rates in a more consistent way. i think when they gave us their last forecast for short-term interest rates for the coming year next year, they said three rate hikes this year, quarter point each time, and three next. i suspect it's going to have to be more than that, you know, four rate hikes this year, four rate hikes next year. and, of course, investors, markets, you know, they're just now starting to buy into that kind of idea, and that's why i think stock prices are down. i think investors are just adjusting their expectations. they realize that the fed's

going to have to be more aggressive here. neil: so this falloff today, it's a severe one, is it justified? >> yeah, i think -- yeah. i'd been skeptical of this runup in stock prices. you've got to put it in context. markets have come a long way in a very short period of time. before this recent last few days the market was up, what, 25% over the past year. i mean, that's like, you know, even under the best of circumstances you would expect a correction. there's no reason to get overly panicked about this, not at all. the economy's strong, it's fine. but, you know, we have to come to the realization that, you know, there's 3.5% unemployment, if that's where we're headed, that's not sustainable long run. that's going to create problems, and markets are going to have to adjust to that. we're not going to get 25% gains in the stock market forever. on average, historically it's closer to 5, so that's what we should expect to see. neil: i thought we were going to get it forever. why did you tell me we're not?

[laughter] mark dan key, thank you very, very much. >> thank you, neil. neil: the dow is down about 410 points. to mark's point, this isn't so much about a memo, but about a mauling going on in the bond market that's leaving the interest rates backing up. a lot of this, ironically, based on good news. more of us working, more of us getting more money as we're working, tax cuts the likes of which we didn't expect to see certainly coming from our bosses at companies across the country. add it all up, and activity is picking up, and that concerns the corner of wall and broad, concern it's picking up too much. we'll have more after this.

neil: all right, the dow down about 410 points. apple, we're keeping a close eye on this one, because with today's roughly 3.6% decline, we're very, very close to a 10% correction in that stock. the latest selloff inspired by a report that showed it's still selling a lot of iphones, 77

million or something like that in the latest quarter, and a good chunk of them might have been the iphone x but not nearly the number they expected. certainly on the iphone x side. momentum might be slowing, amid reports they're slowing down production. whatever, this is a stock that certainly was a stark performer last year, some giveback is in order, but a lot of technology stocks are giving up ground, but not nearly as much as apple. for example, amazon still going the other way. but right now the dow itself down about 403 points, 404 points. a lot of attention on this memo, whether it was politically motivated, whatever, as if. what we can say is republicans are saying the reason why they were hot to trotta get it out was that it would show that all of this investigation of team trump began with an agenda based on a very, very, very disputed report by a british spy with ties to the democratic party. it almost reads like a novel.

but that as it may, others are saying there were other factors that went into the investigation that got this fisa warrant going and the investigation ensuing. democrats might be saying that's why they want to get their memo out. there are reports they do want to find any which way to get it out in the mix. the committee would have to approve that. it's a republican committee. the republican committee might approve it or find other means by which they can get it out there to dispute this. obviously, this is not making the investigation look fair or remotely balanced. let's go to the independent women's forum board of directors, nan hayworth, and michael starr hop kins running against bob menendez. we do have a call out to senator menendez, to be fair here, we've not heard back, but you never know. also fox news political analyst gianno caldwell. gianno, the fallout from all of this, democrats are going to argue it was a travesty to get

this out, and they are. others are arguing that this seems to point to an investigation that had a clear opening political axe to grind. do you agree with that? >> yeah. i do agree that certainly will be the appearance. and i also believe that this, to a number of folks, is going to appear as though there was certainly collusion between the fbi, the dnc and the hillary clinton campaign by virtue of using someone who was paid by the dnc, who was paid by the hillary clinton campaign and subsequently paid by the fbi to provide the same information. when you think about the assistant attorney general or -- whose wife worked for fusion gps, who he would get information or dirt, if you will, from her and supply it to the fbi, and they would use it as a part of their investigative product, work product, it's beyond troubling. then you get the warrant which

was never made mention of or at least that we know of to a judge, this is going to really put a dark sawn on the fbi -- stain on the fbi, the brand of the fbi, the brand on the intelligence community and gives every trump supporter, every republican who's been objecting to the investigation into the trump campaign reason to do so. this is troubling to me. >> i think i'm the only one here who was a criminal attorney beforehand. and so, you know, let's look at the process here. the original fisa warrant was put out in 2013 on carter page. it is extremely difficult to get a fisa warrant op an american. it's not very difficult to get one on someone who's foreign. so in 2013, the fisa warrant was put out on carter page. every 90 days then the prosecution would have to go and get that reuped through an independent judge who was put in place by the supreme court justice john roberts who, you know, was appointed by a republican as well. they needed probable cause. this isn't just like you go slap something on someone's desk, and you automatically get it. this is a serious legal process.

neil: but in 2016, whatever was going on years prior -- >> right. neil: -- to launch this they had more than this memo to go on? >> we don't know. neil: what if we did? what if we did? all we had to go on was this? >> well, then i think we should look at the history of christopher steele. neil: would that worry you? >> i think that's something we should talk about. neil: i do want to go back to the fbi agents' association has issued a statement, as you know, nan, chris wray was against releasing this, concerned about its repercussions. quoting here: the fbi agents' association appreciates fbi director chris wray standing shoulder to shoulder with the men and women of the fbi who have worked together to protect our country. fbi special agents have remained steadfast in their dedication to professionalism and remain focused on our important work to protect the country from terrorists and criminals. it seems to me to go afield from this issue at hand, they support him -- >> sure.

neil: -- but they're not keen, i guess, on the release of this period. >> right. well, look, it does -- it is troubling. it doesn't make the fbi look good. but the president has emphasized and in fairness his republican colleagues in congress have emphasized, this is not about the rank and file of the fbi. the folks who have betrayed them, potentially, are the people who were at the top of the agency. director comey, most conspicuously. but not only him, mccabe, obviously, andrew mccabe who's now leaving, and the strozk and page text records -- neil: wasn't he the ones who testified in the committee saying that this was the means by which we launched all this, right? >> you said it was important. >> mccake said that was a factor in it. -- mccabe said that was a factor in it. neil: i didn't hear -- and you know this better than i do, i defer to you, but he didn't list other factors. >> which he may not have been

able to release those because of the confidentiality. i think democrats should immediately go to the floor and read into the record their memo -- neil: well, unless their memo, and help me with this, but their memo is going to have to -- however it gets out -- we did not hang our hats solely on a disputed dossier written by a guy who was a disputed and maligned agent paid for in large part by the democratic party because if it was the case that that was the only way this got going, then that is going to raise hackles, isn't it? >> and to my knowledge, neil, and, you know, we've got other people on the panel, but i don't recall them ever saying that it was based on much more than the dossier. if that was the conclusion there, then we see it was a foil to a large degree, because it was completely and totally unverified to a large extent. i know that there is more information, obviously, at least should be more information out there because from what i continue to read, a fisa warrant

contains dozens of pages and not just three. so there's more information -- >> it's about 50-60 pages. >> at this particular point in time this doesn't look good for the fbu, and this certainly gives the appearance that what trump has been saying about the investigation in terms of it being a witch hunt and other republicans as well seems to be -- and, again, i want to use my words carefully -- it appears to be correct based on this memo -- neil: well, to that point, we don't know and i want to be very clear. i'm no lawyer, but i do want to be fair and level headed about this and not go -- i'm watching other news networks and all -- >> that's why i say. [inaudible conversations] neil: one side gets crazy, it gets crazy on the other side. >> yeah. neil: what i want to know is it seems to be a democratic arguing point will be say what you will of this investigation and how it started, look what's happened along the way, you know? indictments, guilty pleas, you know -- >> well, yeah. neil: i'm just trying to be fair. >> i agree with you. neil: and that is it has gone

way beyond the original impetus here. and you have others saying by bringing this all to light or having the president of the united states question, you know, the reliability and the proprietary nature of these institutions like john mccain has been saying, you're doing more harm than good. >> but you know what, neil? we know -- regrettably -- that the previous administration, essentially, weaponized the irs. lois lerner case against conservative groups. unfairly, unlawfully. most of us -- >> [inaudible] >> but, yes, michael, but lois lerner has been found culpable in that. >> [inaudible] >> but we don't even know how far up it went. i'm just saying it's not -- based on james comey's actions alone last summer, in summer of 2017 he said that the dossier's accusations were salacious and unverified, okay? so he -- neil: so let me pose a final

question to you. >> [inaudible] neil: all right. if in the end all you had to go on was an investigation that started based on this and only this, you're a crackerjack lawyer -- >> dossier, yeah. neil: -- would you be troubled by that? does it call into question the agenda and the truthfulness of this entire investigation? >> no, because we don't know the veracity of the steele dossier. there have been things -- neil: so you're still giving it the benefit of the doubt. >> michael -- >> there's so much information that's been classified. neil: i just want to be clear we don't know everything, you're right. it was largely disputed at the outset, but if the whole thing hung its hat on this dossier and steele -- >> the dossier alone is not going to be enough to prove whether anything happened. neil: i understand that. but it was the only means by which republicans are saying this whole thing started. >> which i think is false. neil: if it was true, does that trouble you? >> if it was the only thing, that would trouble me, but it's not the only thing.

neil: but you don't know that for sure. >> we don't know enough information. neil: we don't know what we don't know. >> we know the court was not made aware of the providence of that dossier, and that is troubling. >> giving an argument and giving it to the jury -- >> understood. but even if that alone was true -- neil: guys, i wish we had more time. i'm not a lawyer -- >> real quick. neil: -- we do not know what we to not know. we do know this. i have to go to a commercial break. more after this. [laughter] (daniel jacob) for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts to about 10 pounds of carbon dioxide every week. (malo hutson) growth is good,

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to grow your business with us in new york state, hey, what are you guys doing here? we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement. >> it was declassified. and let's see what happens. but a lot of people should be ashamed. thank you very much. >> are are you not concerned that the fbi -- [inaudible] >> thank you very much. [inaudible conversations] >> you figure that one out. neil: all right. an interesting reference earlier this morning when the president was meeting with these north korean defectors in the united states, referring to rod rosenstein, a shout-out basedded

on this memo that's now out there. democratic leaders co-wrote a letter to the president. at the end of it they say, you know, i'm paraphrasing, you better not be looking at firing any of these guys, there could be another saturday night massacre, the richard nixon firing of top legal eagles at the justice department in the middle of watergate. the president certainly didn't intimate which way he was going to go, but they seem to be telegraphing you do that, mr. president, you've got a world of hurt coming. daily caller news foundation editor chris bedford, what do you think? >> i think it looks really, really bad. and like you were talking about in the last segment and people have been talking about all day, we don't have all the information here. it's a pretty concise four-page memo with a two-page introduction on what it's about and why it's been released. we don't have the points of view, but the bottom line is that if the u.s. government or spying intelligence agencies which we give a monumental amount of trust to operate in secret and to operate as honest

brokers used a memo that was -- or used a dossier that was commissioned by one presidential campaign, the one that represented the group in power, to spy on another presidential campaign and they submitted that with evidence -- and there may be more evidence, there likely was -- but if they submitted that with evidence to get this fisa court to agree to spy on a u.s. citizen as well as a u.s. presidential campaign, that is a massive scandal. and most of the people who are involved who have signed up on this -- mccabe, comey -- have either been fired of resigned, and there are still a few left. if we don't get more information, i think that the president is completely correct to look into possibly terminating them. neil: you know, chris, obviously markets abhor uncertainty. i'm not saying this memo has anything to do with the selloff. we've been telling our viewers, of course, a lot of this has to do with a stronger than expected jobs report, a backup in interest rates. but i do know, having been around the block a few times covering markets, that they

don't like uncertainty, they don't like things that aren't tied up in a neat little bow, and the prevailing argument going into today was the neat little bow was this investigation would ensue, markets hoping it doesn't lead to a constitutional crisis, because that's messy for investors regardless of your political point of view. the economy keeps percolating along, tax cuts keep coming, now comes the possibility of an extended investigation or one that gets more complicated and one that could, that could erupt into questioning our institutions and whether they're trustworthy. and i suspect -- this is my opinion, it could be very wrong -- that is playing into the selloff in part. i'm not a market prognosticator, but i am asking how this memo's release today changes this whole investigation dynamic. >> well, it shows right here that the department of justice at least was not entirely forthcoming when they went to the fisa court, which is something that we rely on. i don't think that the markets

have any real -- and we shouldn't watch for any real serious interaction or consequences in the market until we get to the election. if the market -- if the republicans lose the house of representatives and this kind of thing plays into that, then you might actually face a constitutional crisis of will the house vote to impeach president trump. that might actually try to cause some trouble, and that would cause serious uncertainty. right now outside of some of the other stations on the air and outside of capitol hill, the average american and the average market and the ability to continue on in your life isn't really too impacted. and i don't give too much credence to even finding out that this may have been all been based on something really bad, that we were spying on u.s. citizens for something that was stay tuned, that it's going to have the impact on democrats or other stations that support them, because those guys have got trump derangement syndrome. they're operating under already the conclusion that he's guilty, is so anything that comes out that adds to this doesn't seem to be penetrating as all. neil: thank you, my friend, very much.

the dow down 443 points, about a 1.7% hit from our highs, close to a 3% hit. so a long way from even a 5% correction from those highs. again, whether this is the catalyst or other factors are, apple could be among the reasons. it is already approaching correction territory, down from its highs with a selloff today of close to 0%. stay with us. -- close to 10%. stay with us. hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage.

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neil: all right, james comey is tweeting on these day's development, that if dishonest and misleading memo destroyed trust with intelligence community, damaged relationship with the fisa court and inexcusedly exposed classified information of american citizen, doj and fbi must keep doing their jobs. so he's not a fan of the release of this information. i might point out that if what's argued in this memo is correct, then this whole entire investigation started out under the most specious of means. maybe that's the problem. maybe that's what destroyed trust in the intelligence committee, not the memo, but the stuff that precipitated the memo. what do i know? anyway, we are in the middle of a major selloff at the corner of wall and broad, about 453 points. i'm not saying this is not a factor, i'm just saying there are more economic factors. the fear of the unknown and an

investigation now that could go on and on and on, certainly longer than thought, weighing on things. but then you have some significant underpinnings in financial that began with a backup in interest rates, and now apple approaching correction territory. a report that was pretty good but not as good as wall street had been hoping for or that it would sell nearly as many phones as wall street had been hoping for, and that is weighing on the stock now looking at a 10% or close to a 10% correction. the market itself, the overall market itself from its highs a little bit north of a 3% correction, so a long way there just a 5% hit. we've got fortune magazine executive editor adam that shin sky, mashable's -- [inaudible] michael, let me begin with you on apple and what it might be saying about that great tech runup generally, what do you think? >> well, i think that, you know, this is changing the narrative for apple in a lot of ways. we're so used to high-flying

apple constantly breaking records and constantly overachieving and beating wall street expectations. i think now what we're seeing is still a steady interest in the iphone, but a little bit of market saturation. they're not selling quite as many quites as they former formerly had, but they're make making a higher margin on each hardware device. i think people investing in apple right now are looking toward what they might do in the future that will extend the life of the revenue that they receive from the iphone. neil: what do you think's going on here, adam? >> well, more to the point, they did have a record quarter as you said, neil, but sales of iphones and units is flat for the reasons that michael said and maybe because the product isn't quite as great as everyone would like it to be. the reason the stock is down is that apple's significantly lowered its revenue forecast from what wall street had expected before yesterday. neil: right. i might point out too that there are expectations to this technology selloff rule like

amazon. last time i checked, it was up $66, so it's not universal here. so the amazon thing i could read into that, adam, is looking at still pent-up consumer demand, shopping demand, and that is reflected generally in the retail sales figures we continue to get. could be one of the reasons why interest rates continue to back up on expectations of that kind of activity continuing. i know there are certainly other factors for that, but what do you think? >> well, amazon gets a double whammy, neil. retail is a little bit on the rebound because it's doing a little bit better from where amazon had whacked it down so badly. retail's doing better, amazon is doing better, its web services business is doing incredibly well, and so, you know, this is a company that currently can to no wrong. that's why its stock is up, i would think. neil: what do you think of the amazon phenomenon, michael? a little afield from apple, i grant you, but it is remarkable especially on a day like this. >> well, sure. yeah, you know, as was mentioned, you know, retail is

still really strong for apple, so they're still selling lots of products. obviously, coming out of the holiday season, apple's done a great job at just staying in the spotlight and basically at the front of consumers' minds. i think what people are watching though is how well they've been able to sell things like the amazon echo and some of their, some of their products that, you know, have been recently released. you know, this artificial intelligence platform, alexa, is a huge deal, and it's making its way into more and more gadgets. we saw at the consumer electronics show earlier this month that alexa's being added to, you know, basically every type of product that you can imagine; refrigerators and cars and a lot of appliances that you don't typically associate with smart devices. so this is definitely the future, and this is where amazon's heading, and people are very, very open to amazon echo and alexa and basically putting this artificial intelligence into their home and into their cars and those things. neil: all right, guys, thank you very, very much. you ended up mentioning alexa.

alexa, how bad is this selloff? apparently, it's the worst in a year. we'll have more after this. . . . .

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from much stronger economic growth and backup in interest rates, likes we vent seen in four years a memo seems to signal whatever is going on with the bob mueller investigation could go on a lot longer. you know markets and uncertainty. we'll explore it live this weekend on "cavuto live" on fox news to make sense of it. trish? trish: thank you, neil. we're sitting near the lows of the session. investors afraid the strong jobs report could cause the fed to raise interest its. we'll have a live report from the new york stock exchange in just a few minutes. inflation could be on the way. i'm trish regan. welcome, everyone to "the intelligence report." it is also a pretty big day on the political news front. it is helping to fuel the selloff. the four-pay fisa memo, and famed harvard law professor, alan dershowitz joining me on the legal implications surrounding