back? you buy the dip or sell into the rally that results? answer, all of the above. we opened down 350. we came back a little bit. now we're selling off again. we're off nearly, what, 140 points. that is the way it is, neil. it is yours. neil: you know, stuart, i'm sorry i couldn't make it to your super bowl party, by the way. stuart: it lasted ten minutes. neil: right. you did invite me, right? stuart: of course, neil. neil: of course. >> i bought cannolis just for you. neil: that's fine. that's fine. i had little finger sandwiches for you. [laughter]. apparently it was a very big game last night. holy toledo. thank you very much, my friend. we're on top of these markets. whipsawing a lot. he have one confused here. we're more down than we were up a little while ago when we almost broken even after being down as stuart indicated more than 350 points. a lot of this has to do with good economic news, ironically enough, better economy looks,

better wage growth looks. better interest rates look as well, they back up reflecting all of that of course that is something that markets are seizing on as deirdre bolton and i chatted in the past. wall street is perfectly fine with the same double-digit wage increases but has serious problems with you making that money. >> that's right. do not pay the average worker. we talked about that with those fears of inflation. that is to say if there are inflationary pressures then you do see yields, we'll show you the bond yields go up. the reason it makes investors nervous, because it means all kinds of borrowing get more expensive. i want to take you through intraday chart. you were talking about this, neil. this is the nasdaq. they have the same pattern. you saw the dow flash quickly here. could it get worse monday morning? the answer was yes. we pared some of those losses. fighting bag here in a little bit. if you look at nasdaq and dow

and s&p 500 they have this pattern where they started low, about half an hour in. managed to rebound, cross the line into positive territory for the day. now back here. so that is the dow. s&p 500 and nasdaq. take a look at the vix. this is essentially just a measure of investor anxiety. so you're going to see, this is in fact a one-week chart. you can see obviously this is low. we were lulled into this happy extension of a nine-year bull market. as of friday it started to climb, we're back up again. it just means more and more investors are of course a little bit more anxious about the future. if you look at 10-year treasury. i mentioned we would talk about that inflationary pressures, one. reasons. these are the markets since the record closes. we can come back to that in a minute. look at treasury yield up 2.85%. you haven't seen these levels since january 2014. again, you pointed this out to me, neil, by historical standards this is pretty low.

it is just that this is higher than we have been for the past few years. so a lot of people saying, oh, it will cost businesses more money to borrow. it will cost consumers more money to borrow. anytime you want a car loan, house loan, it will be more expensive. to keep things in context, this is pretty historically low level. i want to show you what is going on with tech. we saw this huge selloff on friday. that is one of the reasons why everything got hit on friday. especially apple. we talked about the stock being in correction territory. it was down 10%. that is the definition from the most recent high, about a month ago. appled delivered good earnings but the outlook was disappointing to those on wall street. sales in this current quarter less than what wall street expected. you see apple rebounding a little bit. amazon very much holding steady. as is microsoft. these stocks when we saw a bright spot earlier today, here are three big reasons for that.

so, neil a lot to watch. we'll monitor it all day. that is the state of play as of noon. neil: thank you very, very much, deirdre bolton. thank you for your help this weekend, live with us as well. i do want to update you. this is echoes what deirdre is reporting. we're getting a report that just put out by the united nations, saying that the president's tax reform could bring about $2 trillion back to the united states in terms of money that was just sort of held abroad and afraid to come home because of tax consequence. a lot of that money is being incentivized to get back here with 15.6% one-time rate. apple, cisco, ibm, i could go on and on, they are now incentivised to bring it back home. the u.n. is concluding that it will have a lot of economic boost in the united states. this measure is most widely significant affect on global investment patterns according to the u.n. what they are saying because what is happening here it will

have pay it forward fallout on rest of the world. so whatever is going on with the markets right now, this is even more economic impact than a market impact the united nations saying we could be off to the races. we're not off to the races today, down 185 points. there is a lot going on as deirdre pointed out. with a backup in interest rates and convenient excuse to sell stocks right now. that represents about 3/4 of a point forward. very close. we had been over 5% correction from the highs. right now we're looking at a little bit more than a 4.25% from the highs. we have not had the 5% correction in bert part of three plus years. some look at this as a healthy development. pick your proverbial poison as they say. john layfield here and fox business network's gerri willis. gerri, that is the prevailing view that this is excuse to take profits. to get back in. that tug-of-war what characterized a lot of trading

this morning. what do you think of that? >> that is what make as market, right? people get in, they get out. people had been over. neil: extended put everything in their portfolio into stocks or fully allocated and now they're stepping back and why? not just because of what is going on in the market, but also because of what is going on in the economy. inflation could be going up here. we've seen the yield on 10-year treasury pop. wage growth strong. that jobs report from friday really good. and we're seeing now that, earnings expectations for the s&p 500 companies now at 18% growth. that is what really should be moving the markets here. in that kind of world, that is different from where we've been before, right? in that kind of world maybe you want to change your allocation, change kinds of stocks you're in. move your money around. we're seeing a lot of that right now. neil: john layfield, when you saw what was going on overnight in asian markets and futures

activity, which almost timed in ex-flickably timed to the futures. you expect that on a selloff on friday, on monday, happens 90% by end of the time, the difference is by the end of the day we recoup the losses and stablize. what do you think? >> i agree with gerri. this is an excuse for a selloff. i think the market was getting a little bit jittery. people were scared there is nothing bad on the horizon. they deemed that to be bad itself. i'm not sure i understand that rationale but that is what the markets were thinking. we've seen inflation creep into the market. china has exported deflation for many years. starting to export inflation. that is sign of growth. that is something worrisome for the markets. i think the markets, the selloff being mitigated today has, markets are trying to find fair value. i think is really good for the markets that they're stablizing here. neil: you can never gauge these things, how long they last, matt, but one thing undeniable,

backup in interest rates. nothing like i can remember as a kid or first married when the rate at 10-year note darn near what my wife and i pay today for a mortgage. i'm exaggerating. perspective is everything. where do you see rates going, and how much of a drag could they be on stocks if a lot of folks decide, you know what? this is where i want to park my money, not stocks? >> been a case for stocks as a place park your moneyed. this should have been forecast. we have had easy money for nine years. if you haven't gotten mortgage already or your company, haven't put your finances in order you could be in deep trouble in this move. a lot of huge companies, apple in particular, they did a good job raising money along the way. it is cheap money. why not do it? that is getting people off-guard here. this move up has been so well-forecast, that it shouldn't be a surprise to the markets. right now, definitely convenient time for them to self off.

this jobs number gave them good reason. that is historically a good jobs number, right? january, after the holiday season. can that continue? we haven't been able to justify any inflation, at least the fed hasn't going forward. these could all be short-term things at that could be rectified as we go out to the end. month and get the numbers then. neil: very, very hard to gauge. you're looking at the president, marine one getting ready to soon to leave joint base andrews. president will be off to the cincinnati area. he is visiting a company in blue ash, ohio, sheffer, manufacturer that is handing out bonuses to workers. i don't know if he touts the market as of late. >> i spent many years living in that area, blue ash, southwestern ohio, there is lot of blue-collar companies there. some of them very small that

will be benefiting from this tax reform because, you know, tax rates are coming down definitely. i think what is so interesting right now, you're starting to see baked into some of these numbers higher expectations for earnings. higher expectations for growth on friday. we found out the atlanta fed saying gdp growth of 5.4% amazingly. these numbers keep getting bigger. for most traders in the markets they haven't seen that, it has been one or 2% for so long, in is new world for those folks. you can see the dow down 215 points. neil: john, you see the president talk about the markets and run-up, it has been incredible run-up since the election and inauguration. they're going down and i'm not smart enough to know how long they will go down. white house official told cnbc earlier today that it is

concerned about any, any market loss going on and one, likes of which you're seeing right now. but that has been about the extent of it. what do you think he does now? >> unless the market turns into bear market territory he will tout a 30% gain in the markets. the problem he has, a lot of people warned president about that hang your hat on economy and market, only when it goes up, you own it when it goes on as well as any president sitting in the oval office has done. what gerry was talking about earnings expectations was spot on. 80% of the companies exceeded earnings expectations this past quarter. that is the highest since 2008. going forward we have a lot of expectations built into the market. i don't know where the market knows fair value. they haven't digested how much tax cuts help. the fed was behind the curve.

now they feel comfortable raising them. this shows strength in the country and overall good for economy. neil: we're monitoring the president from joint base andrews. he is flying off to the cincinnati area. he is going to a mid-sized manufacturer, blue ash, sheffer corporation handing out $1000 bonuses. sometimes the president talks to reporters. doesn't look like that is the case. we'll monitor it. matt cheslock, this president and numbers and tax cut he talked about. individuals are starting to see it in the net pay. that could wouldn't -- win out over the market hand-wringing. but what do you think? >> that could help main street, that is the goal i think. as far as what i'm reading on it. will it affect corporates too? their tax rates were cut as well. take a little time to get into it. the bar was very low on the last

earnings reports. seeing as we go forward, second quarter, third quarter of the year that will be more important. the bar will be so much higher. can the companies get over that. without any impetus from washington. earnings have been great so long. they are up against it. done all the cost cuts and refinancing. now up to the corporations to meet hurdles. that is what we start focusing on the street hopefully and not worry what is going on in washington. neil: real quickly then, would you look at this matt, as proverbial buying opportunity or go slow? >> i would certainly think it would be. i was more worried about the second half of the year, not this. none of the stuff that has come out is surprising t should have been well-forecast. it is probably decent time to dip your toes back in the water. neil: thank you very much. the president will be enroute to the cincinnati area. we'll keep you posted on that. also keeping track of companies sharing the loot so to speaking. i told you about this company he will visit out there, done so already.

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neil: do you ever wonder what the selloff going on right now this memo has anything to do with it? maybe it portends investigation of the white house that could drag on as they continue to dot the is, cross the ts, whatever? the wait now for a democratic memo that counters that republican memo that questions all the republicans questioning the impetus for the investigation of trump surrogates last year on part of the federal government. so it is confusing. let's get the read from the white house with blake burman. he is there with the very, very latest. hey, blake. reporter: neil, that democrat memo would be spearheaded by the top democrat on the house intelligence committee adam schiff, to start off our week we had a tweet back and forth between president and united states. president trump tweeted out about schiff, quote, little adam schiff, a new nickname, desperate to run for high

office, one of the biggest liars and leakers in office, with comey, brennan, and leaked confidential information. must be stopped. schiff has been before the cameras seemingly for week. you knew he wouldn't sit by idle. here is his response. mr. president, instead of busy morning of executive time, instead of with false smears, turn off the tv, solve the funding crisis, protect the dreamers, dot, dot, dot, anything else. top republican on house intelligence committee is the one behind the memo, he said there could be more documents potentially to come after this memo. >> what we're looking at state department and some of the irregularities there. we have several other areas we're looking at. i don't want the american people to think we'll have a memo that goes through the process.

what we'll do in phase two, we'll follow the facts where they lead. when we get enough facts we'll figure out a way to let the american people know. reporter: so possibly this memo from the democrats side, then potentially, neil, more memos from nunez and his group. by the way the president tweeted out over the weekend he feels this memo totally vindicates him, however congressman, trey gowdy, a republican went on one of the sunday morning shows says it is opposite of that. he says there is clear distinction here between the memo and the mueller probe. neil? neil: you already got guys cooperating with the government right now. of course it doesn't vindicate him. thank you very, very much, my friend. any way the house judiciary chair bob goodlatte disagrees with one john mccain among other republicans on wisdom of releasing this memo. >> what did you think of that? >> i completely disagree with that. it is so vitally important that people understand that this is a very special privilege that our intelligence community and our

law enforcement organizations have. when they suspect criminal activity to be able to go without the public knowing, put together a warrant application, submit it to a court that hears all of this outside of the view of the public, and make a decision. we expect that will be done, protecting the civil liberties of american citizens. and in this case it, very clearly was not it is important for the american people to know that is why this needs to be investigated further. neil: argue get it all out there then. have the democratic memo, yadi yada you heard all of that. we go to former fbi official and "wall street journal" editorial board member kim strassel joins us. kim, i'm looking at all this, wonder where it goes especially if there is follow-up investigation on part of

republicans and democrats countering all that, if this is really what is going on here, you wouldn't have two guys already pled guilty cooperating with the government. what do you make of it all? >> i think the only way you start to get real answers is, you already have people now calling for this, is that you have got to declassify parts of warrant itself. and we've had people very smart, former ag mike mukasey said look there is probably no reason you can't do that and also protect sources and methods. we're going to have a first step toward this. by the way, senator chuck grassley today released unclassified version of his referral of christopher steele to the justice department. i know that he is asking the white house to declassify the full thing. it sound there are actual quotes from the fisa application in that referral that he wrote. neil: you know, ron, on my life weekend show you should watch if you don't have any life but one of the things that was

interesting is this discussion that the memo, though it has nothing to do with the markets, here was the concern that it could, that it is going to compel bob mueller to make sure whatever investigation he comes up with is thorough, is dotted, ts crossed above reproach, self-incrimination and that could take some sometime. in other words if this revelation, whatever came through on part of republicans will fuel an argument that he has to really, that is, mueller, take his time with this, maybe drag this out much longer than it need be. what do you make of that? >> well, i don't know. i, neil, i'm the last one to know how to read the american financial markets. i wish i could. i wouldn't be doing this, having this conversation. neil: by the way, i'm right with you, my friend. i posit that because a couple of my guests did. >> we could be on a beach in

bermuda enjoying life. bob mueller knows that whatever cases he brings, criminal cases will see the light of day in their entirety. they have to in a court of law in america. very troubling part for what is going on capitol hill for me is, this is no way to run legitimate oversight. i heard the speaker's word last week. legitimate oversight ought to be in my mind bipartisan and more, more than that discrete. and that is -- neil: good luck on that. >> conduct the entire investigation and tell us what you found. end dot do it in iterative steps, piece by piece, each proceeded or followed by a leak of selective information that helps to bend public opinion. that is not legitimate oversight. here, i don't think these guys are even approaching legitimacy, particularly in the house, where we have had, congressman schiff and congressman nunez talking

about their respective sides and their respecttive pieces for weeks and months now. senator warner and senator burr are doing a far better job. i assume they're proceeding, but this is example how not to work. neil: guys, thank you very much. so much breaking developments, including that view of the dow, that they were both touching on here, whether the memo play as part. that is anyone's guess, probably not. more driven by backup in interest rates and companies doing better than expected. i know that seems counterintuitive, but the markets pouncing on that. that back up, raises excuse of add to worries with the better than 1% drop as of right now. we're looking at 5% correction from our highs. reach ad little more than a week ago. we're on top of it. more after this.

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another all time in history, all-time high today. [applause] we're hitting new highs on almost a weekly basis. and, so we're very proud of our stock market, what happened since i became president. the stock market hit historic you'll time historic high. stock market, hit historic levels. we hit a new high on friday. we're hitting a new high today. there is tremendous optimism having to do with business in our country. neil: not exactly a reagan moment, famous that president was not quoting the market. if you own it on the way up, you will be caught owning it on the way down and they will replay those bites. charlie gasparino, dangers of riding a puppy to the top and seeing it suddenly reverse on you. argument being other presidents that dealt with rising markets, bill clinton or ronald reagan, quoted economy or quoted jobs. hopefully if it was a soaring market, let it speak for itself.

>> it was a fool's game, it is always a fool's game to hype a market. when you see people walk around with dow 25,000 hats, take it off. turn it backwards. neil: jinx it. >> it's a jinx. here is the reason why the stock market is been up under trump, the main reason is the economy. the economy is getting better. jobs are getting better. markets correct and markets correct based on on on a lot of different things. they correct on other suitable investments. neil: correct on good news. >> because of inflation bond prices are going down. at some point investors will buy bond, then prices will stop going down because they have decent amount of yield. neil: we should explain, when bond prices go down, yields go up. that is what is happening now. at some point -- >> people will keep selling stocks. then they will put it in cash and buy the bond because you will get a risk-free return from a bond. neil: but we have the added

dimension, you reported on this as well, they're issuing more treasury notes and bonds right now. now you have a supply issue. >> the problem with figuring out this market is this, and this is where it gets really tricky for the average investor, you shouldn't be in the bond or stock market or be in cash, not doing anything, let it settle out. there is pressure in the bond market because the fed is essentially unwinding its portfolio. it is tapering, right? neil: right. >> pressure on prices go down, yields go up. on top of that pressure on bonds, stocks are overvalued. people think there is inflation in stocks and everything else. so again, bond prices go down in inflationary environment, yields go up. so both places it is hard to put your money in. stocks, we're clearly in a correction. we're heading -- neil: what would prompt someone looking, let's say 3%, 10-year note, 2.88, whatever it is right now. would 3% be the inflection point, you know what? i would rather get 3% guaranteed

by uncle sam -- >> on 10 years bond. neil: than god knows what in this volatile market. >> that is only 3%. neil: that's what i'm saying. you and i can remember rates are a lot higher, but a lot of young young -- folks it was something all together. >> maybe inflation fears are overdone. we don't know. this is sorting out of the markets right now. here is something else. maybe, the growth fears, a lot of people think corporate tax cut will not spur that much growth. that trump's anti-trade stuff will hurt growth. maybe he doesn't become protectionist. maybe trillion dollars of fiscal stimulus through massive tax cut will help the economy and you will get both low inflation, keep inflation sort of low and get corporate profits rising. that is a great time -- neil: that is prevailing view, no less the united nations, no friend of donald trump, estimated in a report today, it will encourage $2 trillion to come back here. it will stimulate the u.s.

economy. it will late the world. the imf said much the same when president was in davos. other companies like jamie dimon love them. >> love rich fat cats. neil: of course. do you see that the case? that is more longer term bullish trend? >> here's the thing. i believe that tax cuts do work, okay? neil: right. >> so, yes, that is the case. but if you had austan goolsbee on the show, former obama economist, good guy, very smart guy, he would say this. this is the bear scenario. we see deficits widening out. we don't see gdp growing where the republicans and atlanta fed say, four or 5%. we see trump as protectionist. that is always bad for inflation and it is bad for the economy. so we see rising inflation, we see potentially a bigger deficit and we don't see that much economic bang for the buck. guess what? that is a sell signal for the stock market. just telling you, that is a view out there. i'm not saying as describe to

that he took the corporate tax rate down from 35 to 21 with the carveouts. neil: the market was soaring on regulatory relief. >> on top of that you have massive regulatory relief. that is stimulus that the market that will have to help corporate profits thus stocks. neil: what do you make of the tug-of-war today? we have been all over the map today. we almost broken even. then we're down 350. now down 236. so in these type of fast market conditions i read into that a market weighing we get in we get out. >> we don't know. neil: i think people miss that you and i covered these markets for many, many years. i think that is the one thing that you have to at least be able to readily admit. markets don't know immediately but get a gut in time. >> what they are imperfect in the short run and run more pour tech long term. what is long term? at some point the market figures out what is going on, input all

the data and come out with something and we don't know yet. that is the problem telling people what to do. my point is, in a sorting out situation, and you're not a trader, this is -- if you want to trade stocks this is great time. neil: would we be happy if we close, we're looking 5% correction from the highs which this market hasn't seen in years, right? >> yeah. neil: we see that end of the day, some would say that is healthy development. >> i don't have a problem with it. because we're off massive highs. not only that the market is digesting the news. we don't know how this is all -- neil: i know you don't deal with people who are worth less than 100 million but do you subscribe to the view that those who dollar-cost-average, put the same amount in the market every month or quarter whatever, do you subscribe that is longer term the trend to take? >> yeah. i wouldn't right now be putting my money, fresh cash in this until we figure out -- neil: really? >> yeah. think is clearly -- neil: buy more shares of stocks.

>> this is a random walk down wall street. you don't know where it's going. at some point, something will develop. either bear scenario or bull scenario. i happen to think it is going to be good because i think when you cut trillions of dollars in taxes, that is a good thing. neil: all right. i wanted to share an email i got, we're tight on time. tony wrote -- >> tony? neil: tony. italian, says you and gaspo, he calls you gaspo which i think is little too familiar. >> yeah. neil: have dragged our people down with your arrogance and anti-trumpisms. i find you both fireable. >> fiery or fireable? neil: fireable. doesn't that hurt your feelings? does that hurt you? i hear something like that, it makes me feel all sad. >> no. neil: no? >> tell tony if he wants to put a stake in my heart, make sure it is metal. neil: wow. he said that tony. won't you know. we're down about 261 points.

a little more after this.

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♪ neil: well, the president is tweeting out a lot of stuff today but this one on daca, struck a lot of people, whoa, what is going on here? total waste of time. the prospect for apparently making a deal. should come as news it some republicans who feel that they have the president's support on a deal that now he is apparently walking away from. we don't know all the details. but i do know i have people who can sort of handicap all this gop fund-raisers extraordinaire noelle nikpour and connell mcshane and democratic strategist. noelle, to you first, we hear all the democrats saying nasty things about the president doesn't care about all the kids, they're not kids, children of illegals who got here, that is heartless, he just erupts, to hell with it. is that what is going on? >> this is nothing knew.

this is what he does. the thing really interesting to me on this is the spin of the now, the president and republicans looking like that they are for daca, that they are trying to protect, you know these "dreamers." 1.8 million of them, if they will just fund the wall. then you got the democrats basically sticking their heels in the sand, no deal. this will not go. neil: chuck schumer says, they can't take yes for an answer. if he is guarrantying citizenship for 1.8 million of them, would seem to be a deal made on the wall which some of them supported, not to the tune of $20 billion. >> at least for increased border security. neil: right. >> there have been two deals in the past. "gang of eight" bill and gang of six bill. you could get democrats -- neil: now there is gang of 22. there really is. how do the heck do they do that. >> who are these people. neil: gang of 22. >> especially to see a tweet where john mccain and chris

coons unveiling thereby partisan bills. the president is preempting that, i have no interest whatsoever. >> that is real reaction. that bill or idea seemed like way it was reported, nonstarter, they want a fix for daca but basically not have any significant money at all for the wall. >> didn't include language for a wall. neil: what is the coons thing with mccain? white house view of mccain is, he wants to make our life miserable. >> it is bad. for him to be front and center thinking he will take this to the president with no language written in it we're talking about with the wall whatsoever, come on. neil: coons-mccain doesn't have a wall thing but has citizenship. >> but you know, what could happen, you could bring it to the senate floor and you could make some amendments to that. neil: what has got, i'm sorry, guys, i was following much more the selloff than the whole immigration thing. what got him angry? >> i think i don't know for a

fact, coons mccain thing, that was not serious proposal. neil: that got him furious. >> felt he did extend the olive branch. neil: which he did. >> arguably,. neil: you liberals can't take yes for an answer. >> i don't know about that i thought chuck schumer misplayed the shut down. >> what is the problem with the wall. >> "politico" piece out very concerning we could have a proposal to kick this down the road for another year. neil: for another year. >> it is really disturbing. neil: we should explain they're talking about a continuing resolution tomorrow in the house, which likely keep the government operating for at least another month, right? >> right. neil: but that addressing this is a year away. that means it will not get resolved. >> exactly. won't be. calling it plan z. go through the midterms without addressing the "dreamers." it is not good for those adult children. >> that is not true. we did address the dreamers. republican party, that

donald trump addressed it, 1.8 million in amnesty. neil: who is going on to continuing resolution? i have seen the same reports dragged on for another year. >> there seems like a deal to be made a simple one, enough boarder funding for a daca fix. neil: both parties are held to the extremes. >> exactly. neil: they don't want to bend on that. liberals don't want to make any deal -- >> with chain migration. >> democrats held more than republicans. the democrats had a deal before them they turned it down. neil: this is the deal we had before. citizenship for 1.8 million. 25 billion for the wall. curbs on family chain migration, end to visa lottery. democrats were on with three out of board. they were on board with 25 billion, money for the wall, not 25 billion. >> that figure was, we heard from representative gutierrez from illinois who is one of our biggest immigration advocates, we should give money for the wall. neil: he walked out of the

speech. >> he walked out? i thought he had pouty face. >> pouty face? >> is that a thing. he said if this means protecting "dreamers," we give you the money but 25 billion is exceptionally high. we can't build the wall everywhere. so we had conversation like "gang of eight" style we could get somewhere. neil: you say something nasty, he comes back nasty, nothing gets done. >> all the nasty tweeting. >> what a way to run the country. neil: democrats are stellar examples of character. >> whatever. neil: whatever. >> whatever? neil: pouty face. we're down about 255 points. we've got interest rates rocketing away here. now for these young folks here, they never remember rates this high. i'm telling you, folks, got to step back from this. 10-year note, extremely low. just putting it out there. still extremely low. more after this.

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neil: philadelphia eagles win first super bowl. man, some destruction. the answer with radio show hosts extraordinaire, joe legoti, big

new england patriots fan. loves tom brady. loves what the team has meant, but holy cow, the cheaters have been stopped. joe, what do you think? >> uncle neil, you must really want to break my chops today. you've been waiting four years. four years you've been waiting. neil: yeah. >> hey, listen, the cheesesteaks at tony luke's today must be fantastic. i want to congratulate the city of philadelphia. neil: yes. >> they say you can't win them all. come on, that was extraordinary game. the greatest of all time passed over 500 yards. nick foles and coach pederson, they have had a great season. no matter what they have been hit with, they came back. you got to love them. neil: you don't mean a word of it. you don't mean a word of it. >> i most certainly do. >> you strike me as a sore loser, and trying to do this big thing, everyone say, eagles deserve it, they never won,

blah, blah. but it has got to bother you, and you were heavily favored to win and you screwed up. >> still bothered me. 16 pounds ever chicken wings and calzone. neil: you have lost a lot of weight. fantastic. >> i'm down to humongous. neil: you look great, my friend. i'm very happy. >> you do too. as long as you and i are, are dear friends who cares who wins the super bowl. neil: you do, who are you talking -- you do! what happened. how did they screw up? tom was showing his age. he looked 80 years old by end of the game. what happened? >> again i was very surprised, you know, there was only a brief moment. when he hit amendola a few times and gronk, yeah, you're right, he seemed half or two steps behind. i don't know, i mean, i know he doesn't drink. so it couldn't be he was partying too much.

i don't know what it is. neil: he takes care of himself. he is looking forward -- he indeed will keep playing. he is 40. but physicianologists say he has body of 25-year-old. he could keep playing for years, right? >> neil. neil: like you could be on for. neil: i'm not 80 years old. >> 75, right. neil: there we go. there you go. were you surprised, reading boston press in preparation for you, my friend, a lot of them are kind of complaining about the two eagles touchdowns that were allowed. >> right. neil: how do you feel about that? in other words, it seemed like a lot of patriots fans we would have won without that? >> well, here's the deal, neil, with that i was just talking to producers off-camara here. if you remember in pittsburgh, came down to two seconds, and we got the call about that controversial touchdown, to get the number one seed. well, now, if you live by the

sword, you got to die by the sword. so yes, there were two controversial touchdowns. i mean the referees ruled them touchdowns, so, you know, you got to score 42 points if your opponent scores 41. i just don't know. but, as i said, i'm still, in love with tom brady. not as much as you, but i'm still in love with him. neil: all right. there will be another year next year, right? >> not, listen, we will be, you and i will be sitting here in february next year only. i predict that you will be apologizing to me. neil: that will never happen. even when i'm wrong, that will never happen. >> that's true. neil: unlike you who admits it red dillly. joe, look great. continued success. great luck with the radio show. >> you too. talk to you soon. we'll have you on. neil: good luck to the cheating patriots in the future.

fate catches up. always catches up. they're calling this the patriot selloff, down 224 points. we'll have more after this. i'm a concrete mason. i had severe fatigue, became diagnosed with hodgkin's lymphoma. he was a good candidate for immune therapy, which is allowing his immune system to attack the tumor. learn more at cancercenter.com the ..

trained to all right, we are down to 26825 points now. whether this is something that will continue now, we were down 350, then we almost got into an

unchanged level, but it is fast and furious. nicole petallides on the floor of the new york stock exchange. >> in a different environment. volatility, have a volume, not seen one record after another appeared as a trader sang that is okay. they are okay with that. the 401(k)s and iras, one record after another. 355 points and as you noticed came back to do the flat line back down again. there is a rising rate environment right now, that they feel ultimately you don't sell all your stock because rates are on the rise from historical lows. we mention of volatility come into fear index, which is the highest low on friday we've seen since 2016. it shows a lot more nervousness in the market big picture. some people have picked the low-hanging fruit, they've done well over the last year, the is certainly a feeling you don't jump out if you lay it out over

the year. you don't just jump out if you have some profits to buy to take i'm sure everyone would be perfectly fine with bad and the one bright spot in the area would be taxed. the text doing amazing over the past 52 weeks. but what is sally now. down 300 points on the board. tacky showing green again. microsoft, apple and amazon without the aeros. they picture, neil. people are feeling obviously it's a different picture, differently at the land. neil: thank you very much. a new federal reserve chairman has been sworn in for the next two years. adam shapiro at the federal reserve at the very latest. all of a sudden his world has changed a little day. >> is world has changed a little bit, but you can expect more of the same because they like consistency and there's no expect nation it would shake up the normalization of the balance sheet or the repair to raise

interest rates. remember as you look at the picture is now the chairman being sworn in at the federal reserve, remember they were planning one of the inner workings here at the fad, leading three interest rate increases this year. some analysts have banks across the country predict in as many as four as the economy heats up, but then you hear people like president harker out of philadelphia saying perhaps there should only be two. jerome powell is now the person in charge. here's what he said about steering the economy as well as meeting obligations of monetary policy and inflation. >> my colleagues and i will remain vigilant and we are prepared to respond to evolving risks. we will also work hard to make sure regulation and supervision are efficient as well as. >> when you talk about the world changing, neil, you've been talking about what has been happening with treasuries, but

also the labor reporter which reside year-over-year job growth at its fastest pace since 2009 and that is something the fed has been waiting for. if that continues, the pressure on interest rates also in play. back to you. train to that video jerome powell, where was that? >> he was here at the fed, the kind of straight on into the camera talking to the world like big brother. sure into kind of the look of a hostage tape. maybe that's just me. jerome powell of the federal reserve. thank you very, very much. when the guys are in the power much like chief justice gorsuch, and they have to look middle-of-the-road, not influenced by politics. we are charles payne, moody chief economist john lonski. gentlemen, welcome to both of you. does the world change for him

now that he is in recognition with technology might have to hike more than a two times come even three times marketing forecast? >> the economy so much better shape today compared to in janet yellen took over. oddly enough the latest upturn by treasury bond yields may be doing the work of future rate hikes. look at housing sector share prices. the overall market down by 4%. housing sector share prices down by 7.5. neil: short-term rates. a longer-term rates it doesn't. >> more because that's planned reductions in holding of treasury bonds and if we had too steep of a child by the 10 year treasury yield, the fed might decide to downsize its planned reduction of treasury. >> i would think the 3.5, the

rate hikes built-in. you consider the atlanta fed had done a 5.4% in the first quarter gdp in the fourth quarter, which even know it wasn't 3% come all the domestics in fourth quarter gdp was absolutely phenomenal. could be revised up, the trade is what held us back. i am looking that earnings boston on the haze haze of the news last week. 50% of companies have reported fourth quarter. 80% of the people in the top wine, 75% in the bottom, guidance is very strong. i would suspect most people model three rate hikes for the year, which is not bad. neil: with the stock selloff to you? >> it makes sense of the perspective we don't know where rates are going to top off in bond yields will top off. right now i'd be cautious with equities. avoid this market. train to the selloff of the nine

to grade now and a thousand points, while over 5% from highs. you are saying it might not be done. >> i could see the market perhaps dropping by another 7%. then i believe we will get some remedial response from the federal reserve, especially as far as the holding the bonds are concerned. >> no sooner family coming in the completely. i was polish, over the last few weeks, they are sorted we cannot talk about market advances, the decline new highs versus new lows. neil: the argument you're a snake when it then you're buying more shares. >> databank will go down another

7%. it was the fifth or sixth market dow. all the other ones by 7% to 8%. if you're investing in great companies instead of driving top and bottom lines, you want to own them. >> here's my best analogy. 1987, a new fed chairman alan greenspan had just taken over. and with that january 1987. by october 19 that's about 10%. that was the 10 year yield at 10% or higher. we had a selloff before. >> are we setting up for something like that? >> we had very strong earnings. everything was on full throttle.

even with the thousand plus points we've seen it represents about one day in the 19 that was a quarter of the dow's value. >> you will not see the market fall by 5% or 20% again. i don't think it's going to happen. it is premature to say confidently we are nearing the end of the current selloff, especially bond yields continue to rise. ten-year treasury yields expected to average 2.6% in the first quarter of this year not to play in a five. >> you just said and 87 the yield was -- why would be an amazing economy. >> what you're used to one and a quarter and if people get nervous, look on the house inside. as in share prices are getting pummeled. >> construction spending in december with a record driven by residential spending. i'm not panicked and i'm really

concerned -- neil: i want to buy at these levels. >> i'm going to be an aggressive buyer this week for sure. out of nowhere the bottom is. >> i'm just going to hold. i'm taking some profits into this week in part because you can see some getting a little wobbly beneath the surface. >> i think the last time i looked the vi extras at 18 or higher. >> the gauge of volatility. >> what's important about that is highly correlated with corporate bond spreads which they have to pay for borrowed money. the junk bond yield spread recently as 330 basis points. 17 or 18, the junk bond goes all the way up to over 500 basis points. >> the capital formation may not be good for credit quality. >> it could be.

that's right. >> renewed the rates had to go. it is one of these things to crash the market, then we are all in a lot of trouble. >> and ultimately one of the problems with an immediate reason and sometimes in their caching in the chips. smart folks are buying produce soon. train to what was the mood? >> downtrodden. everyone else is hung over. neil: thank you very, very much. want to give the fair and balanced to you on that. bullish, slightly less bullish on that. we were mentioning the market now in and out of these special lows. we are getting larry lindsey, the federal reserve officials is

being considered for vice chairman of the federal reserve to serve under jerome and now would appear to roam powell i should say apologizes taking himself out of the running and the white house exec did the fact he has withdrawn his name from consideration. we do not know why. a white house spokesman lindsay walters on this as one of the nation's leading economic policy experts has been a valuable resource to the administration. we wish him the best in the future endeavors. we have no idea why he's taken himself out of the running for why he was pushed. bottom line, larry lindsey is not serving on the federal reserve this go around. we will have more after this.

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neil: down about 374 points. by the way, when we had our high him a correction of 5% or more and we haven't seen one in years. june 2016 going back to the famous when england took itself out of the european union. that rattled our markets as well. we had fallen 5% from our highs. technically what is a healthy correction is 10%. if you want to buy that percentage committees point numbers seem big and they are. the thousand white laws for

example as i said represents about five by 5% from our highs. just to put in perspective in the upper 1987 and fell 500a points i represented about a quarter of the dow's value in one day. nothing approaching, but it has been a trend picking up speed. the white house has been addressing this development here on air force one. raj shah has been watching this but the markets are very strong. america like that from every administration in the middle of a selloff whether it was the 87 crash with ronald reagan, the crash and 89 with george bush senior was a failed leverage buyout come a big deal at the time and then we had a 4% hit in the market with the asian contagion, with thailand and

elsewhere, when those are two separate markets at the time. bottom line, the fundamentals were down. it behooves those in power to say there is nothing wrong with the fundamentals here. the overall economy, the pace of earnings. whether you on the left or right here come the 80% of the s&p 500 companies that have reported have reported numbers that handily beat expectations on the revenues of sales by which indicates ongoing momentum on the earnings front which is how much money they are making off of those sales. that is something that has been a positive development here and analysts say when all is said and done. again, that is the memo read on this market from the white house the white house says the president flies out to ohio to use as an example of midsize manufacturers are. there was another memo we are waiting to hear from democrats in response to the republican

memo that could come very soon. white house correspondent john decker on that. what is the latest on its release? reporter: the latest is adam schiff, the ranking member of the intelligence committee would very much like to see his memo release. he's authored a 10 page memo that according to congressman schiff rebut some of the things that were the republican memo, which was released on friday, specifically he gives more information according to congressman schiff that went into that five application that operate surveillance into carter page, the former trump campaign aide. that is essentially what will be in the 10 page memo and waiting to see whether or not the house intelligence committee as a whole agrees to release the memo and of course if that happens whether president trump would agree to release the memo or whether he would put reductions in it because it has classified redaction included in the he's written. >> if he does the reductions in

there and didn't do a with the republican one, they must be aware of the potential risk of god. >> of coors, if you look at it without political present to it, there could indeed be classified information that mr. schiff is including in his memo. that being said, you are right there will be a difference of approach that the president would be giving towards the nuñez memo released on friday in the memo that mr. schiff contemplates releasing, which could be sometime this week. that is at least what he is expecting and hoping. neil: thank you very much. i want to read on this from fbi assistant director bill gavin. the market is that a bit of a pre-fall now about 421. you are not to blame for that. just keeping people apprised of that. i'm going to ask you is strange question that the markets could

be rattled by this if it means the back-and-forth memo and everything being the outcome of the whole investigation into russian potential ties to the trump campaign in who is wrapped up in what could get dragged out and in other words become a much longer sort of a soap opera that's earlier the case. what are your thoughts? >> there is a nexus with what is going on with the memo's back-and-forth with republican and democratic memos to the white house. you are right, could impact upon the market to be the last one to speculate on that. the biggest problem i see right now is the fact that the republican memo is out. it was based upon classified information that went to the white house, was declassified in the memo came out for .5 pages through the democratic side of the houses and they they didn't include everything in their in the memo because we have more coming 10 page memo here there's

a couple problems here. the 10 page memo gets released by congress and goes to the white house and the president decides i'm not going to declassify this comment has too many offensive things and not, you know that it's going to create a storm of arguments back and forth and people sticking their tongues out. the bottom line is if you recall that memo, which you solve is marked unclassified, the problem with top secret. it seems to me most of the information the fbi brings to a fisa court is in the secret realm. when i see top secret, maybe something else in the supporting documents came from another intelligence agency. that all remains to be seen. i think a lot of supporting documentation has to be declassified or ralph somehow come out in a manner acceptable that people can walk out. this never should have been. we elect adults to look out for

the best interest of u.s. citizens and congress and we are getting people lack being a little less adult and acting for the wrong party around personal interest. they've got to stop that. the american public needs to know what is going on and not be drawn up in all of this drama and theater that goes on here. one other game, we need to wait for the mueller investigation to be completed and just as importantly we need to see what the inspector general for the department is going to come up with because that is going to be a bombshell to more information that we don't have any idea yet. neil: whatever people think on the left or right about bringing all of this to light in starting the investigation in the first place, two minute berti pled guilty and are cooperating with the government as a result. do you believe what trey gowdy was saying that the two are kind of mutually exclusive here, but

this has nothing to do with the mueller investigation that this is going about its own pace? >> i think trey probably knows more than i know when i probably am not qualified to make that assumption. it appears that maybe there is a little bit of a disconnect between those indictments and what is going on with the background now. neil: you are a very modest man. thank you very much. bill gavin, assistant or on both sides of the class act. i readily agree with that. as you can see here, we are in another session, the dow down four to six points. briefly hitting close to 22, a reading of 22 would be the highest rating since november of 2016. it jumped over 23 briefly. normally when the volatility index hit that high a sign that people are concerned. now that can be very fast-moving and swing widely in the day.

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neil: all right, the dow down about 460 points right now. taking a quick look at the dow 30. on the intel and apple are up. i noticed that it is up as well. a lot of technology stocks are doing relatively okay. the nasdaq compared to the dow by comparison almost holding its own. again, most major sectors are down across the board here. a lot of this having to do with higher interest rates. i do notice since i try to keep denying on all the news and business channels because that's the kind of guy i am. anyway, i've noticed all of a sudden they are very interested in the stock market, which i like because it's my nerdy world. i like when people pay attention

to what i pay attention to. they want that into it when were going up. we don't ignore one way or the other year, but i do find it interesting that now it's a big deal. i'm happy to have them come along for the ride into my nerdy little world, but it seems they are predisposed when it's negative and not positive. that could be made. people watch this stuff all the time to crunch the numbers and actually see if i'm right. media research center research or rich noyes on this. rich, it is uncanny how the sudden i see these big old bugs, not to recall them, slashing the dow as they should. we were going up, up, appeared what is going on? >> a little bit as the news business. more newsworthy than plane safely time after time. the rise in the dow, the rise in stocks the past 13 months is one of the undercovered stories of the term presidency.

81 records. in the dow since last year. 61 of those abc, cbs, nbc did not find them worth covering. the dow 25,000 to just a few seconds the dow 26,000 have big reports friday night on friday. my guess is if they are down like we are now they will do big stories again tonight. they are sort of missing the ride up, but making sure people pay attention to the ride down. neil: here is where the president may have dug himself a bit of a pickier and that is the predisposition to quote the markets all the time. i understand the media doesn't give enough credit for that. that is fine, but other white house arguments have enormous run ups under their watch, ronald reagan, george bush junior, they avoided that and

focus instead on things like how many more people were getting jobs for the tax rate that benefited their take-home pay, et cetera. this president on the way up you potentially on it on the way down. a white house spokesman traveling with the president to ohio at the markets fluctuate but the fundamentals of the economy are very strong. if i had a dime every time i heard the administration argued that, they are technically right. you live by the sword, die by the sword. >> well, yes. media ridicule president trump for the stock market every day saying he inherited from president obama. now all of a sudden it's down a couple of a percent. it is writing industries based on stronger economic growth. suddenly it seems like it's a bad thing and they want to point out the biggest correction since he took office. i've heard that phrase over and over again.

neil: ignoring the fact is enormously unprecedented. the red arrows is better and gets more coverage. i am just wondering how you suspect the media were cover all of this tonight if it finishes as we're looking at it now. >> i think they will give it another round of coverage. they will warn people not to overreact, which they should not do. but i think they will put a damp and on the good faith you've had over the last couple of months. neil: always good seeing you. thank you very much. i apologize, you're leaving me speechless. this is a collection of our small company. i'm sorry, what the follow-up today is underwater. i was going to have more to add to that. more after this.

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neil: all right, we're just getting word right now but a lot now but a lot of money and leaving stocks has apparently found a quick call temporary though it might be, maybe not in the bond market and you are seeing a 10 year yield slid down from 2.8% to 2.83%. i only mention that because people were picking out what level people move into bonds at the relative safety redeem the relative safety and apparently the 288 level which represented four year high yield might have been the springboard point. when a lot of people say if money is leaving stocks, where is it going? for the time being into bonds, not so much gold earlier today, but mainly bonds, the full safety of treasury notes and security. we will keep you posted on not.

the president a writing mayor. he's going to be addressing a local manufacturer they are, sharing the tax cut with the workers are jeff flock is in blue ash, ohio where the president will be speaking very shortly. serve. it's got a little bit of a ride from cincinnati to blue ash, which is where ibm. the shopper hydraulic cylinders is that they make a small company about 120, 130 or so workers. they did give each a bonus of 130 -- this is actually $1000 to their retirement savings plan. i am somehow. indianapolis 58,000 employees each going to get a thousand dollars. do the math $58 million that are going to be doled out to those employees. i would point out they just announce earnings last week, tax

profit as a result of the tax reform bill $1.1 billion they would probably cite that as well. the u.n. today ought to be positive for the stock market. it believes as much as $2 trillion will be brought back by u.s. companies parked overseas as a result of tax reform in the lower tax rate in the ability to do that. most of that money is intact. stuff like apple, alphabet, microsoft, cisco, oracle as well as in there. they have a quarter of all the money overseas in the u.n. says they will bring a whole lot of that back. the thing that would be positive for stocks, but right now not so much. the president did say we would get -- when so much we'd be

tired of winning. maybe the market is tired of winning. give the other guy a chance. it's what the patriots maybe did. neil: i don't know if he meant that. very good observation my friend. jeff flock, i appreciate that. the president again will be talking about the economic improvement of the tax cut. among the reasons rates are backing up right now. backing up from thence, do i pay attention to some of these inflection points of a lot of people are smarter than i say this is something that could be a healthy development based on the notion that 5% correction is something the market has not seen now for a couple of years coming year and have to be more to the point that the president gets off air force one and the rise in ohio. he's been arguing improving economic numbers in a market up until a few trading days that i was going his way might not be. talks in japan and europe have or be wiped out their 2018 games up to 2000 with an index of

small-cap funds, small-cap stocks is now negative. though i should stress had stabilized here. those are the underpinnings, for those who argue you need a correction or a cleansing, some say it has to be more pronounced at 10% is something we've not seen in the better part of five plus years that i would be a little more gutwrenching to go through, but very healthy to go through. parents editor at-large on all of that. you need that kind of thing for the markets to move forward. >> absolutely. the market was going up, up. that's not what it does and it kept on doing it. to bring the bonds into it a little bit, you have this phenomenon. there is no alternative. bond yields were so low, reluctantly kept on putting their money into stocks even though they still have memories of the crash. tina got taken over by something called faux mo, fear of missing

out and that is when everyone who had been relied in for so many years piled into the market. it went parabolic and whenever it does this you know it will do this pretty hard and that's where we are right now. neil: i'm so much older than you. a familiar drill for the administration's. i covered them all through these sort of things when it's happening back to the administration, fundamentals are good. even going into the meltdown. sure enough this administration on air force one same economic fundamentals are good at in this particular case indeed they are, but that doesn't get away from the gut wrenching experience of seeing what looks like a big number, percentage terms not that big, but how does that play out? >> i would take some issue with your last gas. but the stock worker goes home tonight as vice as how was work

today? do you think he's not going to say the market was down 500 points or wherever we end up? >> every day he went home that honey we had a record. as humans, the fear of loss we feel much more strongly than the positive of games. neil: of the president paid dearly for aligning the markets. they watch the markets, daylight if they they said they did not tell you, but they quote in terms of jobs or the unemployment rate coming down for economic activities, that sort of thing. >> this is not the first time i recommended neil cavuto for pr for the white house. i think you're exactly right. your point is they should pitch it to the fundamentals of the economy, which are good right now. the market is constantly turned in markets do not move day-to-day according to long-term fundamentals. but not in the day-to-day. they can go up, go down.

it is moody. mr. market is very moody as ben grimm pointed out half a century ago. trade i'm wondering now, i was joking before about media is now getting a fixated interest in all this and i say welcome to my nerdy world coming next is the you leading that the stock market. the bad news sells and i understand that. it most certainly does. there's been little reflection that in the scheme of things the market we are still looking on a bull market that is nine years old next month. do you see any sign that this is the beginning of something we should watch? >> so what i would say is generally speaking in history doesn't always match itself exactly, but before the downturn, long before the downturn you see a lot of volatility. think about the late 90s as the market was going up to me saw big swings up and down. we haven't seen that. it's been insanely boring. >> we have a lot of big deals

people forget, but we always came through them. >> right. now we have record low volatility for a long time. that seems to be breaking right now. neil: you look at this as a continuation of a trend or something the overall numbers are so high now that it will stick with you. these are obviously the inauguration. it is still appreciable but this takes on a life of its own. >> this is the beginning of the last phase producing inflation, global growth, consumer spending going up faster than consumer incomes are going. those are all end of a bull market move. neil: in fact this weekend was telling me, the more hit the market stay, the more affordable the rich market looks. is that the case or does it have a ways to go? it is still rich by those

standards. >> gets rich by those standards but the comparative bond yields say it's not average. it's getting a lot less richer by the minute in terms of pd. because earnings are moving nicely, and that means they will come down further. not only is the price dropping but it's going up which makes it more days. neil: would you have a price earnings multiple we've been getting used to things very heavy beyond the historical average price of the stock earnings, that what would it take for it to get back into a range. some said it would take at least a couple thousand more at that point. >> that is what technicians say. they can spend an awful lot of time out of their channels. with low bond yields. at the biennial starts to get up above three, i think we have to get really nervous and you could see a correction to bring stocks into the standard range. >> jack otter, again we were

waiting to the point about the inflection point people might come in to some other investment in stocks and he was talking about that approach closer and closer to 3%. 288, 289 did a trick on a 10 year period i do want to get too lost in the weeds, but that level brought up the price of a 10 year note go in opposite directions and neil came down to two playmate and 2%. and more of what has been the case of moderate takes away the volatility of the stock market, whether the president and we are aware of what's going on. the president will step back and say are you aware of what's going on since i was a lack did,

not rated, philip appreciably higher. ronald reagan famously said stocks go up, stocks go down and one of his final interviews after leaving office he said stocks are still a lot higher than when i came into office. a little more after this. whoooo. looking for a hotel that fits... ...your budget? tripadvisor now searches over... ...200 sites to find you the... ...hotel you want at the lowest price. grazi, gino! find a price that fits. tripadvisor.

neil: just taking a peek at the market down 390 points. better than where we were. 27 of the dow 30 stocks in the three that are up are technology issues including intel, apple and microsoft mildly positive. the nasdaq in terms of comparison on -- comparison with its own amazon. through the market freefall, jeff bezos has increased his net worth to about 128, $121 billion. his net worth has gone up through this. go figure. you are concerned you're hearing all this and seen all this. what do i do. retired author chris hogan, would you tell folks who are, particularly young folks to say i miss the party and now i'm getting clobbered? >> i would tell them to take a collective deep breath and understand what it is you are trying to accomplish. you want to understand what it

is you're doing and what you're trying to accomplish. put on blinders and stay committed for the long term. >> i've always subscribe to this since i was your age that just put a little bit into the market every month. you'll get more shares when markets are banged up, fewer shares than their little richer, but over time it's not an einsteinian principle, but you'll be rewarded for that. what do you think? >> you hit the nail on the head. been consistent over time will help you get the progress. utilizing 401(k), putting in a set dollar amount and i tell people to invest your household income will put you way ahead of where you are. >> what is that? >> looking at it based on gross because i've never had anybody get to retirement and say i've

got too much money. that's 15% as the rules stay committed and stay focused. neil: a lot of people in a rising rate environment whether they should pay off debt. cheap as it is, it is not as cheap as now. >> i think times like this where there's nervousness about the fed raising interest rates, people that have debt if there's adjustable rate, they will be caught in the trap and debt payments will go up here for me, that is always the threat now as well as your future. i would encourage people to attack baghdad. when you look at intake the view, that limits you to miss an opportunity cost and it ties up your money now and prevents you from growing it later. neil: if you had a choice between putting more money into retirement account and paying off a mortgage, it would depend how soon you will retire, but what is the rule of thumb on that? >> if i'm doing the 15% of my 401(k) or my four at three b., i

will take the extra money and throw it towards the mortgage. i'm always doing 15%, but any extra money coming in i will attack the mortgage. you will eventually pay off the house and imagine your mortgage payment isn't leaving you that you're able to use that to catch up on savings for retirement and using it to give to charities you believe in. >> we don't have your options with that incredible voice is yours. it's always good to see the author of multiple bestsellers, just common sense stuff you should think about while maintaining your cool. we tend not to do that, but if you take a big picture and look at it by things in a long-term perspective. i keep a chart in my office and it looks at the beginning of the doubt more than a century ago. the closer you get, presidential assassinations, scandals, you name it, gyrations. when you step way back, the

chart overtime goes up. we will see what happens. more after this. . . . .

neil: all right. in and out of just what has been either negative or really negative territory. whatever the case, even with the 330 point hit on the dow right now, across the board, extending to averages like russell 2000 now underwater for the year. we told but the japanese stock market going into today, now underwater. host of european indices

underwater. they had not gained with us. dow is not under water but not up a whole lot. about a percent after all of this. but about 5% from its highs. so we'll keep an eye on it. trish regan will as well. as we take you to a new hour. hey, trish. trish: hey there, neil. we have a major selloff under way. we are off the lows of the session. we were down well into the 400s. we're off just 321 now. this is not a convenient thing to be happening now. the president is landing in ohio. in just a few moments he will be touting his tax reform at a factory plant there. i'm trish regan. welcome to the teleagainst report on this day when we were watching a very big selloff. nowhere to hide except tech. intel, microsoft, in dow 30 all doing well, however the rest of the dow in pretty negative territory right now. we have a lot of concerns about inflation. in other words, things are looking up.