a day. [closing bell rings] stocks have incredible comeback in last hour of trade. bested only by yesterday. that will do it for the "claman countdown." i will see you right here tomorrow. melissa: look at that. a wild ride on wall street. investors breathing a big sigh of relief with the dow closing, look at that, 569 points higher after two days of major selloffs. today, extreme volatility in trading with the dow seeing one of its largest point swings in history, more than 1100 points from bottom to top. david: extraordinary. big highs, big lows. melissa: nobody knew which way the market was headed from one minute to the next. if you've been watching fox business though you knew not to panic. here is the s&p and nasdaq closing higher as well. all the major averages recovering a lot of those gains for this year. i'm melissa francis. >> and i'm david asman of the so

glad you could join us on this "after the bell" particularly after yesterday. we got you covered this hour. all the big news moving markets today, what you can expect tomorrow. let's go straight to nicole petallides on the floor of the new york stock exchange because, nicole, last night you and i were on together covering what happened at the end of the lou dobbs show. in fact you said the market will start lower, end higher. you were spot on. >> thank you, david asman. you're too kind. i will use ted weisberg's saying, a clock is always right twice a day. in this case, yes, i'm happy to report that i did get that correct this morning. we opened down 567 points. just moments ago we were up 600 points on the dow jones industrial average, closing up 568. so this is a much better position here for people who like to see their money going higher in their 401(k)s and iras. there is no doubt this was a wailed swing today. it only adds to what we've been

seeing over the last several days. we also saw the s&p 500 up 1.7%. the russell, the small caps, for those folks who invest there, also 1%, those "fang" stocks, those favorites moving to the upside. taking a look at the vix, the fear index, a lot of traders pointing to the vix for our big selloff yesterday in the 3:00 p.m. hour, a lot of people bet the calms of the market. they bet to the downside. in fact we were seeing the vix jumping. it jumped up 1 15% yesterday. it is up but down to 29.70. apple may offer rebates to people who bought iphone batteries before the discount. apple gaining 4% today. of course we're going to key in on those disney earnings, right

here on "after the bell," david and melissa. we'll wait for that as well. but happy to report finally an up day after yesterday. we dropped 1175. friday we dropped 667. nice to give you a little up arrow here. melissa: absolutely. apple is my pick yesterday. that is what i would bought in the drought. gold has been slightly lower, not a big move. what does that tell investors? >> well, it tells them right now that they shouldn't be fear if you recall. we're not seeing a safe haven in gold. that might be a strong sign in the market yesterday, maybe the vix showing so much fear in the gold that maybe that selloff was way overdone. that got proven to be correct today and that is a good sign. early in the morning we were watching this market at about 4:00 in the morning. gold was actually up $10 at one point. there was that fear in the

marketplace, but nicole called it, the turn around, turn around tuesday, that really made gold a little bit better. one of the things that give market a boost, believe it or not, lower oil price. when the stock market sells off oil goes down because of concerns about the economy but actually oil is down because of a good thing. it doesn't follow the oil back up. we got a report from the department of energy. they actually raised their forecast for u.s. oil production again. we'll be producing over 10.6 million barrels of oil this year, maybe 11 million two years from now. that is good news for the economy. it is good news for the stock market as well. melissa: it sure is, phil. thank you for that. great stuff. david. david: let's bring in today's market panel, john layfield, layfield reports ceo, and gary kaltbaum, fox news contributor. i don't think that is fake site behind john. i think that is really bermuda, a live shot of bermuda. that is where he is. gary, want to go to you first.

we have never seen a market as fickle as it was. maybe we have, somebody will come up, stock market historian saying there was one. boy, we had such big highs, such big lows. atthatthats me that the market t decide what's next. what say you? >> it tells me a lot of buttons were pushed and it finally found some footing. i'll not sure the end of this. i rate it a big wow, only thing i was thinking buy some pfizer because i think they will sell a heck of a lot more xanax if we get more days like this. i'm sure will bounce up a little bit more. for me, how much we bounce, can tell me. i'm not sure we're out of woods. david: forgive me for interrupts, gary, something that might happen with corporate earnings. their numbers are out right now. biel put the numbers together,

get an idea what is happening there. meantime if we have strong earnings reports from now on, will that smooth out the markets? >> i think it will. the markets are trying to find fair value. gary is right about this. this has a lot to do with high frequency trading and algorithms making volatility even more. 80% of the corporations in s&p 500 reported in the upside. highest surprise upside since 2007. nothing has changed with the overall global economy. nothing changed with the u.s. economy. i think market right now is worried potentially about inflation that could come in and what that could do to interest rates. david: by the way we're getting revenues, a slight miss on revenues, but after-hours, the stock is up, gary. we'll have to dig into the figures. a lot of questions whether espn is doing well. a lot of questions about twenty-first century fox, whether its attempt it sell some of their products to disney might be actually good for disney right now. i have to ask about gold and the dollar.

i know it sound obscure but the fact gold is down, there is usually a flight to quality when the stock market is shaky. instead of going to gold it went to the dollar. a lot of people were worried about mnuchin talking down the dollar a couple weeks ago. apparently that turned around, no? >> look, when markets around the world get in trouble you get what they call flight to quality. our dollar or bonds. david: gary, sorry to stop you in mid-sentence i have got to go to nicole. she has looked through the disney earnings, has some information for us which way things are going. looks like a miss on revenue. melissa: beat on earnings. david: but i guess a beat on earnings, is that right? >> right. what we're looking at, $1.89 for earnings per share. 1538 for the actual revenue. that is a miss for revenue, that is miss for revenue versus estimates of 15.40 and change. with you're seeing the stock is up 1 1/2%. one area of strength was parks

and resorts. who likes to go to disney theme parks? that was actually up 13%. melissa: whoa. >> espn networks revenues for the quarter were flat. studio entertainment revenues for the quarter were relatively flat. david: this may be of interest to you. while in fact you mentioned the parks were up 13%, wall street was looking up 12% on that. tv was down 1% that sounds bad but wall street was expecting them to be down 3%. so the bottom line, nicole, the tv revenue didn't do as bad as wall street thought it was going to do. >> we have to talk about everything with fox, obviously they will be forking over $52 billion for fox. so that will be another part that i would love to delve into a little bit more but it looks like here for earnings per share they beat and revenue missed and the stock is losing momentum. had been up over a percent. up half a percent. we'll look at that for the dow tomorrow. melissa: bring our panel back

in. john and gary with us. dominic patton from deadline. dominic, let me ask you, there was news breaking right before earnings came out, which was no surprise, i guess, they will add to the "star wars" list of movies. this has been a great investment and huge revenue stream for disney. >> oh, my god, since disney took over and bought lucas films rejuvenated these franchises which were some of the biggest things around. melissa: we're reading about the future plans. they had in the pipeline, the han solo spin-off and another one as well, right? now they're saying it will be even more. >> exactly. melissa: tell me about that. >> exactly. what they're doing, they announced before the end of the trading today, that the "game of thrones" executive producers are going to pen not one, not two, but three new "star wars" movies, not directly related to the "star wars" universe as we know it but resolving around it. that is a massive investment what is already a huge disney

arsenal coming up. just think about it. you mentioned solo, but they have on february 14th, black panther, we're looking 120, 150 million opening weekend. wrinkle in time, with oprah winfrey on march 9th. "avengers infiniti" superhero sequel and solo on may fifth. before we hit the summer. some earnings we look at today, some of the reports detect not sort of girth but there is muscular slate for disney ready to come down the pipeline. that is not talking about what they intend to do in tv. david: melissa, let me throw in one added fact. the numbers look pretty good on earnings. they exclude 1.6 billion-dollar benefit from the new tax code. that is interesting. they're doing pretty well without this benefit. when you add 1.6 billion in, that makes earnings look even better. melissa: john, you want to react to that, john layfield? >> what it is the most important

thing for disney is going forward. they're changing, what wv did went from pay-per-view to over the top model. disney doing same thing. cannibalize your own licensing with netflix and to create over the top. a bit of a gamble you'ring doing. the big thing for disney how that plays out. melissa: gary what do you think. >> sorry. >> being in orlando, i can tell you the parks are sizzling. that is number one. lines are big. movies, great purchase with "star wars." you know, that is going to fire them up going forward. biggest issue will continue to be espn as they lose people to the unbundling. that is what is hurting the stock. as a stock, it has been a definitive underperformer in the dow 30 for last year, year-and-a-half. melissa: dominic, what is it you wanted to say there? >> what i was going to say, that is the real secret weapon pay over in the long term that over the top.

disney and 52 billion-dollar deal with fox, disney will have 6 60% control over hulu. disney taking products off netflix and streaming competitors. putting them, maybe look for a base in hulu. they don't have to create a new over the top. they have a basis and solid foundation which they now control has great branding, 17 million subscribers and growing, ever quickly, with hulu live showing sports like super bowl. that could be real launch off point not just for "star wars" but entire disney universe. melissa: david, you want to hop in. david: we have news on bob iger suggesting in the springtime they will launch completely revised espn app. so the point they're revising an app for espn to me builds on top of what was just said going into the streaming business more whole hog, going hulu, not only hulu but also sling. they're using two methods of

streaming information from espn, rather than relying on cable. melissa: john, does that get the trick done? what do you think? >> still think it is a bit of a gamble. not as big of a gamble with wb who was successful with it. it's a bit of a gamble. you're taking away licensing fees. cannibalizing your own business. part of espn subscriber loss, those people went to hulu and sling and red zone. melissa: all of us does not have, they don't have cable and they don't have directv they're watching on some streaming service. you have to figure out how to capture those folks. david: my daughter doesn't have it at all. all streaming. keeping calm amid volatility as investors trying to grasp what's behind these wild market swings. the white house telling americans not to worry. that the economy is strong and growing. here is sarah huckabee sanders at today's press briefing. this is just moments ago. take a listen. >> the economy is incredibly strong right now. the president as focus continues to be on the long-term economic

fundamentals, like i just said are very strong in this country. we're infinitely better off today than where we were before the president took office, particularly on the economy. we have historically low unemployment. we have actually increasing wages for american workers. there is nothing that has taken place over the last couple of days in our economy that is fundamentally different than it was two weeks ago and we're very comfortable with where we are right now. david: then there is treasury secretary steve mnuchin who kind of stepped in it when he talked down the dollar a couple weeks ago. tried to work his way out of that he has similar tone. adam shapiro with more what he is saying. adam, go ahead. reporter: testifying before the house financial services committee. asked a series of all kind of questions about reforming the gses as you look at video from this hearing. he talked about dodd-frank reform to lessen the burden on small banks and community banks but of course the question everybody had is the secretary, is the administration concerned about the selloff we saw monday

and could there be a possible continuation today and maybe even a contagion of some sort into the financial system? so there was this exchange with several different members of committee, one in particular with representative duffy, sean duffy which the treasury secretary basically reiterated the point the fundamentals of this economy are strong. here is what he said. >> i think you have seen normal market correction, although large, and i think again there is disconnect in the short term. markets move in both direction. >> any concern in the fall yesterday with algorithmic trading that could have heightened the losses that place yesterday? >> it definitely had impact on market moves. >> anything considering those market moves? >> nothing i would recommend at this time. reporter: while everybody's attention has been understandably on the markets and what's driving the volatility in the markets there are other big issues coming at us very quickly. house is going to vote tonight

on continuing resolution. you have the issue of raising the debt ceiling. we're approaching that issue in march. the secretary talked about the need to raise the debt ceiling. there are other issues that the secretary is focusing on along with capitol hill but everybody was focused clearly on the markets today. back to you. david: absolutely. he has a lot on his plate. adam, thank you very much. melissa? melissa: john layfield back with us. i felt like steve mnuchin wanted to roll his ice at committee. should we get algorithmic trading under control? good luck with that. what do you think, john? what was your reaction? >> i agree with you. look that is something you simply can't deal with. adds a lot to volatility. the real worry in the market is inflation. gold prices up 50% in the last year. i think inflation could be potential worry, six to 18 months out. the market, problem we're have something simply uncertainty. people are trying to find fair value. melissa: goodness out there. it is not selling off on the

fact that somebody thinks there is going to be recession. it is growth, it is inflation, it is a move back to what's normal in the bond market and treasurys. it is a return to what we've always known in terms of a free market economy as opposed to the fed being in control. does that make you nervous? >> no, it doesn't. it doesn't make me nervous because i think the reason that we're having this inflation is because of growth. you look at ford, recently had earnings. i own ford. big problem they had was commodity prices were higher and it suppressed their earnings significantly. we're seeing that because of demand. the worry that fed will have to raise rates to do that because of that the economy is growing. we're seeing wage pressure go up which is inflationary pressure. that is because of demand and because of low employment and companies are adding jobs. those are good things of the market is trying to balance how much good will be taken out by potential of the fed raising rates. melissa: i think gary kaltbaum is back with us, is that right?

>> yes. melissa: gary, if we get back to a normal situation where we have normal interest rates and normal inflation, how do you adjust for that? other than the fact i want to lock in my mortgage and buy right now and deal with that? but other than that, what do you think? >> well, look, first off, with the markets the biggest issue is the markets have been used to very, very, very low rates, not only here but around the globe. and that is where my big worry is if they keep backing up. as far as the individual, look, and as far as business, cost of doing business is going to go up. that can hit profits. and also commodity prices have been rising, that could hit profits so there is definitely things on the horizon here that has to be watched very, very closely. not just because they're going up. because what businesses and what markets have been used to for good, six, seven, eight years, that is low cost of capital. melissa: john, let me challenge that for a second. you says, gary says cost of business is going up, for sure.

except for that corporate taxes just went way down. and all of this extra money flooding into the system was largely sitting on the sidelines. and looking for a place to go. so i don't know, i mean for the individual, if you have a big credit card balance and you have a mortgage, cost of doing things go up as you see interest rates go up. but for companies, balancing everything out, how big of an impact do you think it has? >> that is the conundrum the markets are in right now. that is why you see increased volatility. markets got scared. we had gone 400 days since a market correction. longest we've gone since the 1950s. the market is trying to figure out equalibrium between the economy growing and commodity prices going up. we'll have to see that play out in the markets and i don't think it will play out anytime next few days. melissa: guys, thank you. david: let's talk to a market trader from the new york stock exchange, tim anderson. tim, we got into yesterday's

loss by about 50%. we cut into half of what we lost yesterday. will we get it all? >> we'll have to see. the 2700 level is very important level for s&p 500 and the reason i say that is the last leg of this big rally started in mid-november when it became highly likely we would get tax reform and the market rallied almost end of january, and 50% retrace of that rally is 2700 on s&p 500. when we protect that level yesterday, it triggered computized sell programs that created a big plunge around the 3:00 hour. today certainly felt good. we were set up for rally after two straight 90% down volume days. i think market has a decent chance of building on it tomorrow but we still may also

have some, some backing and filling to do to test recently put in support levels. david: get away from talking about support levels and bots, all the electronic stuff, talk about real economics, what's happening. we had disney reporting. one of the things that disney reported is that they have a $1.6 billion net gain in the last quarter because of the tax change. they're already quantifying the amount of money, not insignificant at all, 1.6 billion, that they are attributing to the tax changes. are investors going to be convinced when they begin to see real advantages, money advantages, dollars and cents, bottom line changes because of the tax code, might that turn their sour mood around? >> there is no doubt that the, that the numbers on the economy and corporate earnings and bottom line of all of the tax reform is going to continue to

improve, it will continue to get more positive data points on that going into the remainder of the rest of the quarter, or about a third of the way into the first quarter. that, the economy will continue to improve and corporate earnings are going to be solid but it is very possible that the fundamentals might fight the technicals here. maybe for another couple weeks. david: one fundamental you can't disagree with the fundamentals when disney is crediting tax changes for $1.6 billion to its advantage. that is an enormous figure that i don't think wall street can ignore. if you begin to see that multiplied, charlie gasparino earlier today, made the point that wall street is kind of waiting right now to see whether or not these tax changes are going to benefit the bottom line of specific businesses. i think we saw that today with disney. what do you think? >> i agree with you 100%. we're just starting we're on the

cusp of companies starting to come out with similar announcements. clearly, these announcements like this could ripple through number of very high-profile companies, in different industries across the whole economy. david: yeah. let me bring back gary kaltbaum, because, gary, you know the market is not sentimental at all. it doesn't care about sentiment. it doesn't care about politics. it just cares about the bottom line. donald trump can talk until he is blue in the face of benefit of tax cuts, i will believe him, but market will not believe him unless they see it, now they have seen it on disney earnings. what effect do you that will have if any? >> i think there is 1000% chance it affects earnings to the good side. you are already seeping what companies are doing because of it. it cuts down, we talked about a higher cost of doing business. this is a huge lower cost of doing business. it goes right down to the bottom line. it expands profits and expand

their abilities to grow and hire and invest and all the great things companies want to do so i'm all for it and i'm the happiest man on earth they did that you're seeing it and a lot more to go in the next few months. david: but will it expand the optimism of wall street or will wall street kind of pass over this? >> keep in mind we've already had a gargantuan run. the answer is already been yes. we had 8400 dow points in 15 months. as i said to you, that is like six to seven years of returns. this pullback or correction, whatever you want to call it is just the fact that just got too frothy, too extended and hopefully it is over. i'm not sure just yet. david: if people had said, i will throw this back to tim, if tim is still with us, if people had said in 1983 the economy was getting overheated because it was up 4%, 4 1/2%, they would have been dead wrong because you know how much it was up the next

year? 7 1/2%. there was enough momentum with those tax changes and that wasn't the lion's share of tax changes in the '80s. that came in 1986. the rather small attempts attacks changes in 1981 and '82, which paid off in '83, not led to overheating but to a supercharged economy. i wonder if the market is underestimating the right now the effect of the tax changes? >> well it could be because the market will always have a little bit of a cynical show-me attitude and i really think the big will be first quarter gdp. first quarter gdp has disappointed the last three or four years. last year it came in only 1.2%. if you can get first quarter gdp to come in at 2 1/2% or better, i think then, investors will become a lot more convinced that the economy's got some real traction. david: tim anderson.

great stuff, thank you very much. gary kaltbaum. good stuff as well. we preet it. good to see you both. busy first quarter. melissa: that was really something. there you go. avoiding a shutdown. no it is not deja vu. law make remembers working vigorously to avoid another government shutdown so will they be able to get it done? memos rocking washington. first a republican memo is released. now the democrats are saying it is their turn to do the same. republican congressman louie gohmert joins us on the fallout, coming up. ♪ mom's got this cold #stuffynose #nosleep #mouthbreather just put on a breathe right strip it instantly opens your nose...

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melissa: also moving markets of course, turmoil over another potential government shutdown. the president weighing in. let's go to blake burman. reporter: president calling for a government shutdown here at the white house earlier this afternoon, seeming coming out of left field if there is not

tightening at the border to crackdown on illegal immigration. comments came earlier today during a roundtable which the president was talking about the need to get tough and crack down on the violent gang, ms-13. here is what he said. >> we have to shut it down because the democrats don't want safety and unrelated but still related, they don't want to take care of our military, then shut it down. we'll go with another shutdown. reporter: here is where things stand, congress is trying to currently avoid another government shutdown set to take place on thursday night. then after that point, move on to the immigration debate, leaving many questions what exactly the president was referring to. the white house press secretary sarah sanders that president trump is not looking for a shutdown, saying actually there was a shutdown it is the democrat's fault. top democrat in the senate is chuck schumer, as you know never shy for words, earlier today he seemed at a loss. >> speaks for itself.

we had one trump shutdown. nobody wants another. maybe except him. reporter: speaking of the democrats, the democrat memo produced by democrats on the house intelligence committee, has now made its way here to the white house. sanders saying, david and melissa, during the white house press briefing that the president has reviewed it, has gone over it, with none other than the number two at doj, rod rosenstein. back to you. melissa: very interesting. we all know it was "schumer shutdown," because trump shut down is alliteration, therefore couldn't be. david: sound better. melissa: yeah. david: breaking news, chipotle is reporting fourth quarter results for 2017. the mexican food chain beating expectations on adjusted earnings per share, reporting a buck 34, adjusting for 21 cents benefit because of the tax reform. there you go again, ladies and gentlemen, more and more of these earnings include the net benefit of the tax changes.

wall street has to take note of that. chipotle meeting expectations for revenue bringing in $1.11 billion of the company saying it will invest its tax savings in one-time cash bonus and stock bonus for employees. melissa: all right. snapchat parent snap, inc. shares soaring 30% after-hours following release of its fourth quarter results. the results exceeding wall street expectations on the top and the bottom line boosted by strong user growth. snap shares are now trading above the ipo price of $17, it is about time. melissa: there you go. david: new questions on democratic memo as president trump reviewing rebuttal on the left. congressman louie gohmert sounding off on that. fisa courts, are they out of control? that is next. >> this is about holding our government accountable. this is about congress doing its job, conducting oversight over the executive branch, which in

this particular case has been given great power over us as citizens. we need to make sure that the power is used correctly.

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>> democrats on the house intel committee complaining their memo is being censored by president trump and house republicans but is this another beltway swamp move? member of the house judiciary committee, congressman louie gohmert joining us now. i'm glad i'm not where you are,

congressman, i have to admit. everybody has to be a public servant at some point in their life but jeez, what a swamp. congressman adam schiff, lead democrat on house intel committee apparently included information in the democrat memo that he knew would have to be redacted, information that had sensitive information. >> exactly. david: that he knew would have to be redacted. so it has been, its being redacted, now, guess what, he is claiming he is being sensorred this is something that some people are calling the trump trap. what do you have to say about it? >> that is exactly, david, you've seen right through their facade. they knew, if you recall, their big objection about the republican memo was, it would reveal sources and methods. you can't reveal sources and methods, and they knew that was a lie. they knew there was no, there were no sources nor methods revealed in the four-page

republican memo. what do they do, when they realize, uh-oh, we were saying there were sources and methods. let's put a whole bunch in ours, and then they will have to, they will have to cover those up and then we'll scream censorship, yeah, that is win all the way around. david: that is so transparent. give me more credit i deserve. anybody could see through that move. >> i don't know. david: i'm just wondering -- >> you can turn over a couple of channels see not everybody has your wisdom and insight. david: that's true. that is not wisdom and insight. so transparent. republicans voted with democrats to release the democrat memo. >> sure. david: every democrat on that committee voted not to release the republican memo. what does that tell you? >> it tells you to them it is all politics and, 24 hours, seven days a week, it's politics but, david, what really blows my mind, they don't realize the

message they're sending to donald j. trump as president of the united states is, see what we're saying. we're perfectly okay if you want to use your campaign money to go, to use the doj, the intelligence facilities and assets, use them, along with your campaign to go after the 2020 democrats. we're okay with that. their own record they're okay with it. that is the message to the president. but some of us are consistent enough, the president is one of them, that we don't care which party it is, this is outrageous. david, when did the church hearings years ago that were going after people that may have been surveilling american citizens and now under the fisa court it is just, it's so outrageous. the fisa judge will sign anything. david: let me focus on the fisa court. this is an issue that actually

may be some eventually bipartisan support on. the fact is, you were a former judge. >> correct. david: if a cop came to you and said look, i want to do a wiretap on somebody, what evidence do you have for a wiretap? well, i have got this guy, he is kind of a sleeze ball, but he claim, heard rumors in the hood this guy is selling dope, you would throw him right now. that is essentially what happened with the steele memo. this guy came in. he didn't reveal any of his sources. it was salacious and unverified, to use the words of mr. comey. the fbi did not do what it is supposed to do, which is check his sources. why did the fisa court accept this application? why didn't they throw that out? >> that is the 64,000-dollar question, and what gets me is, okay, i've got a letter here, david, that we're signinging,

giving, well, begging chairman goodlatte to get those transcripts of those proceedings. david: right. >> he will do it as, majority of us want to see those but once we see the transcripts, we'll be able to know, did they completely lie to the fisa court? were they committing just an outrageous fraud on the court? let me tell you, when they went back three more times, each time knowing more and more every 90 days this was even more of a fiction, there was no basis in fact for this, it was even more salacious, they continued to get the warrants -- david: that frankly concerns me, and judge, that is what concerns most americans right now that it is just too easy to spy on americans. it is just too easy. you -- >> once you get carter page, then, uh-oh, he talked to these people. then you have got all the people in the trump ad ad spin station or campaign or administration you go after. one of the things we hadn't

really talked about, but that didn't come until october, we believe they went back and got conversations prior to october, and nsa has been saying no, no, we can't get sufferingses just just -- get conversations from anywhere, if they got conversations before the warrant was signed, it tells you they're monitoring every conversation of every american they have them anytime they want them. that is another story for another day. david: you got to drain that swamp. >> we got to. david: louie gohmert. thankthank you. >> thank you, david. melissa: disney company after-hours, beat on first-quarter earnings, miss on revenue. disney citing a one-time 1.6 billion-dollar benefit from the tax law that pushed earnings 88% higher from the year before after adjusting for one-time windfall. the company reporting adjusted

earnings $1.89 a year. espn continued to be a drain for disney. revenue declined at the sports themed network due to lower advertising revenue. david: it is up after-hours by 2%. that is not correct. up 2% for disney. that is pretty good earnings report. government approaching another shut down but it could be saved by a house vote later tonight. we'll bring you details in a moment. ♪ paths aren't what they used to be. roads nowhere to be found. ( ♪ ) and it's exactly what you're looking for. ( ♪ )

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melissa: as we mentioned we're awaiting a release from the democratic memo. our next guest wrote a op-ed is, obama and the fisa court, both reputations can not survive the collusion investigation. joining me, james freeman, "wall street journal" editorial page assistant editor i love the way you lay out our argument.

i let you do it. >> we want to get the democrat memo, we want more information, mainly what we want to know is the bar spying on your political opponent really as low as it appears from the nunez memo? melissa: yeah. >> basically you have a fisa court, as far as we're told, which is signing off on, you were talking about it earlier, unverified rumors, essentially, that would not really pass muster in any kind of professional newsroom. melissa: does it matter that their response was, that is teeny sliver of it? >> basic idea, why would you need it. melissa: yeah. >> if all the other stuff is really great and compelling, why do you bring in yahoo! news? why do you bring it unverified claims by unnamed russians. in some cases second and third hand rumors? why do you need that in the aren't application if all the other stuff is so good? i think people submitted these to the court will tell you, that you may have that sketchy unverified stuff but then you

pair it with phone or electronic record and it begins to look compelling but someone who created a lot of presentations for the court said to me that, he would not want to face the judge again having dropped this on the judge and that's why, i would love to hear, and i think they should consider even though this is normally secret, having the judge testify because we're not going to get, even if we see some of that transcript louie gohmert was talking about, i would love to hear the judge say, here is how i made the decision and here is what i think the justice department owes me. melissa: it is interesting to me too, because the dnc paid for at least part of this memo, dossier whatever made its way around, but what i would ask the other side now, is this fair game? is it okay if the rnc in the next election, 2018, 2020, if

this is our practice going forward, paid for this kind of research that brings in these different foreign agents comes up with something that can not be verified, uses it at least in part, one teeny percent to get a warrant? are you okay with the other side doing this, and we will operate this way going forward. >> scary. melissa: i can't imagine the answer to this question is yes. >> i don't think this happened before. as far as we can tell. melissa: how do you know? >> that is why it will be a question now, was this process abused by the obama administration? and if not, we really need to look again at the fisa court because -- melissa: one or the other. >> this is basically, you would think from what we've been told they will allow anything. and, and remember, this is the no like a normal adversarial court, they don't get a defense lawyer there, they don't know you're spying on them. you rely on the justice department to have high level of

integrity. the judge has to believe what they're being told is true. melissa: that is fascinating. appreciate your time. james freeman. good stuff. david? david: you have to fix those fisa courts. avoiding a government shutdown, lawmakers prepared to vote on another short-term funding bill. even if they get it done, when will we get a long-term funding bill? ♪ there's flonase sensimist allergy relief. it relieves all your worst symptoms including nasal congestion, which most pills don't. it's more complete allergy relief. and all from a gentle mist you can barely feel. flonase sensimist helps block 6 key inflammatory substances. most pills only block one. and 6 is greater than 1. flonase sensimist. he gets the best deal on the perfect hotel by using. tripadvisor!

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david: the house is expected to vote later this evening on another continuing resolution. the goal is to fund the government through march 23rd or until leaders on the hill can come up with a spending bill everybody can agree on. here with details, fox news congressional correspondent, mike emanuel. mike, we're hearing about one plan to extend funding for two years, right? reporter: that's right, david. first things first. the house will vote on six weeks

government funding extension. provides more money for military rest of the fiscal year. this is popular with fiscal conservatives and also those defense hawks. >> remember what schumer said during his last "schumer shutdown," he said he did not want to hold the military hostage. this gives our ability to fund the military completely, while we figure out the rest of the agreement for everything else. reporter: that is reference to senate democratic leader chuck schumer, who warned the house plan is dead on arrival for the senate. schumer wants money for domestic spending as well. sources say the big four leaders on capitol hill, mcconnell, schumer, ryan and pelosi are close to agreement to boost both domestic and military spending for the next two years. >> i think we're on the way to getting an agreement. and on the way to getting an agreement very soon. reporter: and then a few minutes later the senate democratic leader came out said, his side is upbeat too.

>> very hopeful, very hopeful, nothing is done yet, there are some outstanding issues. i know you will ask me which they are, i will not tell you, so don't waste your questions but, i am very hopeful that we can come to an agreement and an agreement very soon. reporter: the thinking is when the six-week extension is sent to the senate, they could if they have an agreement put it back into the bill, send it back to the house. that would allow the appropriators to know the spending levels for the next two years. then in the coming weeks they could work on filling in the blanks. david? david: money, money, and more money and it all comes from us, ladies and gentlemen. that is what is going to make it happen. mike emanuel, thank you very much. appreciate it. reporter: thank you, sir. melissa: main street versus wall street. it has been a stressful few days for traders, but how is the average investor handling market volatility? we hit the streets to find out. ♪

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. >> inside the minds of main street. >> our own gerri willis hit the streets of new york city to find out how everyday americans are reacting to the wild market swings, take a look. >> great time to buy in. find your favorite companies and buy up. no reason to sell anything right now if you didn't have a reason a few days ago. >> big declines and big increases. >> early to say exactly what it means, we have to wait around. >> we needed to have a correction. it was coming, we all knew it was coming, the market will rebound. i think the policies in place by the administration are going to help it. >> where did we find these people? >> the greatest thing about what's happening in america right now is the experts showing that the experts are full of it. you know? the experts were full of it when they said donald trump wasn't going to be president. full of it when the economy was going to the tank. americans are so much smarter than the experts.

put them in charge. that's what the revolution is all about. >> it's true, they look around, they get it, they know how they're feeling in their wallet. it's amazing. >> watch out all you experts out there. >> there you go! that does it for us, "risk & reward" starts right now. liz: u.s. stocks roaring into the close. it was a chaotic day, a swig of more than 1100 points. we started the day near correction territory. the dow closing up at 24,912. this, after yesterday's biggest one-day point drop in history. that was the biggest sell-off since 2011. the dow is now back where it was a month ago, it's lost a month of gaining but how far down is it going, watching the asian markets going down right now. what should you, the average investor be doing? have you all great questions. we're going to try to answer them. this program, this network will give you the perspective you need.