down 3% on the dow. [closing bell rings] briefly touched correction territory. it has been that kind of a day. nasdaq down 2%. that will do it for the "countdown," david asman, melissa francis, "after the bell." david: ashley, thank you very much. big news out of washington making a big dent on wall street. stocks slammed on fears of a trade war with china, out of control government spending, maybe another shoed dropping in the mueller investigation, and there is still the hangover from the federal reserve announcement yesterday. not to mention a whole dust-up with social media. this is perfect storm, leading to tumbling on the dow. it tumbled into the close, not at the lowest point. that was 745. down about 721. it is still 3%, we're in correction territory, ladies and gentlemen. melissa: big move. david: good to have you with us. i'm david asman. melissa: i'm melissa francis this is "after the bell." s&p and nasdaq ending down more

than 2%. we have you covered on all the new developments. first go to nicole petallides on the floor of the new york stock exchange, with more on today's big selloff. nicole what are the traders saying? i can only imagine? are they bracing for impact? >> they're used to trading. vix jumped 30%. we're down 722 points. this is a big day of selling. they're probably going to be happy that we at least held that february low that we closed at 23,860. we're at 23,960. that is interesting to see if they see that as level of support. interestingly enough, so often we have the big selloffs they buy them back. i think they will watch to see we've broken down below key technical levels. or we start to buy them back or lower lows. that being said, take a look. we know tariffs and trade wars are front and center. boeing, caterpillar, 3m have been under pressure.

we've seen some of these names, for example, caterpillar down 6% this week. financials, rising rate environment. that spooks people as well. these financials, which can move up with rising rate environment, wells fargo, bank of america, down 4% each. the entire facebook story has everybody on wall street talking about, i asked one of the traders, i went in there, we talked about all different things, they don't like to see a lot of change in the white house which is what they have been seeing a little bit of. they believe in trump and his administration but don't want to see a lot of changes. we had the lead lawyer resigning. and facebook story, regulation, working with the government, this is the whole story, down 11% for facebook. down 4.50 at 164.89. that took tech down across the board. nasdaq was down about 4% this week. back to you. melissa: you get the sense

facebook is in real trouble and that is definitely a drag on thing. nicole, thank you very much. it is official. president trump slapping new tariffs on imports from china. fox business's adam shapiro is at the white house with the details. adam? reporter: it will be quite a while before the tariffs are imposed. what the president has done, sign a memorandum authorizes the united states trade representative to take action. ustr in 15 days, present to the public a list of 1300 products as well as investment restrictions that could be the target of the tariffs. here is what the president said why the united states is taking this action. >> we have right now an 800 billion-dollar trade deficit with the world. so think of that. so let's say we have 500 to 375. but let's say we 500 with china. but we have 800 total with the world that would mean that china is more than half.

reporter: again the ustr has 15 days to come up with a list. then there is a public comment period. there are several weeks before tariffs could be imposed. that is wiggle room for the trump administration and chinese to negotiate over these issues. on capitol hill there are plenty of people who support what the president has done but there are others among republican leadership. orrin hatch, senate finance committee chairman, who doesn't think this is the best move. here is what hatch had to say. >> i expect some push back from china. i don't think there is any question about that. the question is, are we in a position economically to really fight them? i do believe the president has good intentions. he wants to pull us out of some of these messes that we're in, but i'm not sure you do it by starting a trade war with china. reporter: the chinese government has responded. the chinese premier said this earlier today, quote, what i hope is that we can act rationally rather than being led

by emotions in order to avoid a trade war. the other big headline out of washington today, here at the white house, john dowd, the president's lawyer, deciding to leave his legal team saying quote, the president has a terrific case. this is in reference to the mueller investigation. the president has a terrific case and has proved it to the special counsel, robert mueller and his team in spades. i am so proud of the president's transparency. how anyone could accuse him of obstruction after the president's extraordinary cooperation is beyond me. i love him and wish him sell. that again john dowd, who is no longer on the president's legal team as the president is negotiating, at least the legal team, with robert mueller about sitting down, being interviewed. back to you. melissa: i don't know how many people say i love you in their good-bye letter but there you go. adam, thank you. david: let's bring in today's panel, our very own charles payne of host of the "making money" on fbbn james freeman

"wall street journal" fox news contributor, bob cusack "the hill" editor in chief. we have a full panel. charles, i never got tired of winning the president famously said that at the beginning of the winning. i love that every time i looked at my 401(k). i'm tired of losing. how long will that go on? >> i'm not sure but over grand scheme of things we will be back to the winning ways. that brings up a great point the notion that the market goes up every day or notion somehow we should not endure any pain particularly trying to right a wrong of this magnitude as far as the fed. what wall street doesn't get, most americans do, if we ever right the ship, to get fairer trade and not have china rip off, you know, copies of f-22 airplane fighters jets and all the trade secrets of silicon valley, now might be the time to strike. also to be honest with you, there was this feeling i think on wall street we had to test the lows.

sometimes that has to happen to make sure the rally is intact. we were down relatively light volume today. the soybean sector by the way was probably strongest sector which is interesting because that is the first salvo potentially but you know, this is just, this has to happen sometimes from time to time. david: we're certainly testing lows. by the way only .2% a way from a full correction, lindsey. charles said we have to hit back because our trading partners are taking advantage of us but if you ask fund managers their number one concern, above everything else, inflation, everything else. david: it is the problem of trade whether we go into trade wars or anything. there are all the exemptions to the initial tariffs came out. the only country hasn't been exempted now is china. >> well i certainly think that trade policy is one of the biggest concerns, not just for fund managers but for every day americans concerned about how these policies will impact their bottom line, impact their wallets. remember this will have significant impact on

industries, a number of industries, large industries that employ hundreds of thousands and millions of americans in many cases. when we talk about an economy still on very moderate footing, we're talking about two percentish economy. when you throw in these types of barriers to the flee -- free flow of goods, labor, capital, this will only create a large impediment of domestic growth down the line. david: there is another idea. let me switch to bob, forgive me, lindsay. we have impediment of the spending deal, more of the same stuff the past 20 years that got us into this. people voting for trump thought they were voting for a change in that. thought they were voting for a change draining swamp or change in way we dealt with budgets there. is virtually no change, is there. >> no. this bill is over 2300 pages. no member could read it in short

amount of time to read it. we don't know what this is bill. this is harmful to the republican base. that could hurt republicans in the fall. on trade its whole new ballgame, trump is shaking things up. when trump was elected the dow was 18,300. so i do think, generally speaking we are headed up and we'll continue to but trump is certainly going to shake things up both on wall street and washington. david: then, james, you have the circus maximus, i don't think there is any other phrase for it inside the beltway. [laughter]. that is getting insane. the president's lead lawyer, it is big news he is leaving but now the spin on that, media spin is okay, this proves there is collusion. this proves everything that mccabe's firing was supposed to prove even though that wasn't done by the president. it was done by internal audit by going on at the fbi but it is just getting insane inside the beltway for this political stuff. >> i don't think that is new. david: that is not new, but the

degree which it has gone overboard which its happening now. >> i think what is happening, i think that is happening the whole time in the trump administration. i think your intro hit i had on the head. i don't think it's a coincidence that the theme of year one in the trump administration was less government, lower taxes, less regulation. so far the theme in year two, we've seen markets going down is more government. the president seems to have this idea that heavy regulation of business is bad inside the country. he is right about that but seems to think it works great at the border. it doesn't. we should go after china with the wto for intellectual property violations but forget the rest of this stuff and let markets trade. melissa: let me pick up on that, charles, but that hasn't work. i agree with james in principle but the idea we keep saying we'll go after china for all this theft of intellectual

property for unfair trade practices but it never happens. this imbalance gets out of control. i don't mean the trade itself. i remember we like cheap stuff, we like cheap goods but idea our companies there are getting raked over the coals, if this is beginning after bigger negotiation, can we stand the short term pain in order to come out with a better deal in the end, what do you think? >> i say absolutely. maybe the wall street folks can't but average american can. this is why president trump was elected. when i hear people on wall street talk about the folks in the heartland. what election did you watch? this is what president trump promised. market peaked on january 26th. that is the day trump went to davos, mecca of globalism told them he would do the very thing of the market has not been same since. it is fine. we have to endorse short-term chain, ever since china joined the wto they have become more bell lidge rent, not less i

don't lindsey, you look at problems people are fed up with it is entitlement or immigration or our various deals and problems with china, they're all props that politicians in the past have said they want fix because it is too hard, too painful. the medicine in the short term is something we can't endure. maybe there is someone in the white house is who not afraid of this kind of market fluctuation and short-term pain and can really tackle some of the short-term problems. what is about that? >> this is certainly the hope. i respectfully disagree with charles, i think the market was ignoring more protectionist policies. yes the trump administration laid testimony out on the campaign trail. the market was focused on deregulation, immigration reform, health care reform. these main components drove the market higher post the trump victory. yes it was part of the campaign trail. i don't think that was the focus. only now as he puts these in place the market is waking up,

wait a minute, we have isolationist protectionist policies coming into play. that could more than offset positive implications from the other areas particularly in the aftermath of tax reform. melissa: bob, you heard in the introduction before you guys, the idea that there is some wiggle room in the timing and implementation what is going on here. we already heard the response from china saying we don't want to get into a trade war here. we want rational action to be in play rather than emotion. does that give you a hint that maybe this is about negotiating? it is about who blinks first? >> yes, absolutely. certainly this has gotten china's attention, politicians for most part running for president, they're tough on china on the campaign trail but back off. whether on trade practices, currency, trump said i am doing something. this is whole part of negotiating some type of a deal. there is a lot of lobbying going on getting exceptions to the

policies, we'll see that in the public comment. this is trump's game. this is striking the deal. melissa: james, "art of the deal," i wrote "wall street journal" opinion column last week. i think you don't agree with me? >> i don't. thank you for writing that. melissa: but i think you're wrong, melissa. >> you know i love you and charles, wish you well always but i really, i think it would be a mistake to dismiss this market action as just sort of the message of wall street elites. these are investors all around the world saying with their dollars that this is not good for growth. melissa: all right. thanks, you guys. david: by the way that is sign after wonderful editor because he was your editor, disagreed with your column and printed it and edited very well. melissa: that's true. david: good work, james. detail down at bottom of your screen you saw moments ago, from the record high of the dow jones industrial average we are now down 9.99%.

we're only .01% away from correction territory. that is about the thinnest, as thin as you can get away from a correction. for more on the selloff, let's go to tim anderson, he is down on the floor of the stock exchange. tim, does this turn from a correction into a bear market or have we found a bottom? >> well i don't think it will turn into a bear market because i think the fundamentals behind the macro economy are strong enough it where we're going to work through the technical damage that has been done to the market in the short term and later in the second quarter or in the second half of the year, the economy will still be in good shape. i'm not saying definitely we'll make new highs but we'll recover out of this, out of this correction that we're in right now. i'm not going to -- over a 10th here and there. david: tim, the economy is in great shape but as i mentioned before what is going on in

washington is just nuts. a lot of rumors, media tries to shape into facts but ain't so. it causes shivers in beltway and reverberates on wall street. how much did the news of dowd resigning, the president's lead attorney affect the market today? >> i don't think it had a big effect. it might have had a knee-jerk effect at the moment but i think we're to the point where it is not big breaking news that trump fired someone or somebody left his staff or left the white house. david: that's true. >> it happens almost every week. so i think the bigger deal is, i mean i think it is 1/3 facebook, 1/3 the fed, 1/3 the tariffs story. you just have to realize that the old saying the market can handle bad news but it really doesn't like uncertainty. and, we don't really know what these tariffs will consist of. we don't have details on them. we don't know exactly what is

impacted by it. think of how many iterations the steel and tariff plan through before it got officially rolled out. david: if you look at that as an example of what might happen with the china stuff mentioned today, you saw a president, at first his aides came out saying there will be no negotiation, no exemptions. now we realize that just about every country on the planet is exempted from these steel and aluminum tariffs. so don't you expect the same thing will happen with what was announced today? >> you know, we're going to have to wait and see but i will also say i don't doubt for a second similarly to the steel and aluminum tariffs being the timing of that was pretty much precursor for continued renegotiation of nafta behind the scenes, i wouldn't doubt if announcement on these tariffs on china are timed very appropriately in front of the meetings that trump is going to have with north korea in couple months. >> right. that makes absolute sense

because he uses them as bludgeon in all kind of different ways. not only trade negotiations, but as you mentioned dealing with north korea. what about the fed? we heard from the fed yesterday. was that considered bad news today by the market? >> i think, there is two things going on with the fed. i think market is interpreting the fed statement and the q&a to be a little bit more hawkish than what it really was. i mean he said three rate hikes. i think a lot of people have been talking about, are we getting three or getting four? but he also talked about upping growth estimate, upping inflation estimate and lowering unemployment estimate. now the curve has gotten a little bit flatter in the last day. that surprises me. i think that combination of those three things would make the curve a little steeper. we have to see how that plays out over the next few days and few weeks. david: yeah. >> the other thing going on i think with the fed, the market

has a history of getting nervous anytime there is a new fed chair. david: yeah. final word, we're talking about volume. earlier in the day, the volume seemed kind of light which was surprising considering a big selloff. of the at end of the day a little more than average, volume in terms of shares swapping here, what do you think will happen tomorrow? will people jump in now, individual investors as opposed to program trades, man, there are a lot of bargains out there? into you know the -- david: not yet? >> we're a little below that. we're not quite at 10%, 90% down volume day. volume picked up in the last hour, 90 minutes. if we get a sharply lower opening in the morning we, we might have a shot for a reversal day. although it's unusual that we get them on a friday. david: yeah. exactly, going into the weekend people don't want to be long on stocks. tim anderson.

great stuff. good luck tomorrow. >> thank you. david: melissa. melissa: showdown over spending, the house approving a $1.3 trillion spending bill. it is now up to the senate whether or not this bill makes it to the president's desk. let's go to fox business's connell mcshane live on capitol hill and connell, what can you tell us? reporter: midnight deadline on friday staring them in the face on capitol hill. to your point the house got the massive spending bill passed, not only $1.3 trillion, but 2232 pages introduced last night and passed this afternoon. here is the house minority leader. >> one of the reasons that the republican leadership was rushing this bill in practically on, practically sight unseen was they wanted to get out of town before the march for our lives came to town. reporter: leader pelosi referring to saturday's gun

control rally this sat stay. members were running as the bill was passed for two week easter recess and passover. the paperwork is passed over. we still don't they exactly how the timing will play out with the deadline approaching. some senators, marco rubio of florida, one of then, saying that you can't make the perfect the enemy of the good. listen. >> get 70% of what i want or 50% of what i want or 60% of what i want, we have to take that as a win. it is okay to kick a field goal on fourth down if you're near the goal line. you don't always have to have a touchdown or putting points on the board. reporter: republicans like military spending. democrats like increase in domestic programs they like that. president pointing to priorities putting 1.$6 million for the border wall, he likes that. melissa, none of this is done deal. the way the rules are in the senate. one senator has a lot of power and can stand in the way of

something getting done. just about everybody is waiting to hear from senator rand paul. he was culprit slowing things down last fall. we'll see what happens. melissa: it really hurts people to running for the door right after lunch on thursday. i mean it is one thing when it is like end of the day friday but like lunch on thursday. anyway, connell. reporter: run away. run away. melissa: so annoying. here is republican congressman louie gohmert, from texas. from the house freedom caucus, thanks for joining us. >> by the way they run because they're trying to make the first plane. i'm rather slow and i'm still here and, by the way, i know "the wall street journal" critic was proving the rule when he criticized your article because he proved the rule that nobody's perfect and obviously he is not. melissa: oh, i love that. >> you're right. he is wrong. david: wow. >> he approved the rule.

melissa: we're done. the interview is wonderful. we're all down. >> by the way, don't you think, the massive spending that just cleared the house could also be discouraging thing to the market? i. melissa: yes. >> i remember not too many years ago we were threatened if we didn't get a proper spending bill done they would lower our credit rating. these massive bills like this, you know that we're tacking on to our children's legacy, i mean those can have an effect because they are an effect. as far as the value of stocks, i like this market so much better with the big tax cuts coming, people are investing in their companies. there is capital that is being utilized. and so now we're having companies actually worth what their stock is selling for. so that is okay. melissa: i would say everyone here would agree that our jaws dropped when we saw the spending bill. the idea that everyone's win column was that they were spending a bunch of money and everyone's loss column was someone else was spending a

bunch of money and just sort of a spending bonanza, that does, you're right, maybe everybody on wall street very nervous as well as taxpayers everywhere. >> sure. melissa: people that hold bonds and everything else. is there any hope of ever getting that under control though? because it is starting to feel very hopeless? >> well, it starts to feel hopeless to me but you will know, i have given up hope when i don't run again. there is that hope, that hope that springs eternal in the human breast and there is reason for it because i heard a lot of people that were really basically to the end, they were upset that republican leadership pushed them into this. they were trying to be loyal but as i'm sure you're aware, democrats were so excited about all the giveaways they got, that they are the ones that got this thing passed. so but, the point is, you have a lot of people that i was hearing say, this is it. we can't do this again.

it is immoral to be doing this. melissa: right. >> so, hold on to your hope because people are waking up and we're either going to start doing spending bills appropriately, and forcing the senate to do it or i'm telling you we're going to have different leadership. it is that serious. melissa: first step in that correction? what would be the sign that things are changing? >> when you hear the house leadership tell the senate leadership, all right, this is the last time we're doing this. you are now on notice. we're going to be doing our 12 appropriations and you must do yours because we're not doing another omnibus cr. you will do what the law says you have to do, have a budget. and then we can use reconciliation again to do some welfare reform and other things. but, you will know that we're on the right track when you hear house leadership lay down the gauntlet and say you're going to follow the process. we're not going to do this again

because our house members will not vote for it again. melissa: i hope so because we're getting very concerned here. congressman, thank you for your time. >> thank you, melissa. thanks for your insight. david: we have breaking news. nike reporting third quarter results. let's go back to nicole petallides with the numbers. we need some good news, nicole. what have you got? >> we have good news here. the stock is up 3% in the after-hours. they did see better than expected sales. the fact effect hurt their numbers for the quarter, swung to a loss but when you look at adjusted numbers, 68 earnings per share, got that from bloomberg, ax-the-tax, beat 53 cents. revenue 9 billion, versus is 8.85 billion, up 2.4% right now of. actually it wasn't north america. revenue in north america dropped but china, europe, africa are areas they did well. direct to consumer concept is working well for the company. it has been on the rise since

the company swung to a surprise loss. that is thanks to the u.s. tax overhaul. that is weighing on numbers a little bit. but the big picture here, their sales were a win. david: beg picture they're up 2 1/2% after hours. >> yeah. david: that is good news. maybe a harbinger of what happens tomorrow. nicole, thank you. >> this was a major breach of trust and i'm really sorry that this happened. we are doing a set of things to restrict the amount of access that developers can get going forward. but the other, we need to make sure there are not other cambridge analytica's out there or folks who improperly access data. so we'll go now and investigate every app that has access to a large amount of information from before we locked down our platform. david: they're out there. there are a lot of those apps. facebook ceo mark zuckerberg saying he is sorry and vowing to run an investigation what's going on. deirdre bolton has more.

deirdre? >> response to this most recent user data controversy, facebook founder, ceo, mark zuckerberg saying we made mistakes, there is more to do. we need to step it up. we saw a longer clip from the interview there. he said he would be willing to testify in front of congress if it was the right thing to do. we put a qualifier on that. he said he did not oppose some forms of regulation, which for the record i think are coming. specifically around ad transparency which is a project facebook has been working on since last fall, you can be sure that will be sped up. zuckerberg pledged tweaks to the system. he says facebook will investigate, look for potential abuses of personal data by app developers. a lot of people are saying we thought they were doing that to begin with? so that is one thing that facebook is taking some criticism over. a lot of people think facebook has rules but just didn't enforce them. so is we do have this idea that it may be a start but significant changes have to

happen and have to happen faster. one analyst who has a sell rating on the stock says facebook is exhibiting signs of systemic mismanagement, which is a new concern and one we had not contemplated until recently. so the facebook board understands the crisis as well. in fact it put out its own statement late last night. the lead director said zuckerberg and coo sheryl sandberg are working together with for user protections and are instrumental to its future. my translation was, don't try to force either of these people although it would be very tough to get rid of mark zuckerberg given the share structure of the company. he owns about 400 million shares, most of which are class b. that gives him a lot of power over the board and its decision but this user data controversy, really latest setback, strike two if you like. facebook struggling to respond

to the criticism, really past 18 months about a range of issues, including manipulation of its platform by foreign actors and the spread of fabricated user stories and user privacy. facebook does say it will notify tens of millions of users whose personal information was gathered and shared with cambridge analytica. as we talk about that is 50 million facebook users. the next worry though, we took it from our colleagues at "the wall street journal," is disenchanted users. to what extent. we've seen the #deletefacebook on a lot of people's pages or twitter feeds. will people do it? does that include deleting instagram and whatsapp which facebook owns? is facebook serious about issues, will it pay real money to human engineers to sit there and fix these problems after we saw that russian intervention, if you remember, david, facebook

said okay, we'll hire 1000 editors to go through the news. people said 1000 editors? that means nothing with two billion users. the bottom line will facebook accept thinner profit margins to pay humans to basically work on engineering projects and make the system tighter? david: deirdre, very quickly there is another bottom line here. which is of course great concern. not everybody cares about facebook but everybody cares about the internet. if there are regulations on internet to do what facebook couldn't do in terms of protecting data, is that going to slow down the internet? >> this opens the door to tech being regulated in new ways which certainly silicon valley wanted to avoid and if we're honest about it, probably shareholders in tech firms wanted to avoid it. david: deirdre bolton, thank you very much appreciate it. melissa: all right. here to react james freeman and bob cusack. james, one of the things we heard about in the deirdre's

report, mismanagement, loss of confidence in mark zuckerberg and sheryl sandberg, is that speaking the market on facebook? >> is this really new this huge company that made billions off offering free services is using our data? the product is us. i think people have known that for a long time. i think media storm is now because facebook is guilty of possibly being useful to the trump campaign. melissa: but they mismanaged the media storm. i think what you're saying is true. we've always been the product, reaction was so poor, so late, them getting hammered by everyone that is where the mismanagement comes in, james. >> i don't know. i think they have often been a voice of reason and perspective given the constant media efforts to point the reasons why trump trump became president and not being satisfied with the obvious

once. i understand why regulation would be bad for industry and i understand why the stocks would go down but if we get a new round of regulation you can bet facebook will benefit from protection from new competitors coming into this market. that has been the story. every time you get big regulation in the industry, more than facebook, its potential competitors who are going to sufficienter. >> bob, james makes a great point. if you're not paying for the product you are a product. when they talk about they will make sure there isn't more cambridge analytica's out there, are you kidding me? their whole business plan is collecting every nuance about you and selling it to some one else or sharing it to someone else. members of the obama media team giving lectures, everyone can watch at home on youtube, how they sucked all data old thing. facebook said we knew what you were doing. this is tweet from the media director, we knew what you were doing but we let you do it because we were on your side.

this has always been their game. >> it is. their business model to some degree. i like to play tennis. they have things that pop up about tennis on my facebook feed. some people are certainly fine with that privacy is a hot button issue. the problem with facebook they were silent for days on this. finally zuckerberg broke the silence. melissa: badly. >> he has to go to congress, listen, just be transparent. reveal everything. say we're trying to get better. remember in the 2016 with the foreign actors and russia using facebook, facebook was like, no, they really downplayed it, and didn't think it was a problem and had to say you know, it's a problem. we have another election coming up. melissa: they look like they're lying inept or both. that is maybe makes their shareholders nervous. james? >> i think the media kind of changed the rules on them. this is an industry and company in particular that is used to re nice coverage and very friendly relations with a lot of

democrats for washington. all of sudden that game changed. they need to adapt. unfortunately may be the consumer and investor who pays the price for new regulation. melissa: gentlemen, thank you. david: let's go back to what is happening with these markets. joining me on the phone is todd horowitz, from the bubba trading show. he is the host he works commodities markets in chicago. todd you saw this coming and you think this is only beginning of a downdraft. why? >> david, what you saw is a market that wants to go lower. the first real signal was facebook. they came out with bad news which is fine you about when bad news really becomes bad news, the stock did not rally back, that is a bad sign for markets. that is what we're looking at. we'll test the lows as we tried today. we i will have a little bit after rally, we'll break down below. as an investor relax, the markets will get back later but

for now they want to go much lower. david: you've been a big supporter of the policies of this administration, particularly tax cuts and deregulation programs which is spectacular, nobody has done what this president has done on regulation. it is affecting the economy, with that force behind it won't stocks find a bottom in this market to level with what is happening in the economy? into we've come so far, so fast, we had a monster rally. one of the big keys here is the federal reserve and their unwillingness to get out of the way. they limited the true free market environment we need to have for the traders and for the entire economy, until they get out let the rates price themselves as they're doing without the fed they will create problems. that is why we get these big, sharp moves, you have a problem with the rate market and people want cheap money. david: quickly, todd, 10% now from the high in the dow. how much lower do you think it

will go? >> i think before this selloff will is all done, i think it will be 20, 25%. david: wow. >> this will be up and down. it will not go straight down. we'll not collapse. good to be an investor. ing make sure you're patient and be careful, don't do anything out of emotion and you're fine. david: todd, i'm afraid you've been very right about the markets for the past year up and downside. i hope you're wrong in terms of that prediction. todd horowitz good to have you. >> thanks, david. >> we democrats are really happy what we're able to accomplish on a number of priorities that democrats have fought for all along. infrastructure, education, opioid relief and more. it is a bill that puts the middle class and those struggling to get there first. david: the leader of democrats in the senate praising the spending bill working it ways through congress. to discuss more, oklahoma senator jim inhofe, senator armed services committee member. senator, that is all you have to

know that chuck schumer and fellow democrats are happy with it. doesn't that tell you anything you need to know about the spending bill? >> no, it doesn't, at the time me tell you why, david. it's a terrible bill. i would give anything if i could vote against it, the problem we have to start rebuilding our military. without exception, they come before our committee, talk about how we're actually behind. we have two giants out there, russia and china. and the chairman of our joint chiefs of staff dunford said we are losing our qualitative and quantitative edge. i just got back from the south china sea. i see what japan, what china is doing right now in building up armaments out there. creating these islands. you know about that. as if you're preparing for world war iii. this is the first time since the carter administration when we been in a position where we have to do something to try to get ourselves on an equal footing. voting against this you're

voting against the -- david: senator, the tradeoff worry as lot of people. >> i hate it. david: a lot of people very supportive of the work you were trying to do cutting spending and work president trump is trying to do but trade off a needed military buildup for billions and billions of spending that we don't need, some people are wondering if it is worth it? >> it is worth it when you have 20 kids and grandkids like i do. we have facing real threats. this whole idea of what is happening over there with kim jong-un in north korea, now i think that is under control, in terms of his being able to hit us. i credit our president for that, forgetting tough. but then we have china on the other side they are building up, ahead of it. for example their artillery pieces, they can fire eight round a minute. ours are four rounds a minute. we saw what happened under obama to our ability on the, to ground forces as well as air forces.

right now, not so much now we're trying to get out of it. we need this bill so we can get out of it but of our f-18s marine use, 62% we can't use. anyone who is not paying attention as he wasn't for eight years to the military, knows that you got to maintain that stuff. so it's a matter of survival. that is -- david: we don't have much time. i have to switch to other topic involving china, tariffs that were announced about $50 billion worth. you saw what happened to the markets. dow down 724 points, we're in correction territory. >> sure. david: what do you think about the tariffs? your state exports not a lot but 4% of your total exports go to china. they are going to try to hit back to stop the exports from oklahoma to china. >> sure. david: is it worth it? >> you have to keep in mind what this president is saying all along he wants to level the

playing field and it is not now. right now their tariffs, they charge 25%. we charge 2%. that has to be corrected. when this president is doing what he campaigned on, that my people in oklahoma understand it could hurt their soybeans, it could hurt some of the trade that we do but we can't continue to let them have the high ground. they also, keep in mind, david, you know this to be true, that when they have any kind of trade with us they get our intellectual property. david: sure. reverse engineering. they do it all the time. >> they own it and we don't. david: forgive me senator. they just responded. we got a response to the chinese embassy. they are strongly disappointed and firmly opposed to tariffs. but again the question is whether this is negotiating tactic, the same kind of thing we saw with the steel and aluminum tariffs that have turned out to be a lot less after hammer than they appear to be at first? >> let me tell you, david. first time in a long time we've

had a president who knows how to negotiate, sure. he starts over extreme on one side. gives them more room. so far the stuff he has been doing has worked. i think this is going to work too. i'm kind of glad the chinese embassy called up and said they don't like it. that makes me happy. david: senator jim inhofe. good to see you. appreciate you coming in. thank you very much. >> thank you, david. >> we have the tremendous tax cuts for people, i guess if you think about it, millenials starting out you have tremendous advantage over what you have. pay less taxes. far more incentive. a lot more money in your paycheck to spend. that is part of the beauty. melissa: meeting america's future. president trump sitting down with generation next forum which focuses on the work trump administration is doing for america's nextwave of leaders, highlights benefits of tax reform. here is charlie kirk, founder

and executive director of turning point usa who moderated the event. charlie what did you hear? what happened? >> it was terrific event. what i loved about, it gave the president opportunity to speak directly to the next generation. there is some accomplishments this administration moved forward with regards to young people, whether repealing individual mandate tax, part of obamacare. essentially a tax on young people that can't afford health insurance or lowering the corporate income tax. you see explosion of economic growth that young people are benefiting from as well. look, it was tremendous event of the president was able to speak directly to a room full of students but also to the entire country, young people that were watching event. amazing to see how our generation is benefiting thanks to the successful policies of the trump administration. melissa: you were able to ask the president a question we will play that and get the reaction on the other side. >> what advice would you give 25-year-old donald trump, what

you know today? >> don't run for president. [laughter]. melissa: did know the question was coming? that was a pretty quick joke? >> it was a little bit after curveball. you have to love the answer. that is quick-witted humor we love with the president. got to show our audience and country, his sense ever humor and ability to think on his feet. melissa: let me ask you about a pew research center poll which i was surprised b they were polling in millenial women, in 200236% mill men ya'll women identified as republican, look how it has changed in 2017, those same women identifying themselves dropped considerably to 23%. what do you think that is all about? >> i would take exception with the poll. i don't think they're accurate. could be same the in democrat poll. less and less people are fill eighting with political parties in general. what party and administration delivering results for american

people. specifically look at women. doubling of the child tax care credit that ivanka trump championed during the tax overhaul. women are succeeding under this administration. women unemployment going down tremendously. i understand our generation is becoming more and more politically independent but the argument can't stand that women are not benefiting from the administration. melissa: you're on the white house lawn. feeling really positive what is it going on against a backdrop of market absolutely tank today, down 724 points. one of the things driving it lower white house counsel resigning over everything going on with the mueller probe. are you thinking about that? do young people think about that? is it in the background? what are your thoughts? into i think it's a bunch of nonsense. this was supposed to be a russia collusion in our election. that expanded tremendously. the only russia collusion we know of and evidence of is hillary clinton selling our uranium to the russians in exchange for cash to her foundation. i was part of the presidential

campaign. i traveled the country with done, jr. and eric. i know intricacies and what happened. the fact there was intergovernmental russian collusion is preposterous. i think mueller investigation should be ended as quickly as possible. if we let it play out we'll see people involved are innocent especially the president. melissa: charlie we were talking about yesterday, millenials think capitalism will be gone by the time they retire. they don't have to save for retirement. we're watching a huge spending bill being rolled out. as someone with kids i worry about the burden that spending lays on my own children. where do you come down between the two points of view? >> part of the process putting legislation passed you have to be okay with things not necessarily what you agree with. i hope the process of negotiation and debate continues through the omnibus. there are very positive things in there, expansion of child tax care credit and some things administration has been pushing

for. overall we need a more disciplined approach to spending and size of scope of government. this is something the president talked about. we have to be able to fund the wall. that is something i was disappointed in. we did not get strong immigration stances in the last omnibus. the senate has to still consider it. we need a broad conversation about the size and spending in our guest which the president is concerned about. melissa: what you talk to young people about the wall that is racist and pushback and what we hear from a lot of young people or do they have a different point of view? >> i mean those very not informed what the wall would actually do. the wall, first and foremost is national security but restore our sovereignty. if you look at opioid epidemic, if we secure the border and go after drug dealers that will dramatically stop the flow of drugs. millenials supports border security. anyone who doesn't support borderless wants seamless

nonstop flow of illegal aliens in the country, to use them as political tools for democrat party. those opposed to it are not very well-informed on topic. melissa: what year are you running for president. >> i'm not running for anything. thank you so much. we appreciate it. david: he probably could run for president right now as a matter of fact. by the way, there was a, kicker to what chinese said. i quoted chinese embassy earlier. the last line they came out with, china does not want a trade war but will not recoil from one. melissa: [laughter] david: people are like in a boxing ring. everyone is taking their positions, you wait and see in the end, there was old expression, rope-a-dope. probably not old enough to remember that, but muhammad ali was a classic rope-a-dope guy. a lot of rope-a-dope. a bottom of bad talk but not much action. let's hope there is not much

action. melissa: really as they protect through a lot of those different psychological numbers, they broke through 24,000, today was really a toxic cocktail for the market and all the things that went on. we saw a downdraft in the market kick in when we got the resignation from president trump's counsel representing him in the mueller investigation. even though you know, his departure letter dowd said he loves the president and he respects the way he handled the whole thing, that was something really accelerated a lot of selling we also saw this spending bill really just adds so much weight to our country's debt. david: you know what is extraordinary about that? when we don't have a spending bill signed off on congress the market kind of hiccups. it doesn't affect the market. the market seems to be much happier when politicians are not agreeing to spend more of our money than what they agree to spend more of our money.

you saw chuck schumer. he is happy with the spending bill and that doesn't make me happy. melissa: he signed memo to china but there is more time before those things go into effect. it will be interesting to see if this is negotiate being tactic or. >> what it is. i have to say one more thing on another kind of "newsday" the fact that republicans are coming out with information about their russian collusion investigation, how they found no evidence of collusion at all, that would be the lead story, not today. melissa: interesting. david: stay with us. >> yes the russians tried to interfere with our election process. yes they had sigher attacks, active measures going on. we could find no evidence of collusion between either campaign and the russians. >> rather sad chapter in our committee's long history. it was clear their report was completely political from beginning to end. david: house intel civil war going on despite ranking

democrat house intel committee best efforts, the russian investigation is coming to an end. here to comment on the disagreement, sharyl attkisson, author of the smear, shady political operatives, fake news control what you see, how you think, how you vote. virtually everything. cheryl, thanks for coming on, who is right between the battle between republicans and democrats? is it right to wrap up the intel committee hearing on russian collusion now? >> yes. based on the public evidence, the evidence they have, and evidence we've seen and evidence that democrats and republicans alike who have seen classified evidence have stated publicly no reason it seems to me to continue that. that is separate and aside from the special counsel's investigation. i can't say i know really much of anything he may have. that is continuing on its own separate track as most people think it should. david: as you well know, you have written books bit, report on it he have night, the fact

the media takes every little bit of information, maybe not so little bits, firing of mr. mccabe, blows it up into a whole news cycle lasts fully a week if not a couple days, and makes it seem like there is really more fire than smoke there. >> we are in a new era in the past couple years in my view we're slipping toward gradual little before that whereby many in the press no longer want to represent news, non-political and political news in fair or unbiased fashions follow the facts where they might lead, they're too often out to accomplish an agenda. they will have talking points de jure whichever side is on, despite what may be the truth. they are in the business now of trying to generate news and reactions and sway opinions, rather than simply reporting facts on the ground. most importantly, i don't think we're doing enough reporting of things that powers don't want us to report. we're simply regurgitating what

parties do want to us report. david: to first part, your book is called "the smear." i wonder what passes as news about this administration more of aer. >> job than reportage? >> what you see, use one of smear art it i interviewed, most every image that crosses our path in daily lives was put there for a reason, by interests paid a lot of money to place it there. i go over the industry, multibillion-dollar industry figured out how to pull strings in the news media, we're no longer in my view independently researching news that we see fit to print so to speak but instead we're taking suggestions and talking points from this multibillion-dollar industry of llcs, non-profits, pr and crisis management firms and -- david: perfect example of that is fusion gps. this firm hired by the democratic committee and hillary

campaign. they are smear merchants. that is what they do. they were involved in the trump dossier, which was a political attempt to smear donald trump. the media, every time one of the founders of that organization, particularly glenn simpson went to conference, aspen institute conference, he was surrounded by journalists who wanted to hear every little bit of information that he got which was very often politically-motivated stuff. >> i don't mean to criticize reporters who use these tactics and use these groups. i do not use them. i do not knowingly use them. it is possible they disguys themselves as other things as non-profits to present ideas to you, i try to find ideas my own way, not ideas presented to me but there is a lot of this opposition research and crisis management people working for clients being paid a lot of money to connect to people in the press, to get meetings with reporters, to write op-eds in "the new york times" and other papers under name of one person

but probably written by a pea. our strings are written in a way we don't imagine. david: you spent time with big networks. what happened? when did the old-style gumshoe reporting fell out of favor? >> 10 years ago, when i saw this multibillion-dollar industry developing its strategy, whereby a damaging story to industry or interest would comfort they would have all efforts to contact the news division. get lawyers to stop and censor news and bully the reporter in the news organization. i said back then we're playing defense. something is going on here. we need to develop our own strategies to protect our turf and not be subjected to these propaganda campaigns but we didn't really develop a strategy. now 10 years later it is firmly taken hold in news organizations around the country. david: you know, cheryl, not only what goes into the news.

it is what stays out of the news. some real scandals are underreported. i would put a number one example the possible misuse of a fisa court by the fbi and possibly the state department to spy on american citizens. this is something you have personal experience with. i wonder if you can explain that, tell us the latest? into briefly we've proven there was government intrusion into my computer devices over period of years, very extensive intrusion. i have a federal lawsuit pending against the department of justice and unnamed fbi officials and other subpoenas have been issued. they have been trying to dismiss the case for three years. we keep surviving. this was part of a larger operation i believe which journalists, political enemies, ordinary americans are improperly spied on and surveiled. that is one of the biggest

stories of our time, pushed out of the news by other things that may be less important but intentionally so. david: didn't you, didn't they take your computer, and then give it back to you with a different hard drive in it? >> well we just discovered one of the many devices the government intruded upon. i had turned over to the department of justice inspector general book when to see if they would further the investigation. we already had our own forensics. we only recently discovered in december when we went back into the computer for additional forensics for new tools, there is entirely different hard drive in the personal computer. we asked for a explanation of government, to my knowledge since we wrote the letter to them in december, asked by differing serial numbers, they have not responded. david: maybe they thought your old computer was too old. up grading it for you. >> very kind of them. david: cheryl, doing awe favor. good luck. let us know what happens. thanks for coming in sharyl attkisson. the book, "the smear." the show is fell mushy by sharyl

attkisson. thank you for coming on. >> thank you. david: back to today's stock market plunge. let's go back to new york stock exchange with nicole there is activity taking place, we have some activity. we heard about nike reporting, numbers are up after-market, 2 1/2%. there are positive signs. are you hearing anymore about folks wanting to get back into the market for bargains? >> we haven't heard it yet. watching futures, that will be a key trend. recently we haven't seen europe and asia participating with our bounces that we've seen. i read that maybe with gary kaltbaum's note. but i did read one of traders we were not seeing global participation and the bounceback. it is interesting whether or not we see that for tomorrow morning. the other thing we should note we're down about 1000 points for the week. the biggest weekly selloff since

february 9th. we closed at 24,946 last friday. that is almost a thousand points in one week alone. gold jumped seven bucks, two days, big gains there. and and the vix inteshgs big news for the vix as well. in fact it was up 6%. the jitters we'll see whether they buy them back. people love the market in the long-term, and we see in the earnings, conagra foods came out this morning, i was watching that one and nike after the bell with the win. >> nike, we just put it out. but after-hours, it's up 6% after-hours. 6.5% right now. so it keeps going up. again, the underlying economy, we can't emphasize enough is terrific. we have not yet seen nicole all the effects of the tax cuts, all that capital that's going to be moving back. once that gets turning in the economy, katy bar the door,

right? quickly. reporter: that's true, the economy is great, one of the traders was noting 2.8%, if we get below that, that could weigh on stocks. >> nicole petallides, thank you very much. we appreciate you so much watching, busy day, "risk & reward" starts right now. don't go away. >> we've lost over a fairly short period of time, 60,000 factories in our country. closed, shuttered, gone. 6 million jobs at least, gone. we have a trade deficit of $504 billion. it's really $375 billion. many different ways of looking at it. any way you look at it, it is the largest deficit of any country in the history of our world. with china. we're going to be doing a section 301 trade action. it could be about $60 billion. i'll be signing it right here, right