it developed in particular in the last 45, 50 minutes. particular selloff concentrated in the technology sector of this market. but it spread throughout the overall market. our time is up. charles payne in for neil. >> thank you, stuart. welcome to "cavuto: coast to coast." charles payne in for neil cavuto. the market is in selloff mode this of course sparking even more trade uncertainty. here to help us all break it down. gop pollster, chris wilson.

"daily mail" white house correspondent francesca chambers. let me start with you. you know, a this morning feelings like president trump president thrown down the gauntlet on mexico, china, the gop leadership in the senate for not using the "nuclear option." democrats and just about everyone else. sort of reflecting in the market here. >> yeah, busy morning for president trump before he went to the easter egg roll on twitter. you mentioned market. amazon stock losing billions. in the comment he said president could potentially review the deal that the amazon has with the u.s. postal service. the white house hasn't said anything about that. when i asked last week whether

the president was moving towards an internet sales tax. the white house had absolutely nothing to announce. there were no plans for anything. that doesn't mean the president is not talking about it behind closed doors. we heard last week he is obsessed with the company. he is looking at one way or another to take action against it. charles: here is the thing, chris. president trump long said he would fight for the forgotten middle of america. not the eat lietz or elite companies like amazons of the world. certainly they got the better of the deal with the u.s. postal service. until recently they did not have to pay state or local taxes. there is idea of leveling the playing field even more. adjusting the u.s. postal service contract. i'm not sure how much it would take to do that and how much of a role congress would play and perhaps an internet sales tax. what is your thoughts about all of it? >> it is interesting, the president goes out with a rally and speaks to people he comes back with new proposal, or

attitude specific to ap can. this time it happens to be amazon. amazon has impact on mom-and-pop stores all over the nation. i'm sure is the forgotten man that president trump ran for and got their votes and is prying to represent. the idea for in his mind taking the amazons of the world to make sure american taxpayer is not subsidizing amazon shipping patterns. he is looking at as a come to the conclusion it is not fair. it is not fair to the taxpayer. it is not fair for those competing against amazon. it makes sense that he will review it. clearly has impact on the stock market. that is something that has to be expected. charles: ironically the congress prohibited the u.s. postal service from competing with ups and fedex. the reason i say ironically, amazon wisely has been able to

take advantage of the deal with the u.s. postal service. now they launch their own version of fedex and ups. it is really an interesting thing. of course another big topic today, president trump slamming mexico. i want to bring in center for immigration studies director for policy studies, jessica vaughn. mexico stepping up to the plate, doing more to protect our borders. we talk about the opioid crisis and flowing freely through the border. we know the economic costs. president trump saw video of people strolling through the border, reminder how porous it is and lashed out today. what are your thoughts? >> well, yeah. this happens periodically. this is like walk-a-thon for open borders where it seems that this group of more than 1000 people coming from central america wants to test our resolve. the government of mexico knows that their destination is the united states. so they don't see any reason to

deal with them buy enforcing their own immigration laws, as long as they think that the united states is going to let people, mexico is going to let them pass through if it is not their problem but the difference now is that the trump administration is much less likely to let people into the country. so, mexico better start thinking about how it is going to deal with these people if they start stacking up in mexico. we're not just going to admit people as they make it to the border. but it really underlines need for congress to step up and give the president some support in the form of resources and reforming our laws particularly our broken as asylum system whih is the weakest link in our immigration law right now. charles: right. >> that needs to be addressed and i hope that we don't just

sit back and wait for these people to arrive. the administration needs to be taking some steps to deal with mexico and lean on them and get them to deal with it before it gets to the u.s. border. charles: francesca, back on capitol hill, none of this is new and i think president trump is a little bit frustrated particularly trump 2.0 in second year trying to deliver promises not getting any help from the gop certainly on the senate side it seems like and he is pressuring them as well. >> in the tweets he said the senate should go nuclear and get rid of 60 votes with filibuster and go down to 51 votes. here is the problem with that even some gop senators as you mentioned are not in favor of his immigration plans. he would run into opposition with lindsey graham of south carolina, jeff flake of arizona or john mccain of arizona if he tried to push through an immigration bill that had border wall money in it and

total overhaul of the legal immigration system that didn't have daca in it. president is suggesting that daca is not possible where we are at this point. he would lose even some republican senators at that 51 vote option if he did not have daca in the deal. charles: thank you all, very much. amazon shares down after several tweets from president trump. one says only fools or worse are saying that our money-losing post office makes money with amazon. they lose a fortune. this will be changing. also our fully tax paying retailers are closing stores all over the country, not a level playing field. want to go to market watcher gary kaltbaum on this. if a amazon crackdown is coming, how would it look, gary. >> i don't know if it is looking good my friend. i have to push back at a little bit with the gop pollster just on. charles, you and i for years railed against the left who kept going after walmart day in, day out like they were the devil in

the disguise. this talk of amazon being an absolute horror show of a company that all they dough is take advantage of everybody and kill mom-and-pop, i'm sorry, i'm not going there because if you're going after amazon, go after home depot, best buy, bed bagged beyond, lowe's and rest of them. amazon is doing their job the best they can. you own a business, i own a business. when dealing with suppliers we never tell our suppliers, gee i want to pay you more. so amazon is doing exactly what they are supposed to be doing. this whole postal thing, the postal regulatory commission gets to meet with them every year, gets to review, gets to try to change things if they want to, if that is the case so be it. they keep saying they make their money off of this. i don't know where the rest of the rhetoric is coming from. it is certainly not helping amazon's stock and certainly not helping the markets. charles: i've been combing over the postal service financials,

it is hard to break out where they might be making money t would be better if we had some transparency there. to your earlier point and the notion of creative destruction which is integral part of capitalism, but it is a tough part, right? 662 bankruptcies last year. 7,000 stores, a record is closing this year. the carnage is tough. >> it is. charles: someone going by toys "r" us, knowing it is closed, they might i never take their kids there, like they have gone in the past, 30,000 workers looking for a job, how do you explain that part to main street, when the president is saying obviously in his mine there is something not right? >> i have news for you. thousands more retail stores shutting next year or two. you can imagine which names they are. it is not just amazon. there are thousands of small and medium-sized internet companies are fighting bricks and more tar are winning -- mortar.

they are winning. it is about convenience and cost and culture. people are just buying off the web versus going to the stores. that's why you're seeing what you're seeing. to blast amazon for everything bad is just plain wrong. if i'm the president, i know he is is watching, tank a step back and recognize one of the main reasons why the market did so well up until january was because tax cuts, regulatory reform. you want to change that, start targeting industry and companies. that is what obama did for eight years, and put so much uncertainty into the system. i can promise you some of this sell something corporate america saying who's next? i would be very careful about it. if you think things need to be changed on the tax front, then change the tax laws. you think they pay too little to the u.s. post office, guess what? renegotiate the deal but stop pounding away at these companies like they're just plain bad.

amazon has created tons of wealth and tons of jobs and there is a reason why companies are bidding big time to get them into their cities because they're doing something right. i want to applaud success. i do not want to rip on success. charles: what do you make of the notion, gary of an internet sales tax? it has been a long time. has been pushback on it but some people think that might be something in the right direction? >> i think that is probably fair. there is somewhat of not level playing field. why do we get to buy things without paying that? i'm good with that. you and i, i know you very well. we love level playing fields where everybody gets a chance to be great or knot succeed based on their own hard work. so fine and dandy. i'm all good with it. what i'm not good is the rhetoric all of sudden these companies are bad players. they're not doing anything criminal. they're just going to work every

day selling their wears, whether it be alexa or a book or any other item and let it be. if you want to change laws go ahead and do it but i think you have to be very, very careful about rhetoric. charles: quickly before i let you go, gary. the dow down 570 points. a jobs report on friday. a lot of important economic data between now and then. is there a bottom before friday and we broken out with all support and sort of it on its own at this point? into i've been talking about long-term support the last three weeks and looks like we may be heading through it. i say this unfortunately how and clear, the big institutional money will recognize it and i think there will be more money to be had. i expect a bunch more percent to head down. we're still 5,000 plus points from the lows in november from the election. so we're still way ahead of the game. this is pretty much normal course of business. we haven't had 15%, since i've

been bar mitzvahed, charles, we're way oh due. doesn't mean the end of the world is coming. just means we're softer on prices going forward. charles: i think you're probably right. the buy on dips crowd sittingtheir hand now. >> oh, yeah. charles: we may get artificially great values for those that don't blink. >> ultimately if you believe in the future of this country you have to bet on stocks long term but sometimes you get corrections. charles: i'm salivating. thank you, buddy. >> thank you, charles. charles: china retaliating on trade. it has investors antsy. the trade war is ratcheting up. we wonder where it goes from here. i'm on it for "making money" tonight at 6:00 p.m. and where the bottom might be. we'll be back.

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charles: this is jobs week which always brings extra angst and increases volatility as we move toward the announcement on friday. the street looking for, perhaps hoping for a slow from the torrid pace in february n this session it is tough sledding for the market, taking its cue from the weather. historically in new york the second day of april above 50 degrees and not snowing and sleeting like it is today. april historically has been the

best for the stock market. i don't sense a lot of panic despite how much we're down. the market is getting hit hon headlines than actual factual development. war of words between mark zuckerberg and tim cook increases and consumer is did correction nary dragged down by by netflix and amazon. those are the names the strongest in the sector. the brick-and-mortar names are in stealth rally mode getting help from the trump administration help. they announce 50 billion in tariffs, china officially implemented the 3 billion retaliatory tariffs on steel and aluminum. they're focusing on food, fruit and pork. yen lit market hates uncertainty and wall street hates rocking the status quo boat even more. this is not a surprise per se but investors are looking for a

key to turn things around. we have market watchers, heather zumarriaga, mark luschini and fbn's own gerri willis. we're down a lot. unfortunately we're becoming accustomed to them. unfortunately you wonder where the bottom is. >> we do wonder where the bottom is, right? we hate to see this kind of thing happen. remember, march was awful right? the worst in 17 years. the action we saw in the markets in mark but looking forward you have to wonder what will happen with the trade issue, right? you summarized very well what we're seeing from china. 25% on pork. 15% on some fruits. remember they're keeping the big kahunas off to the side. boeing airplanes, they're not talking about that yet. they're also not talking about soybeans. they buy 60% of our soybeans. so this looks like something that will plague the market for a very long time. charles: although you know, heather, the trump administration fine-tuning their list. we'll find out shortly what our tariffs will be. i don't know we're coming from a

bad place. they are ripping us off 600 billion in i.t. and trade secrets and there are major impediments if you will to the american businesses trying to strive in china. we'll see, i know it's a serious game of cat-and-mouse. how much will this ultimately when all said and done by friday afternoon be the key mover of the markets? >> this is absolutely a key mover of the markets, charles and we export roughly 130 billion a year to china and import 500 billion a year plus so president trump is targeting the trade gap to make it more even playing fields but markets don't like unis certainty and that's what we have. until we get clarity this week up to 50 or $60 billion of new tariffs on china, in terms of surge isally targeting them for stealing intellectual property the markets are in the wait and see mode or selloff mode down 500 points on the dow. charles: mark, certainly doesn't appear to be any support.

i do my charts out two weeks ago, we're sort of hanging on by the seat of our pants. my hope is tethered to factual things that happen including corporate earnings and the overall economy. >> which both look good and will continue to you know the u.s. economy is growing above trend. recently both the atlanta federal reserve and new york federal reserve forecast q1 gdp growth upwards 2 1/2, almost 3%. for q2 about 2.9% on part of the new york fed. we see economic strength domestically. we've perhaps seen peek in economic growth it is well established above trend. corporate profits at end of the day will support stock prices if and when we can get past worries about degeneration as opposed to trade than the economic impact. what we know is now is rather

diminimus. charles: gerri, not just china too because president trump fighting on multiple fronts including nafta. the final round of negotiations is upon us. he talked about it including daca, he mentioned the border, border security. all of these things, all side i think want to get something done. so it feels like at least there is a backdrop to some form of successful negotiations. i just don't know what it will look like because i think all sides want to claim victory too. >> you know how the president does this, right? his first argument is always his most outrageous and outlandish and he backs up, backs up but we did have canada last week say, hey, we don't like what is going on with the nafta negotiations. we're unhappy. ultimately they will as you say drive to some kind of final resolution. it's a question what happens to the markets in between and what happens to ininvestors in between. we've been talking about two things for a week. trade and technology, that is

what people have been totally focused on. would love to see good news or resolution on at least one of those. charles: to your point, biggest economic data point every month we get it friday, the jobs report. i'm not sure what wall street wants to see. i personally want to see a big number, blown away, but higher wages. that is probably the key that triggered selling this year, higher wages. >> you're right, we need to see higher wages. we're getting that, at the end of the day if you have a job that is very important. we haven't seen signs of inflation on consumer goods for a long time. that is what the fed wants to see. that will be important. i wouldn't be surprised if the unemployment rate stays the same, 1.4%, charles as we get more people to come off the sidelines. as you move back into the workforce, those that have dropped out of the workforce because they gave up looking for a job now say, things are a little bit better now. let me go back into the labor

force, look for a job and perhaps they have found a i don't know and that will keep the unemployment rate teddy but that participation rate is heading up as well. i think that is important. charles: i think that is a key, critical factor. in fact that is the best survey of sentiment in this country. 800,000 people coming back to the job market is remarkable. >> yes. charles: but you. charles: here is the thing, mark. the bond market signaling maybe a yellow flag, with bond yields perhaps recession is around the corner which is sort of interesting. earlier in the year it was about are we growing too fast. but with the bond market suggesting that the fed will blow it, that the fed is out of its league or sort of signaled they will hike rates too quickly, are you concerned about that? >> i'm not concerned about that, charles, although i think you're right in terms of your interpretation. we see yield curve obviously, spread between the two and 10-year continue to shrivel,

expanded out to 70, 75 basis points two weeks ago. now we're flirting inside back down the 50 range. the market is concerned about a couple things. one, extrapolating mixed economic reads we had recently into the future saying we've seen the peak of economic growth in the u.s. for 2018. i don't believe that to be true because i don't see we see benefit of fiscal impulse from corporate tax reform, individual tax reform and the budget act. the second thing i think the federal reserve is anticipating an event which would warrant the raising interest rates which is the strength of economy, three more rate hikes the balance of the year. the bond market on the other hand is concerned they may be tapping on the brakes a little bit too heavily relative to the pace of economic growth. the fed is going to take its cue ultimately from the economy. so there is a lot of work to be done before the yield curve provides predictive value over a

recession. charles: gerri, i hope that is the case. jerome powell, jay powell is able to look at history. he was at the carlyle group. he is a not a stranger to markets either. i wonder why the street is worried about him making missteps or not all of sudden being a hawk? >> not like the fed has a great track record, right? they typically overshoot. it happens all the type. i want to point to one thing i think is great news, eps, earnings up 13% for the first quarter. 23% for tech stocks and nasdaq. i think that is great news. ultimately the fundamentals here are strong. we have good news coming out of our own economy. that is something to focus on. charles: thank you very much. we'll leave it on the great optimistic, upbeat, brilliant note. thank you, gerri. mark zuckerberg speaking about a comeback plan for facebook and his timeline might surprise you. i hope you're young right after this. ♪

charles: fallout from reports walmart eyeing humana. a story we brought you first on friday when the other business network was on vacation. lauren simonetti is at the new york stock exchange with the stock fallout today. lauren if? charles, this could be another potential hedger in the health care sector. humana is spiking almost 5% on a day when most stocks are getting hammered pretty hard. walmart shares selling off to the tune of 4%. walmart is looking to expand and deepen its relationship with humana. humana has a relationship with senior citizens and medicare and that would help walmart expand upon that we're also looking at an industry eight years after obamacare was enacted. companies and consumers are still trying to lower costs. so all of these tie-ups between different health care companies

often helped lower that price tag. of course with our reports that amazon is getting into the pharmacy is business, trying to compete against amazon as well. initially, today, when the stock market wasn't getting hammered the way it is right now, we saw many health insurer stocks in addition to humana with nice up arrows. right now anthem is higher. united health is the others, lower in the space. we continue to watch this deal. many say, well, who is next? because right now you have c have. is health trying to -- cvs health trying to by aetna and express scripts. we're seeing consolidation in the industry as everybody is trying to lower the cost of health care. for walmart it's a heavy punch because they have 1 1/2 million workers. most of them get health care, charles. charles: lauren, thank you very much. great stuff. appreciate it. of the facebook stock getting slammed again. ceo mark zuckerberg speaking out on facebook's scandals. >> terms of resolving a lot of these issues i think it is just

a case because we didn't invest enough i think we will dig through this hole but it will take a few years. charles: tech columnist jennifer jolly on this. a few years. you know, it is interesting because mark zuckerberg was open to, quote, unquote, some regulation and now admitting perhaps this latest fiasco is going to take a long time to right the ship. are you buying that? >> i am absolutely buying that this latest scandal will take a long time to rectify, if it can be rectifiable. we not only have the privacy concerns but we also have the fallout from how many years ago did facebook understand there was a preach of this kind of trust with this third party app? and what did they do about it then versus what are they doing about it now? mark said himself, we didn't invest enough in this then. they really didn't. they waited until they were forced to. while i'm still on facebook, i'm cautiously optimistic about the

growth and where facebook is right now, it is a bit tough to stay the course because they really haven't done enough to this point. charles: by the same token you're still on facebook perhaps because there is no alternative? realistically where are people going to go at this particular point? >> well that is a lot of it right there. so the first thing i am telling everyone, get a handle on your own privacy settings. i have done a massive amount of spring cleaning through mire own facebook. i went over to twitter is sharing same anonymous information to advertisers to better target me for ads. that pretty much all the social media is set up to do that exact thing. that is their brings model. we're the product. -- business model. we get that. they need to lock down the privacy settings to educate themselves how and what is not only coming from you on the

social media and also coming in to you. it is a two-way channel. you do have to carefully protect your own private city and your own information. mark zuckerberg said in the latest interview you know, when they get it wrong, when his company gets it wrong it is on the scale of when a government gets it wrong and i think that is really important to look at. facebook needs more regulation. facebook is asking within its own ranks, what kind of regulation do we need? do we need to operate more like a government? what oversight do we need? those are questions that need to be asked and answered. there are no easy answers but only the answers come within facebook. charles: 2.2 billion facebook users it is the size of countries, and two largest countries combined almost. you wonder to your point why didn't they address this sooner? time to admit this is serious, lack of a better term greed

motivation. they have silicon valley halo over a long time. i thought they should have lost with the ipo fiasco. can they make the adjustments. their growth in america has stalled. only instagram keeping them so-called hip for right now? >> well i love instagram. it is funny because i started to use instagram more and more since the election. it has become more clean place to interact but my mom isn't on instagram. my daughter is but my mom isn't. charles: do you feel vulnerable with instagram? do you feel like you're vulnerable or any safeguards are i implemented there or you moved oaf because it is more convenient and better? >> it looks prettier. i absolutely feel vulnerable across social media to a point. i don't think anyone is really cares that much about what i, jennifer jolly am doing but they

know that a woman who lives in northern california likes running and gadgets. do i expect the ads to be curated toward me? yeah. i like that. it provides things i didn't know about or like to see. charles: right. >> one of the biggest things to note we can't just blame facebook for this. we did see problems like this through communications since the dawn of time. why the ftc really exists. so this partially is -- charles: jennifer i'm with you. >> this is problem with the growth. charles: to a large degree we have accept ourselves. what we put out there, everybody knows, once it is captured the whole world will try to use it and manipulate it. thank you very much. charles: president trump putting heat on mexico through nafta. i will though you the fallout after this. ♪

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charles: weighing in stocks today, as president trump says to stop nafta if mexico doesn't stop the heavy flow of immigrants into the united states. border patrol on why mexico should be doing more? what can mexico do because feels like they're not doing a lot right now. >> thank you, charles. interesting, that mexico deported more central americans than the united states due to changes of policy and executive orders by the previous administration, sadly. so mexico do could a lot more. the large group of persons, followed by the media to confront themselves at bored he have united states is purely political. mexico could arrest and deport them should they choose but it has become another political political football one might say, pretty much like the wall.

charles: ronald, you look at the map, central america into mexico. mexico has more stringent immigration rules than we have but we have always seen these trails with clothes and dirt and debris and trains with people on top of the train, person on top of person. seems like they let them go to our border and dumb them on us. perhaps i hear they took a tougher stance, seems more they could do on their own southern border. >> absolutely. speaking of the trash, the department of interior estimate illegal entrants crossing into the united states through pristine wild lands in the southwest dump over 100 tons of trash he have year in those pristine areas. plus, they interfere with protective wild lands, the

wildlife, flora and fauna basically as they cross that historically is a big problem. the government of mexico itself as we all know by varying degrees deals with the organized crime cartels of mexico as if they were partners so there is, there is a level of corruption there, very sophisticated corruption that -- allows this to. they could ask the united states of america to assist them and but they choose when and how to put in their back pockets. charles: ronald, i appreciate you said, pretty powerful stuff, statement you just made. makes me wonder if there is any hope. ultimately if mexico's government is working more hand in hand with their own corrupt criminals than working with us to sort of have a peaceful

border? >> it takes a strength in partnership and partnership with mexico is certainly bert now-- better now than it was 20 or 30 years ago but to make a political statement in coordinating with the organizations such, cartels. charles: right. >> such as losett and gulf cartel, they, the cartels could choose to stop illegal aliens from coming. charles: that is a very powerful statement. thank you very much. >> my pleasure. charles: if you shopped at saks you might have been sacked. we'll have details. tesla's admission that could mean trouble for the future of self-driving cars. ♪

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charles: hack attack at saks. credit card data stolen from five million lord & taylor customers. christina is here with the details. tell us about it. >> this is a big one for a retailer. hudson bay company, retail parent of lord & taylor and saks, it is true, lord & taylor all of their stores have been hit and compromised. 83 of saks fifth avenue have been hit as well, new york and

new jersey. as well as a few in canada since the company is canadian. how did something like this happen? supposedly according to a cybersecurity consulting firm, gemini, they said the hackers sent an email, phishing email. employees happened to be on the shoe floor thought it was a trustworthy email. they clicked on the link or downloaded the attachment. that is how hackers grabbed information from customers. some of the information started way back may of 2017 all the way to march 2018. re, very recently. hsbc said they will reach out to customers if they are affected by think, looking at five-year chart of hudson bay. it was $28 stack back in 2015. it was already designated before this this can't help. >> definitely not. hb s, hudson bay is going through tough times. canadian company, traded on new york stock exchange. they saw some weakness even

turned a profit. there were reports last year the company potentially was going private. the ceo stepped down in october. they let go of 2,000 employees very recently to cut costs. last but not least, they sold their flagship store in manhattan. we know how important real estate is to the real estate companies. this is real big blow. this is not helping. it was the lowest performing stock on the tsx, climbing higher now. charles: talk about the other side. for a while, cybersecurity names were huge. they had big run-ups, headlines started to match the run run-ups, 50 million lost, 100 million lost, numbers hard to comprehend. how come these stocks are not moving? >> what we're seeing is opposite movement. you would expect the cybersecurity firms to actually climb higher because all these companies could potentially be buying and implementing more security programs within their firms. what we're seeing is that is not always the case because there is constantly data breaches week

after week. we have three stocks on the screen right now. you have symantec, cutting down, they have laid off employees trying to streamline to focus on cybersecurity. we've seen the share price fall. fireeye in palo alto, both companies trying to do more than be your anti-virus software. the issue are we becoming too complacent to the cybersecurity threats because the companies don't lose customers. there is a flip side. is this a buying opportunity as well, or really just companies that aren't doing good enough job with their security? charles: feels like a combination of all that stuff. christina, thanks a lot. >> thank you. s. charles: appreciate it. tesla down 4% plus admitting autopilot was on during that deadly crash in california. lauren fix talking about self-driving cars. self-driving cars not a good week for technology that was right around the corner.

>> right, there will be a lot of people impacted by this, charles. as you're probably aware. not just tesla but other companies like nvidia. their stock is down as well. there will be impacts and hurdles need to be cleared before autonomous cars go into production. charles: we saw stocks go up. everyone has gotten into this. three years ago we were hearing 10 years. a year ago we were hearing maybe three years. how back does this put us this toll will involve errors. and unfortunately deaths are involved. that is what happens with any major change in transportation with airplanes and on up. >> ceo of toyota of america said there will be deaths involved and other hurdles. talking to analysts in the big. that was the big conversation during press days at new york auto show.

people saying how many years will this push back autonomous cars. the consensus and i agree is eight to 10 years. the factors are you have government regulations. you have the insurance companies who wants to take blame and reinsurance companies that insure them. hackers we have not addressed that. and technology involved and what is weather. what do you do with a sandstorm, windstorm, whatever, if cameras are not working, technology can only evolve so quickly. this tesla, getting ahead of ntsb, probably not smart, the rules and regulations are zip it once we get into a investigation. he went out to put that information out into the public that wasn't a smart idea. charles: elon musk, he is known to make quite a few social media errors. here it is. for the most part they always sent the stock higher. the business model for a few

companies, uber wanted to bring in the self-driving cars sooner rather than later. >> i think uber's biggest problem, they need to do a background check on some of their drivers of the that driver had a felony charge and other charges for not having a driver's license. who is driving these vehicles around we're all riding in, number one? this could hurt uber and and lifts are saying uber's toast. they shut off the stuff volvo put in place. volvo is one of the safest cars on the market and shutting off their safety features because they think their technology is better? that is not smart. that puts concerns in consumers ice. we're only looking average of 25% of consumers want these autonomous cars. putting them on the roads for testing? why arizona and california shut down testing even though everybody and their brother is saying ours are better i think it pushes back the technology about eight to 10 years. charles: wow. lauren fix, thank you very, very much tesla one of the many stocks getting hammered.

a lot of weight on technology. retail stocks are getting hammered as well as talk of a trade battle with china intensifies. it is about tariffs, trade and a whole lot more. we'll continue the fallout right after this. ♪ ...

charles: this is hour two of cavuto coast to coast i'm charles payne in for neil cavuto and stocks are in sell-off mode

as tech vulnerability is continuing to weigh on the market reaction from market watcher tim anderson on the floor of the new york stock exchange. tim what's the feeling like down there, anxiety, panic or a sense of opportunity? >> you know, it's amazingly quiet. it is a very light volume day, i mean, this is typically referred to as easter monday most of europe is closed, a lot of people are maybe a little bit concerned about amazon and how much more downside there could be but even with amazon down 4% today it's still up close to 20% year-to-date with netflix down 4 % year-to-date it's still up about 45% year-to-date and within technology, the big question is is that big momentum trade in tech over that would definitely be a concern for the market, but at least there's a separation between well the last two or three weeks a separation between the companies that are making data mining companies not just social media companies like

facebook and google, which are actually now down year-to-date, and amazon and netflix which actually sell things almost every day, they're still very much in the green year-to-date. charles: right and to your point , the s&p, netflix and amazon are part of consumer discretionary as opposed to technology, but i do worry about the lack of leadership in the market when you take out technology, when you take out the key discretionary names like facebook and amazon because that's where even going back into last year, any time they stall or pullback, there's nothing that seems to be able to fill the void. >> that would be a big issue because if you're going to lose the leadership from the big momentum tech names you're going to have to pick it up from one of the other mega sectors, if you will, in the market and that would have to be either financials and the curve has actually gotten a little flatter not steeper in the last two weeks, or possibly energy and it

seems like oil has got a little bit of resistance above $70. charles: i think even breaking 67 for oil would be great for west texas intermediate maybe to your point because the stocks with the actual commodity big time, so investors are watching this after 2007 really just an ideal sort of year the markets seem to be up every day with zero volatility one of the best years ever we measured both of those thins and now all of a sudden we're seeing tremendous swings not unlike 2008 that had some of the biggest updates and some of the biggest down days and we know what happened in the years after that. >> i think one of the big reasons we've got the return of volatility in the markets now and why i think it's here to stay maybe not to the extremes we've seen in the last two months is that we're coming out of this zero interest rate environment which was really an environment perfectly setup for the market to have very low

volatility and just grind higher with very nice even gradual gains for both stocks and bonds for the better part of a decade. now, you know, rates are probably going to go higher. we can debate how much and how fast, but we're not in a zero interest rate environment any more, and that's we're just going to have to adjust to higher volatility on a more frequent basis. charles: and again, to your point, i mean we knew this was coming so it's sort of shocking when it happens and everyone says oh, well you know, no one should have been caught flat footed. before i let you go though a sense down there overall is there a sense of optimism that we're getting a pullback mostly on headlines not necessarily fundamentals in that business creating opportunities, rather than head for the hills. >> well, certainly, people are very optimistic on the fundamentals, both for corporate earnings and for the macro economy, and we are going to have a jobs number on friday and

it's very hard to refute that the economy is improving and that corporate earnings have very likely not peaked yet, so from that perspective, there's people look for opportunities on days liked to. of course the trade issue depending on how much that would develop into a major situation could be a big hurdle. charles: there's no doubt that's a big cloud of uncertainty tim thanks a lot. >> sure. charles: speaking of which president trump is set to meet with the new national economic counsel director, as china retaliates on tariffs, pricewaterhousecoopers partner, deirdre bolton is with us as well as connell mcshane. let me start with you, mitch. how do you anticipate this trade

battle, china's retaliated, became official today but we knew hat they were going to do, the u.s. trade commission now narrowing down the list of items to be hit next, but everyone is sort of hoping that within that period that there's serious behind the scenes negotiations and it doesn't get much worse from here. >> yeah, i think that the tariff s from china kind of ceremonial. it's 3% of all of the imports, its narrowed to in fact red states, like pork and some of the agricultural products so i think there may be more to come from them and probably more to come interest us so it's going to be back and forth and all part of an overall negotiation that's going to likely take place over time. charles: deirdre supposed to be 60 billion more from our side? >> and i think this is part of what's weighing on market sentiment is this question of okay how far does this go. mitch to your point i was reading through a few trade journals and they're saying listen as of now china's response is limited by design. i don't know it's three to

5 billion i'm not saying that's nothing but certainly not like the 50 to 60 billion that we anticipate. i think that the follow-up is just from what i understand that the trump adminitration is basically treating the situation as we did with japan in the 1980 s but the rulebook may have changed and we managed to do a one on one deal with south korea but we've been an allie for so long there's this kind of positive relationship that's not really slightly adversarial/fren emy, as we are with china so i think that's all of the unknown, because so far from what we've seen, honestly no big deal, but i think it's this just unknown what's coming is what's weighing. >> the chinese i think to your point, charles that we knew what they were going to do because they announced it already but there was sort of a saving farce portion of this for the chinese which is part cultural which works its way to be in the economic and political story so to what deirdre was talking about that's one of the reasons it's limited. on our side, however and i think

we said this from kind of day one of this tit for tat back and forth trade discussion i wouldn't get against this president ramping it up. there seems to be on wall street still this assumption we're going to have some sort of a deal, but at the heart of things , the president is a protection it's and believes in those types of policies basically to his core probably more than he believes ignition else economically so i wouldn't bet against him ramping it up. >> even calendar wise like timeline wise, i've seen that we're essentially giving china 60 days to respond and a lot of people are saying the way their economy works even if they wanted to comply with everything that the u.s. wanted, they can't turn on a dime that is actually not even realistic but we'll see what happens. charles: but by the same token, i think the market i think wall street is also trying to pressure the white house if you will. i think some of this selling today of the announcement and some of the subsequent selling is wall street reacting even more so than china because i've seen the market push around the federal reserve i've seen them push around other presidents in

past and this is the:wall street has been opposed to the white house. >> and the president likes to take credit for the success on wall street too he's paying very close attention. he likes ratings so there's a ratings point and when he sees the market react, they think it's going to move him but i'm with you. not on this issue. he's a protectionist. the interesting thing you mentioned kudlow at the top of the segment i don't know how he and larry will get along because if you look at what larry said throughout his career they're not on the same page. charles: larry made it pretty clear upon accepting the job he would try to voice his opposition to tariffs or increase tariffs but ultimately would accept whatever president trump decides to do. he will be a team player, so sort of like in a huddle right? the wide receiver is like i'm open i'm open, but if you don't get the play then at least help block for the other people you know? that's not what the other guy probably did. >> well that's issue by issue right because if you said to me is larry kudlow going to have an

influence over this president maybe certainly if the issue was taxable you'd say yes and if it's regulations you might say probably but if it's trade gary cohn would be the first to tell you the answer is probably no and that the president already has his position on this he's believed it for 30 plus years and not larry kudlow or anybody will change that position. charles: but if we look closely at the administration saying they want to cut $340 billion in deficit by a hundred billion, that's an admission that they won't ever get it completely one-to-one right? so i think they've left themselves room for compromise. in other words if china could come up with a package that doesn't force joint ventures, that allows for more or less steps to buy intellectual property and also perhaps more easier access for drug companies and others, maybe you add it up and it comes out to 30- 40 billion. >> to your point this is what it is all about right? drugs, farm, ip, and also tech i p.

>> and don't leave out dumping because that's a huge issue for manufactures of all sizes when they just can't compete because china's manufacturing things at a cost nobody else on the planet can and they dump either finished good or raw material on the market. charles: now today one of the hardest hit niches within the market, the retailers, and a lot of retailers are pushing back not just on this but also the idea of ripping up nafta. you know, this will be perhaps create a sort of de facto border tax that was initially talked about by several members of congress. i didn't think it was a good idea, so we've got a two prong fight. it's not just china right now. >> by the way just in general the chinese i think the president's case he's making against china we outlined or talked about part of it has much broader support because it's very difficult to argue against the fact that the chinese are doing everything that we just talked about them doing and you went through it item by item on nafta it's a little bit different and this is the one maybe there might be more concern about in markets i think again, we go back to what we

talked about at the beginning there is an assumption at the end of the day there will be some sort of agreement where there's not a tearing up of nafta. if we get to the point where that is really on the table we've got an issue. charles: i just don't know i kind of get a sense of what might be called the success with china because of some of the things we heard last week. i'm not sure what success looks like for the white house with nafta negotiation. >> interesting nugget on nafta and the impact of the fear of a trade war. when all the rhetoric about potentially ripping up nafta last year there was a 2.5% drop-off in direct investment within mexico so non-government investment within mexico fell just on fears that nafta could fall apart. charles: well now the peso fell apart and even when it comes to the border wall during the campaign there was talk of perhaps taxing remittance last year so our record by november it was $26 billion to put that into perspective mexican oil exports are less than 19 billion >> yeah, i think we are more interconnected than even the

average person thinks about it and by that i mean to canada and to mexico we get a heck of a lot of energy. there's tons of industries. >> they are our largest trading partner. >> exactly that have been built over decades, and perhaps to your point, charles maybe the market is sort of freaking out more about what can happen with nafta versus china. charles: bottom line is i think we've cut some bad deals in the past and i don't think president trump wants to rip any of them up whether it's the u.s. postal service with amazon and our fixed cost there that they just did not think that the parcels would become this big of a business this quickly or the rest of the world, and listen, i'm of the camp that if you don't pushback now we probably have less footing to pushback a year or two from now. >> it might be true i think there's been a change in tone a little bit from this white house that even its biggest attract or s would have agreed was nothing but pro business but now you look at trade and administrations even the justice department's lawsuit i was cover

ing last week a lot of these issues that the position the white house is taking on them -- >> and it's traditionally a democratic playbook. >> that's true too. charles: thank you all very much appreciate it. we're going to have much more on this sell-off coming up and i'll break down all the markets reaction on making money 6:00 p.m. eastern here on fox business. so lionel, what does being able to trade 24/5 mean to you? well, it means i can trade after the market closes. it's true. so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪

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charles: well, trade concerns putting enormous pressure on the market adam shapiro live at the white house with the latest. adam? adam: it has to do with the recent amount of back and forth charles between china and the united states, of course china coming out today with its issues regarding tariffs, on the u.s. products, pork for instance that are imported into china, and we are all awaiting the ustr to announce the roughly 1300 potential items that could face tariffs from china coming into united states. the deadline for the ustr to give us that would be this friday, april 6 although here at the white house we are waiting for it potentially at any moment so where do we stand an all this well that's only one issue going on and there's also the issue of amazon and the president's tweet s about amazon. let's start there and get back

into the trade war that's growing with china. the president tweeting today only fools are worse are saying that our money-losing post office makes money with amazon. they lose a fortune, all cap, and this will be changed. also, our fully taxpaying retailers are closing stores all over the country. not a level playing field. so the president aiming his target at amazon but then china aiming their target at us because of the 301 investigation and again those pending tariffs that the ustr is expected to announce and the president saying as well about nafta, and the daca deal. mexico is making a fortune on nafta they have very strong border laws, ours are pathetic with all of the money they make from the u.s. hopefully they will stop people from coming through their country and into ours, at least until congress changes our immigration laws. so all of this front and center and deputy press secretary raj shah at the white house said this. >> the united states is going to

defend our interest and defend american workers and businesses and if the chinese government uses that for further unfair trade practices, we think that's very unfortunate but the president is going to continue to work with china. adam: so the key here is waiting for the next shoe to drop and that shoe will come from the ust r, robert lightheuser was charged by the president when he signed the 301 memorandum almost three weeks ago to come up with a list of potential target products for tariffs on products we import from china that list again the deadline is friday, april 6 although it could drop at any moment and that's the next shoe to drop because when that list comes out there will be a 30 day public comment period but if the united states imposes those tariffs, the analysts i've been speaking to say you can expect that china will retaliate and it will be an a magnitude much greater than what we have witnessed with their announced tariffs in response to the 232 action on steel and aluminum. back to you.

charles: adam thank you very much president trump threatening now to stop nafta to pressure mexico and that's fueling concerns about trade or chris bedford and washington examiner sarah westwood. sarah, of course as these deadlines come closer and we're heading into i think the final round of negotiations on nafta president trump has a tendency to ratchet up the heat. it's not everyone's favorite negotiating style its served him very well in the private sector and maybe will serve us very well in the public sector certainly we saw success last week with south korea but how uncertain how uneasy is it in d.c. right now? >> well it has created a lot of uncertainty for president trump whether it's him threatening to pull out of nato, threatening to impose those steel and aluminum tariffs universally regardless of which country is contributing to the global steel glut, these pronouncements have really scared world leaders in the past but it's also produced some results in the case of nato

you've seen that countries are moving closer to meeting their commitment to spend 2% of their gdp on their own defenses in the case of the steel and aluminum tariffs, you have seen that canada and mexico have at least expressed a willingness to be more open to changes to nafta in order to avoid getting hit with those tariffs potentially we will see some movement on nafta now that president trump is again threatening to tear up nafta something he did on the campaign trail and sort of let lie for the first year of his presidency. so far though we've seen that's just a trump pattern to throw out something that sounds a little crazy to the experts and retreat from it once he gets what he wants. charles: by the same token, chris the other factor now is sort of including mentioning daca and the border and in part with nafta, and listen, it all boils down certainly to economic s and sort of sense of safety for people on both sides of the border and we're getting the shortened of the stick on that right now. >> we have and ross perot famous

ly said after we pass nafta we'll see a great sucking sound out of the u.s. economy as factories move a broad, and with our own taxpayer money paying to help it paying to unemploy people and both candidates from both parties clinton and bush were supporters of this even though clinton tried to hide it, donald trump is the first presidential candidate who said nafta is actually on the table on the cutting board. this has not been a good deal for the united states and to force renegotiation and his negotiation tactics have caused fluttering around washington d.c. but around the world you'll see leaders of north korea and mexico and leaderrers of france coming to the table saying all right we'll make concessions and meet the united states president 's pretty serious about this. charles: and with seeing that the way we've done things, you know business as usual, hasn't worked. it certainly hasn't worked for america which our would be allies whether it's military or economically nipping at our heels right now and we've kind of just sort of put it in a sort

of neutral if you will, sarah, so i for one like the fact that president trump is not afraid to shake things up and to push these issues but it always seems like his own party many times seem to be so afraid and intimidated and they're the ones spooked by all of it. >> when trump came out on the campaign trail against things like the free-trade policies that dominated the republican party over the past few years it was sort of a wake up call for republican leaders that people were responding to this in a really significant way. bernie sanders did the same thing on the left both trump and sanders exposed how unpopular these free-trade policies really were and millions of people ignored a segment of voters who were frustrated with the free-trade policies their own leaders were pushing so trump introduced that element to the party. charles: it's so funny chris because we get a succession of experts i call them economic elites or intellectual elites who keep telling middle america

this is good stuff this is good for you. they've already told the folks in washington and los angeles and new york city they don't like these deals and they want them changed, so how likely is it that we'll get a new nafta agreement? >> it's incredible what the experts have been doing they tell you it's good for you when your factory job moves across-the-boarder because look at the bright side you can buy stuff cheaper at wal-mart isn't america great? these are serious issues and donald trump and bernie sanders to your point have both tapped into this angering the american people and i don't think the air is out of the balloon yet. there's a lot more there. donald trump is definitely capable of tearing that up. charles: thank you both very very much appreciate it. meanwhile amazon facing backlash from both parties we're going to have details right after this. we had long deployments in iraq. i'm really grateful that usaa was able to take care of my family while i was overseas serving.

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charles: amazon facing backlash

from bernie sanders, the vermont senator saying amazon's power and influence in the u.s. economy is too great. this as president trump continues to hit amazon over what he's calling a post office scam to free market, jonathan ho enig on calls to crackdown on amazon. jonathan you've probably got your sign breakup amazon now we're ready to go. why would you want to? amazon has bettered our life almost an uncalculated level and i have to tell you charles when i look at amazon stock down significantly today when i see the market getting crushed makes me shake my head. the president wanted a trade war and wanted to make amazon the enemy and this is the result. investors just saying get me the heck out. i don't want to be apart of this charles: well, do you subscribe to the so-called amazon effect? last year, 662 retailers gone bankrupt, hundreds of thousands of fewer people working in a retail sector particularly

department stores and things like that. to what degree has there, the destruction been as great as the peoples in our daily lives? >> well, jobs getting destroyed, charles is a good thing. i mean this is the notion of progress. listen, we were all at one point employed in the agricultural industry thankfully those jobs got destroyed and got replaced with better jobs and unfortunately now the answer to amazon's success and charles, amazon is big, it is powerful but its power has been achieved mick trade. i mean, it is a global trading post and that's why these tariff s which is taxes against the american people. they're not good for steelworkers who have lost their jobs or good for joe six pack just trying to get a christmas gift for the kids. charles: but how do you reconcile that in 1980 we had 19 million manufacturing jobs

and now we have 12 million manufacturing jobs. i hear, you know, when the wall street experts say these things are great a lot of people are sitting on their sofa saying it's not great for me because i lost my job. >> well for charles one thing that stat you quoted as manufacturing jobs in decline it all goes back before 1980 goes back to 1970 and in fact 1970 a lot of it has to do with automation thankfully we're not all on an assembly line any more this is progress in action. some people lose their jobs yes we don't have elevator operators any more, importers any more, thankfully and do you know what happens in a capitalist economy? new jobs get created and everyone, charles benefits from living in a free society no matter what job you have. the fact that the president is targeting amazon and let's not beat around the bush here charles it's because he hates the washington post that's tyranny and should scare every american. charles: i think you should probably hate the washington post but besides that though

we're talking about a company that says when we're going to enter an industry and says we'll start eventually delivering our own packages the shares of fedex and ups got crushed. shares of wal-mart crushed, shares of target crushed not just little companies, do you ever think that there's a time when any company could get so big and so powerful that as dangerous, anti-trust really the focus is on competition or the ability to have competition in a country, are you okay with one company having everything? >> well wasn't that wal-mart? you mentioned wal-mart getting crushed. go back to i think charles you and i were on back in the john edwards days when john edwards was talking about wal-mart crushing the competition and before wal-mart it was sears and montgomery ward and all these. this is the nature of a capitali st economy and i just don't believe this idea that amazon puts all these people out of business. charles amazon puts millions of people in business for selling

their stuff. they are publishing books making movies. this is the nature. what the president is doing one of the most successful companies in american history -- charles: well i get the notion that creative disruption is part of it but i think amazon probably has killed more jobs than its created, but it remains to be seen. >> freeman and every prominent economists of the last 150 years would disagree. charles: well they weren't around for amazon and the robots working their factories and while other people are out there wishing they had a job. things have changed they could never have imagined but jonathan i love having these discussions we'll do it soon. >> thank you. charles: at&t and time-warner that merger trial continues and many are anxiously awaiting the outcome hillary vaughn is live with the latest. hillary? >> car el, well the u.s. government thinks that consumers will lose big if this deal goes through. they not only say that customers will be paying more out of

pocket but they also think they're going to be caught in the middle of an escalated negotiation fight between distributors and network providers and they say that could even lead to more black outs. the u.s. government saying they can expect this deal to cost consumers $463 million in hiked prices but at&t and time-warner says that works out to nearly $ 0.45 per customer but today, the doj brought turner exec coleman breland to the stand to prove that every penny is important in these negotiations so $0.45 per customer is a massive score for the two companies in his testimony he admitted these negotiations can be characterized as "fighting over pennys" telling the courtroom that all pennys matter and his goal in negotiations is to make sure no pennys are left on the table. the doj also pointing out that turner has adopted an all-or-nothing strategy for negotiations meaning distributors need to opt into all of turner's networks or they

get none of them prompting a blackout. the government detailing negotiations with youtube tv and turner. when youtube tv ceased negotiations with turner, turner then instructed hbo to stop negotiations with youtube tv because youtube tv did not want to opt into all of turner's networks. they're using that as an example this all-or-nothing strategy but breland said had ewould not characterize that as their strategy but he does admit that their goal is to maximize leverage in these negotiations. he described it as an arm wrestling experience, when they're negotiating but he admits today they've had so many blackouts with distributors it's really hard to keep track so the u.s. government today laying out the case more plaqueouts are sure to come if this goes through. charles? charles: hillary thank you very much. in the meantime the dow is sink ing on a combination of factors including concerns of trade and technology. we're going to have much more on this sell-off right after this.

charles: well, stocks in sell-off mode as big pullback in tech continues ashley webster has the latest from the new york stock exchange, ashley? >> yeah, hey charles the financial times figured out thin the last two weeks, basically when that facebook scandal hit on the data and whose using it and how did we not know about it , that the big tech sector has lost in market value around a quarter of a trillion dollars. now, as that has happened, we've seen that sell-off continued to in the big tech sector, charles the nasdac itself which is tech heavy as we know down about half a percent now for the year has wiped out all of its gains if you look at some of those big movers amazon down 4.5% although i should point out up 24% for the year still remarkably, facebook down nearly 3% netflix also down 5% and as you can see tesla has a world of bad headlines out there also down 5%

now the question is what do we do from here? with the tech sector let's not forget that led us into record territory up significantly over the last eight months because so much money went into these big tech companies now that money is coming out i spoke to one trader who says maybe the valuations are correcting themselves. let's not forget we mentioned the facebook data scandal we have amazon in a twitter battle with the president, we have tesla with a multitude of bad headlines including that fatal crash of a tesla vehicle, so individual stories are bringing these stocks down but it's just one big downward drop, charles and once that gets going, it's hard to stop. we should also point out there's a bit of a data gap not much going on to investors getting a little nervous we have the big jobs report on friday maybe that can help sentiment and of course earnings begin probably at the end of next week i believe with the big banks, so maybe a ray of hope down the road but for now

these investors just a little twitchy and you can feel it in the momentum as they sell-off. charles: absolutely ashley webster thank you very much. >> my pleasure. charles: meanwhile president trump is threatening to stop nafta if mexico doesn't do more to stop the flow of immigrants the vice president of national border control council chris cab era. chris, what can mexico do, in other words what are their options for mexico if they were to decide to do more? >> well you know, first off they need to start with enforcing their laws, if somebody crosses into mexico illegally, normally, they have very strict immigration laws; however mexico is allowing them to do is they're enabling allowing people to come break our laws and upset when there's some type of re percussion from the united states over it. don't expect to encourage people to break our law and expect us to sit on our hands doing nothing about it. charles: so again, i've read where and i think that it's pretty well known that mexico's

immigration policies are a lot tougher than even americas, and yet, one of the thins that's always baffled me is particularly with the illegal immigrants that come up through mexico from central america, we've seen the past, we've seen these trains with people on top, hundreds and hundreds of people clinging on to these trains, traveling from the south to our border. why don't they intervene there because we know that ultimately they won't let them stay in their own country. >> yeah, you know it's all about money, if they pay them off they're good to go. the interesting part about mexico is immigration laws is if you get deported, you have x amount of days to leave the country it doesn't specify north , southeast or west just out of their country and a lot of times they'll catch these folks, they'll find them and continue their trip north. so it's a failed system and they either need to help out or understand that there's going to be some pushback from the united states. charles: chris how hopeful are you there could be some sort of grand bargain if you will

because now we're talking about integrating nafta with border security and immigration and stemming the flow of immigration that's a lot of stuff. >> you know i'm hopeful but not too confident, from what we've seen in the past we see a lot of things that get promised and unfortunately doesn't come our way and right now with this catch and release system being what it is we're getting hammer ed out there on a daily basis. we have hundreds coming across the day and then with another 1200 to 1500 on the way if we don't put a stop to it now we're going to be in serious trouble along the southern border. charles: we definitely salute you for the work that you and the other folks down there do thank you very much we appreciate it chris. >> thank you. charles: well, trade uncertainty one of the many things slamming wall street today the dow is at the low of the session, actually lost more than it did right now in the first quarter, you're talking 3 m, boeing, home depot big losers much more on the fall out throughout the day so keep it right here on fox business.

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monica what do you make of the sell-off? >> well i think it's interesting trump is rattling the markets i think there's a lot of noise out there and investors are not feeling as good going into the second quarter maybe it's a little bit of reshuffling but it has a lot to do with what we're seeing with trade and what we're seeing with just trash talking with amazon. charles: so is it interesting to you though that headlines and speculation seem to matter a lot more with the markets and certainly a driving force above all the other things we've seen like actual economic data, actual earnings reports and those kind of things. >> i would argue that's how the market operates so we see this a lot where it's not a perfect system especially in the short run maybe over time it's figuring in a lot of this data but i think right now it's very easy for the market to get jittery as investors get jittery charles: david we went a whole new without it getting jittery in fact until january 26 when president trump went to davos and essentially told the elites i'm serious about this and i don't think they took him seriously.

david: well you know in about an hour he's going to be meeting with larry kudlow his new chef economic advisor. you and i know larry very well he's going to say mr. president you're 100% right in your first year to focus on the markets and how the markets were a reflection of your economic policy and that's why they exploded. you should be just as interested in the way the markets are behaving right now and take note of the fact that they are concerned about everything you are saying vis-a-vis trade, vis-a-vis retail sectors in particular certain companies focusing on certain companies like amazon and everything. they really take a lot of cues and learn to do that very profitably in 2017 and they're doing it again now, even at their detriment so i think there's going to be maybe you would agree with me charles because i know you think there's a lot of push yet to go in the retail market and other sectors of this economy. i think a lot of investors after the downdraft this week are

going to say now is the time to get in. charles: i believe that will be the case. i don't sense a lot of panic per se but i do think wall street is pushing back against this president in a certain kind of way here, and you no one thing i don't think is one thing to think about is what happens if we get a couple of these south korean-like compromise deals? what do we get sort of compromise from china? what if we get a draft of nafta and it doesn't have to be better but something we could say it's an improvement? >> that would be an improvement and there's program for improvement in these negotiations but let me tell you the back drop, the setting up here all last year anybody vets ing in the market well the president says this, the president says that but i'm richer right? my portfolio is bigger i'm doing better but when you have a market like this it's a lot harder to say and it's a negative that i think kind of eats at the trump presidency in a way that he didn't have this problem last year. look i think it'll have some successes in trade i really do and i think there's a lot of

room to negotiate and i actually think it's an issue a lot of east coast intellectuals had completely ignored for a very long time. charles: it's one of the main things that thrusted president trump into the white house and i think that's why trump 2.0 is probably getting back more towards campaign promises but monica i also think to a degree it shows he's not just watching the market because if he just only wanted to appease the market he could say different things and abort this stuff but i think it really shows when push comes to shove he cares about this even more so than the market. i think you're absolutely right and i liked a lot of what you said gerri so we're up 20% from when trump came in to the white house, so the folks that are looking at their portfolio should remember that and at the same token he is making decisions that seem to serve his constituency and that's probably not the folks that have these big ira's. they're the people who have seen their whole industry gutted with production moving overseas and these are the people who had blue collar jobs and could support a family of four and now

they can't with amazon and what's happening to the retail sector. this is a sector that employs single moms when you see all these jobs go away what is going to happen to america and -- david: meanwhile businesses aren't just standing still. we were originally brought in here before the market began the crash, i shouldn't use that word but go down as it is we were talking about this possible wal-mart humana deal and the fact is there are a lot of deals that have been taking place on the basis of what has happened in the past year on the basis of the deregulation of this administration, this humana deal with wal-mart if it happens is a perfect example of exactly what happens when you get the government out of certain sector s of the economy. you begin having these free market mechanisms kick in and make all kinds of things happen that is going to eventually benefit the consumer so things are happening on the basis of real changes that have been made in economic policy in 2017, things that eventually are going to spill over positively into the market. >> but i have to say this may

not happen. this is tough for wal-mart. look i understand the attraction to go out and buy humana but they don't have a lot of cash on hand they'll have to borrow to do it, it could mean the amount of money that's held by the original owners declines in value. they own less of the outstanding shares of the stock. you know, look, retail is a difficult business. it's not like health insurance is a walk in the park. david: but they're already getting involved, wal-mart is, in the fact in a lot of areas of healthcare that people are really hurting on in the pharmaceuticals you have a lot of pharmacies these emergency healthcare clinics they have and if they increase that to include insurance a big insurer like humana and that would be a tremendous boom for the consumer >> it's really interesting. charles: that's also part of the amazon effect too isn't it? david: that's right. charles: you have to wonder then profitability because it's a very expensive deal and theyed have to make money on people that i went to the clinic because i had a fever and stopped off and bought cheetos on the way out of something.

really because it's not a lost leader but i don't think the margins are that great. >> there's a wal-mart within 10 minutes of 90% of americans, so that retail distribution is actually something that amazon needs to catch up on and they're looking at acquiring all this dead big box space to have what wal-mart has. i think this is a really interesting way to potentially bring down healthcare costs and diversify -- david: but to your point and this is something i love about wal-mart they listen to their customers. the folks out there that shop at wal-mart are so price savvy and they care a lot about the quality of what it is they buy because they have the choices, so with that consumer savviness, they're listening to that and picking up on that and if they do anything wrong on this, the customers are going to let them know real quick. >> i'll say this very quickly. everybody worries about amazon's impact on wal-mart but what about dollar general which is carving out the entire -- charles: well it's a brave new

world. thank you all very much. well it's the first day of trading in a new quarter and obviously not off to a good start but don't panic we're here all day long to break down this market and keep you in the know. don't panic we'll be right back.

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charles: for those saying president trump has limited

options with amazon hard to explain why the company is on track for its largest point loss ever. president trump wants to fix our deals with them including u.s. postal service. i will break it down for you later tonight on "making money." here is trish regan. trish: stocks lower, significantly low, down, there we go, down 705. take a look at the market. investors heading for the helps as they contemplate whether we'll see some kind of all-out trade war. china is out there issuing retaliatory tariffs on u.s. exports. president trump is threatening to pull out of nafta. wait until you hear how unfair and unbalanced our trade deals are with these companies. we have run the numbers. we have shocking details. you need to see this. you know what? it should cause everyone to take a deep breath the way the market is trading right now. pretty steep losses here, now down 720. i'm