maria: 22% profit growth expected. >> above can show themselves as fighters to represent what the voters believe and think. that will benefit them. maria: you may like to process? and the rule of law? >> i'm not buying into the distraction of a candidate. maria: have a great day. "varney & co." begins right now. here is charles payne in for stuart. all week long, big story today. stock market will open low on climate stay in the bottom market is closed however meanwhile china getting slammed over the weekend in italy remains under pressure. if you look at the big picture the market fundamentals are extraordinarily strong. we will talk about that for the next three hours. big political headline, judge kavanaugh is now justice kavanaugh. senate confirming him saturday afternoon and sworn in shortly thereafter. democrats have gone apoplectic and president trump is turning the victory into a rally call

for the midterms. all over topical store michael. gaining strength in the caribbean to the port of panhandle as a hurricane later on this week. florida's governor has already declared a state of emergency. burning company with a lot of big stories, start right now. ♪. president trump: in their quest for power the radical democrats have turned into an angry mob and threw away and threw aside every notion of fairness and justice, of decency and of due process. but each of you will have a chance in four weeks to render your verdict on the democrats conduct at the ballot box. stop the radical democrats. charles: very strong words from president trump hours after

brett kavanaugh was sworn in. joining us is jason. this gives republicans a tremendous momentum going in to the midterms. is this one of the key issues they ride to november? >> oh, yeah. it's an emotional accord that strikes at the heart of a lot of people and so many people were appalled at how justice kavanaugh was treated along the way. remember, the democrats, if you have policy that you disagree with then you run on that and make the argument about that but if you're looking at a party, the resistance movement, your scene is a lot of flailing and the scorched earth and the politics of personal destruction. that is what you get from the democrats because they don't have a policy to run on. president trump is right. it provides momentum and begins tell us that collins and flake came around and even joe manchin joined the vote. charles: what we witnessed

democrats saying no one is off-limits. families, privacy, and that is scary stuff. one other thing i've seen in the aftermath is a call for the electoral college and let's get rid of due process and the foundation of the nation i would think if i'm a voter and i'm in a state with not a large population like wyoming should not have two senators, i'm afraid. i will vote for people who make sure i keep my constitutional rights, no? >> this goes back to hillary clinton who was appalled that president trump or then candidate trump - boy, if he does not support the result of this there's something fundamentally wrong. then the tables are turned and hillary clinton is leading the charge to get rid of the electoral college. something must be fundamental wrong if you put republicans in charge but the reality is that obama years democrats lost more

than 1,000 seats at the local state and national level. they are not recovered from that because they don't have policies that resonate with the american people. donald trump is an unconventional candidate and was there to disrupt washington dc but put forward a good person to run for and become the next justice of this up in court. democrats did not know what to do other than put forward the resistance movement and emulsion. charles: and now you're talking perhaps the tyranny of the majority which we fought again against. jason, i want to ask you about facebook chief, mark zuckerberg. telling employees to respect the reviews but it's pressing frustration that executive at the kavanaugh hearing and miss messages there. the public relation, i think, kaplan having on the company wise company called to apologize for sitting in the commission hearing. your thoughts?

>> well, look, facebook is still trying to figure out the ways of washington dc. mostly companies will metaphorically bet on red and blue. they will have lobbyists that work in sport republicans in sport democrats let no matter who wins or who is in power they get someone there engaged but in this case they have to come up with their own policy. they had a public policy and is not just some employee in facebook but sporting his longtime friend and said that's one of my values, too. they have to figure out which way to go. zuckerberg's message of let's embrace diversity is ironic. those who preach the most diversity are the least tolerant among us. suddenly, they support republicans and that is wrong. let's see if it goes both ways at facebook. charles: they made the right walk the plank so it's not going both ways and it is unfortunate. jason, thank you for joining us.

>> thank you. good morning, charles. charles: money, docs, let's bring in economy and the bond market close today so looks like equity investors don't have anything to gauge. this could be one of those assessments. what you make, okay, we pierced 3% and so afraid and a very that the market collapsed and we lost because of points and it seems to be again where we are so nervous about something that historically is often a problem. >> europe 2.2% right now you do have housing sector share price supporting the pl acts in their down by 80% for the year to date. using home sales drop in the fourth quarter of 2017 and maybe some reason to be nervous about the damage that higher borrowing costs can do to the economy. that being said the economy will be growing at close to 3% this year and do a lecture. we would have to say that ten your treasury break while above

three and half% to do real lasting damage and business activity. charles: look historically revealed have been in the past with market tops and - >> we want to be aware of is that the us coming today is much more highly leveraged that was prior to 2,000 and it will be more sensitive to highest interest rates compared to the past and as a result comparison is invalid of what we want to watch is how interest sensitive shares housing of autos and so on our response to further increases. one thing to add, the overall market last week was down 1.4% but oddly enough what was higher - the bond like dow joins utility average finished higher by 1.8% for the week. maybe the jump by the dow jones utility average telling us that

there are some of the equity side of the market that are betting on a near-term top for the ten year treasury. charles: maybe we'll break out, consolidate and go sideways. i do want to ask you about something that my research continues to tell me manufacturing, mining and construction. i love that because it's a heartland. i think it represents the have not yet also it's a key component that gets missed a lot with the overall picture of our company. >> good point. if you look at the wage data the average hourly earnings of workers retailing, leisure and hospitality are growing at a rate above the 2.8% average growing in excess of the present and that's great to see. these people are in need of a wage increase. if we draw more people into labor . charles: its manufacturing but almost 150,000 jobs is president trump was inaugurated and many people have given up on it.

those are great pain jobs. mining, 53,000 that the president has been in office. >> another problem we have in manufacturing is find enough workers but in order to get the workers you will have to pay a higher weight. charles: before we wrap it up, net net, booming economy versus higher yield, which one will prevail? which will dictate where the market goes in your opinion? >> fortunately, with the sea higher yields put pain on the economy and when that happens yields will stabilize or move lower but the fundamentals are solid. we will continue to see earnings growth, profit growth and further expansion of payrolls and even lower on implement rate and my guess is higher productivity steps in and as result the rate will go under three have present you will not see inflation take up. charles: we have that on a big board and - >> nuclear fusion. charles:

[laughter] >> i would be cautious to buy now. charles: thank you, john. tropical storm michael in the caribbean and where is it going? actually has the answer. >> charles, if you look at the map it takes us to the gulf and straight to the panhandle of florida right now is a tropical storm but forecasters say it could indeed as you see from the graphic, a category two hurricane as it hits florida by later this week. category two means sustained winds 96-110 miles an hour. they say will not be like florence but hang around but barrel on in and move on out. rick scott, florida governor, declared the state of emergency and put additional national guard members. charles: check on the equity, we will go slightly lower frequency 100, 130 points to the downside. keep an eye on nasdaq and the

under pressure. senator ted cruz will be a show. we will ask him about the tough race that he has against the democrat or work that coming at 10:15 eastern and possible brand of sparkly water you can see it right there, lacroix, claims to be all-natural but that may not be the case. lawsuits allege they been using chemical sound cockroach insecticides inside their products. details on that coming up. more progress on north korea and secretary of state mike mondale met with kim jung-un over the weekend. assessed north korea will let inspectors visit their nuclear sites. that is huge and were all over it right after this.

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istanbul to get marriage papers and other president of turkey is saying that needs to be a big pro. he was a critic of the government of saudi arabia and basically fighting the wave of arrests of clerics, journalists, academics and more in his reporting. the statement that is coming out saudi arabia is officially denying this. they did a tour to let people in to the consulate to show that he was not there but he was believed to be a big killed and most barbaric way to may 2 faint and dismembered. president one is going blitz on this and trying to find out who did it and says he coincides with 15 counties mysteriously arriving in and stumble over the last weeks. charles: 43 journalists. meanwhile, mike pompeo met with north korea kim jung-un and says north korea is ready to allow

inspectors into their top nuclear sites. he is with the heritage foundation and is this - i know we all have the mantra cautious optimism, you know, verify and other reagan stuff but is this evidence that perhaps this is a true relationship that getting better? >> no. [laughter] look, we are scriptable watchers in washington. they watch the surface way for something to break. reality is this is an example that sounds good but doesn't tell us anything. the only thing that would suggest the north korea is truly willing to denuclearize is if they get a full and complete verifiable accounting of all the nuclear assets. they been reluctant to do that so far. that's the will breaking the service all these other things look like candy on the cake. charles: are the incremental steps, including the idea that this dismantling and hidden

landmines between south korea and north korea and another thing interesting, james, over the weekend people showed the south koreans now view china to be a greater threat than north korea. feels like something is happening in the peninsula. >> well, look, what we have to to be careful as we can go down the same path which is where north korea start out with promising but meaningless things and give up nothing. we have nothing which is superficial and reversible and still have not seen that clean way forward. a week ago if yes people always going on they would say north korea's definition in they get to keep their nuclear weapons. the south korea wants to continue on the step by step after the united states has been a tough one and say no, we need serious commitment an issue is not just korea but iran but if

the united states folds and north korea, what message does it say to the iranians? both sides watching closely. charles: with respect to iran, are sections working, will it have a bite? >> no question about that. if you look at the uranian economy before jcp awakened in they were a negative growth. their company was contracting. after jcpoa, despite the fact they have a terribly organized economy, it started to grow. now there are signs of collapsing. charles: you got key members, key allies in europe, who want to circumvent america's efforts and i don't think a lot of companies will go with the choice of access to iran or in the united states and i picked the united states but what you make of the fact that our allies are talking openly about circumventing our efforts? >> it's a bit of a head scratcher. on one hand, you're right. companies are bailing and that's

clear. companies are saying i'm out the door and government as a don't fail. it makes him look reckless because this will not work and the other is basically showing for a corrupt state sponsor of terrorism so makes them look bad. to be honest, it's hard to chalk it up to anything but we hate to. charles: i hear you. listen, we could talk a whole lot of decisions made by the and countries to that but james, thank you. spirit good being with you. charles: quick look at the equities. there you go. we open on a considerable pressure after coming back a little bit to the close on friday. check this out. it's a painting by the street artist. moments after selling for more than a million dollars at auction will tell you what happened, next.

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[applause] [inaudible] [inaudible]. charles: what do you think? you paid over $1 million then beep, beep, beep. >> classic banksy. he actually showed where he installed this letter in some remote mechanism so as soon as the gavel came down, and they also said going, going, gone. that was pretty funny. but this work of art now has been treaded and they believe it add 50% more to the value. it sold for 1 million pounds, $1.4 million so now it could very well go above . charles: what was the point? he said he is a political arti artist.

>> he gave this quote. quoted picasso saying the urge to destroy is also a creative urge. >> pretty negative spirit yes, but he said there's art in everything even if it's destroying something. we don't know who bought it, by the way. that person remains a mystery. charles: absolutely. the idea is this thing will be worth even more money. >> look at the faces of the people. charles: we do have another spice. this one even more. i don't know who is benefiting but the people who enjoy lacroix, sparkling water, what happened? >> a person filing a class acid action suit saying this is not one 100% natural. it's got a synthetic ingredient in their that makes it the all-natural label meaningless. scientists are looking at this and saying if it was if half of the can, 50%, it would taste horrible and that would be a problem. they are saying this chemical

occurs naturally in things like cinnamon and mint in the dress. what is questionable is whether this class-action suit goes forward. charles: company stock is best. keep an eye on the market. we been under two minutes pressure. nothing to panic about vacancy opening under pressure. we'll be right back.

charles: opening bell ringing in less than tech in seconds. were down on friday but friday and thursday but came back to the close of both of those sections with a tight tug-of-war. wall street causes natural consolidation but whatever it is we have been under pressure. same thing happening this morning, tied to hires interest-rate. apple right now your biggest loser. let's check on the s&p 500, broader index down three tenths of a%, nine points and the nasdaq that's what everyone has been focused on the nasdaq under tremendous pressure. highflying names there seem to be under tremendous pressure, unusual pressure but the key is is it all over for them. joining us to discuss. we know stocks to get thursday and friday mostly on interest

rates getting through the present and gaining momentum but without bond markets being open today how do we assess today's session? >> i thank you can trust today's session because you are right. it's a follow-through from data, market reaction in the bond market we've seen in the last few days. likely, in weeks. this has been building up for some time. the federal reserve is being deliberate but pragmatic with the data, improving economic data which backs up what the fed is doing and brinkley, it's returned to normal. to me, even if rates take up a little bit today and the market does react adversely to getting to the end of this sickness that this market seems to have over the fact that the ten year note is now comfortably about the present. charles: february is a something similar. every two, job number come in two-point oh% wage hike in the market goes crazy, down is 66% points and the dow is up 1100 points in a couple days later dow is up 3,000 points as we

approach the present we are north of it for the first time we went north in april and may market did not panic. is there a phase here where we just have to get accustomed to the idea that three and half% is a possibility? >> there is a phase here. as long as we stay status quo with the rising interest rates and they don't rise or increase to dramatically it will move forward in this trajectory. however, one issue the market is most concerned about tariffs and trade war with china. if that escalates that is . charles: is the market afraid of that or are market investors? the market has rallied 3,000, 5,000 points of the trade war began. i don't think the markets are afraid of it but perhaps professional investors? >> investors right now know that we've had a market that is come along way over these years and if it is an excuse to sell and

take profits on appreciated position they will use it. most people believe that will not be result in any legitimate trade war. >> j.p. morgan is saying it's a phenomenal impact to output in less than 1%. the question is . charles: 0.1%? >> j.p. morgan analysts are saying they don't think so. >> john said he felt that they .5 was the tipping point and i'm not so sure about that. can we hit the .5 and not go to panic mode? does that hit equities we get to that level because were pretty close now. charles: scott, let's bring you back in. it would depend on the underlying economy would and it? >> yeah, it does. this is what is crazy. the market is fun and fun being an investment advisor because to your points which are very appropriate the market is

reacting differently to similar data in the market is in a bad mood because the economy is good and the fed is doing what they should do. don't forget, look at the last press conferences the fed is had because of the been accommodated. it's still a fed that is dovish in hawks clothing and when things get disrupted the feds will step off the gas pedal and let the economy breathe. charles: on friday with a job support into things that stood out to me and i talk about it all the time but the dirty fingernail jobs. 23,000 construction, 18,000 manufacturing and 6,000 mining and great numbers for black and hispanic's and on employment and it's a great economic story and it's a great political story. >> i agree. manufacturing jobs and was about to see a surgeon construction jobs as a result in what is in the tax code. that will increase construction dramatically so i think we will see an even bigger surge in the next months in those types of

jobs. >> 52 week numbers, six out of 50,000 jobs created in the 30 mining, construction and watch the wage growth and were looking at look at this. construction wages are up while north of the present. when you split out the sectors of nearly 5% so banks, utilities up over 4% wage increases. charles: article in the wall street journal about the monies being pumped into infrastructure were not even had an in production plant so the numbers are astronomical. >> i would hope so. that's a big hope for this administration. a lot of talk about infra structure and how bad the structure is now and how we can get shuffled to these products. i'm glad were hearing something is being done. >> and the billions of the opportunities on legislation is now you will have investors for big capital gains that are able to invest in the projects you will see a tremendous upsurge

jobs and an increase in wages that will help everyone. charles: big shout out to senator scott he insisted that was part of the text line and it's great that present listen to him. >> jeff is right. you will see a big search coming in the economy needs it. coming in to the winter months things will slow down construction wise so the infrastructure is something that the economy is the way for and we need desperately. charles: quick check of the big board. markets open for six minutes. i think we will have people buying these intermittently. i don't think they want to give their hand away but perhaps big pocket buying these dips. electric chairs keep doing extraordinarily well after announcing a new chief. j.p. morgan has an upgrade and j.p. morgan cutting 400 jobs in the mortgage division and of course there's always tesla.

good weekend for space x but tesla still in the spotlight with shares under pressure. take a look at for the company confirming plans to cut white-collar jobs and streamline operations. , the shares are down year to date but if you look at the data on this going back the last two or three years it was a losing market share and its ceo that would come on tv for a while we liked them because they did not take a bailout but that things have been going on for the company. >> yeah, things are good and they were looking better than they were. auto are tough. being an investor, we really avoided the auto sector for some type, other than tesla which if you are buying or selling tesla you're playing around because who knows what is under the hood there. going for it in autos, if you go there, go with the self driving cars or technology where it is

best. i am staying away from traditional - >> four did not take the bailout but put out debt on their balance sheet to write to the storm. he is refocusing on trucks and suvs and 222 and half billion dollars worth of cost targeted cuts in costs. that's a big number by middle of next year. charles: jeff, otto, we've heard for a couple years and it feels like you not finally had it but the cost got to the price where people are buying used cars at this point. what you make of the dynamics of the industry? there's this whole subprime issue that a lot of people to buy cars that really do not have the credit to buy cars. there's a tremendous amount of inventory out there. a lot of people are buying used cars and what will come down to is that there's also going to be an increase in steel prices as a result of the potential trade war. steel has already gone up which could affect the margins i agree

with scott. the industry is boring. at least tesla, i can't stand the comedy, but they keep it excite. charles: folks, let's talk about holiday shopping. it's right around the corner. scott, i have to tell you, toys are us filed for bankruptcy but since in .-dot target stock is through the roof. i was there on saturday to buy gifts for my granddaughter's sixth birthday and it was packed. people went shopping for toys. will that help them or any other companies? >> that's what worries me. toys "r" us has gone and where will we buy the toys for the kids and i was like, wait a second, kids can't find another toy store they want to go to that's a mile down the road? come on. reality is this. it will help the other toy stores that will fill in for toys "r" us but there is still amazon which, to me, is the

winner for the holiday shopping season. >> target is most aggressively trying to fill that hole. they're adding 500 square feet in every store. but what it means is hot toy of the season will be harder to get because it will be backed up high like toys "r" us but the top toys will go quickly. don't leave it to the last minute. >> and when you go to buy your whole foods, whole foods is setting up for space for toys which should be interesting. charles: when you take the kids shopping it's different than shopping online. thank you so much. scott, jeff, appreciated. one more quick check of the big board. we were up may be as much as 150 points and incline our way back in the first 30 minutes. they say the pro- start buying at 10:00 o'clock. keep an eye on the market. we have real big names coming up on the market, bob dole, chief equity strategist, joseph, both of them will join us live at 11:00 a.m. hour. programming notes, my show

making money with charles payne we will move to 2:00 p.m. eastern about one week from today. get ready to make money. coming up here, more hostility from the left. stephen colbert's late showed tweeted i'm just glad we ruined that kevin is life. she apologized but could you imagine if a conservative tweeted something like that and how much and how he hurt his coming up with that in the next hour. netflix and walmart making a streaming deal with mgm we have those details coming up, next. ♪ the day after chemo shouldn't mean going back to

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the best novel of the morning. it will be an exciting day for the markets even though bonds are trading. ge shares have soared 70% since the ceo chain was announced. let's go to deirdre bolton to find out what is going on. >> the idea for this new ceo was the former head of a tech company the idea is that he's an outsider. john flannery, former ceo of ge, was an insider and homegrown guy and spent something like 30 years of his career in ge so investors like the fact that he is an outsider and will look at the company challengers with a fresh set of eyes, listen with years and you have the stock up 70%. since this change in management was announced but last week 30% in one week not bad and as you can see on the big board there better than to have% for confessions of our. charles: thank you. walmart is getting a deal with -

>> no details on this financially will mean but will learn more later this week but the question is are they trying to get in and take on netflix and who and what have you and will they produce their own tv shows. walmart says, no. they want to boost their video in demand service. they say they want to boost it and don't want to get involved in the programming that we see on the other services. it is interesting that listen, walmart tried to bet that people would rent their movies and buy their movies on the service but does not really work. you need more so they're dipping your toe into the water. how much, we will find out what a lot of content. >> exactly right. charles: strong words from vice presidents on china. rotate. >> to put it bluntly, president

trump leadership is working. china was a different american president. there can be no doubt. china is meddling in america's democracy. charles: former trump campaign advisor on trade and jobs, should we get a deal after that speech or is it too hard hitting? some are saying we are in a cold ward part two that took a long time to work out. >> president trump is saying china want the deal but i'm not ready to talk it. let's wait. we can make a deal. china has been calling the trump regime a terrorist regime and using all kinds of purple prose going back to the era of chairman mao's little red book, the running dogs of imperialism and everything else. harsh rhetoric is hard par for the course. charles: but knowing china's history and understanding they view the opium wars and how they view the box revolution and a

creative now in these regimes we have right now so we do have a chip on their shoulder and it's a chip that i think president xi could play well with his people. >> that is right. they have dialback the rhetoric in the media in china because they know it has lots of them all. if you look at the end of vice president speech he says china has been treated as a historically as a slave or subservient and now we are ready let's treat china as an equal. that is the way forward on this. charles: maybe china will treat themselves saying there is emerging growth with respect to trade organizations and will say we have the second largest economy in the world. we can't say we want to dominate the world but get the benefits of pogo. they were closed for the gold week in the market down another 3.8, 3.7% and the central bank freed up 175 billion and those

are signs of stress. >> the third. the pumping money into the economy and have to subsidize their export industries similar to the way president trump has said let's help out our farmers. they have a lot more, the% of their coming is based on exports and the% of the gdp over there versus .7% for america. they got a lot more subsidies to shore up than we do. charles: exports are a bigger part of their economy. people who say we can never be china .2% the fact that they don't have elected president where president xi is a de facto emperor. when the market continues to fall apart like this and the billionaires start to get their money of the country that puts extremity pressure on them's been yes, it does. they don't have an elected president but that means the guys walking on egg shells every day of the air. you never know when they will stab him in the back. charles: you say it could take a long time but is there wanting looking for them i suggest we

are gaining somewhere? >> the party style deck there tariffs and rhetoric as i said. they will look for some actual addressing our concerns about subsidies and intellectual property theft and about planting microchips in our servers. charles: curtis, you're the best. >> thinks. charles: checking the dow. making a nice little rebound. we have half the board there. visa holding the market back but not a bad start considering we open at 150 points. there is president trump lifting the ban on the high ethanol gasoline blends and good news for farmers. what about oil companies? former president of shell oil is coming up on that. right into the harbor. i'm gonna regret that. with liberty mutual new car replacement we'll replace the full value of your car.

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charles: president trump expected to lift restrictions on ethanol. joining us john hofmeister, former president of shell oil. who does this work out best for? >> ultimately it works out best for the american consumer because the additional alcohol fuel, which is what ethanol is,

means less imports and less dependent upon opec pricing. charles: the extent to which we can increase alcohol fuels - >> we continue to produce the magic oil products so i think it's a benefit to the american consumer overall. charles: this is been a political issue attached to this. in other words, why is that? is it subsidies or what has it been - i know i was where they start the elections off has always been seen get in an extra break - do you see that as well? >> yes, absolutely. in fact, al gore once said we are it not for the iowa primary we would not have an ethanol mandate. charles: but of course we do. >> initially, we get our ethanol from corn but as we look ahead there's every opportunity and i said this before to use natural gas to make ethanol or methadone

which is another alcohol type fuel. all of which burn just fine in today's modern cars. charles: of course, the price of corn has come down so much in the last few years but i want to switch gears. national average of gasoline, $2.91 so the big question right now is how much higher do you see us going? crude oil on the cusp with a major breakout. >> i thank you are right. there are two dynamics that are forcing price of oil up and i think they are unrelenting with the near and medium term. one dynamic is the fact that during the low oil by sarah we pushed out all kinds of investment spending, all kinds of new capital did not go into producing new reservoirs, new oil fields. instead we live off what we had because there was not a t-uppercase-letter spent. secondly, we will suffer the effects of not having invested

over the last three or four years we have previously. then the second freddie mac is the fact that opec itself is in disarray and who can rely upon libyan oil? who can rely upon nigerian oil? who can rely ultimately on iranian oil when the fiction take effect? the opec countries themselves will run short of their own production although the saudi's say they will jump in. in principle, i believe they intend to but whether that materializes we don't know. i think we are on the edge of seeing a significant rise in the oil price. charles: john hofmeister, appreciate your expertise. thank you. we have a big name coming up. texas senator ted cruz joins us live in about 15 minutes from now. more varney after this.

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charles: 10:00 a.m. on the east coast. 7:00 a.m. out west. i'm charles payne in for stuart. markets right now not doing too

bad. looking perhaps at the lows of the session. we're down, of course today we'll be all over your money and also in less than 15 minutes from now we'll hear from texas senator ted cruz in a contentious race to keep his senate seat. you do not want to miss that. senator cory gardner said his wife received threatening messages after the confirmation of brett kavanaugh. we have the ugly details as well. a writer for a late-night show apologizes after saying she is glad kavanaugh's life was ruined. we're on top of it. elon musk taunting the sec days after his settlement and i want to know did he violate his settlement and what happens if he did? all that and more now with "varney & company" starting right now. ♪ charles: folk, getting a check of the big board we're near the lows of the session.

we opened up down 150 points from the dow. interesting to see where we're go from here. we saw buying late friday and this morning. a little under some pressure, a fair amount and that brings us to big check names checked every single day here. credit sweet says it sears near term headwind with a lot of big tech names. meanwhile fe, barclays upgrading that stock to overweight -- ge. a lot of people liking the new ceo. keeping with the market, former congressman ron paul says we're headed for a market drop of 50%. no way to prevent it at all, ron paul, are you surprised. liz: 50% the market gets cut in half? i don't believe that you made a great point that we're in slippery sledding right now coming into the midterms. the midterm vote is probably the biggest headline risk because it matters to the congress voting,

rather approving president's trade deals. that's a big deal. whether or not tariffs increase inflation. i would say no. it is really about oil prices going up having a bigger effect on inflation. demand drives inflation. not wage breath. wage growth is a part of it. headline risks are worrying to the market. will it saddle bag the market to to down? i don't think so. charles: inflation 101, too much money chasing too few goods. ashley: bond yields are overdone. charles: very weird. it was weird in february, when we didn't even hit 3% we were approaching it. weird again right now. ashley: i don't think anything's really changed. the economy as we know, you detailed very well, charles, continues to hum along very nicely. i can't see why on the dips people don't buy. i don't see any changes. charles: i didn't see ron paul's investment theses. i think he is pointing to debt.

the composition of the debt is different than the great recession. we have student loans now -- liz: corporate debt. corporate debt is like gangbusters. charles: is this something we should be concerned about? what about overall debt in this country? liz: excluding banks, s&p 500 companies have 5 trillion in debt over last decade, more than doubled. if rates go up you will see a rocky bond market. where do we go from here? historically in the midterms you see pop up historically since 1985. charles: the year after a midterm the market averages 15%. that is remarkable. ashley: it is. charles: this will be the issue for 2019, comparisons. we're talking about another massive, amazing corporate earnings for this season. fourth quarter, another gangbusters. but first quarter of next year we're looking like single digit growth. ashley: again and again i hear impact of the tax cuts will fade next year.

that next year will be a lot tougher. do i think bond yield will trigger a recession? no way. charles: four 1/2, five. ashley: four 1/2, probably. then we start talking. charles: take a look at tesla because we can't stop talking when it comes to tesla. under a tremendous amount of pressure. here is the most recent tweet has elon musk back in trouble, just want to say short seller enrichment commission, the sec doing incredible work and the name change is so on point. do we have keith fitz-gerald? all right, want to to ask you guys, elon musk i understand where he is coming from with respect to the shorts. i had a publicly-traded company and of the shorts, they can be devastating but -- ashley: they're legal. charles: yeah, they're legal. ashley: you don't have to like them. charles: they have amazing outlets these days. they can go on tv to present their case.

liz: that is what elon musk says, the securities & exchange commission doesn't complain, hey shorts, are they violating rules and laws. he is not supposed to talk, admit or deny in this sec settlement he is now working on by october 11th anything about the settlement. the fact that he tweeted that makes it looks like he is touching that part of the settlement. ashley: the shorts can go on tv but so are those supportive. charles: i have seen some of the shorts, famous short sellers, not necessarily our air and other financial networks. i say a case against n individual you i can't. no one was there from nvidia and the stock was hammered and come back. there was a short squeeze on tesla after earnings report, shot the stock up tremendously. it's a game i don't know individuals want to play. liz: according to papers, that he said i want to turn about the

shorts. with his stake ownership and shorts is nearly half of the float is ownedly elon musk or the shorts. the shorts own about 1/5 of the shares outstanding. ashley: shorts enrichment commission. charles: folks go to politics right now. pretty kavanaugh now a supreme court justice and gop senators are forced to beef up security. in fact senator cory gardner's wife was sent a text message, containing a video of someone being beheaded. joining us now, boyd matheson. it is getting so dangerous, did you ever think it could get to this point? >> this is a sad state, sad day for the country, we allowed anger and frustration of political parties, dehumanization that takes place on social media to really get to this point. we do have to recognize most of these members congress don't have security teams. only leadership does. to have these kind of threats,

coming from people within the democratic party, the staffer from sheila jackson lee's office doxxing several senators during the hearing, giving out private, personal information that puts them at risk. this is very slippery slope, dangerous place for to us be in this country. charles: physical dangers, getting in people's faceses going to their homes, chasing them down, there is danger to democracy. a huge outcry echoing among progressives and democrats to get rid of the electoral college, ditch parts of the constitution. these people are really serious. talking about tyranny of the majority. they want us to go to that sort of a government here. >> i think the far left has to really evaluate where they're headed. they should have learned that in america anger is not an agenda. frustration is not a platform. we have a democracy, a republic for a reason. that is so we don't have these kind of swings where we can allow people to weaponize

victims, weaponize the abused, weaponize all kinds of things in order to score political points and get political gain but leads to the area i think is the real problem, that is this contempt. this idea someone has no value as a human being because they disagree with me. because if i think you're worthless as a human being i can blow up your twitter feed or melt down your facebook page or tell people to get in your face at restaurants or when you're walking your kids to school. that is a dangerous place. de tocqueville is right, america is great because of its good, that goodness, yes, we get angry, we get frustrated, we have debates and we move forward. time for the country to move forward. we don't need a kumbayah moment or group hug on the capitol steps but we need individuals. >> let's be honest, they have already forgotten when they go low we go high. they're throwing that out the window. when they go low we come back

swinging. i see the physical threats and physical dangers for a lot of people, but i see more importantly, in a sense that, you know, crumbling of our foundation, the things that made us so unique in the first place, the things that propelled america to the front of the world in just a short period of time, boyd, i think we have to really knock down those, this wave because it is becoming a wave. >> yeah and the best way to do that is sharpen a lot more pencils than knives. to really get focused on an agenda. what is the agenda for the country? you've been talking bit all morning. if people are working out there, raising their families, working hard at their jobs and have confidence they get a fair shake and build a future of the american dream, that gives us hope to move forward. we have to recognize this is not about washington. this is we the people issue. we need to make sure that we recognize that the people in washington are there to run the government, not run the country. the people do that. it is community, it is culture.

so we do need to stand up because the midterms will come down to this, charles. it is not going to be the base of the left or the right, it is disengaged, people so fed up with this they're tuning out, they're disconnecting, that is going to be the real challenge because that is always a challenge in america. will we engage, will we stand up, will we talk about principles, with will we talk about policies or go down to contempt, anger and frustration, we have to do better. charles: right now the latter unfortunately. boyd, appreciate night thanks, charles. charles: elon musk agreement with the sec that he doesn't have free rein on twitter, so did he violate his deal? we'll ask an sec attorney. superstar taylor swift getting political, trying to endorse two democrats in her home state of tennessee trying to fire up millenials. i want to know what charlie kirk thinks about that.

and ted cruz talking and why it's a contentious race for his sweet. stay with us. ♪ and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today.

charles: a check of the big board. we're in the green. tumbled right out of the start. i suspect there will be several attempts back and forth here. check on the price of oil, holding pretty steady, a strong move in the last couple weeks on crude oil. west texas intermediate, 74.29. check on the price of gold. a little bit of a bounce late last week. coin couldn't hold on. larry kudlow appeared here on "varney" last week. take a look what he said about the economy. roll tape. >> we're at 3.7 unemployment rate. that is an awful good number and across the board so-called minority unemployment rates are

going way down. we're going back to the '80s in terms of blue-collar workers. you have got to add in average hours worked, hours worked which are rising beautifully. that is tremendous inducement to work and indicates strength in the economy. charles: joining me now, grover norquist, americans for tax reform president. all right, grover, are voters starting to feel this way, do you think? >> certainly seeing it in people's optimism if you ask them how the economy is doing, how they're looking forward, people recognize the economy is doing better. they may not quite say its with the tax cut and deregulation, although there is a fair amount of understanding of that. the good news people feel better, more optimistic, they think the country is moving in the right direction. that is good for the party in power. we'll see how it moves the votes. charles: hard to deny, i know the michigan sentiment number they break it down into economic brackets into three categories, and the lower third had really

historic surge in optimism so it is interesting even lower parts of the income strata are starting to feel so much more optimistic. >> look at the zero number. about 75% plus of the people who don't have a job feel comfortable they will get one within the next year. that is extremely helpful optimism. on the income base, those are people at zero. they're not low income, they're at zero right now because they don't have a job but 80%, 75, 80% think the next year they should be okay. they sense movement around them. charles: what do you make of that though, grover? because i've always felt no matter what your economic thesis was the key component is that people have to believe? in other words they have to become self-fulfilling. how critical is it politics aside that americans continue to buy into the recovery? >> i think it is important if you believe there are jobs out there then you're looking a sort of self-fulfilling prophecy. the chance if you're looking the chance getting a job is greater,

if you assume the press is depressing you and media says you are not you stay at home. they have friends getting jobs or siblings. this extremely helpful. building on itself. people see what happens to their 401(k)s and life savings, value of their homes. on all fronts, moving forward. this is early in the tax cut. there is a whole bunch of benefits that flow from the more capital expenditures that companies are making. that tells you that higher incomes and higher productivity are just behind that wave. that's -- charles: still perhaps a lot more money to come in from overseas also, right? we've gotten hundreds of billions but it could be in the trillions? >> yeah we have about 500 billion so far this year, expected to see another trillion over the next year or two. it is a lot of money. also doesn't matter right now whether it comes back. what apple told us we had 250 billion. they brought 90 billion of it back.

you know it, we'll bring it all back eventually. but we're no longer reporting whether it is in a bank in london or in tennessee because we can move it easily. the tax barrier that existed before the republican tax cut is gone. the dollars can sit in a bank in london and can move to the united states in five minutes when it is needed. it is not locked overseas anymore. charles: right. >> so how much comes back is actually less important than all available to come back. charles: grover, how critical is tax, tax cuts 2.0? >> tax cuts 2.0 is important for two reasons. one is a fine tax cut in of itself, good tax reform, pro-savings, pro-investment, very helpful to small businesses but more important than that it is republican party and president trump reminding the american people something they have said before but this is in real forms is, every year that there is a republican house, senate and president, we will have a tax cut that reforms taxes down. every single year.

so this is next year's tax cut, we've already had two tax cuts, 2017 the big one, $30 billion in early 2018, every single year there ought to be a tax cut. good reason to remember to vote for house and senate candidates this november. charles: stick with politics for a moment. brett kavanaugh, his confirmation hearing obviously contentious but he is a supreme court justice now. the pushback from democrats, what does this mean for through if they were able to seize control of the house and or the senate? >> well, kavanaugh in a more supreme court, that reads the constitution, and calls the shots from the constitution rather than playing politics, will move us in a very positive direction. so kavanaugh getting in at the supreme court means property rights are more secure, means that the regulators can no longer make up new regulations.

if congress wants to have regulation they can vote on it but they just can't go around with some bureaucrat making these decisions. charles: right. >> it will be -- labor law which was structured to help fund the modern democratic party and create labor unions they forced people to join, forced them to pay union dues and tell them they have no say how that money gets spent, that is begun to change with the janus case with government workers. but there are serious of other obvious cases down the road that will stop labor unions from being the piggy banks for the modern democratic party. they have to go back to bloomberg and billionaires. they can't steal it from working people anymore. charles: grover norquist, always a pleasure. thank you. >> you got it. charles: coming up, tropical storm michael heading for florida. a state of emergency already in 26 counties. we'll get details on its track. programing note, "making money with charles payne" we're moving

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charles: hurricane watch posted along florida's gulf coast. this is ahead of tropical storm michael. ashley has more. ashley: moving north at about three miles an hour. it will gain strength as it gets into the gulf with all that warm water, adds to the energy. could be category 2 by early wednesday morning, heading into the the panhandle and panama city, into the big bend area, northeastern coast or panhandle

coast. as you say, state of emergency declared by rick scott, the florida governor. 26 counties included in that. they have the national guard activated. it will not be a charles, florida. when it comes in quick, get lifted away quickly but category storm can have sustained winds over 115 miles an hour. this could be a very dangerous storm. that is exactly what the florida governor is talking about. charles: damage wind and water. ashley: storm surge you have to keep an eye on. charles: meanwhile music superstar taylor swift getting political telling tennessee voters to vote democrat. i want to tell you charlie kirk, is worried about this. she is very influential with his crew, the millenials. more "varney" after this. ♪

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you have ford news, emac? liz: i've got amazon news. charles: okay. liz: still such a suspense where it will open up the 5 billion-dollar second headquarters, tens of thousands of jobs. amazon executives revisited two place this is fall, miami and chicago. why would miami work? because of strategic location to south america. amazon just built, opened a new office in buenos aires. amazon eyeing brazil. charles: why would chicago work. liz: jeff bezos grew up in miami. went to high school in miami. charles: pittsburgh, i thought they were on the final list. all the universities, a town that reinvented itself, maybe denver, silicon valley. liz: northern virginia to lobby congress for certain things amazon wants. charles: we'll see the biggest

corporate welfare check in the history of america when they move that company. mean time let's get back to politics, folks. closely watched senate race in texas. connell mcshane is in texas with republican senator ted cruz. connell. >> thank you, charles. senator cruz, thank you for being with us, busy day of campaigning in your headquarters in houston. we're talking about the midterms and your money, talking to voters and candidates about economic issues. i want to talk to you about that as well. >> great. >> let me start with how the race changed in last couple weeks given what you've gone through in washington. has the kavanaugh confirmation changed your ray with congressman o'rourke? >> i think it has. it has energized conservatives across the state of texas. a lot of texans, a lot of americans watched what happened the last few weeks. we're disgusted by behavior of senate democrats, turned the confirmation hearing into a political circus. they were so willing to smear

judge kavanaugh and his family, to throw allegations at him, allegations that had no corroboration and they would throw almost any allegation they could find at him t was really, it was a low day for the united states senate, how ugly and political senate democrats got. >> we're told you're in a close race. poles, you're smiling a few points in your direction. fox has lien race. are you more likely to win the state a couple weeks ago before the kavanaugh process? >> oh, sure. we were going to win before, we're going to win now. yes, we have a real race in texas, and the reason is simple, the left is energized. they're really angry that many of them hate president trump. we saw the hate on full display this past week during the confirmmation hearing with angry, screaming protesters being arrested that energy is driving the hard left. tens of millions of dollars are flooding into texas from liberals awe over the country.

we'll see record-setting democratic turnout. the good news in texas there are a whole lot more conservatives than liberals. this election is about turnout. if we turnout common sense conservatives we'll win. i think the kavanaugh battle energize ad lot of conservatives woke them up how extreme and crazy the left is. i think that is good thing. >> i was talking about economic issues i would think logically your base would be already energized by a strong economy. we report on it all the time. jobs, you know, around the country here in texas, that is a good story to tell, right? the trade story, you have an agreement between canada and mexico, big story in texas. shouldn't your base already been more energized than it was with the strong economy? why wasn't it? >> the people of texas are thrilled with the economy. if you look at the combination of the tax cut last year, the biggest tax cut in a generation and regulatory reform, repealing job-killing regulations of the obama administration that combination has been phenomenal for the state of texas.

our economy is booming. we have got nationally you saw it this week, the lowest unemployment rate since 1969. >> right. i'm surprised it's a close race here. >> politics can be strange. success can breed complacency. the danger in this race a west texas oil field worker, his job is going great, job focused on going to work and church and taking care of his kids, when election day comes along the urgency may not be there and he or she may stay home. that is how you lose the election. anger is a motivator. when they're ticked off they are certain to vote? >> republicans are ticked off now? >> they're angry at behavior of senate democrats. that is helpful, the better the economy does, the more risk people take it for granted they don't understand that the policies that are producing four million new jobs, that are producing record high 401(k)s and stock market, those policies can be turned around like that.

that is very much on the ballot. >> tell you a little bit about your opponent. we'll go to one of his rallies this afternoon i heard a lot about energy, to beto o'rourke's supporters. he is tapping into something here. there is something energizing the other side. the other side waited for years a flip of this state. maybe it is starting to happen, though? >> you mentioned energy. there is two kinds of energy, the energy on the left, driven by hatred and against donald trump there is anger and rage, i agree there is a lot of that supporting beto o'rourke, that is where the tens of millions of dollars flooding into the race is coming from. interestingly enough, a democrat in texas in a general election will at least pretend to go to the middle, to pretend to be moderate he is not doing that he is going hard left like bernie sanders like elizabeth warren. only democratic senate nominee in the country to come out explicitly impeaching donald trump. he is said he is opening to

abolishing i.c.e. i said energy is interesting word. you will notice something at this rally. a lot of rainbows and puppy dogs and very little substance. you don't see him talking about economic policies. you're focused on economic policies. listen what he says about economic policies. bait -- beto o'rourke votes over and every for higher taxes and killing jobs of the there are millions of jobs in texas directly and indirectly connected to oil and gas. >> sure. >> he has voted in favor after 10-dollar a barrel of tax on every barrel of oil produced in the state of texas. that is not good for texas but good for raising money up in -- >> told to wrap in new york. very quick answer. your back and forth in this administration and back and forth. you talked about how you had to turn the page with donald trump. vice president is coming here to raise money. is the president coming to texas and do you need him?

>> the president says i wants to come. would certainly welcome him here. i'm working every day with the president, hand in hand with the president, winning major victories for the people of texas. we're seeing economy, we have the lowest african-american unememployment ever recorded. the lowest hispanic unemployment ever recorded. those are real results for the people of texas and i will keep working with the president to keep producing those results because my number one priority is jobs. that is what the people of texas want, more jobs, higher wages, more opportunity. we're seeing it because the policies are working. >> you have to catch a flight i'm told to dallas. senator ted cruz. we'll have more throughout the day, including coverage for beto o'rourke rally. we made a number of requests to the o'rourke campaign to interview that candidate but so far we have been denied. charles: connell, great stuff. appreciate it. meanwhile, taylor swift notably stayed away from politics a long time, now breaking her silence. she wrote on instagram she will vote for tennessee democrats in

the midterm. joining me now, charlie kirk. listen, she is influential among your crew, the millenials. she now all of sudden she wants to get political. what do you make of all this. >> what is disappointing. what i always respected about taylor swift she would stay away from politics, register to vote, stay engaged and get involved. i read the instagram, it is so evident, you can make the assumption she didn't write the whole thing. saying ridiculous left-wing talking points that congresswoman marsha blackburn voted against women's issues. she is against lgbt issues. she is against the prevention of domestic violence. you look at congresswoman marsha blackburn 's record. i know her. she is wonderful leader. championed anti-opioid acts and against sucks all assault. taylor swift is wonderful, talented artist. i would have preferred her to stay out of this, it is evident she is co-opted by activists on the left that want to use her

brand, visibility and popularity to advance her again day, kevin hart, a article about him trying to be apolitical. how come you never go after trump. recently at an awards show he went after trump. they cave to this sort of pressure. >> unfortunately. i have so much respect for kanye west. what taylor did last night doesn't take any courage. she is capitulating the left-wing mob that runs hollywood and music industry. kanye did was triple down, caught dupe pell down, wear great america hat, breaking all the rules and he loves donald trump. that is what i respect. he might lose support. when his album came out it was number one in the world for three weeks. i have a lot of respect for taylor swift and her music ability. i which she would stay out of this. charles: marcia blackburn has the kind of track record that normally taylor swift would be

embracing. marsha blackburn 's opponent, said he would have been in the senate would be yes. >> bredesen her opponent as huge accusations covering up sexual harrassment during his administration. charles: talk about your book, the campus battlefield, how conservatives can win the battle on campus and why it matters. how can they win the battle? i'm surprised it is not pass big as war and peace. you have a hell of a battle. >> this is timely what happened during the kavanaugh fight. one of the greatest columns by victor david hanson of the he said the campus comes to congress. politics flow downstream from culture. radicalism, protest, behavior from the radical evident, this starts in universities. what my passion through our organization, turning point usa, to spread truth. we have to be decent people, we're not scheming or yelling. we ask with pointed questions, come with facts and

perspectives, perspectives they might not have heard. challenge the orthodoxy that government controls anything and have people reconsider marxism is not the best place. charles, thanks for everything. appreciate it. charles: elon musk, tossing the sec with the latest tweet calling them the short seller enrichment commission. i wonder if the sec will take any action? it's a big question that we'll be asking. ♪

♪ ashley: in the last hour former republican congressman jason chaffetz called out mark zuckerberg for his frustration over a facebook executive's support of justice kavanaugh. >> most big companies will actually metaphorically bet on red and blue. that is, they will have lobbyists work and support republicans and support democrats so no matter who wins or who is in power they have somebody there engaged but in this case they have got to come up with their own policy. joe kaplan, the head of public policy, he is not just some rank-and-file employee at facebook, he was there supporting his long-time friend, hey, that is one of my values too. they have to figure out which way to go but i think zuckerberg's message, embrace

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the short seller enrichment commission is doing incredible work and the name change is so on point. joining us former sec attorney theresa goodie. these tweets, could they backfire on elon musk? >> i think already have, to some extent. first of all you very rarely get what you want from the government by mocking it and calling it names. but also his tweets, his prior tweets shows us he has a fundamental lack of understanding the way the real world works. he failed to appreciate still at this point the problematic nature of his conduct which means that these penalties as severe as they may be, are probably unlikely to deter him from future violations. charles: right. >> so i think the sec and the doj and the judge who still has to approve this, will look at this kind of conduct as showing somebody who really fails to appreciate the wrongfulness of his conduct and will likely continue to violate the law.

charles: some would argue, theresa, these are not really biting punishment. certainly $20 million i think he can afford that. you know he is still on as the, as the ceo of the company. so, and from his vantage point he may say, listen, someone has to push back because the securities & exchange commission does nothing as short sellers run amok, if you're a small company, a small publicly-traded company you're always at your mercy. they can destroy a company overnight and have taken on large companies and have pretty good success there. is there a voice for publicly-traded companies to push back against the system where these shorts can do almost anything to destroy their company? >> there is one thing to talk about whether or not he thinks shorts should be something that is lawful or not but it's another thing what his conduct did. he actually is alleged to have violated, or i'm sorry, to have injure innocent investors, people who actually believed his tweets, okay, if i buy this stock now less than $420 a share

he will buy my share at $420. this case is not just about short sellers. this goes to the very fundamental reason why the securities & exchange commission was created, these laws were created in the first place. this is very reminiscent of the 20s when, people would make these comments and they would lie about their stock. they would lie about the company. charles: sure. >> this is exactly what he did. it is causing chaos to the market. this conduct is exactly the reason we have the securities laws and disclosure regime. he is not taking them seriously at all, fails to appreciate them at all. yes, there is an argument for short sellers, if somebody wants to bet against your company they can do that right now. that is not what the case is solely about. charles: great points. i don't know that the 20 million was enough of a deterrent perhaps but we really appreciate you coming in, explaining it. thank you. >> thank you. charles: now the left is apoplectic over brett kavanaugh's nomination. in fact one late-night writer

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charles: president trump en route to joint base andrews headed to orlando, florida, where he will speak to the chiefs of police annual convention. he did speak to reporters right before he left. we'll bring you the tape when it happens. a check on the big board. down 150 out of gate. pulling back. we expect to see the back and fill action all day long. we get buyers on the dip but not enough to get people off the sidelines. it writer of "the late show" with stephen colbert apologizes for a tweet. ariel dumas, she writes, whatever happens i am glad we ruined brett kavanaugh's life. that went viral. outraging conservatives. we have howie kurtz, media

matters. we're seeing more and more writers for these major shows, voicing their opinions, they're almost owls left. some are even despicable? >> first of all, it is just sickening and really shows you a mind-set, politics is a blood sport. i know this woman ariel dumas apologized in twitter, i was so emotional during the whole time. it was unintended sarcasm. there is no sarcasm there. there is no funny punch line. it is taking a bit of glee putting brett kavanaugh and his family through what he was put through, whether you agree with kavanaugh nomination or not, i just find that to be terrible. charles: it is interesting, you mentioned that there was no sarcasm or comedy. i'm seeing that everywhere, whether it is the bill maher show they're not pretending. they are influential. should there be consequences for this? >> there are certain places would you lose your job if you

made such a mean-spirited remark. i think stephen colbert should apologize on her behalf. he doesn't control what his writers tweet. he is number one in late night because he is tough on president trump. he at times gone over the line, particularly one gross joke from last show i'm not going to repeat. this woman works for him. he has the responsibility to say, disassociate himself, this is not the tone or tenor he wants on his cbs show. charles: what about management of any of these entities? listen, used to be entertainment element to all of those shows. seems like that is out the window now? >> you know what happens is, these corporations like numbers. so when colbert turned his show into a anti-trump vehicle, he passed jimmy fallon, he passed jimmy kimmel. i'm sure cbs really likes that. look, it is become such a politicized game in late night, a lot of people are like, could we have a little comic relief,

some entertainment? instead colbert, kimmel, samantha bee, john oliver, seth meyers are anti-trump all the time, every single night. as far as cbs management, are the practices comfortable with having a writer who would say this? charles: howard, we have president trump, just landed at joint base andrews. thank you very much. always appreciate your insight. of course the president heading to orlando. >> [inaudible] we're going to be talking. we're talking on the plane. i have a good relationship other than there has been no collusion, folks. no collusion but i have a very good relationship. we'll see. [shouting questions] >> i don't hear you? >> no, i don't. >> mr. president -- >> [inaudible]? >> say it? i thought the way they behaved was absolutely atrocious.

i have never seen anything like it. from the leaks of important documents to the statements they made, to watching blumenthal who is a fraudster when it came to vietnam, what he did was horrible. i thought that the way they conducted themselves, the way they dealt with a high-level, brilliant, going to be a great justice of the supreme court, the way they really tortured him and his family i thought it was a disgrace. i thought, i thought it was one of the most disgraceful performances i have ever seen. [shouting questions] >> [inaudible] >> so i have been hearing that, that now they are thinking about impeaching a brilliant jurist, a man that did nothing wrong, a man that was caught up in a hoax, that was set up by the democrats, using the democrats'

lawyers, and now they want to impeach him. i have heard this from many people. i think it's an insult to the american public. i think you are going to see a lot of things happen on november 6 that would not have happened before. the american public has seen this charade, has seen this dishonesty by the democrats, and when you mention impeach a justice of the united states supreme court, who was a top scholar, top student, top intellect, and who did nothing wrong, and there was no corroboration of any kind, and went through seven fbi investigations, had nothing to do with any of this stuff. i mean, you had the last one, take a look at the last one. the things they said about him, i don't even think he ever heard of the words. it was all made up. it was fabricated and it's a disgrace, and i think it's going to really show you something

come november 6th. [ inaudible question ] >> i don't hear you, what? i think a lot of democrats are going to vote republican, because i have many friends that are democrats. the main base of the democrats have shifted so far left it will end up being venezuela. this country would end up being venezuela. i think a lot of democrats are going to be voting republican. [ inaudible question ] >> very well documented. very well documented. it's been documented for many years very well. all public documents. say it? [ inaudible question ] >> i don't know what she said.

i don't understand a word she said. not at all. not at all. [ inaudible question ] >> look, i'm traveling with rod. i didn't know rod before but i have gotten to know him and i get along very well with him. charles: there you have it, president trump on his way to orlando answering a series of questions covering brett kavanaugh and the notion of perhaps democrats trying to impeach him, the impact of all their actions on the november elections. also rod rosenstein taking the trip down to florida with president trump. that's really big news, saying he and rod get along very well. got a lot going on and we want to sort of reset, of course. it's 11:00 a.m. here in new york. i'm charles payne in for stuart varney. let's start real quick with the money. we have been up and down for an hour and a half. the market has been all over the place, off 150 points. we came back into the green momentarily, flipping again,

sort of a mixed market. take a look at the s&p 500 as well. down slightly and of course, nasdaq, that's where all the pressure has been. market of course has real growth in big tech names the last two years. it's been a bumpy ride more recently. joining us, bob doll, chief equity strategist. bob, so the market, there's this pull and push for the last several days. nevertheless, the fundamentals continue to get stronger and stronger. ultimately what's going to matter most? yields edging higher or this continued economic momentum? >> certainly the momentum and earnings, we are about to get third quarter, are most important. as you know, year-to-date, earnings have been fantastic and stocks are up, not nearly as much as earnings because of the concern of the pickup in interest rates and a bunch of other things. earnings are going up but the valuation level, the p.e. on the earnings have been coming down but the net is a positive market and hopefully that continues.

charles: folks are saying take a look at the home builder index, getting hammered all year long, even more precipitously more recently, and some other areas. consumer confidence can be fickle. how much of a wild card could it be? >> the consumer's really important for the economy, as you know. the good news is, there are more of us working, starting to get a few more increases in pay, and the savings rate is pretty decently high for this point in the cycle. so the consumer is a real positive for this economy. we've got to watch it with rising rates, rising oil prices, no question. charles: the federal reserve, of course, a lot of this speculation over whether or not they will become more aggressive. i think what they laid out was one more rate hike this year, three next year and perhaps one in 2020. do you see any changes there and just how much of a risk will that be to this market? >> well, as you know, fed chair powell in the last meeting came out and said we're going to move

neutrals a bit away and we may go past neutral. that's kind of spooked the markets a little bit. is inflation coming back, how quickly is it coming back, how aggressive will the fed be. that's part of what spooked the market. so the strong economy has pushed yields up, as you know, and irregularly all year long. it's not as if this recent move up is the first. ten-year treasury yields were 240 at the start of the year and are 320 today. we have had three moves up and then some pauses. charles: so are you confident, then, sounds like you're confident that powell understands what's at risk here, not just the rally but even the economic rebound. it sounds like you feel he's going to make the right decisions with respect to not derailing this whole thing. >> yeah. look, the only way he will derail it is if he has an inflation number that's getting out of control and has to beat over the head inflation and in the process hits the economy as

well. that's how most cycles end, as you know. we are not there yet but we will get there eventually. we are in the later stages here but there is more to go, in my opinion. charles: of course it's always the interpretation of inflation and i think that's where maybe powell seems to be -- to have the distinction over his predecessors. >> no question about it. he's a practical man, he's a business guy, and he's going to call it as he sees it. i think we will have more transparency even though we will have shorter meetings and shorter commentaries. charles: the chinese market was closed for a week, reopened after golden week there, down pretty big. getting hammered all year long, in fact, for the last few years, and their central bank freed up $175 billion to make risky loans. how worried are you about this trade battle, and someone who, eventually one side or the other, saying okay, let's make a deal? >> i think it's pretty obvious

from the start and the markets are showing us that, that this is very important. the u.s. or i should say china needs the u.s. more than the u.s. needs china, but we need each other. so it would be nice to see if getting to common ground, i don't think that comes any time soon. meantime, china has some other issues that's caused slowdown in the economy. along with the trade problems, trying to stimulate which has massive impact for what happens in the emerging markets and the rest of the world. charles: want to ask about oil, crude oil on fire, over $74 a barrel. some people saying it could get as high as $100. describe the impact, if you will, on the economy as we continue to move through these big resistance points on crude. >> yeah. it's a bit like interest rates. the level is important but the pace is what's most important. if we go from where we are today to 100 in the next two months, that's going to create a problem.

if it's a slow, steady process, we're okay. look, it's a negative at the gas pump when prices go up for the consumer but as you know, because of where we are in energy, i.e., exporting energy as a country, the increase in the price of oil is actually good for profits for the country so it's mixed messages. in the old days, if you will, it was negative overall when oil prices went up. now it's more mixed. i hope as they go up it's just slow. charles: it's interesting because i think a lot of people aren't sure, don't realize, rather, that oil is an american product. sort of whenever it goes up, you look at these infrastructure building projects where you've got to construct these things, got to invest in them, got to hire people to build them, then hire people to work there, there's a great jobs component to this, isn't there? >> no question about it. the fact we are now in the process of exporting some of that good stuff means that when prices go up, our companies

benefit from that, which they can then hire more workers, et cetera. so it's not all negative just because it goes up at the pump. it's more mixed which makes the analysis more complex, but we can breathe a sigh of relief. in the old days, a move to $100 oil, we would be scared. charles: let's wrap oil, interest rates, all of those things together and talk about the consumer effect. some of these consumer stocks looking pretty good today. debt to disposable income. i look at the levels, nowhere near pre-great recession. can we take some comfort that there's room to grow, there's room to spend, there's room for even credit? >> yes, i think so. i would add to your observation about debt to disposable income, we need to look at assets as well. assets are through the roof. the consumer is actually in better shape even though their debt's up. economists would say yeah, but it's not the same people with the assets that have the debt and i get that but by and large

the consumer has room to move. charles: you cover a wide range of things. always appreciate it. thank you very much. >> thanks, charles. charles: let's take a look at g.e. got an upgrade this morning. stock's been on fire since they hired a new ceo. the other side of this is ford. now, the company plans to lay off -- is planning layoffs and will streamline operations. stock is relatively unchanged. jpmorgan, big news there. they are laying off 400 employees in their home lending business. they report on friday. also take a look at tesla. always in the news, it's made a big move to the down side. again, breaking key support points as elon musk has thrust himself back into the conversation with the s.e.c. walmart partnering with mgm. they want to boost its voodoo online video streaming service. the stock is up slightly. it's interesting, netflix under a lot of pressure. not sure the two are connected. back to politics, the midterms are now less than a month away. president trump just said the kavanaugh fight will help rally

republican voters. brit hume on that next. i will also ask him about the protest democrat senator hirono defended. can't wait for you to hear what she had to say. of course, the big story, always your money. how will the midterms affect your money? we are on it. stay with us. cal: we saved our money and now, we get to spend it - our way.

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valerie: her experience and training gave us the courage to go for it. it's our "confident forever plan"... cal: ...and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org. charles: secretary of state mike pompeo is in china today after his meeting with kim jong-un in north korea. pompeo said he made significant progress toward north korea giving up its nuclear weapons. however, no announcement about another summit between the president and kim jong-un just yet. now to politics. the midterms are now just less than a month away and both sides say that justice kavanaugh's

confirmation will have a big impact. joining us now, fox news political analyst brit hume. president trump, very confident right now about the republicans keeping the house and the senate. your thoughts? >> well, i think there's definitely been a bump in republican motivation for the midterms, which the party sorely needed. remember, this is democratic voters' first crack at a ballot box since trump election which so profoundly offended them, and i think they have been pretty maxed out on motivation now for some time. it's not clear to me that this event will motivate them much more. it's awfully hard to whip people up into a frenzy who are already into a frenzy if that's how we can describe it. so i do think republicans get a boost out of this. how long it will last in terms of the people thinking about this and acting on it is hard to tell. life comes at you pretty fast these days in the news world, and things get overtaken in a hurry. we're not talking about the bob woodward book anymore, are we, although that was a big sensation. we're not talking about the

mueller investigation very much either, and that was the thing everybody was hanging on. so that's worth keeping in mind. charles: to your point, i think president trump probably realizes that, what he just talked about moments ago at joint base andrews, democrats want to impeach kavanaugh. they want to do something i think is unheard of and this is coupled with their idea of ditching the constitution, ditching the he lelectoral coll. it seems to me, especially in states that could be up for grabs, the message is that democrats want to change the constitution and take away your rights. >> i think a lot of people will look at it that way, charles, and with regard to the possible impeachment of brett kavanaugh, they might be able to -- they get control of the house, they might be able to do that. not sure they will, but they might. i don't think there's any way in the world the senate will vote by a two-thirds majority to convict him. i think his seat is safe. the question then arises what is the political fallout from doing that. the last time this happened, of

course, we had the impeachment of bill clinton which backfired against the republicans. i think it's a very risky play. the question then arises will the democrats be so motivated by their angry base that they feel the need to try to do this anyway. i have my doubts, but there it is. you're right, they are talking about some of these other things, electoral college and the rest of it which would be extremely difficult and probably impossible to do and whether it would offend the public i think is the question if they tried. charles: right. right. the younger democratic candidates i think were talking about all of this stuff. if you are one of these states like wyoming, you got to be afraid. i want to ask you -- in fact, let's listen to democratic senator hirono and what she said about protesters who run gop senators out of restaurants or other places. take a listen to this. >> it is one thing to protest at the supreme court, to do it at the capitol. that's been done for generations and frankly since the founding of this country. it's another thing to run senators out of restaurants, go

to their homes. is that going too far? >> i think that there are a lot of people who are very, very much motivated by what is going on because what's happened with judge kavanaugh from the very beginning, this is not a fair process. this is what happens, because when you look at white supremacists and all of that, this is what's coming forth in our country. charles: your reaction? >> well, i just think it makes no political sense to try to justify that sort of behavior. the public at large is going to be heavily offended by that and i don't even think many liberals across the land will look at that behavior, running people out of restaurants and the rest of it, as acceptable. so i think for democrats as prominent as senator hirono is now, at least in this moment, to be defending that sort of thing makes political sense. i think it's nuts. charles: you get the sense she was cobbling together this answer, somewhere in her brain

it says in case of emergency break glass and had the word white supremacy. it didn't even fit the narrative of the question. it was sort of like using it as an explosive way of getting out of the segment. >> yeah, well, there's a lot of incoherence in what's being argued now and that's a good example of it. charles: thank you very much. always a pleasure. we will have special coverage of justice kavanaugh's swearing-in tonight on "lou dobbs." got to be there. 7:00 p.m. eastern time. check out the price of gold, down more than 1%, getting hit pretty good. which brings us to bitcoin. i don't think we checked in all morning long. let's see where bitcoin is holding up. still above 6,000. really consolidating for a very long period of time. check this out. coordinating a stunt at the auction for the painting that began self-destructing moments

after being sold for $1.4 million at sotheby's at london thanks to a remote control device preinstalled in the frame. the painting now is believed to be worth double what it auctioned for. elon musk and spacex have successfully landed its falcon 9 rocket booster back on its california launch site. by the way, it's the first time the x landed the booster on the west coast. this comes after an argentine satellite in space sparked social media debate about the source of light, that's right. kind of stuff you get only here.

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comcast business. beyond fast. charles: checking the big board now, back down 64 points. it's been off 150, up 10 and now down 64 or 65. we know the era of free money for car buyers is over. no interest rate loans are disappearing as rates rise. jeff flock is at a car dealership in chicago with more.

jeff, say it ain't so. reporter: al, free money is getting a little more expensive, charles, at least for the auto companies that are subsidizing the 0% loans which are pretty common but have beenawhile. at this chevy dealership, they still have a couple models they offer 0% on but not many. take a look at the numbers. as recently as september 2016 we were up approaching 10% of all loans on cars, 0%. we are now closer to approaching 3%, as low as 3% now of all of those loans. you know, the thing is, the companies have to subsidize this and it costs them a lot more. it's only a few models that are left, the models you maybe really didn't want to buy in the first place. you talk about the market, auto industry stocks, it's a tough time for them. you got rising gas prices, falling sales, and concerns about do i get too far ahead of

the curve on electric or autonomous. i wouldn't invest in auto industry stocks right now but you're the expert. how about you? charles: no, i wouldn't. not just yet. also, i do think it's great that they can sell the suvs, the crossovers and trucks. they have bigger margins but the old school cars, people just don't like to drive cars anymore. reporter: i know. it doesn't do enough for them. there you go. i always had an suv myself, but there you go. charles: me, too. my wife won't let me get one of those big pickup trucks. i want one of those big rams. reporter: you need something big. charles: thanks a lot. see you soon. reporter: i'm used to insulting stuart. charles: no problem. now this. one of the largest real estate companies in the world, the president and ceo joins us next. he's talking trade and says the cold war days are back.

he makes his case. he's next. what happens to your money? we are on top of it.

charles: check the big board now. although it's about split 50/50, the dow off 84 points right now. visa, the biggest loser this morning so far. our next guest says if democrats take back congress, it could put some serious pressure on the market. michael robinson joins us now. michael, connect these dots. if the democrats win just the house alone, for instance, how does that hurt the stock market? >> it puts the market under pressure in a couple different factors. number one, a lot of senior democratic leaders, nancy pelosi included, of course, have been saying up until this summer that one of the things they wanted to do was repeal at least a portion of the trump tax cuts, the gop tax cuts, if you will. the other thing is it slows down trump's economic agenda.

we have to say this has just been a fantastic market for stocks in general, particularly for technology, but redoing nafta, we have seen so much progress in unemployment with the lowest rate since 1969. we have the best growth we've had in a decade on gdp so slowing that down will force the market to second-guess where it's going to go going into 2019, and the only way you can do that is start discounting stocks, particularly growth stocks. i do think it sort of will give people some pause and think whether or not the best is over if the democrats take control of the house. charles: but what we are seeing are some major investments, particularly in capital expenditures in a variety of areas and investments by and large, corporations, you can't just turn those things off. do we have enough economic momentum to keep going even if say the gop keeps the senate? >> that's an excellent point.

the economy wants to grow, people want to make money so i think it slows it down. i don't think it's going to be a complete train wreck. i don't see us going from 4.2 to 2.1% growth. i think part of the problem is with the market, you know, people are concerned are we going to go back to the obama era growth where you had only 2.4% average. you're right, you have a lot of -- the third quarter earnings should be pretty strong. second quarter earnings were great across the board, particularly for technology firms. i'm still confident of the market in the long haul. what i'm talking about is temporary pressure from three to six months. charles: big tech has certainly been under pressure lately. you think they are going to rebound from these recent declines and recapture the leadership role? >> i absolutely do, charles. we have seen this repeatedly in the last five years but this year alone, counting the corrections all stocks went through in january, big tech with the nasdaq has sold off three times of at least 4%, one

was down another 8%, yet we have seen the nasdaq come back and move the market forward. we are way past the tech tipping point. we cannot do without these technologies across the board, cloud, big data, artificial intelligence. charles: it looks like facebook is fractured, looks like netflix is fractured. meanwhile, you have a company like nvidia which is becoming a more important part of the tech sector. >> nvidia is an awesome company. they have a lot of cutting edge technology for augmented reality which i just mentioned artificial intelligence. facebook, there's a lot of sector rotation going on with the etfs. they have been gradually, they picked up their selling starting on september 24th and facebook and alphabet, some of the other shares -- charles: real quick, i got to ask, any of the names we just talked about, you own them? >> i like amazon, apple, microsoft and adobe among big tech companies that i think every investor ought to own. charles: do you own them? >> i do. charles: okay, great.

always a pleasure talking to you. thank you very much. >> thank you, charles. charles: hold on. checking tesla. the stock beaten down pretty big today. in fact, the selling has started to really pick up. it's at the lowest level since the first week of september. elon musk's latest salvo at the s.e.c. may be hurting the stock yet again. your thoughts? >> got to go. i love the guy, i think he's probably one of the most brilliant people we have ever seen. he's an amazing inventor and technologist but you settle with the s.e.c., you skated pretty easily, why come back and battle against them? makes me wonder about his maturity as ceo. he left as chairman. i think it's time for the board to seriously reexamine whether or not he should stay on as ceo of tesla. charles: thank you very much, michael robinson. let's get to trade. joining us, joe sitt, ceo of thor equities, major real estate firm in new york, responsible for a lot of projects around the

city. you say the trade war with china will be deeper and more prolonged than a lot of people realize. >> you know, you always get the wild card in the trump administration and i would say their abilities to do deals in spite of some of the challenges we have seen the accomplishments first led by his son-in-law jared kushner with the first reach out of north korea, then we have seen his administration take over and we see the activity in the most recent days which have worked out well. we have seen jared do an excellent job in nafta. but he's a little bit distracted trying to make peace in the middle east and right now, it's actually scary. my personal view is it's deeper than people think. i think the chinese military industrial complex has come out of the closet and now people are starting to crystallize that we have really got a hemispheric battle, challenge, war, so to speak. you've got the dragon on one side, the eagle on the other,

and i think whether it's business or military, everything is going to start falling under those two. you see companies like facebook on one side doing their deals, in the west, then you see companies like alibaba doing deals in russia and places in their sphere. from the military side, that's the thing nobody talks about, the dirty little secret, it's a little scary. we had a run-in about a month a ago, and you see australia and india getting nervous, about to spend more on military weapons than they have ever spent in the history of those nations just because they are afraid of what falls, they fall under the china hemisphere. charles: these things didn't happen overnight. they have been building up for quite a long time. first you create an island, then militarize an island. it was like six years ago, i can recall the top official in the philippines asking japan, of all

nations, if people understand the history of philippines and japan, to re-arm to push back against the imperialistic threats of china. these aren't necessarily new developments. do you think it was time that someone stepped in from our side to, a, point it out and b, try to slow it down? >> i think it's so well said, what you said. they did it so wisely, the chinese. very quiet, hidden in the back of the room, acted like there was a poor little country in the corner, still getting certain u.n. help as if they were a developing country, and i think the world suddenly woke up. those original islands, i don't know if you remember way back, when the first sensitivity came up, the commitment was they would not be armed. now all of a sudden you see them being armed. if you see what that does along the south china sea, how close it is to the philippine boarder, the indonesian border and into australia, that's very important military strategic positioning they took. charles: china has claimed this

area for a long time. even a lot of islands that already exist there have been under dispute with several countries. one of the things apparently is that they believe there's a tremendous amount of oil beneath the surface there and they want to own all that. japan, what role should japan -- should they ditch their pacifist constitution and re-arm? >> i think more the fear, if i was the country to be afraid, i know it sounds a little crazy, it's more in regard to what you just said in oil. china is a growing population, tremendous amount of people, and they are very much ers. the leaders don't just think about themselves, they think about their children and great grand clirn. the country that needs to fear the most is australia. as crazy as it sounds, i could see in 100 or 150 years from today, china saying look at that country. they have good land, great natural resources, metals, cattle, everything we could use.

they don't have much population, it's not fair. that's the country to annex. charles: here's the interesting thing. they may be able to annex it, you have a program that now we are starting to understand what's going on. it was an altruistic reverse marco polo thing to help connect the world. i never heard of anyone turning down $22 billion. the guy, 93 years old in beijing tells china no, this is a new form of colonialism. pakistan turns down $14 billion. this is how they are taking over the world, isn't it? >> another wise, wise observation. that was a quiet way for them to do what you said but do it in a little bit different way than i think you are thinking. i think they are not looking at it that they are colonizing those countries. they are looking at it back again, the dragon/eagle battle for two halves of the hemisphere of the world. they are using that as their weight into the door.

bigger than malaysia, i think, countries all along africa. if you take a look at what's going on in terms of their economic activity there, and where are they picking more tendency to go, more political countries, politically sensitive, i should say, and all the more countries that have the natural resources that china use themselves. charles: got to leave it there. thank you very much. we could talk about this stuff all day long. it is a serious threat and needs to be talked about more. we appreciate it. now to california. a face-off today, the only debate of the gubernatorial campaign. newsom leads in the polls but the question is can cox close the gap and help the gop take california back? president trump heading to orlando, florida to speak at the police convention. up next, former i.c.e. acting director, tom homan, will be with the president. we speak with him. - i get headaches.

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cme group - how the world advances. ♪ charles: checking the big board, the rally fizzled and we are back to the lows of the session and really, the velocity of the selling is picking up. we will keep an eye on that. meanwhile, to california's governor's race. cox and newsom will face off today for their only debate of the campaign. joining us, larry elder. newsom still leads in the polls so is there anything cox can do particularly today to close that gap? >> i would love to say there is something he can do, charles, but i don't see it. you start with this. only 25% of the registered voters in california are republican, so three-quarters of them are something other than a

republic republican. decline the state is a bigger group than republicans. a republican hasn't been elected state-wide in california since 2006. cox is being badly outspent. he thought he might be able to ride to the governor's mansion on the issue of the repeal of the very unpopular gas tax. it's no longer unpopular. those who want to keep the gas tax have outspent those who want to get rid of it and now public opinion has changed. so i don't see the route cox can follow to become the governor of california. i just don't see it. charles: what about the idea, though, that millions of people have left the state and i mean, higher gas taxes, you might convince me in a couple ads it's okay but in reality, once you have to pay it, underscores the fact you have a state that is strictly haves and have-nots. >> well, when is the light going to come on in the mind of california voters? this state is underfunded by about half a trillion dollars

because of our pension obligations, the obligation to the pension is now the fastest growing item on the budget. you're right, californians are leaving the state. ceo magazine rated california the worst state in which to do business for all of the 12 years they have been in operation and still, people pull the lever for democrats. i believe that the governor of california, jerry brown, tax, spend, regulate, pro climate change, pro bullet train, i believe if he weren't termed out he could run again and be re-elected. this is the climate john cox and any republican in california is facing. charles: larry elder, thank you very much. really appreciate it. wish i could be more optimistic. there are concerns about the safety for gop lawmakers in the wake of the kavanaugh confirmation. in fact, some senators have been receiving threats. joining us now, senator john hobin, republican from north

dakota. first of all, the big question lot of people are asking even before the kavanaugh saga, if you will, was civility or incivility in d.c., it seems to have gotten a lot worse. is there any chance we can use this as a point to get back to that point where civility was the first rule? >> hey, charles, good to be with you. yeah, i really think so. i think americans want, you know, respect for each other and for our first amendment rights. everybody is entitled to their opinion, to their views, and to express those views and to do so safely. so it comes down to respect for the rule of law and our first amendment rights, freedom of speech. i think americans very much want that. charles: but you have your colleagues, for instance, senator hirono, saying, sort of justifying the tactics and then bringing up white supremacy. this is a very contentious issue and the aftermath of it, all i

heard was more vitriol and commentary, even going after the constitution. >> well, for example, susan collins now has to have security and that's just not right. again, we need to respect the rule of law. it's what the american people want. and i think we have to make a push, all of us, to make sure that, you know, yes, we have a right to demonstrate, we respect freedom of speech, but we also have to respect the other person and their security. we should all want that, to know that we are all safe in america, expressing our views and that we respect each other in that process. charles: a lot of people thought that incident in the baseball field with steve scalise would have been a turning point. it certainly felt maybe for 24 hours, we were galvanized once again and we all had this sort of awakening to the path our behavior was taking us and this anger, but that's a long distance memory. in fact, i saw videos of people

chasing him down the street and trying to engage him in a certain way that generally has ugly outcomes. so while i share your optimistic and hope, i'm just not sure it's not going to get worse before it gets better. >> you bring up a great point with representative scalise. we have to think back to that and i think we have to try to use the confirmation of now justice kavanaugh as a reminder that we all have to work on respecting each other. i understand what you're saying and i'm not being pollyannish about it. this is something we have to talk about and hopefully we will see that push from the american people that this is what they want. i believe it to be so and that our leaders all respond in terms of again, that respect for each other and rule of law. charles: well, senator, we are grateful and we really appreciate you and the stance you're taking. thank you for taking the time with us this morning as well. >> charles, great to be with you.

charles: same here. thanks. let's check on the big board. we were accelerating to the down side, off 210 points. again, when the rally faded we started coming down real quickly. we will continue to check. meanwhile, garmin's navigation unit exposed thousands of owners' data. tesla, it's not necessarily a bellwether stock but as soon as it started to collapse, so did the market. tesla at the lows of the session. president trump heading to orlando. he will speak at a police convention. we will get the news -- the big question, i think a lot of folks in orlando especially, will we get new news on a border wall? up next, former i.c.e. acting director tom homan. he will be with the president today but first, with us. welcome to the place...

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charles: president trump is on his way to orlando right now. he's going to be speaking at a convention for police chiefs. want to bring in thomas homan, former acting i.c.e. director and fox news contributor. thomas, you will be there, so what should we expect to hear from president trump today? >> well, i don't think the president needs to say anything

new. the thousand law enforcement officers in orlando know this president has their six. he's talked the talk, he's walked the walk. they know he has their back like he has the military's back. he needs to reiterate some of the commitments he made. for instance, the escalation of violence against police officers. i think he needs to talk about that and the administration's commitment to state and local law enforcement, that that would be addressed. i also think he needs to address his commitment that he's already made to the war on opioids and fentanyl that's surging throughout this country in every state. finally, i think he needs to talk about border security and reiterate his stance on the border wall. these are law enforcement professionals here and they certainly believe that this nation has a right to secure its borders and it shouldn't be a bipartisan issue. every congressman should want to secure that border. charles: to your point, it's hard not to really make two and three what you just brought up, the same topic. border security and fentanyl, particularly the fentanyl produced in china, shipped to

america from the southern border, our porous southern border. there's no family in this country that hasn't been impacted. there's no state, there's no city that doesn't understand the ugliness of this situation. to me, wouldn't they want to contribute something to slow it down. >> look, it's a political issue, but like i said, it shouldn't be one congressman, either republican or democrat, that wouldn't want to secure the border. what's the downside in securing the border? less drugs coming into the united states, less illegal immigration, less bankrolling the criminal organizations that smuggle people into this country? people still need to come to this country to claim asylum or refugee status, go to a port of entry. there's no downside in securing this border. we have a right to do that. we are a sovereign country. we need to stand by that. charles: always great seeing you. thank you very much. more after this. - our markets are currently experiencing

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charles: the big board again, we've had an interesting session. we were off 150 points, clawed our way into the green. it started, ashley, liz, once first rally attempt failed, i mentioned at beginning of the show, most experts, most professional traders don't buy on first rally. >> no conviction is. charles: now we're pulling back like this, there is not a lot of key support until we get a lot lower. ashley: i absolutely agree. we talked about, do the high rates, we know the fed will probably raise again at the end. year, will suddenly these fixed income, you know the treasury start to add competition to, to, equities, are equities too highly priced now that the rates are going up and paying more to borrow money?

all that is asked by investors. that is why we're seeing a bit of a selloff. liz: bond market is closed today. freak out over the yield going up. charles: we'll see what happens tomorrow. some will say huge consolidation after a huge run. neil, take it away. neil: thank you, charles. we're watching a selloff. we're off the lows, still down a lot. a lot has to do with rising interest rates which normally is greeted as a good thing, it reflect as good economy. in fact a very, very strong, rapidly accelerating economy. the mixed blowing is that -- blg that the federal reserve will rain on the parade. bond market was around 3.25%, around seven-year highs. that maids it hard to trade and arbitrage against stocks and bonds. it gets a little mechanical here. suffice it to say in that environment stocks can be whipsawed. we have d.r. barton and