it's much bigger than all of the rest of us sitting around thinking about it and it just has a huge impact. david: which is why us poor mortals can't hope to do better than those algorithms do. we just got to stay in for the long term. melissa: there you go that does it for us the evening edit starts right now. >> three days of wild swings are landing stocks in a tidal wave of red at this hour we're down 523. the markets are in distress in this final hour of trade. neil: stocks are falling down. >> the sell-off is across the board. neil: technology, technology, and sell first ask questions later. we have not seen a yield on the two-year note this high since 2008. david: is this a barish phase of a bull market or is this the beginning of the bear market? >> liz: will it get better or worse? yeah, that's the question the dow taking a pounding, ending down 831 points, as you've been seeing amazon and tech stocks

did lead to sell-off we'll tell you what happens and whether more pain is coming with an all-star market panel and what to do next. this as the worst hurricane to hit florida's panhandle in 168 years, heads now to georgia. we'll tell you where exactly hurricane michael is headed next it is a powerful category 4 with life threatening storm surging sweeping through florida right now. authorities in the panhandle region warning we've not seen devastation like this since 200. thank you for joining us and watching money, politics we've got the debate behind tomorrow's headlines i'm elizabeth macdonald, the evening edit starts right now. >> liz: well, sizable downdraft to the dow down more than 3%, 831 points to the down side ending at 25, 598,

coolants are needed here the dow is back to where it was in august. we've wiped out about a month and a half of gains in this historic record run-up under president trump. more than $9 trillion in equity market value-added, tonight will the market panic attack last? fear did sweep through the market over higher rates, slower global growth, corporate earnings coming in about warnings about china, what china is doing over there where the corporate earnings have peaked and again amazon and tech shares leading the route. here is the story markets have been walking on sunshine as we said, markets basically they take the stairs up, and the elevator down, so is this the worst or just another october surprise? again, we have not seen it intra -day like this since april. the fed is raising rates and some rattling against our corporations from china. let's get to gerri willis on the floor with the latest. gerri? gerri: well that's right this is the worst start for a quarter,

to a quarter, since 2008 and for all three major indexes, think about that. the worst start to a quarter since 2008 the financial crisis. we'll take a look at the number the dow is intraday swing today 848 points, only 11 of those points were positive. just as an example here, these two other indexes never had a positive move all day long. the nasdac ending down 4% the s&p 500 ending down 3%. these are big intraday moves. the dow's worst performers tell a story nike, microsoft, boeing, this is how broad the sell-off was. nike's consumer, microsoft technology, boeing and industrial stock you can see sell-offs in all major indexes. meanwhile, tech stocks as you said earlier, liz, leading this sell-off, amazon down 10% now in bear market territory, netflix down 8% google down 5% the fang stocks have been de- fanged today. we found major sell-off in

technology stocks, they were the ones that have been leading this market higher, we now see that they are vulnerable as well. end of the story here, liz i'll just wrap. the worst start to a quarter, since 2008, everybody just a little bit is nervous we'll have to wait and see what comes tomorrow. liz? >> liz: thank you so much gerri now for his take let's bring in trend macro chief investment officer don lufkin. your take on the market action today? >> oh, it's pretty miserable, but momma said there would be days like this, there would be days like this momma said. i think we are still in a bull market. its just gone from the world of 2017 whereas the low risk market to the more normal state of affairs, a high risk bull market oh, my god, whoever knew we would have to take a little bit of hardship in order to get investing in stocks. >> liz: that's a great point don here is the thing what set the market freakout going a couple things producer prices slightly on the up-tick, we also have

fears the federal reserve is going to raise rates faster and watch this don what's really interesting. fastenal, they added to the angs t the trade war over china is heating up that china is basically raising material cost and lewis vuitton warning that china's customs agents are giving it a hard time is that an issue? >> well sure it's an issue. we're in a trade war and that's putting sand in the gears of the economy. on the other hand, i am not ready to believe every corporate ceo or cfo who blames a disappointing quarter on china. it's a convenient scapegoat and i think we need to be a bit more careful about that because these tariffs are just so small and they are just beginning to take effect. i mean, they've been in place, for you measure it in weeks so this is ridiculous. >> liz: i hear what you're saying we are on the cusp of another earnings season. your point is well taken that the ceos are going to start really raising the issue over china coming up. don, we've got this breaking news. the u.s. has detained an alleged

chinese spy. it says trying to steal ge aviation trade secrets. the u.s. has charged the chinese government officials with economic espy on age and hacking offences before but don we've never had somebody publicly identified and arrested at this level what do you make of this move? >> well, this is one of those things, where these kinds of offences, i'm absolutely positive, have been going on for years, and we've been going along probably knowing they've been going on for years but not doing anything about it because we had this cozy trading relationship with china. along comes donald trump who just seized the world from a really different perspective and he just says you know, this stuff has got to stop. we have these things here called laws, and we're going to enforce them, and that's going to disrupt some people's apple carts. but all the dust settles we're going to be in a better world, a better world where people obey the law. >> liz: you think it's a temporary marker to put down,

because you know, to your point, china basically what are they going to have their company stuck with all of that factory output? as you noted i think china's consumers can pick-up that output. we've got way more to tax when it comes to the trade imbalance with china, right, john? >> we have an unbeatable structural advantage in this trade war that's not to say it wouldn't hurt us to use those weapons those are costly weapons and in a perfect world i'd rather not have to but we're going to look back on this in a couple years and not only are we going to thank this administration for leveling the playing field with china, china is going to thank this administration. china is holding itself back. it's holding itself back from growth and prosperity and freedom and it's it takes some to go to china in the new millennium. this makes the whole world a better place china more than anyone else. >> liz: don love having you on. you hear what don said he said take the corporate earnings reports with a grain of salt if

they bring up china so what all this means for your money let's get to the market panel, the experts, gary b., announcing wealth management's michael li. gary b., your take on the earnings season is kicking off about to look under the hood of the earnings that the companies are putting up. you know, i want to set aside the tedious origin of self- riotous of the bears. they loathe a lot of investors a lot of money. what fundamentals are you looking for in this earnings season and what withs your take on the market action today? >> well okay, one word on the market action, liz, obviously ugly, but helpful in a way. i mean the market has really been going straight up. well we went straight up to january. we kind of made that bull and then its been straight up since, you know that sell-off in late january until now. i think it's actually healthy for the market. it allows the bears to say we were right, finally! of course they missed the last 5,000 points, but as far as the fundamentals, liz i think they're solid.

i mean, first of all you've got to look at the economy. we have all the major factors kicking in. we have wage growth, we have low unemployment, we have people out there with jobs, i think all of that bodes well for corporate earnings. just you don't even need to know anything about a companies fundamentals. just take a walk in your supermarket. go to disney world. look at how great netflix is doing. i mean, it's just all over, all the good news and there's more good news coming. this is the period of innovation with artificial intelligence, self-driving cars, things like that. i think it's an exciting time to be in the market when stocks go on sale like they did today at the time to start dipping your t oe in if you have cash. >> liz: it's a great point mike lee. common sense are needed it looks like the tech shares did take a wacking, people taking profits out of there, but to gary b.'s

point we've got great fundamentals and previously foot loss multinationals. they're not pulling stakes up any more to avoid high u.s. taxes. we've got a stronger dollar all of that bringing growth back home. >> this is we've got the biggest tax reform biggest fiscal stimulus in the history of the united states combined with the largest deregulatory event we've ever had and you're olny just now starting to see the effects of it. what i think we saw in the market today is a realization that not only short-term rates are going higher but long term rates are going higher. all the talk this summer was dominated by yield curve in version. as that thesis as slowly been thrown out the window what the market does is it pulls its chip s off the table and re evaluates. the same thing happened in january and as you can see we slowly but surely made our way back up here and i don't like days liked to. >> liz: we've got this chinese spy detained in belgium. he's now charged by the u.s. government with trying to steal trade secrets not from just from ge but other aviation

companies. quickly, gary b., your take on that? they're not there any more sorry about that, they are going to be back with us later in the show. oh, is mike lee there? okay, mike what's your take on the arrest of the chinese spy? >> look, the chinese is the number one enemy in the united states if it's not from a trade standpoint and doing everything they can to import as much wets as their country it's through espionage and i have no doubt there are u.s. spies in china and vice versa but the reason we're coming public with this is because we're ratcheting up the pressure on the chinese and the reason we're doing it is to open their markets so the only thing that can take their economy to the next level is what we're imposing on them, so look, i don't think this is going to stop for a long time but i think they have far more to lose than we do. >> liz: thank you gary b. and mike lee, you'll be back with us later in the show with more on the markets. let's get to hurricane michael making landfall. it's the first cat 4 or stronger hurricane that has made landfall in the panhandle there coming up

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>> liz: well the dow on a big downdraft today ending the day down more than 830 points the senior white house official called it a bull market correction. hang on a second it's not a correction. it's down just a little more than 3% not 10% now the white house telling fox business as well there's no panic or chaos inside the white house but so what's it going to mean for the mid-terms if the market does slow down let's get to the business expert panel, christina p, deirdre bolton and susan li. what do you think how does it effect the mid-term? >> i don't think it does because we've seen from research

and no matter who wins the mid-terms, usually it's a positive year on the market going forward. usually gain 15% because finally get something in overhang out of the way today i think a short-term blip is just taking money out of the markets. >> liz: what do you think deirdre about the market action today? >> deirdre: well the one thing i'm watching at least in the context of the mid-terms is the price of energy and we've seen it come up about 10% today is not the right day to talk about energy in particular because it fell but in the past month up around 10% and i think that effects so many americans and so many consumers, what do they pay when they fill up at the pump and that's something that leads people to feel like either the economy is working in their favor, or it isn't, and based on a day liked to, with broad based selling, you could have people feel like oh, i'm paying more at the pump, if that does in fact happen between now and mid-terms , and my 401 (k) or my pension has lost a lot of money i don't feel so good liz. >> liz: i hear you deirdre nothing drives people more to

insanity than gas prices going up but excuse me, let's get to k -parts. here is the thing fastenal said china is giving them a hard time with rising materials costs, k- parts we know we're in earnings season right now. louis vuitton warning is also mentioning china, and we also have this rare u.s. arrest of a chinese spy, he's detained in belgium. what's your take on this? >> i think that we shouldn't discount the chinese market and the fact they're not going to back down that these tariffs have yet to actually show themselves in the market just yet. you had jay powell we saw the market drop last week literally when the chairman of the fed started talking about the fact that they need to continue to raise interest rates. he's not too worried about trade but i think that's a major issue and you bring up the spying issue, that did hurt the tech sector, think of facebook and fang. back in february i think it was you saw facebook drop 23% in seven minutes. that means that it could happen again you're seeing it weighted right now.

apple, facebook, netflix, literally took off $120 billion off the market today, so i think like susan just brought up about the mid-terms, and whether this is going to effect the mid-terms , i think this is the little steps that we're going to see for worse to come. why? look at interest rates they've been low for so long. our economy is propped up on low interest rates, and its been cheap for a long time. we're buying goods, yes, that's fueling the growth but we're buying goods with our credit cards or buying goods with debt and it's not just consumers. >> liz: k-part made the fear of another flash crash. we had market experts on saying do you know what? that fear is still out there. the markets are still not really to a flash crash. >> you know we talked about this a lot e-mac. it's obviously impacting invest ing probably more than economics. jamie dimon said that this year, i would agree and look at the sell-in especially in this electronic world where algorithm

s do much of the trading so if it hits a certain stop loss which it did today people just i guess the algorithms kick in and that's why we're seeing steeper declines than actually putting their fingers on the button. >> liz: deirdre susan li brings up the point about the robots coming in. are people taking out of profits out of tech shares and going to the defensive plays like utilit ies, fears of rising interest rates and how robots react i hate to bring it up, but that in version of the yield curve. >> no it's important. it's important, right? and on that two-year yield we haven't seen yields that high in about 10 years time, so that is remarkable in and of its own right and i think even when we're talking about the 10-year yields, we saw that move like 40 basis points really quickly so i do think part of this is just an adjustment with how quickly those yields moved higher and i also think part of this is just the rare stock market and bond market selling off at the same time that's happened three times

in the last 20 years and usually when it happens it does pre-date an equity market sell-off. >> liz: interesting. obviously all borrowing gets more expensive. >> liz: k-part 10 seconds final point. i completely agree we should be concerned about the pace of ris ing yield and interest rates interest rates. >> liz: susan, deirdre, christina thank you so much for your insights let's get to hurricane michael making landfall the first cat 4 nearly a cat 5 it's the worst hurricane to hit the florida panhandle ever. jeff flock is in the middle of it we'll have his breaking report, coming up. >> there's nothing our state cannot recover from, because there's no state that cares, loves, or comes together like florida. hurricane michael cannot beat florida.

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>> hurricane michael is a hurricane of the worst kind. >> do not take chances.

we're looking at a 145-mile an hour sustained winds that could possibly get stronger. we're getting it and we're not going to get the very worst of it but that's the very worst of it as you can perhaps tell. 12 feet of storm surge. water will come up. >> large losses of life, and the most amount of destruction. we can rebuild your house but we cannot rebuild your life. >> liz: well it landed at 155 miles per hour, when it made landfall, the montes russ now category 3 it landed as a year category 5 and now it's a cat p michael struck the florida panhandle the strongest hurricane ever to hit that region 155-mile per hour winds it is the worst in history for that area. it is the fourth major hurricane to hit the u.s. in just 15 months now hundreds of thousands told to evacuate the region, ten s of thousands now without power, and there have been only nine major hurricanes to approach the panhandle and all

of weather record keeping data, that's back to 1850. wind speeds not the only important factor here, most fatalities and property damage come from flooding. now remember 2012 hurricane sandy, superstorm sandy devastated the new york city region and remember last month hurricane florence that created all-time record flooding in north carolina both had wind speeds well below hurricane michael today, but they still cause massive damage due to their large size. let's get to regina miller accuweather meteorologist with the latest. >> well, we do, we have all of that, with this system. we've got the winds we've got the storm surge, we've got the heavy rainfall, as well, and hurricane michael just diminished in intensity to a category 3 but you could see as it went across the western panhandle of florida you could see the eye very clearly for quite some time still kind of seeing a little hint of that, and now it's maximum sustained winds at 125 miles per hour.

expected to diminish to a tropical storm as we go into the wee hours of thursday morning as it moves across central parts of georgia, and then on into the carolinas before working its way off the coastline, some of the top wind gusts that we've had reported so far, these are just some of them, around air force base 129-mile per hour winds reported there, and in panama city, florida 116-mile per hour winds, and in milltown, florida 113 miles per hour, and as you mentioned, the flooding, a major problem. in in fact catastrophic flooding for around apalachicola bay talking 10-food foot storm surge as you go to the east of apalachicola and we're seeing a large area here, across the western panhandle, still, in the 6-10-foot range, so we have the storm surge flooding, now as we go into thursday night, we're going to see some of that storm surge even across parts of

southeast earn south carolina and they already have weakened trees from florence back to you. >> liz: regina miller thank you so much for your report. knox business' jeff flock is right in the middle of the action in panama city. jeff what's going on right now? >> assessing damage, you know the worst of the storm obviously passed so you can get out and see what the storm has brought. not catastrophic damage but this is characteristic, i think, liz. windows blown out of buildings, roofs off, this is a roof lost here. if you look over there you'll see water running that actually is a water line that has breached and we went over and tried to shut it off there's no way to shut that off right now so it's already coming out here and i leave you with one other picture, if you can follow me here, as we still look at that. you've got arcing on these polls where lines have gone down. look at that. you've got a fire on the top of a pole here, folks from town

still just out assessing, haven't been by to look at this yet, hopefully that's not going to start a major problem but power is out in a lot of areas, although in some areas, the sign you can see, is still lit up so power has been flickering at times. this could have been a lot worse , had that center of circulation come ashore right here where all of the people and buildings are it could have been a very different picture, worse than the picture that is already pretty bad, liz? >> liz: jeff be safe great reporting sir, thank you so much hurricane michael making landfall as jeff just reported, near panama city, again, pound ing winds of 155 miles per hour, joining us over the phone is the mayor of panama city beach, florida he is mayor mike thomas. thank you so much for joining us what's your main worry as of this hour? >> people getting into some of the power lines that are down as they come in, the police and

fire departments are all checking all those everywhere to make sure that it's safe for people to come back. we've still got some pretty good winds, not much rain. we're lucky. we dodged a big bullet today. >> liz: what about flooding? because cars and suv's can float in rushing water, of just two feet. are you seeing flooding there? >> no, we don't have much of a problem with that. our sandy beaches, the soil extends back to where we're pretty lucky. we don't have much flooding. >> liz: there's been a lot of tourist development and economic development there. what's the most important thing people in the path of the storm need to do right now? we're always really worried about people in your area, sir. >> well the people that stayed, they've got a couple of days without power i think. if they will just wait, give the authorities time to do things and get everything checked out and then let them in and everybody can be safe.

we'll be open for business in about two to three days i imagine. >> liz: sir, it came in so rapidly. how did your city prepare for the storm? >> we, down here, stay pretty well. i tell you, governor scott does not let you not prepare for things like this. he has done a great job getting all of us ready, the counties, the cities, he pushes you. i've been on the phone with him three or four times and he does not allow you to sit still, and i think we're better for it. we were ready and it came in such a hurry that it would have surprised us if we wouldn't have been ready, but we'll have things up and running here pretty quick. >> liz: mayor what does your city need right now to recover? >> time. just a little bit of time. the people to the east of us over in mexico beach and st. joe , they got hurt so bad over there, and panama city, they got hurt a lot worse than

we did. there's some properties that got tore up out here and it's going to take them a while, but by and large we did pretty good for what we had coming at us for a while. >> liz: mayor mike thomas of the mayor of panama city beach which is right in the bullseye of that hurricane michael thank you so much for joining us, sir. >> thank you very much. >> liz: really appreciate it. okay look at that. look at that image. it is the worst hurricane to hit florida's panhandle in 168 years of record keeping and now its headed as a cat 3 to georgia. authorities in that region warning that you may have bad devastation and again florida has seen devastation they haven't seen 2005 katrina. bringing in joint task force commander during katrina, he is retired lt. general and joins me next. >> three foot of storm surge is deadly. we're talking about nine, 10, 12 , 13-foot of storm surge. i just think people don't realize the risk of it.

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- at afor the financialt's time world to stop acting the same old way. you need a partner that is willing to break free from conventional thinking. we are a different kind of financial company. we are athene, and we are driven to do more. >> liz: in many parts of the florida region, hurricane michael is bringing the same kind of catastrophic damage and flooding as hurricane katrina in 2005. it's not just the wind speed but the force of the hurricane wind. it does go up. it's the square of speed in the air density. now the brought force, the brought force of this hurricane wind is why nothing much in the

way of buildings can stand, if they're at the shore, in the face of 155 miles per hour winds you saw the devastation that we just pointed out let's bring in 3-star general and former joint task force commander during katrina, he's retired lt. general, russel, general great to have you on thank you so much >> good to be with you. >> liz: general, so there's a lot of military bases we're counting 10 military bases, a number of like 700,000 soldiers and their families in the path of this hurricane. it's striking how much development and military bases are in the path of it general. >> absolutely, that's a strategic training place for everybody from our army rangers to special operations to one of the most dynamic capacity we have in the gulf, as well as coast guard, naval assets and many of them went into protective mode but you've got to remember, up until last night , everybody was preparing

for a category 2 and this storm surprised us with a category 4 which in the business term, left a lot of boats in the water. this is going to be very costly in the marine insurance business , and the devastation where the storm came in the impact those small businesses, that area survived small business and unfortunately, about 40% of them don't survive a major disaster like this, this is not a good news date for america. >> liz: i hear you general it's an important point you just made that four out of 10 small businesses in that area in your experience will not survive what happened today is that correct? >> that's correct that's the information we have from the government because most of them are under insured. insurance for the high risk area they're in they can't afford it, and many of the poor people who live in that area they can't afford the national flood insurance because that area has flooded before not just from

major hurricanes, but heavy rains, and that put a burden on those who need the insurance the most and we don't have a program to help small businesses in that regard, other than giving them a small business loan and put them further in debt that's why they don't survive. >> liz: it's a great point. here is the thing the people who are in that region, on the coast , they will say that we do add to the u.s. economy, we bring about a large part of economic growth when we develop in coastal areas, so given the fact that we've had so many hurricanes over the last 15 months, sir, general, what's your take on how the government should respond with this kind of an issue? >> well this is a big thing is the government has fallen so far behind. we still are dealing with the flood from louisiana in 2016 where people still are waiting to try and get their individual assistance. now, we have three storms in 17. the government is way behind and

maria, irma, and then harvey. almost 10,000 homes still waiting on individual assistance in harvey. half that many in florida, and three times that much in maria. we've got to fix this and congress needs to get off their butts and mix it. >> liz: congress needs to get off their butts and fix it. it is an honor to have you on our show please come back soon and thank you for your service to our country. god bless the first responders and the survivors. >> liz: thank you so much, sir. okay let's get back to that market sell-off today the dow ending down more than 830 points , should you buy or should you run or should you sell? that's next.

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it is. should happen everydred five hundred years, right? fact is, there have been twenty-six in the last decade. allstate is adapting. with drones to assess home damage sooner. and if a flying object damages your car, you can snap a photo and get your claim processed in hours, not days. plus, allstate can pay your claim in minutes. now that you know the truth... are you in good hands? >> liz: we're going to get to that story of the dow ending the day down more than 30 points we want to get to this story moment s ago president trump just spoke about what happened. he was on the tarmac on his way to a rally in erie, pennsylvania

edward lawrence is at the white house with the details edward? >> reporter: liz up until now the white house has been very non-panicked about what the market has donald in fact they continued to do that but they haven't really placed blame anywhere press secretary sarah sanders said that the fundamentals of the economy are still good. well that all changed moments ago when the president walked over to cameras in pennsylvania and he basically said that they were expecting this sort of correction, but when he said, " the fed has gone crazy." he blamed the federal reserve for raising interest rates, that he believes, in part, led to this downturn in the market. surprising event as the president came over. he made those statements and then basically, walked away from the camera so clearly the market dip was on his mind but again, the white house saying that they don't panic, that this is something that's going to come and go but the president taking it a step further placing the blame squarely on the doorstep of the federal reserve something that most presidents in the past have not done, to this extent.

the president going as far as again saying the federal reserve , "has gone crazy." liz? >> liz: thank you so much for your reporting, ed. let's get reaction to the president's comments back with me are gary b. smith, wealth management portfolio manager michael lee and rock star anchor of bulls & bears the new show coming up next week he is host davey david asman. david first what's your reaction david: high person ole from this administration? i'm shocked. sometimes donald trump whose a businessman who has a specialty in real estate, they hate higher interest rates, because it does slow down sales of real estate, and clearly, it seems to be already having that effect on some parts of the real estate market so his instincts are there and this is a man when his instincts go somewhere there's very little of him to stop them from going anywhere. >> liz: gary b., the president

is finger wagging at the fed is that going to have any impact? >> no, no, of course not. the fed will try even harder to be impartial. in a more macro sense, i kind of understand his frustration because i've always been of the opinion, why do we even have a fed? the market determines interest rates to think that we can higher some really smart people with phds in economics and they can look into the future, better than the market can, is ludacris they miss the housing bubble, they missed multiple recessions. it's absolutely idiotic, from that perspective i kind of agree , will it change anything? no, he's frustrated at the market had a bad day and of course he views the market as a reflection of his presidency, right or wrong, so i understand the frustration. >> liz: they missed the dot com bubble too and put a computer in there, mike lee. mike, you know, the president though, has been more vocal

about the federal reserve than any other president in history. what is your take on him finger wagging the fed? >> it's just not a good idea, and also, i think he's wrong here. >> liz: why do we need to raise rates? >> because. >> liz: is inflation really full bore on us? >> no because interest rates below 2%, that low, they don't really do any help for anybody. they do more damage so they create a deflationary environment, so as we are raising rates it's actually stimulating the economy because it's providing money to savers, so if you will watch the country in a case a perfect case example of ultra low rates for an ultra long time look at japan. there's no growth and no inflation so rates here have to go higher, not through the roof, but off their ultra lows, so i just think the president is just completely wrong in the statement and sentiment. david: one thing about gary because i think he's absolutely hit the nail on the head. why do we need the fed? it's a creation that right in the beginning, many people were

wondering why we made it happen around the same time we started with the income tax that should tell you how valuable it is, [laughter] but again, these wise men and women in the fed are supposed to be able to predict things that traders and millions of traders at that happening every second, millions of trades, they know more about what's going to happen than the traders themselves i think it's ridiculous. on the other hand, our friend john who used to work with you at forbes, e-mac, has written a book about maybe the fed is becoming irrelevant. maybe the market moves of interest rates as we saw this week are much more on board than what the fed does. >> liz: interesting and do you know what else, they talk in hyrogliphics. you need a translator on them. david, gary b., and michael lee you've been great. thank you so much for coming in. we'll stay on the hurricane michael making landfall heading now to georgia as a cat 3 hurricane, and boy the carolinas have been getting socked. they've been getting pummeled.

they've got more rainfall, potential flooding on the way. we feel for this region we're on this story with phil keating of fox news with the latest on the ground after the break. >> hunker down and we're well prepared. >> going to ride it out. we just got married.

we're all under one roof now. congratulations. thank you. how many kids? my two. his three. along with two dogs and jake, our new parrot. that is quite the family. quite a lot of colleges to pay for though. a lot of colleges. you get any financial advice? yeah, but i'm pretty sure it's the same plan they sold me before. well your situation's totally changed now. right, right. how 'bout a plan that works for 5 kids, 2 dogs and jake over here? that would be great. that would be great. that okay with you, jake? get a portfolio that works for you now and as your needs change from td ameritrade investment management.

>> liz: we're staying on the track of hurricane michael, it's now a cat 3 it is now lashing the florida coast, going up through the panhandle and into georgia. let's get to fox news correspondent phil keating, reporting live from apalachicola , in florida with the very latest, phil what are you seeing on the ground? >> i see a lot of water and that is water street below me,

normally a driveable full of cars and pedestrian street, it is completely under water and appropriately named water street it's adjacent to the apalachicola river there, over to the left of your screen, and for most of the morning and afternoon, that river which flows out to the gulf of mexico, left to right on your screen, well the water was with wave action going right to left, up the river, and all of that flood water and storm surge and hurricane wind and rain, undoubtedly are going to be flooding up inland in the florida panhandle and big bend area. for most of the big bend, and the panhandle the rain has now stopped, perhaps northern parts of florida still getting some sprinkles, but this is the calm after the fury that was hurricane michael slamming just west of apalachicola around 2:00 eastern as a category 4 with 15s , absolutely historic, and

ultimately expected to be destructive, if not catastrophic , and that's the next mission ahead for everybody all of the residents who stayed down in the big bend area, and the panhandle, despite evacuation orders, they are ordered the sheriff's department and the county to stay indoors, there is a stay in shelter order because they do not want anybody on the streets, in many counties in this region there remains a sunset to sunrise curfew in place, and that is to allow emergency operations responders to get out and about in their boats and in their high profile vehicles and their atv's to try to scope out and see for themselves exactly how much destruction happened, because for about six or seven hours today, nobody left shelter. nobody. no first responders, no police, no paramedics. that was the rule. don't call 911 because there's

nobody coming to get you, so what is now to be revealed is how many trees fell, how many power lines fell. i could tell you power is out throughout all of this region right now a total of 200,000 florida households currently without power, according to the state, and they need to get out and find out what roads are pass ible what roads are impassable as for where we are, at this hotel in apalachicola, this is pretty much the entire town. there's only one way in that big bridge way down there which takes you eastbound, one way off which is off to your right which you can't see and both are closed so everyone is stuck here until the water recedes back to you. >> liz: thank you so much phil keating. let's get to the mayor of apalachicola, florida he is mayor van johnson. your honor thank you so much for coming on. these are heartbreaking images of what's going on in your town there, sir. what's your main concern now? >> my main concern is just getting the community back to

normality, like was described earlier, there's widespread power outage. we have down trees and power lines throughout the community, making it impossible, especially in the inner streets just to navigate throughout the city. >> liz: sir did people heed the warnings to evacuate? >> fortunately everybody did. we had about 20% of the people that decided to hunker down and stay there, despite repeated warnings from the state, the governor, the sheriff's office as well as myself, to get out, you just have some people that want to ride the storm out. >> liz: that's really tough, sir so what do you need right now from the government? what we need right now is just maybe not from the government but to get duke energy in there to turn those power lines on so we can start removing debris and once we assess the overall

damage i'm sure we'll be in contact with fema, the white house has already reached out, offering any help that we need as well as the governor' office so once we can actually get in there and start looking and making an assessment then we can start telling people exactly what we need. >> liz: you've seen storms come and go. compare this storm to what you experienced? that's the problem. i've never seen any storm of this magnitude. i was in atlanta in 1985 and i believe that was a cat 3 storm and what i'm hearing is this is the first time a category 4 storm has even hit the florida panhandle. >> liz: mayor van johnson thank you so much sir we'll be staying on the story thank you so much for coming on. you're welcome. >> liz: we'll have more after the break. stay right there.

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don't let another morning go by experience a blend of refined ...and raw power. engineered to take the crown. the lexus ls 500 and ls 500h. experience amazing at your lexus dealer. liz: hurricane michael currently a category 3 with

125-mile-per-hour winds. it slammed the florida panhandle earlier today. the damage and flooding is expected to stretch from florida to the carolinas and eastern virginia. charles: i'm charles payne. it was a crushing day. stocks across the board all in sell-off mode. this is the third worst point-loss day in history. 831 points. we'll explain how you work your way through it. president trump just minutes ago sounding off on the federal reserve. president trump: i think the fed is making a mistake. they are so tight. i think the fed has gone crazy. you can say that's a lot of safety, but i have gives you a lot of margin. but i