pull back because we saw this every single day this week. a rally attempt that faded. and faded and faded and then proverbial snowball become a boulder. neil cavuto i give you a rally. take it away. neil: you do. neither have talking points, the next step is no talking. charles: i've been practicing my mime stuff. neil: sort of like magic, what are they thinking? thank you very much. can't wait for big changes on monday. right now, you know we're at risk because we were up over 414 points a little earlier, losing a lot of this steam. catalysts what might be contributing to this. i'm looking at a consumer sentiment survey that was a little weaker than thought, even though the financial part of that is strongest it has been in 15 years. on closer examination, wasn't really all that bad. having said that, then we learned that ford sales in china

were down 43% in september. that shouldn't strike us as a huge surprise, preall of these developments here. but they are reminders all of effect much trade, effect of interest rates, how much is weighing on people, even these markets. automakers are down across the board. they have been down. one of the sectors most battered among those that we follow very, very closely. so, there are all sorts of technical reasons. if you can't hold a gain, especially as one robust as it was earlier this morning, when we were up 414 points. that could be problematic. a lot of people are trying to claw to history, does this remind you of anything? remember the stumbling week before the '87 crash. i don't want to use that, very big differences, very big distinctions. this development closer to the lows of the day rather than the highs of the day.

what has been a the passenger we close at the lows of the day. we're watching this very closely. getting a sense what is going on as is deirdre bolton with latest on the new york stock exchange. deirdre, you have to finish with a gain today otherwise people will get nervous going into the weekend. >> they are, neil this is the worst week since march. i went back seven months. what is interesting some of the same pressures for the selling back in march are what a lot of traders here are talking about are to the selling now. i don't know, in march, if you recall the fed did raise that is, interest rates, sort of forecast three more to come. that may be moving around to the end of this year, but point is back in march, same kind of selling we saw was in large part driven by concern about higher rates. the $60 billion worth of tariffs, u.s. and china came

into effect. a lot of anxiety over that. cambridge cambridge analytica. there were macro issues as well. we're down 4 1/2% pretty consist entently for the week, for the dow, s&p 500 and nasdaq. for the week that ended march 23rd. we had greater drops. a little more than 5% for each of those three key indices. one group i'm watching about, talking about the higher interest rate environment are the financials of course this morning earnings came out from dow member jpmorgan chase, citi, not on the dow, wells fargo and pnc financial. interesting reaction, jpmorgan chase is the only one to beat on the top and the bottom line and that stock is moving lower. it had been higher earlier. it is down half a percent. one trader focused in on i thought made a lot of sense,

outlook statement, non-interest revenue growth jpm chase 7%, market dependent. that is what everybody is worried about sentimentwise, which affects the banks, normally, neil as you know benefit quite well in a rising rate environment. neil: thank you very much, deirdre bolton. these kind of things back and forth, tend, tend to whipsaw investors but they are not unusual. we talk about when people will discern when it is time to get out of the woods. my next guests say market decides that. market watchers jack ablin, scott shellady. scott let me ask you a general one if we were to close actually at the lows or even down today. i cannot imagine that would be deemed a healthy development going into the weekend? >> no it wouldn't be a healthy development going into the weekend. we would see more short term

investors throw their toys out of the crib. at the end of the day i don't see anything new here. i don't see any new ringses here. all the news is built into the market. we have a little bit of group think happening. there are people taking money off the table. remember we're up 45% since trump was put in office. if you need the money before christmas, go ahead and take it, i get that. i think this is storm in the tea cup and at end of the day we have good fundamental underlying economy. i have seen a bunch of excuses but no actual reason. let it happen. maybe we'll respect the market more. it doesn't always have to go up and we'll carry on with business as usual on monday. neil: jack, there is argument for example, even with the two-day sell off of 4 points and this is still a rich market even with all of that. do you agree with that? >> i agree with scott.

we have a great economy. if you match up the bond market to the economy, it suggests that the bond market, 10-year treasury should be 4 1/2%. perhaps jamie dimon is reading our research. he is in that camp. he is saying that he believes the 10-year treasury will get at least to at least 4%. that is really, we've got to take this extraordinary monetary policies, quantitative easing, out of the system and once we take that out we get interest rates back to normal and then no longer will the equity market be the only child in the asset allocation game. they're going to have to start pulling its own weight, and that means valuations will have to get a little more compelling when you see a pretty attractive yield in bonds. neil: gentlemen, i'm not a technician although i do know how to read chicken entrails and tea leaves so i am qualified,

this goes back to the meltdown of 2008 and the week, you know, of 1987, the famous crash week, when brave souls dive in, peter lynch famously diving in looking for values right after the october 19th crash or companies buying back stock. i remember at that time ibm, ge, were at the forefront of that. now it's a little more problematic i guess. i don't know what the rules are on this, during earnings season you have to be careful of that but what do you look for scott, to sort of say, all right, this was overdone? >> i look for capitulation. we shall see, we talked about that a little bit yesterday around 2:30 eastern time, we saw a big wave of selling come in. i haven't really quite felt it yet as i normally would. we only backed off 5% two days we settle unchanged today. that is okay. we all talked about we haven't had the pullback. we could have a 10% total pull back, bring more respect into the market. the market has competition, i

agree with your other guest, two-year interest rate, close to 3%, don't worry about risk in the market, give it to the government, get close to 3%. the market is coming to terms with velocity of rate change, that is the eword. what will velocity look like of a rate change and what will that do with equity prices. i heard other numbers of four, 4 1/2%. at the end of the day i love america, having sat here in london i see a lot of what other worlds are doing as far as central banks go. they're giving away a free cash and that tends to damper on our yields. we're not too far away from the high at interest rates. maybe another half, 3/4 of a percent. neil: that raises a question, jack, whether the federal reserve is in a bit of a box, a pickle, if it raises aggressively like it is flouting the president, right? if it goes slow like being sort of dictated to by the president

when in fact we know the federal reserve will do its own thing and presumably without political influence or pressure? how do you think that will be interpreted? isn't every move jerome powell and his buddies make going to be seen through that prism? >> yeah. i haven't seen fed funds futures, the market's anticipation of where the fed funds rate will be over time, change that much. i think the downdraft did cause a little bit of diminution of expectations for december, but still i think we went from 85% to 75% chance of a rate hike. that said, if you put it in context, you know, one of the things you can look at is the taylor rule which is general algorithm where the overnight rate should be based on economic conditions, taylor rule is suggesting a 5% overnight rate, not 2.25. so whether, in president trump's camp say the they're raising too

quickly or you want to be independent with powell, either way overnight rates are too low relative to economic conditions. now, with respect to the european central bank, as scott was talking about, giving away money, that's true until december. they have decided now quantitative easing in the european union will end at the end of this year and in fact, that number of bonds trading below zero has gone from 12 1/2 trillion down to 6 1/2 trillion over the last 24 months. my guess that will go to zero pretty quickly. neil: all right, guys, i want to thank you both very, very much always good getting a read from you. we were in and out of session lows. i say session lows today, at our high point we were up 414 points on the dow. the nasdaq was racing along. netflix up 7%. some of those gains are coming back. there might be another

phenomenon. i told but the disappointing consume irsentiment survey that people are getting anxious. when came to economic policy they were getting hopeful but not at hopeful as it had been. there is another development i'm following, fallout from this jamal khashoggi, "washington post" saudi journalist, returned home and might have been according to the turks killed by saudis in the saudi consulate in istanbul. the reason why i raise it, we do a lot of business with the saudis. 110 billion doors laugh defense related business, a lot of senators on both sides say if this is true, the crown prince or his surrogates were behind killing this guy indeed if he is dead, we should rip up those contracts. not good for defense contractors. not good for defense companies. not good for defense stocks. so that could be another bit of

noise in what would be been a promising market here that is being whipsawed as much by political developments as anything else. we'll have more after this. ♪ ♪ the new capital one savor card. earn 4% cash back on dining and 4% on entertainment. now when you go out, you cash in. what's in your wallet?

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neil: this is something interesting. this is just me saying this. don't attach any value here. since we got news that "the washington post" writer jamal khashoggi might have been killed in the saudi consulate in istanbul by saudi officials or those linked to the crown prince, i started noticing a lot of defense stocks were tumbling. the reason for that my insight here, don't put much weight in it, the reason we have the 110 billion-dollar defense deal signed with the saudis last year. there is growing call, that if the crown prince or his surrogates are linked to this killing, if the guy has been killed, they want to pull the contract or pull a lot of contracts. a lot of people are skipping out what was to be a business forum going on in riyadh over the next few days, toward the end of the month as well. richard branson saying he is going to halt two tourism

projects. business leaders are pulling out of the prince summit that has been called for. steve mnuchin says he plans to visit the country to participate in that same summit. watch these defense stocks because i think they are part of this pattern. if i'm wrong, well i won't own up to it. meantime i will own up to saying that interest rates are on the rise. they're a little bit more stable today, the consensus seems at least this week, higher they go, higher for a fixed mortgage. hovering near the 5% neck of the woods. to real estate expert katrina campins whether she is worried what is going on. what do you think? >> neil, how are you. we see interest rates going up, economy is going really well and unemployment is going very low. we discussed this in the past. we've been spoiled with interest rates. even though we've gone up, we're still historically low. you we said it many times, 15

years ago, 20 years ago, were much higher, when you purchased your properties in my parents decade when they started purchasing properties overall, i think a lot of buyers gotten off the fence to purchase real estate because they know rates continue to go up. this is actually helping a lot of luxury buyers because they have the cash and they're paying cash. so i'm also seeing a huge influx of people from high-tanged states, from california and new york coming to south florida, for instance. most of them are paying cash. neil: is that right? >> in the luxury market, yes. neil: your crowd is a very different crowd. they have the wherewithal. i'm wondering what you're noticing on the foreign buying front? in manhattan where i am right now where russian and chinese billionaires and millionaires were buying these properties sometimes sight unseen paying cash.

now fewer we're told at least in the new york metropolitan region and i'm wondering what the effect of that is? >> well we are seeing less foreign buyers from certain countries like brazil. we used to see a huge influx. we're still seeing them in south florida but not as much. neil: interesting. >> speaking to my colleagues in the new york market, the luxury market in new york is indeed very slow and not seeing the influx for instance, of chinese buyers they were seeing at one point in time. as far as lower to middle income brackets, we're seeing a lot of buyers in that market still buying properties but younger generation, the millenials are now competing against the empty necessary%, the empty-nesters trying to downside and most have house paid off with low interest rates, for them to downsize is more expensive, which is creating a issue, there is very low inventory for the younger generation to acquire and for the older generation to downsize. believe it or not with prices

going up -- neil: right. >> there is still an issue there because there is very low inventory. there is not a lot of opportunity for people to purchase. interest rates, i think overall, affordability is an issue. i'm not going to tell you that it's not. housing is getting extremely expensive. it is a huge percentage what people are earning. we've been spoiled for a very long time with low interest rates. so, historically speaking we're still doing pretty well. but i do know, in new york is suffering in the luxury market, neil. neil: it is an interesting development. i don't know if that is an aside or trickles down and poses problems. but something to watch. katrina, always good catching up with you. >> thanks so much. neil: well the president is saying this knee-jerk on part of the fed to always raise interest rates when things are looking good, it is not right. it is not fair. a number of economists agree with him.

the only person at odds with him is the president himself because that is 180 degrees what he was saying when he was running for president? what changed? that is driven to provide you with better solutions for these challenging times, one that is willing to disrupt the industry, and break free from conventional thinking. (thudding) we are a different kind of financial company. we are athene, and we are driven to do more.

>> the problem in my opinion is treasurys and the fed. the fed is going loco and there is no reason for them to do it and i'm not happy about it. the fed i think is making a mistake. they're so tight. i think the fed has gone crazy. i'm paying interest at a high rate because of our fed and i would like our fed not to be so aggressive because i think they're making a big mistakes. it is a correction caused by the federal reserve with interest rates and i think the fed is out of control. i think what they're doing is wrong. neil: all right, here is the thing. a lot of people are of that view that the fed is overdoing it but the president is at odds with

himself, the views he took when he was running for president. i want to go back in time a couple years. take a look. that did raise some eyebrows you said she essentially does barack obama's bidding. >> i think she is very political. she is not supposed to be a political. that is not supposed to be the way it works perhaps better than even me but that is the way i think it is working. under the obama administration you had a lot of help because they had very little interest. when president obama had an economy, it was the worst comeback since the great depression, you all heard that remember he was playing with zero interest money. he was playing with funny money. that is easy. i'm playing with fairly expensive money. the fed is being totally controlled politically. they're not raising rates and they're being controlled politically. neil: which is it? obviously running for president and arguing that the federal reserve is keeping the natural order of rates that should have

been a lot higher, his argument back then down apply right now. that would not be the first time someone who ran for president takes a different view once he is president. charlie gasparino on that. what do you think? >> i'm waiting for a nickname for powell. jerome is a jerk. neil: i don't think he will do that. he called the fed loco, right? >> went after them. we should point out not the first president or political person to disagree with the fed, although ronald reagan famous supported paul volcker when he kept interest rates really high during the first year in office. neil: by the way, volcker was raising one full percent at a time. >> we had different economic problem. we had stagflation then. neil: he was anxious about it but didn't say anything. >> here is the problem president trump has. he has a two-prong problem. number one the fed has a balance of sheet of assets is bought during the financial crisis, to make sure our dollar is worth a dollar in the eyes of the world, the fed can't keep a huge

balance sheet. it has to unwind the balance sheet to prove the world our dollar is based on something other than the fed buying it. neil: he knows all this he doesn't want to be fingered with the blame if everything goes south. >> maybe but he has two problems. the fed has to unwind its balance sheet. neil: right. >> they have to raise short-term rates a few times. it is marginal. balance sheet is more because that affects 10 and 30-year bond which has a big effect on economy. he has one other thing, no matter how many times people around here inhale his smoke and believe this is the greatest economy ever, the economy will have to perform. if the economy does not perform as the greatest economy ever -- neil: what do you make inhale his smoke? >> not you. present company not included but there are others they buy the notion which hasn't showed up in the numbers yet this is the greatest economy ever. if it is not, if -- neil: this isn't better than the

romans? are you kidding me? duly noted. >> might be better than mesopotamians. but they're italians, early italians. neil: that's right. brought us marin nara. >> that's right. if we don't sustain 4% growth we'll have higher deficits. if we have higher deficits, higher interest rates on top of the fed unwinding. that is why markets are acting crazy. doesn't mean it will happen. but they are worried. doesn't matter how many political or news commentators believe that donald trump is the greatest economic mastermind ever -- neil: getting a tweet on you from president of the united states. charlie is sad and a loser. >> neil, the markets have to brief it and they're not totally on board with this. neil: riddle me this, batman, we're at session lows. >> you said there was a bad consumer confidence. i saw a headline. neil: disappointing. not as strong. also ford confirming that its

sales in china fell 43% in september. >> right. neil: let me ask you about it, if we were to be down today after being up more than 400 points, i cannot imagine going into the weekend that's good development? >> maybe not but i think longer term i think it's a strong economy. i think for the long term. neil: i think you're right, fundamentals, all that, fine, but would you worry going into a weekend it unravel spread like that? yes or no! >> no. neil: all right, fine. >> there are some short -- i'm putting out there long-term worries, economy, gdp has to grow to pay down the deficit. we'll have to unwind the fed's balance sheet. we have some higher short-term rates. if all those things have, if we don't grow the economy enough, that other stuff will add to the problem. neil: i got it. >> no matter how time times you beat up on jerome is a jerk, it won't matter, he is stuck with him. neil: he can fire him but he

won't. >> he can. neil: that is 1000 points. >> knowing donald, he might fire him. neil: we'll see. charlie, thank you. good seeing you. >> thank you. i will be fielding questions on twitter right now. neil: you will be -- >> people with a lot of maga, the deplorable as. neil: you're getting them now. we have doris kearns goodwin coming up, one of the greatest historians known to man, great read on things. fairly balanced read on history. this is a historic time. do the markets test the party in power when they suddenly go into reverse? it depends, after this. ♪ ...for that, and

just a second, we also have the mendez mediation. brian is going to take the lead just follow his- hello. uh, no i need it right now. yeah... success is a numbers game. and you're not going to win if you keep telling yourself to wait. the more often that you choose courage, the more likely you'll succeed. the most inspiring minds. the most compelling stories. download audible. and listen for a change.

that last place was pretty nice. i don't like this whole thing. i think we can do better. change is hard. try to keep an open mind. come on, dad. this is for me, son? principal. we can help you plan for that. neil: you know for folks who follow selloffs and those who follow the political implications of then, best for the party in power not to have it happening in middle of an election year. that is why republicans dodged a bullet in '87 after the crash,

by 80 eight george bush, sr. was running after conditions were all clear and he got in a landslide. john mccain was not so lucky running in 2018 in the middle of that meltdown. not to say he wouldn't have a tough time anyway, but the fact of the matter the financial environment didn't make things easy. enter doris kearns goodwin, best-selling, examines likes of abraham lincoln and frank been roosevelt and teddy roosevelt, lyndon baines johnson and amazing look from business angle. so delighted to have her with us. doris, thank you for coming. >> glad to be here. neil: you call them your guys, i take that liberty, quoting you, a lot of their later greatness in politics was defined at an early age, but once in the presidency itself and i'm wondering if, if a potential

market crisis, not saying we're there, is going to be the test for this president? he has stood by these markets and their run-up every sense of the way but he pointed to the federal reserve as reason for a falloff so don't blame me. what did you make of that? >> the most important thing a president has to do is accept the realities of the moment and give hope and optimism to the people. what happened to old herbert hoover he promised somehow we passed the worst part, kept saying we're through the worst as the stock market kept going down and down. when fdr came in, he was willing to say only a foolish optimism would deny realities moment but we can get through this and gave people a plan of action to get through that. similarly in the 1987, stock market crash, reagan came on, said i know this is difficult, the fundamentals are strong. a lot of people are working.

the economy is in good shape. all sorts of reasons it started elsewhere that stock market crash. it turned out to be right. the thing happened in different way in mccain-obama time. it was difficult crash obviously. neil: right. >> what was heartbreaking about it, they decided a joint statement, bipartisanship. of course then mccain was hurt by the republicans having been the party in power. so the of course the economy means so much but it also depends how the leader deals with it. that is the important thing for the president to take note of how these guys in mast did it and learn from them. neil: i'm not here to disparage the present white house occupant. i'm wondering a lot of other factors are at play in this selloff, they might be washed out soon, but one the concerns is the trade war because ford is among those companies saying our sales in china just dropped 40%. other auto companies saying this is weighing on cost of our cars.

why a lot of people are not showing up to buy our cars. if you're the president of the united states and you recognize that, and you still see the rightousness of your cause we're addressing trade inequities, want to get ahead of it, shipped he embrace americans with higher stick her prices, higher prices for a lot of goods this christmas? >> i think he has two choices but he can't, he has to do one of them. one he has got to, say as you say, embrace the people tell them why in the long run it will be good for the economy even in the short run it will hurt us or he has to correct course. sometimes presidents go down a certain path, something goes wrong with it, they acknowledge that, they figure out how to soften it. he could go back and redo these deals. he down have to keep this war going in the same way. but he has to do one or the other. i think he has to take leadership of this situation, especially if it gets worse and put his own stamp on it, not

look to other people to blame, think inside himself what can i do to make this better. the country will absorb that. people like it when presidents are able to acknowledge going down one path and need to go down another. it is a sign strength, not weakness. politicians ignore something to do right they are trying to do, it is a plague on all the politicians. >> i'm thinking, you tell the great stories of four particular presidents, we've got eninto this before, if anyone hasn't had a chance to read this, it is i don't know politics. what i will say, doris, you know, tough times can define a president. and we saw that certainly, you know, with fdr and of course dealing with, not only with the depression, but his own paralysis, physical paralysis through that. but i'm wondering for this president, who, you know,

contrary to, he has had tough times. he has gone through bankruptcies. he has seen the death of his brother, he has gone through a lot of hard times he cannot and will not embrace in a way that could be very humanizing. >> i agree with you. when he talks about his temperment, he said it is the best because he has never lost. in fact what you say he really has lost. he has had to have grown through that. the country wants to understand that. we want to feel he has been through adversities like many of us have been, he has gotten wiser as a result of it. all my guys went through terrible hardships. as a result, they became stronger and more empathetic to other people and became humble, humility set in. jfk after bay of pigs happened he admit he made an error and his public opinion went up. he learned how to restructure the white house so it was better

for the missile crisis. neil: he could have easily blamed the predecessor and generals who advised him to do what he did in cuba and he refused to do that. and took the blame and responsibility, that famous success has 1000 authors and failure is an orphan. >> that's correct. that's right. neil: do you get a sense here, especially stocks just turned negative, i told you i would make this market-related, doris if the rally doesn't hold and if we go into the weekend with the market still down, it somehow isn't finished, they have got to strategies at the white house, elsewhere how do we play this? how do we move forward? how do we get ahead of this? or what, what do you think? >> no, i think the most important thing to know i think country and market people will want to hear from their president. that is what fdr was so good doing in fireside chats. when the problems i a rose, like

banking crisis, people taking money out of the banks, he goes on fireside chat, tells them why it is safer to bring money back into the banks. whatever it is, if it become as serious situation, he has to treat it like a crisis. he has to think about it single-mindedly. he has to create a talk with the american people with it. bring businessmen with. deal with it, get on top of it. that is what other presidents did in crises. you can learn from these guys. they have been through it before. i hope he understands the importance. when he went through his 100 days there was wistfulness about him when he talked about how much more difficult they were than he thought they would be, the situation of health care was more complicated than he thought. it seemed at that moment he was able to learn a little bit about that. he has been through more. he has gotten success of what he wanted to get done. there will be failures and difficulties. if he can talk to the american people about it from his own

self, think about it. if you're so right, if he talks about the ups and downs of his own career, we're seeing ups and downs in the market, that would be humanizing to him and people would respond to their leader in that way. neil: they were all cocky at different points in their lives especially as young men, especially teddy roosevelt, i didn't know the degree he was an ass in his younger years, not me to say it. you argued more eloquently. i don't want to give people the wrong impression, doris but they learned to sort of dial it back. i love the story you would tell about abraham lincoln, how he would write these furious letters, put them away to just get it out of his system. what was that about? >> i know. lincoln would get mad at people as he naturally, anybody would, but if he knew if he started yelling at them, do it in person, it might paralyze them

or humiliate them, so he would write a lot letter to the -- a hot letter to the person he was mad it and put it aside hoping he would cool down. think about that if we send emails too quickly or tweets to quickly. you said, no, this is hot tweet. i wait until i'm cooled down. we look at situation in different context. one time lincoln mocked his opponent so well, everybody in town was laughing at him, he felt so badly, he went to the person, he said i will not use my powers of mocking which are great ever again in that situation. that is the thing. teddy had a swelled head as you said. he was using his blistering language in the opponents. he got nowhere in the state legislature, couldn't get anything done. he rose like a rocket, dropped a like a rocket. he realized i'm a little too cocky for my own good. you have to compromise and

collaborate. if we all can grow as human beings you have a chance in the journthink it will always have failures before it has successes. neil: i'm thinking of characters in this book, and others since that time, even with ronald reagan, there was an ability to reach across the divide even in the civil rights act with lbj. you worked for the former president, but this idea it wasn't all one party's vote. he was able to wrestle a good many republicans, that surprised a lot of folks. that atmosphere, i blame both parties, simply doesn't exist. i would imagine after the midterms it will be more polarizing, how do we ever get back to that? >> really worrisome thing. teddy roosevelt said the rock of democracy will founder if people in different regions, different parties, different classes begin to view each other as the other, rather than than as common american citizens. we hope it will not take a crisis, a real crisis to come together as citizens but i think

the country on all side is just so hungry for that kind of bipartisanship, for the people in both parties to regard each other as common senators, common congressman, working for the country's good, maybe we reached a point now we have to move in that direction. a lota lot of changes will haveo take place to make it happen. they're human. they can make a change. fdr said problems created by man can be solved by man. this is not i am possible. i have to believe that. washington can be changed. maybe new people coming in won't be ha bit eighted that you hate the guy on other side. they have to dial back rhetoric and become friends and talking to each other as human. they are so honored to be there, they should respect the honor being there. neil: when i go to washington i always notice these senators and congressman from opposing parties get along very well personally. the microphones get placed in front of them, then the partisan divide. almost like professional

wrestling. could i ask you a little bit, if you think of each the presidents you profiled born of crises. lincoln of course with the civil war. you could look at teddy roosevelt assuming presidency after the assassination of mckinley. fdc i don't know where we start with that guy, lbj after the death of jfk, this president argued he inherited a mess. economically people might argue with that but there will invariably be a crisis that will define him. i don't know what is going on now, hopefully not, something will define him, he will have to reach across the aisle whether you like him or not. all those presidents you mentioned did. is it still in us to see that? to your point on both sides of the aisle there is no willingness to do it? >> i guess the media doesn't help it, because the media divides us as well. reporters are glad to find somebody saying something against the other person. it makes breaking news at any moment. the country is exhausted by

that. one has to help we still have in us as americans -- we were isolationists before world war ii. somehow the aisles were divided we came together with the war. let's hope it doesn't have to be military crisis, just an awareness our country will not be as strong as it is until we heal these divides. people want it. i think people in washington want it too. they just don't know how to get it. i'm still optimistic somehow this system of democracy is not on a downward slide. we thought it was during the depression. we thought it would be over with the civil war. lincoln said he wasn't even sure he could live through the situation he was in. yet somehow there is a strength in this country. great necessities create great virtues as old abigail adams said to her son. these are the times you want to live in. let's hope they live up to the challenge to be able to bring back that sense of comity to work together for common goals. it can't be fun to be in

washington like this, to yell at each other. maybe they think they need to win the next election. maybe we're more optimistic after the midterms we can reset. that is what i like to say. i voted for brooklyn dodgers and red sox so long i have to be an optimist. i finally got it. neil: then you woke up. >> yes, sir. neil: doris, you ought to stick with this history thing, doris. you show great promise. her 8th megabest-seller, owning the charts, "leadership in turbulent times." she makings you think we'll can be much more as a people. more after this. on't have any o. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees.

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neil: i want you to take a look at this. we're in negative territory. we were up 414 points shortly after market opened. i'm not technician but that can not be a good signal if we close down today, potentially a lot later on today especially being so much after two-day bludgeoning in the dow of 1400 points. that will not be constructive development going into the weekend. we'll leave it at that. we're following it closely. following fallout of hurricane michael and see drones from the air, you wonder how this happen.

jeff flock from panama city, florida. hey, jeff. reporter: good news and bad news, neil. airport is reopening first time since the hurricane. that is the good news. the bad is what you were referring to, images from the air are more compelling than from the ground. getting images from the ground we don't want to get in the way. the town of mexico beach, that wound up being, now we have a day to assess it, ground zero, the worst, most intense part of the storm came ashore. those pictures are breathtaking. sometimes we talk about hurricanes, oh, it will be devastating, buildings will be leveled. that doesn't happen. well, this time it happened. see for yourself with these images. mexico beach is a town of about 1000 people, last census. most of the people that live there, senior citizens. it is only a two-square mile town but every structure in the

entire town according to authorities is leveled or damaged in some way. 155 mile-an-hour wind will do that. the other thing about it, between 200 and 300 people according to authorities actually decided to ride it out. as far as we know, all of them survived, neil. that's, that's incredible. but that's hurricanes for you. neil: you know, of stories you covered, this you said was among the worst, right? reporter: power, incredible power. small concentrated area. but incredible power over that area, yes, yes, sir. neil: just incredible. jeff flock, thank you very, very much. dow up over 20 points. we're keeping an eye on it after this.

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neil: all right. the dow down about 70 points right now. we were in negative territory a few seconds ago. we have earnings beginning to come out that usually begin with the big financials and virtually all were better than expected. even in the case of wells fargo that might have missed on earnings but came in better on revenue so for the likes of jpmorgan chase and citigroup, pnc financial, the news was good and is expected to remain good for the earnings season. that might provide some salve to the markets probably worried about what's been going on, to put it mildly. gerri willis with the latest on what she sees happening right now. reporter: that's right.

despite the nice earnings, pretty much except for pnc financial, except for the good earnings, the stocks are trading lower here as this market turns around. we have been watching it all morning. look, this week's stock market pull-back of 5.8% from indexed highs on the dow and s&p 500 rattled some small investors but you know what, it may not be that big of a deal. according to sam stovall, market declines of 5% to 9.9%, talking less than a correction, they occur once every nine months on average. since world war ii, there have been 56 bull market pull-backs with the average selloff erasing 7% and better yet, listen to this, the average period of time it takes to recover from a pullback is just four months. meanwhile, investors suggesting mostly positive earnings for money center banks. jpmorgan chase leading the way. shares initially rose 2% but as you can see, they are down now after the bank reported earnings 24% above a year ago due in part

to lower taxes, which offset slowing revenue. meanwhile, reports of higher loan activity could bode well for other companies reporting as quarterly earnings season gets under way. we are looking for a strong quarter with consensus estimates forecasting 21% improvement in earnings across the s&p 500. mr. cavuto, back to you. neil: thank you very, very much, gerri willis. monitoring all these developments. foreign markets did stabilize here. asia still down a lot but not as much today. elizabeth macdonald, moving to 6:00 p.m. eastern time starting on monday, you would argue there's no talking points, right? >> as if i never brought any on your show, right? neil: you just sort of nod at each other. >> that's right. neil: it's a great show. >> thank you. neil: help me with these

markets, miss encyclopedia. what is going on? >> we're trying to figure it out. as gerri pointed out, it's normal to have a 5% to 7% downdraft but there's still a fierce slump in the market selling into the rally. we were talking before, it's not just the tariff fight with china. it's that china is in a slump, in a bear market, and it's also our u.s. multi nationals like nike and ford, they sell into china. so something like $220 billion that our companies sell into china every year, so -- neil: ford was worried their sales tumbled, what, 43%? that's a huge number. >> so it's not just fears that our consumer prices will go up. it's that our u.s. multi nationals will feel suppression from the consumers in china not buying our stuff. also, this capital flight flying out of china because, you know, companies are saying you're going to continue to screw around and just, you know,

capital goes where it's treated best. it's flying into vietnam, flying into other parts of asia, you know. china is in a world of trouble right now. i think it's in deeper trouble than people realize. neil: i'm surprised the shanghai index was off 32% or something. you are well past correction, well past bear. you are into grizzly. >> exactly right. we were just trying to map out the numbers. they have lost by one estimate $5 trillion in market value year to date alone. that's a gigantic sum for china. then we had vice president pence stepping up the rhetoric, we've got the president possibly meeting with xi on november 20th. i think trump is in the sweet spot right now on this. and i don't think markets are trading off the trump tweets, but they will be trading off what happens with this trade meeting coming up. neil: what is your sense given

you are a great market historian, too, but if we close down today, i'm not a technician, but that cannot be a constructive development going into a weekend. after everything yesterday, the day before. >> yeah. i think you're right. i think -- neil: we're up now. >> we are up now. it seems to be way more skittishness when you see this kind of rush to the exit in the last three minutes of trading, that is a classic 3% to 5% downdraft behavior. what we are seeing, too, we are trying to figure this out, what investors are trying to stomach is we usually have what's called a cup formation where you have human beings trading. now it's those robot algorithms causing v shapes sharp to the down side and then v shape up. it's not new trading but it's something we will have gut-clenching rises. it will be oh, my god, i should sell everything and lock in my profits now, but you lock in losses if the market goes v

shape up. neil: i didn't understand what you said. >> i don't think i did, either. neil: you going to do this on "the evening edit"? >> we hope to get a rating off of what i just said. neil: what can i expect on your fine show, what i don't see already? >> what i really want is the debate. what i meant to say is no talking points and again, i have been guilty of it and you wisely said in your kind, gentle way, knock it off. but i do want, and i appreciate that, you never said knock it off but you know, you put me on that path to having a real solid debate, where it's substantive conversation and no talking points. in other words, i don't want people coming in by rote with their prefabricated stuff they want to say. i do want to hear both sides. neil: what i love about you, this is why you got to watch the show, guys, is that you rip everybody. >> i hope not. neil: i mean that, you alienate

everyone and i like that. it's not just the never trumper. it's never anyone. >> i hope i do it in a kind way. neil: you do. you do. you have written about saints so who is anyone to question. >> not yet a saint. neil: no, but should be. your book is a step in the right direction. all right. thank you very, very much. thank you very much. monday, 6:00 p.m., catch the show. i told you at the very beginning, if you aren't getting us, demand us. some of you did and you richly profited from it. that other channel i used to work at, you know, i don't know. i don't know what to tell you. the global market and the panic that ensued obviously is affecting sentiment out there. people are getting a little bit anxious. sometimes that interprets as slow christmas sales, holiday sales.

should we be worried about the spillover effect? the best-selling author of "den of thieves" is among those saying republicans should not worry too much because it's not going to bother them on the down side, just as it really wasn't going to help them, the runup on the upside. is he right about that? dan mitchell, what do you make of that argument that we overstate, especially in a midterm election, the impact of what's going on now in the markets, up or down? >> we overstate it if it turns out that it's just a short-term dip and two weeks from now, we find out that it was a non-story. but we don't know. maybe the stock market will drop another 10%. maybe it will affect the economy in the christmas shopping season. maybe it will affect the midterms because people will have an adverse wealth effect, they will look at their balance sheets and say oh, the market's down, i'm not as rich as i thought i was. but since i can't predict the economy, i'm not going to say. all i can do is talk about the

potential implications, is trump's protectionism threatening us, is the fact that government spending is continuing to climb too fast, is that affecting us, those are things we should worry about. neil: gary, how much are you watching the close today? >> i watch every minute of the day, neil, and especially now. look, you have conditions, i call them don't blink conditions, because this market's moving 200, 300 points but after a big drop and you get oversold and are up 400 and change, if you finish down badly today, you have to worry about what could potentially happen. i'm not predicting anything, but what can potentially happen, especially with the fact that europe was up today and finished down for the day. small and midcaps are still down today. even i see we are rallying a little bit so there are some issues that most definitely have to be watched. neil: you know, when you say that, [ inaudible ] to you right now? >> cash. i'm in cash right now. that's only because --

neil: describe cash to me. when you say cash, do you just stuff it under your mattress? what are you doing? >> 2.5% money market at this point in time. look, you are in market conditions where the complexion has changed and you know, i write about this and talk about this. we just didn't top out four days ago. two weeks ago, you had ford and gm and international paper and whirlpool and so many names already at new yearly lows. you have had markets across the globe at new yearly lows. we're just playing some catch-up here and that's the big worry. when i see all these other things going on, i always ask the question what's the market seeing, because the market is a pretty good forecaster. my hope is this is going to be more like february, where we had a big downdraft and then it took a few months to repair it, then everything was a-okay. this one feels different, though, because today's financials come out with supposedly good earnings, they are selling off jpmorgan, pnc bank is crashing and financials

are very important sector to my work. so again, i got very close microscope on this one. neil: you know, the president said and he's right that the conditions, the fundamentals of the economy, all that is fine, all that well and good. ronald reagan said much the same after the '87 crash but bull markets don't die of fundamentals deteriorating. they die of aberrant events normally. are there any aberrant events out there happening? >> protectionism obviously is a threat to the economy and to the market. but let's actually back up and look at another issue which is bubbles, easy money, lots of debt. i think that's threatening both china and the united states and there is an important lesson here. whenever the economy is weak, people say the fed needs to artificially lower interest rates, the fed needs to pump money into the economy. when you're in that stage, it feels good. it's like okay, let's inject

some heroin, we will feel good for awhile. sooner or later, that stuff catches up with you. i don't like easy money, not because i don't like the nice feeling when it first happens. i don't like easy money because sooner or later, if you wind up with a volatile, fragile financial market, because people don't know what the fundamental and what's simply a propped-up asset price because of too much liquidity sloshing around. we should learn a lesson and by the way, i don't think trump is learning that lesson because he's criticizing the fed. he wants them to keep artificially low interest rates i guess forever. neil: gary? >> dan is brilliant, he's 1,000% right. my biggest worry this week is what the president did with the central bank head in basically competing with him on thought. i think it is a huge mistake, arguably the number one money man in the world to say that he's crazy i think is a huge

mistake. the fact we are at 2% interest rates and a president is worried, that's the ridiculous easy money. you still have europe and japan negative rates and still printing. i'm in hopes he backs away and my big worry is in the next six months, what is the market telling us right here and hopes it finds a low, gets going again. but there are so many industries at new yearly lows right now that i think probably we are going to see a pop in economic growth in the next couple of months. neil: we will watch, gentlemen. thank you both very, very much. right now, to both of their points, it's underneath the market a lot of people focus, the one out of i believe four stocks that are 20% or more from their highs. that doesn't quite get adjusted into the dow but it is what it is. it's those underpinnings that scare a lot of folks. it might be a temporary scare or might linger. we shall see. we have another three hours of trading to go.

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now when you go out, you cash in. so, howell...going? we had a vacation early in our marriage that kinda put us in a hole. go someplace exotic? yeah, bermuda. a hospital in bermuda. a hospital in bermuda. what? what happened? i got a little over-confident on a moped. even with insurance, we had to dip into our 401(k) so it set us back a little bit. sometimes you don't have a choice. but it doesn't mean you can't get back on track. great. yeah, great. i'd like to go back to bermuda. i hear it's nice. yeah, i'd like to see it. no judgment. just guidance. td ameritrade. neil: all right. you ever wonder where the money goes, it goes out of technology stocks or the global companies that dominate the dow 30, for example? where does it wander to? deirdre bolton has been looking

at that and joins us now from the new york stock exchange. reporter: we certainly have been looking to where the money is going, especially after the past 48 hours, right. if you look at the s&p 500 right now, there's three gaining sectors, tech, consumer discretionary and health care. we are focused on tech because if you measure by weight, this is the biggest part of the s&p 500. i just pulled out a few names i want to highlight. apple, amazon, google, nvidia, stocks that have been so beaten down this week, but if you look today, they are all in the green. some of these, nvidia, i want to shout out, was down something like 11%. if you look at gold, this is something that we were following so much yesterday, in that second day of selling. we really saw this flight to safe havens, flight to quality. yesterday only we saw gold go higher and in fact, we saw bonds come, the yields anyway, coming off recent highs. gold trading at a two-month high

yesterday. we have some charts to show you. down today but still very much up for the week which sort of reflects this overall volatility. the one key theme that stands out right now is that these tech names that have been so beaten down are certainly being up. the four banks posted earnings this morning, jpmorgan chase the only one, citi, wells fargo, pnc, financials as a group are the biggest weight right now on the s&p 500 which is unusual, because out of the gate, there was a lot of optimism in this group. you had jpmorgan chase beating on the top and the bottom line, but trading down. concern about the future and one of the comments they made about market dependence form of revenue, not interest revenue growth. back to you. neil: good stuff, thank you very, very much. we want to bring you up to date on some news concerning facebook. remember the hack attack that apparently engulfed about 50

million facebook accounts? facebook has clarified and updated that to say 29 million. the stock isn't moving measurably one way or the other. 29 million is still 29 million compromised accounts but not 50 million. the rest of technology for the day, you know, it had been up and up strongly in the case of some of the dominant issues like apple and amazon, with the exception of those issues, some have come well off their highs like microsoft. i think that was up about 4% earlier on in the day, now about 2%. alphabet, google had been up about 3.5%, now up about 2%. not bad, though. let's get the read from tech analyst shana glenser. lot of people say tech brought me to this party, rewarded me richly at this party, should i stay in this party. what do you tell them? >> now is not the time to leave the party. there may be a lull in the party. some might be talking a little too long and you might be getting bored but you need to stick around.

what we are seeing today is indication that people are unsure if this is a correction or just a blip. we need to at least stick around to see that through. neil: you know, a lot of people are saying that even with this hit technology stocks face that i guess in terms of multiples, they are still rich certainly compared to the s&p 500, which some analysts say itself is still rich. where are you, without getting too wonky, the fact that even with their comeuppance they have more to give back? >> certainly you had folks on talking about the market and they are unsure where it's headed, so from a tech perspective, i think that these companies, we have earnings coming up and we will see, they have, their valuation is high and their value continues to grow, and i just don't see that stopping because of this blip and i don't see that stopping because of the multiples you're seeing, either. neil: yeah. the argument for that is that

apple by definition is going to sell or make fewer iphones or ipads or anything else, and that amazon is going to be any less able to expand into so many different markets. i understand where you're coming from there. but the go-go nature of some of these stocks at least in question here? in other words, it was like fool's gold, you could go into it, leave it and get quickly enriched. >> i think the quick part is what we're seeing the pullback on right now. you got to stay with it, stay long term. there are other things that are concerning. we heard from the postal service last week that they might increase 9% to 12% increases on fees they charge for amazon shipping starting in january, if it gets approved. there are things like that that will certainly be challengers in this earnings report and looking, moving forward. but again, it is a long game right now with tech stocks but i still think it's a rewarding longer game than perhaps people

are giving it credit for. neil: how does the holiday shopping season look for a lot of these guys? microsoft with a lot of devices it sells, its surface books, whathave you, apple obviously with a host of similar products. amazon, to say nothing of just the demand for hopping on its site and buying all this. what do you make of how the season's going to look now? some people are worried about higher tariffs, the effect of trade. what do you think? >> i think that investors and the comforts they're getting are clearly weary of higher interest rates and the global economic tension, and that may have, you know, may cause people to penny pinch more this holiday season, but i think over the next few weeks, we'll know a lot more about how willing people, and the election, we will know more about how willing people are to spend, but apple has released its latest and greatest iphones and people, these companies will continue to release gadgets and gizmos and the holiday shopping

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neil: a lot of people saying it was tacky, that it didn't make him look good, but the president of the united states going after the federal reserve, blaming the fed for its willy-nilly hikes in

interest rates are scaring the markets and annoying the president. did he hit on something that's core here? does the federal reserve risk overdoing it and killing a good thing? to economist ben stein on all of that. what do you make of that? there's a raging debate whether that's a good thing for him to be doing, the president to be doing. what do you think? >> i think the federal reserve is not a sacred cow, it is not above criticism, that people are allowed to criticize it, but what else can the federal reserve do when inflation starts rearing its head, to be sure in a modest way at this point, what else can they do but raise interest rates and try to cut down their balance sheet a little bit? they've got to do something. if they don't do anything, and inflation gets out of control, then people are going to come along wanting to kill them. neil: it is a pavlovian response, though. economic activity picks up with the president saying all right,

he gets that. i think what he's saying is we are overdoing it. do you think as a top notch economist, lawyer, are we overdoing it? >> we don't know that. that's the kind of thing, my old dad who was quite a famous economist, much greater economist than i was, said something very basic. he said we just don't know a lot about how to regulate the economy on a macro scale. we know a lot about how to regulate the economy on a microscale, but on a macro scale, we just don't know a lot about it. and i'm afraid the same is still true. it's an incredibly complicated beast. imagine a wild beast in a bull ring and you're trying to tamp it down first by showing little bits of color, then by sticking it, then by stabbing it, then by machine gunning it, then you say to yourself wait a minute, what did we do wrong. we just don't know what to do and the federal reserve is doing its best to me as a person who has a huge, huge interest rate

burden because of all the real estate i carry, it seems to me interest rates have gone up awfully fast, but i'm not the ordinary citizen by a long, long, long way. neil: no, but i'm impressed you and your dad had conversations like that talking about money and all of that stuff. my dad would just say you going to eat that? that's where we took it. but that's a different upbringing. a lot of people look at this and get nervous. keep laughing. go ahead. do you get nervous with this market? a lot of people don't want anything to do with it now. how do you advise them? >> i advise them to buy the index, keep buying it, hold on for dear life, be patient, as your last guest, miss shana, said. be patient, let it go for the long term. don't try to make it overnight and you'll do fine. neil: what's long term?

>> exactly what your father said about eating. neil: what's long term look like? >> a long time, well, as i said, at my age i wouldn't buy a ripe banana but i would say a long time is measured in multi-year increments, not multi-month increments. if you are in there for years and if you are in there for your children and grandchildren, you are going to do absolutely perfectly fine. the only thing that can stop you would be nuclear war and if that happens, nobody's going to care about the stock market. neil: you're right about that. are you worried about this selloff, whether it's different or whether it's a preview of coming attractions? >> i'm not worried about it at all. neil: you're not worried? >> i'm not worried about it in the slightest bit. i tell you what, i'm a big worrier. i worry about a lot of things. but i'm not worried about this. i think the market is basically reacting to the fact it was frankly just too high. ronald reagan after the crash of '87, ronald reagan was asked

what caused it. he said well, i have heard people say the market was too high and he was exactly right. the market was too high. it was disregarding all kinds of warning signs. it was too high. now it's at a more reasonable level and i think it's a good time to just be buying the index, staying with the index, staying with it for the rest of your life, then for your children's lives and grand children's lives and their grand children's lives and just stay with it forever. don't ever sell it. i will be long dead so don't blame me. neil: on that happy note, do you think interest rates are going to back up a lot here? >> i think interest rates are going to keep going up. the economy is so incredibly strong, the fed has no choice but to keep raising interest rates. there's no possibility that they can lower interest rates at this point. at least i don't think there is. i could be totally wrong. but we have such a strong economy, this economy is a roaring maniac of strength. by the way, of course mr. trump

never gets any credit for it and we've got to just say look, we have to rein in the bull here a little bit, just rein him in a little bit. we don't want to machine gun from a helicopter, but just rein in the bull a little bit. there's no other choice. they don't have anything else they can do. they cannot wave a magic wand. this is the closest they can get to waving a magic wand. neil: all right. let me write that down. closest we can get. >> this is the thing. i get up early here on the west coast and you make fun of me. i could have been sleeping. neil: it's 10:34 your time. that's hardly the crack of dawn. >> i know, but i have to get out of bed and get dressed. it takes a long, long time to get dressed. i'm an old man. i'm an old man. what can you do? you can't blame a guy for trying. neil: ben, always a pleasure. thank you for your perspective, your friendship all these years.

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neil: when you look at these pictures like mexico beach, florida and you wonder my god, this looks like disaster, and that is exactly what it is. on the phone with us right now, post-hurricane michael and the cleanup that could go on for quite awhile right now, connell mcshane on the ground in panama city, florida. sir. reporter: you know, i was in mexico beach a short time ago and you have never seen anything like it. parts of the beach there, beautiful beachfront community where so many people in the florida panlanl ahandle and els come to vacation, there's nothing left. one of the challenges now that the cleanup and rescue and recovery is under way is communication. that's why i'm talking on a satellite phone because the area where we had perfect at & t

service yesterday, we aren't getting any today. that is complicating efforts for the professionals who are trying to get in and help people. if you want a first-hand look at what it's like when you do get in, we found it ourselves and here is that look. this is about the worst of it when it comes to hurricane michael. just look out here at the devastation in mexico beach, florida. beautiful beachfront community. one of the members of the national guard was telling me at the worst of the storm, the gulf of mexico came all the way up here. this was all under water. that's why you see so much devastation. somebody's pillow we just found on the ground here. this structure, there's really nothing left of it. even though we step over to the other side here and look over there, those were once definitely beautiful condos, beachfront homes and right now, you can barely make it out. as we were walking around here we actually found a sign in the ground which was true a couple days ago and will hopefully be true again. read this. welcome to paradise. it's obviously a desperate

situation, and this was once really one of the more beautiful places, if you look at pictures of mexico beach, where people come to vacation. but it's not the only place that's been absolutely devastated. we spent so much time in the last few days traveling throughout the state of georgia and florida, back from panama city, panama city beach over to the other side now, just east of that now, standing in a red cross relief center which is focusing on just sheltering people in place at this point. they were telling us at this red cross center where i called you from that they don't even have any supplies yet. they are waiting for the fema trucks and whathave you to arrive so that they can hand out water and just supplies to people who are desperate for that. what they can give them at least a little bit of shelter, because so many people in this particular area, it's a wide radius, just lost everything. they don't have a home to go home to. they have come here to at least have somewhere to sit and talk to people, be inside and hope the fema trucks arrive soon. we have seen them on the road, i

should point that out, the fema trucks. they are trying their best to get in here but there's just so much ground to cover. neil: quite a bit of ground to cover. thank you very, very much. connell mcshane in a very devastated florida. the entire panhandle right now that is looking at potentially billions of dollars worth of rebuilding here that won't wipe away the fact that 11 people have been killed because of the storm, all the way from florida, south carolina, north carolina into georgia as well. we will keep an eye on that. also keeping an eye on reports that jamal khashoggi, the "washington post" writer, is dead and might have been killed by the saudis when visiting the saudi consulate in istanbul. we don't know for sure, but we know it's creating a firestorm because if that is the case, we have so many ties with the crown prince, you have to wonder whether it's worth the billions we have in this relationship if something like this could happen. edward lawrence at the white house with more on how the administration is dealing with all of this.

reporter: first i want to tell you turkish officials are telling me the outlets in turkey, they have video and audio evidence that points to the fact that the missing columnist was murdered inside the saudi arabian consulate in turkey. the "wall street journal" reporting that video evidence has been shown to u.s. intelligence agencies. turkey has given saudi arabia until this weekend to start cooperating with this investigation. on october 2nd is when jamal khashoggi walked into the saudi arabian consulate, video showing that, but did not walk out of that consulate in turkey. u.s. intelligence says they have intercepted communications that show that the crown prince wanted to find a way to lure the columnist back to saudi arabia in order to detain him. former white house press secretary sean spicer says the u.s. should not let this go. >> when you've got video evidence and coverage of somebody going in somewhere and not coming out, it makes it a lot harder to cover up something like this. i think the saudi government has

a lot of explaining to do. reporter: the official line from the saudi government is that khashoggi walked out of the consulate and they have no idea where he went. in congress, though, growing outrage over this disappearance. >> if it's true and it appears that it is that he was murdered in their consulate by an assassination team, there needs to be some significant consequences to that. i think that's maybe eventually targeted sanctions on individuals, that's any other host of things available to this administration. reporter: now, even if it's proven that the saudi government had a role in the disappearance, president donald trump saying yesterday that he would still go forward with arms sales, including fighter jets, to saudi arabia. he says he doesn't want to lose those jobs to russia. now, in almost a good will gesture, because turkey is asking for more u.s. help with this investigation, the turkish courts have actually convicted pastor andrew brunson, but released him. they gave him time served. he's actually right now on a plane to germany for medical

attention, then he's going to come back to the united states. his lawyer says their prayers were answered. neil? neil: thank you very, very much edward. updating what i was just telling you. richard branson pulled back from two projects in saudi arabia, a big financial conference has seen business leaders send their regrets, they aren't going to make it. we are told treasury secretary mnuchin is still planning to be there, i believe in riyadh, later this month. what's at issue is a $110 billion defense deal signed with the saudis just last year, and how much of that could be compromised. to the atlantic council deputy on all of these developments and where they stand, matthew kronig. the administration wants to go slow here because there's a lot on the line besides this

incident, but it's more than just an incident. lot of senators say you freeze the deal, you cut, some are saying, ties with the royal family. what do you think is the appropriate response, if it indeed is linked to prince salman overseeing the killing of this writer? >> first it's as you said, if this is the case. we don't know fully what happened yet so we need information. everyone needs to be transparent, including the saudi government, and let us know what they know about this. second, if saudi arabia is indeed responsible, this is a heinous crime and a mistake, and it should be held accountable. third and finally, we do have important strategic interests with saudi arabia, much bigger than just this arms deal, countering iran, countering violent extremism, so this will be an important issue in the relationship but it won't drive the relationship. there are too many important strategic interests bringing us

together with saudi arabia. neil: we have always had, matthew, this weird relationship with the saudis. so many of the hijackers on 9/11 ended up being from saudi arabia, had ties to saudi arabia, lot of money interests in saudi arabia, now this and this new prince was supposed to be a breath of fresh air, his approach to let women drive and all these other things that were at least in the region viewed as revolutionary, almost. i'm just wondering, do we get the straight deal from the saudis? is it your sense that if not for the oil and the monies involved, we would be suspicious? >> doing middle east policy is difficult. europe and asia is easier. our allies there share our values and share our interests. the middle east is tough, because for the most part, our close security partners don't share our values and that's always been an issue and it will continue to be an issue. so the way we have handled it is to try to work together on areas where we have common interests

and on the values piece, to slowly try to push them in the right direction. as you point out, i think mohammed bin salman is making reforms that are encouraging to many people. that's why if this is true, it would be such a big mistake. it would really jeopardize the direction that the crown prince has been setting forth for his kingdom. neil: khashoggi, the writer involved here, had been very critical of the crown prince, saying he wasn't all that he was cracked up to be. it had been a very acrimonious relationship so it was feeding the paranoia, wasn't it? >> that's right. the crown prince has been making some important directions in terms of changing saudi society, letting women drive, but he has been very resistant to any kind of political criticism and so that's reason to believe khashoggi could have been on his radar screen and so we need to get more information. this is a disappointing

development in the relationship. neil: to put it mildly. matthew, thank you very, very much. they are selling defense related stocks first, asking questions later about this. all of those issues by and large are feeling it on the chin. not so much, i'm looking at the dow here, but defense related issues. it has been attached to this development that maybe some of these contracts were already signed with the saudis, could be ripped up. more after this.

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neil: all right. there are a lot of lingering concerns at this market that's trying to claw its way to a positive close today, not another negative one because that would not sit well going into the weekend here. there are a couple of big factors at work here, not the least of which are these reports of import september prices rising about half a percent, largely on rising fuel costs in the month of september. we told you already about ford saying that its china sales were down 43% in september about this consumer sentiment survey that came in a little less than expected, even though on the economic side it was still respectable. also letting you know that the nasdaq internet index is still in correction territory, down more than 10%. it had shaved that to about an 8% loss. all i'm saying is some of the factors that were at play about sentiment and where we stand are

still very, very much in play right now. people are nervous, they briefly dipped their toes in. a lot of this can be just sort of institutional trading just as easily algorithms away with institutional selling but for the time being with the dow up 100 points, in fast market conditions that can quickly erase that, and have on multiple occasions. we've got the dow trying to claw out a positive day. otherwise, where it's going into the weekend, what monday will be like. more after this. your company is constantly evolving. 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.

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neil: we're off about 127 match points right now. we're showing vix, volatility index is all over the map. charles payne, i asked a lot of guests is it important that we finish up today? i cannot imagine how constructive it would be if we don't? >> it's not important per se but if we did it would be huge sigh of relief. the number i think is 23,533 is number would be important because it held earlier today when i was hosting varney. looks like that is where the market would take a stand. the jpmorgan says it all. it was supposed to be the top performing dow stock. if we overcome that today. giving up 400-point rally, that would say something going into a weekend but having said that, you know, it's, there is still a lot of question marks.

we thought maybe today jpmorgan would be the stock that would alleviate some of the anxiety and usher in this new era, this new period of earnings that would turn this well thing around. neil: they had good numbers but that night not be enough, right? >> it is not enough for them. you have to wonder. something of a harbinger of the broad economy although these banks have go then so complicated and do trading desks and different things, not always exact proxy. if we just close flat today, it would be a huge moral victory because obviously we're set up right now going into the last few hours of trading to be very vulnerable. neil: we will see how we do. look forward to next week, your fine show coming after mine. trish moving to 8:00 p.m., usual say something like great show, kneel. right, trish? we try to work on right? just trying to get up to speed on all this stuff. thank you very much.

charles, great seeing you. don't forget he had a busy week this week. i don't know how the guy remembers where he is. he is doing every show. trish: every time i look on tv i either see you or charles. you're like six days a week. neil: it is like where's waldo next year. trish, look forward next week, 8:00 p.m. my last handoff to you, young lady for now. trish: get me sentimental. the market has to close up, right? it is my last day here at 2:00. neil: it will. trish: fingers crossed. thanks, neil, breaking everyone, another wild day on wall street. we're looking at a dow up 95 points after being up 400 points at the open. dipped down into negative territory. we're now back up. it's a wild ride. a live report from the nyse. i'm trish regan. welcome to the final edition, dare i say, the final edition of "the intelligence report."